Study: Libraries Key to Economic Growth

March 30, 2007

A new study released by the social-policy research organization the Urban Institute finds that public libraries build a community's capacity for economic activity and resiliency. Making Cities Stronger: Public Library Contributions to Local Economic Development details a shift in the role of public libraries from a passive, recreational reading and research institution to an active economic-development agent.

The report, available at www.urbanlibraries.org , identifies four areas in which local governments, agencies, and libraries are working together to benefit their communities: Early Literacy Services contribute to long-term economic success; library employment and career resources prepare workers with new technologies; small business resources and programs lower barriers to market entry; and public library buildings are catalysts for physical development.

LOCAL ECONOMIES TODAY are in rapid transition, moving from bases of manufacturing and service industries to information and idea industries. Accompanying this transformation are a number of radical changes in preferred work skills, business and service models, local-to-global networks, and definitions of what make places “attractive.” Given these changes, communities are reassessing their assets and development strategies in light of what is needed to succeed in the new and next economies. Strategies for building a strong economic base are being realigned. Human resource strategies are coming to the fore, as jobs created in the new economy require highly educated and technologically-skilled workers. Strategies to keep a vibrant base of small business, traditionally a major source of local job creation, intact and competitive in a very mobile and global entrepreneurial environment are also emerging.

Increasingly, physical development strategies are moving away from enticing outside firms with tax abatements and other incentives, to building on local strengths, mixing-up residential, commercial and cultural activities to create vibrant, high quality-of-life cities.

Public libraries are logical partners for local economic development initiatives that focus on people and quality of life. Libraries are widely available, highly regarded public institutions that provide a broad range of information services and support for diverse constituencies. In this era of economic transformation, the business of public libraries is being recast. Public access to digital information and technology is a draw for libraries. Their open structure, combined with the power of new digital collections, technology, and training, position them to help communities make the transition from manufacturing and service economies to high tech and information economies.

Public libraries build a community’s capacity for economic activity and resiliency. Many families and caregivers rely on the library to provide important preschool reading and learning. Many people entering the workforce rely on libraries to get them online. Local businesses are increasingly tapping into the library’s online databases to keep themselves competitive and to find synergistic new business opportunities. Library facilities often anchor downtown and commercial developments, and are attractive neighborhood amenities.

These are the essential findings uncovered by researchers from the Urban Institute, as they teamed up with the Urban Libraries Council, an association of large metropolitan public libraries, to investigate the impact of public libraries on local economic conditions. Making Cities Stronger: Public Library Contributions to Local Economic Development adds to a growing body of research that notes a shift in the role of public libraries – from passive, recreational reading and research institutions to active economic development agents. The study was commissioned by the Urban Libraries Council (ULC) and funded by the Bill & Melinda Gates Foundation and Geraldine R. Dodge Foundation.