[Federal Register Volume 76, Number 120 (Wednesday, June 22, 2011)]
[Notices]
[Pages 36513-36515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15474]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Economic Research Service


Notice of Intent to Request New Information Collection

AGENCY: Economic Research Service, USDA.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this 
notice invites the general public and other public agencies to send 
comments regarding any aspect of this proposed information collection. 
This is a new collection for the Rural Establishment Innovation Survey.

DATES: Written comments on this notice must be received on or before 
August 22, 2011 to be assured of consideration.

ADDRESSES: Address all comments concerning this notice to Tim Wojan, 
Resource and Rural Economics Division, Economic Research Service, U.S. 
Department of Agriculture, 1800 M St., NW., Room N4110, Washington, DC 
20036-5801. Comments may also be submitted via fax to the attention of 
Tim Wojan at 202-694-5756 or via e-mail to [email protected]. 
Comments will also be accepted through the Federal eRulemaking Portal. 
Go to http://www.regulations.gov, and follow the online instructions 
for submitting comments electronically.
    All written comments will be open for public inspection at the 
office of the Economic Research Service during regular business hours 
(8:30 a.m. to 5 p.m., Monday through Friday) at 1800 M St., NW., Room 
N4110, Washington, DC 20036-5801.
    All responses to this notice will be summarized and included in the 
request for Office of Management and Budget approval. All comments and 
replies will be a matter of public record. Comments are invited on: (a) 
Whether the proposed collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the proposed collection of 
information, including the validity of the methodology and assumptions 
used; (c) ways to enhance the quality, utility, and

[[Page 36514]]

clarity of the information to be collected; and (d) ways to minimize 
the burden of the collection of information on those who are to 
respond, including use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.

FOR FURTHER INFORMATION CONTACT: For further information contact Tim 
Wojan at the address in the preamble. Tel. 202-694-5419.

SUPPLEMENTARY INFORMATION: 
    Title: Rural Establishment Innovation Survey.
    OMB Number: 0536-XXXX.
    Expiration Date: Three years from the date of approval.
    Type of Request: New collection.
    Abstract: This survey of business establishments, funded through 
USDA's Rural Development Mission Area, will be conducted over a 6-month 
period with up to 30,000 respondents to collect information on rural 
tradable business sectors such as manufacturing and professional 
services. This information will contribute to a better understanding of 
how rural businesses and their communities are dealing with the 
increasing competitive pressures and opportunities associated with the 
spread of new information technologies through our economy and the 
business and community characteristics associated with effective 
response to these pressures and opportunities. This information is 
critical to the Rural Development Mission Area's aim of creating jobs, 
developing new markets and increasing competitiveness for rural 
businesses and communities.
    The information to be collected by the Rural Establishment 
Innovation Survey is necessary to understand: (1) The adoption of 
innovative practices and their contribution to firm productivity; (2) 
the availability and use of local and regional assets (such as 
workforce education, local financial institutions, strong local 
business and other economic associations, and transportation 
infrastructure) and the association of these assets with successful 
adjustment; and (3) the extent and importance of participation in 
Federal, State and local programs designed to promote rural business 
vitality and growth. This need is made more urgent by increased 
international competition in goods and some service markets, 
particularly from low labor cost countries. The traditional cost 
advantage of domestic rural establishments has been significantly 
eroded by these developments, requiring emphasis on new products, new 
processes, new marketing channels and improved customer service. A 
thorough understanding of the viability of the rural business sector 
requires collecting information on the capability for innovation.
    As the first collection of information devoted specifically to 
innovation in rural business establishments, the proposed survey will 
complement other Federal efforts in gauging innovative activity in the 
private sector. Information on formal research and development (R&D) 
activities is collected by the National Science Foundation using the 
Business R&D and Innovation Survey. While some of this formal research 
and development activity takes place in nonmetropolitan counties, it is 
anticipated that the great majority of rural innovation occurs less 
through the creation of new patentable products than through the 
adoption of new practices and niche marketing. The emphasis of the 
proposed collection will be on understanding the process of innovation 
in business establishments as opposed to measuring R&D inputs.
    Another difference between this and other Federal surveys on 
innovative activity will be the focus on constraints to innovation 
stemming from nonmetropolitan locations. Information on the 
availability of skilled workers and the ability to recruit managers and 
professionals will inform possible human capital impediments to 
innovation. Information on access to credit needed for business 
formation and development will allow for assessing financing 
impediments to innovation. Information on the availability of broadband 
Internet service and how this capability affects business strategy will 
allow assessing infrastructure impediments to innovation. Information 
on interaction with suppliers, customers, competitors, business 
associations and other local institutions providing real services to 
the establishment will inform the importance of regional clusters to 
innovation.
    The survey will collect data from about 30,000 business 
establishments in tradable sectors that will include mining, 
manufacturing, wholesale trade, transportation and warehousing, 
information, finance and insurance, professional/scientific/technical 
services, arts, and management of businesses. Only businesses with 5 or 
more employees will be included in the sample. While the focus of the 
survey will be on establishments in nonmetropolitan counties, 
establishments from metropolitan counties will be sampled in adequate 
numbers to allow comparative analysis. Businesses will be selected at 
random from strata defined by establishment size categories, industry 
and metropolitan or nonmetropolitan status of the county. The sample 
will be selected from the business establishment list maintained by 
state employment security departments where state approval is granted, 
and from a proprietary business establishment list frame for those 
states where approval is not granted. The much more comprehensive 
coverage of new and small establishments available in state 
administrative data provides a compelling argument for this hybrid 
sample frame approach, as these establishments are critical to 
examining processes of entrepreneurship and innovation.
    The interview protocol will include a screening interview to 
identify the most knowledgeable person in the establishment to respond 
to questions regarding innovative activities of the entity. Screening 
greatly improves the quality and effectiveness of the contact 
information. The most appropriate phone number, e-mail address and 
mailing address will be collected at this time to allow efficient 
distribution of a multi-modal survey instrument to the most appropriate 
respondent for the business. Respondents will have the flexibility to 
respond to a Web questionnaire, a mail questionnaire, or a telephone 
survey based on their personal preference. This protocol will reduce 
respondent burden by using the survey mode which is most efficient for 
a given respondent. Past research has demonstrated that multi-modal 
surveys also increase survey response rates. A limited number of 
control surveys will be used to assess any mode bias.
    Social exchange theory will also be invoked as this is seen as 
integral to the tailored design methodology (Dillman et al., 2009) that 
will be employed in this study to increase response rate. In addition 
to offering mixed survey modes, the design will integrate multiple and 
mutually supportive ways to appeal to the diversity of respondents in 
this business population. The following are some examples of these 
design elements:
     The survey request will be distinguishable from other 
surveys and will emphasize how the information will be used and 
describe the benefits back to the population for responding to the 
survey.
     Survey appeals in contacts will show positive regard and 
call on the norms of social responsibility by asking for respondents' 
help and advice as some respondents feel rewarded when they know they 
have helped others.

[[Page 36515]]

     Survey contacts will be personally addressed, toll free 
numbers will be provided for answering questions and providing help. 
Confidentiality of responses will be ensured and respondents will know 
how to contact the surveyor if they have questions on security or other 
issues.
     All contacts will be personalized and will emphasize why 
the study is important and express appreciation for respondents' help. 
They will be formally thanked for promptly completing questionnaires.
     Small tangible token rewards provided in advance and at 
the time of the survey request will be further tested with small 
businesses to encourage response. Previous survey research has shown 
that small cash token incentives provided with the survey significantly 
increase response rates and do much better than promised rewards or 
nonmonetary rewards.
    A key component of tailored survey design is considering and 
balancing how features of questions, questionnaires, mailings, 
interviewing, and the context of the survey will influence trust, cost, 
and rewards associated with the survey circumstances and respondents.
    All study instruments will be kept as simple and respondent-
friendly as possible. Responses are voluntary and confidential. 
Responses will be used to produce statistics and for no other purpose. 
Data files from the survey will not be released to the public.
    Affected Public: Respondents include business establishments with 
at least 5 employees in both nonmetropolitan and metropolitan counties.
    Estimated Number of Respondents: The survey is cross-sectional and 
will be completed at one point in time. The survey will have a complex 
mixed survey administration to include telephone screening, pre-
notification letter with Web access, multi-contact telephone 
interviewing, follow-up nonrespondent mail questionnaires, and 
simultaneous Web questionnaires offered during all contacts. Completion 
time for each questionnaire, based on comparisons with similar mixed 
modes is estimated at 30 minutes per completion, including time for 
reading correspondence, returning an eligibility postcard or responding 
to a screening call, reviewing instructions, gathering data needed, and 
responding to questionnaire items. It is also expected that those 
choosing not to participate will require 10 minutes to review the 
materials and decide not to participate.
    Full Study: The initial sample size for the full study is 30,000 
businesses. The expected overall response rate is 80 percent for firms 
in the main study. The total estimated response burden for all of those 
participating in the study is 12,000 hours (30,000 respondents x 80 
percent response rate x 0.50 hours) and for the non-responding business 
is 1,000 hours (6000 respondents x 10 minutes).
    Pilot Study: A pilot test of the survey will be done in advance of 
the full study survey. The purpose of the pilot is to evaluate the 
survey protocol, and test instruments and questionnaires. The initial 
sample size for this phase of the research is 4,000 businesses. The 
expected response rate is 80% of firms. The total estimated response 
burden for the pilot testing is 1,600 hours (4,000 respondents x 80 
percent x 0.5 hours). Non-responding businesses will experience 133 
hours of burden (800 respondents x 10 minutes). Total respondent burden 
is estimated at 14,733 hours (see table below).
    Testing will be limited to a maximum of 9 businesses which will be 
consulted on the questionnaire and asked to complete the questionnaire 
in a cognitive interview test.

                                          Estimated Respondent Burden for Rural Establishment Innovation Survey
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Responses                                 Non-Response
                                   Sample             ----------------------------------------------------------------------------------------   Total
             Survey                 Size       Freq      Resp.     Freq. x     Min./      Burden    Nonresp    Freq. x     Min./      Burden     burden
                                                         Count      Count      Resp.      Hours      Count      Count      Nonr.      Hours      hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pilot Study....................      4,000          1      3,200      3,200         30      1,600        800        800         10        133      1,733
Pilot Study....................     30,000          1     24,000     24,000         30     12,000      6,000      6,000         10      1,000     13,000
                                ------------------------------------------------------------------------------------------------------------------------
    Total......................     34,000  .........  .........  .........  .........     13,600  .........  .........  .........      1,133     14,733
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Dated: May 9, 2011.
Katherine R. Smith,
Administrator, Economic Research Service.
[FR Doc. 2011-15474 Filed 6-21-11; 8:45 am]
BILLING CODE 3410-18-P