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[Federal Register Volume 78, Number 25 (Wednesday, February 6, 2013)]
[Notices]
[Pages 8488-8490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02606]

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Notices
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains documents other than rules 
or proposed rules that are applicable to the public. Notices of hearings 
and investigations, committee meetings, agency decisions and rulings, 
delegations of authority, filing of petitions and applications and agency 
statements of organization and functions are examples of documents 
appearing in this section.

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Federal Register / Vol. 78, No. 25 / Wednesday, February 6, 2013 / 
Notices

[[Page 8488]]

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.

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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 
(also known as National Survey of Business Competitiveness).

DATES: Written comments on this notice must be received on or before 
April 8, 2013 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, 1400 Independence Ave. SW., Mail Stop 1800, 
Room 6-135B, Washington, DC 20250-0002. Comments may also be submitted 
via fax to the attention of Tim Wojan at 202-694-5756 or via email to 
twojan@ers.usda.gov.
    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 5:00 p.m., Monday through Friday) at 355 E St. SW., Room 
6-135B, Washington, DC 20024-3221.
    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 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 mailing address in the preamble. Tel. 202-694-5419.

SUPPLEMENTARY INFORMATION: Title: Rural Establishment Innovation Survey 
(aka National Survey of Business Competitiveness)
    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

[[Page 8489]]

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, email 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.
     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 33.5 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 the burden 
for attempted interviews or contacts with those either ineligible or 
choosing not to participate will average 18.7 minutes per business.
    Full Study: The initial sample size for the full study is 30,000 
businesses. 17,040 businesses are expected to be eligible for and 
complete the study. The total estimated response burden for them is 
9,521 hours (17,040 respondents x 33.5 minutes) and for those either 
ineligible or non-responding business is 4,040 hours (12,960 
respondents x 18.7 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. 2,272 
businesses are expected to be eligible for and complete the study. The 
total estimated response burden for them is 1,269 hours (2,272 
respondents x 33.5 minutes). Non-responding or ineligible businesses 
will experience 539 hours of burden (1,728 respondents x 18.7 minutes). 
Total respondent burden is estimated at 15,369 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.

[[Page 8490]]

                                          Estimated Respondent Burden for Rural Establishment Innovation Survey
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Responses                           Non-response or ineligible
                                   Sample           ------------------------------------------------------------------------------------------   Total
             Survey                 size      Freq    Response  Frequency x   Minute/     Burden    Response  Frequency x   Minute/    Burden    burden
                                                       count       count      response    hours      count       count      response   hours     hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pilot Study....................      4,000        1      2,272        2,272       33.5      1,269      1,728        1,728       18.7      539      1,808
Full Study.....................     30,000        1     17,040       17,040       33.5      9,521     12,960       12,960       18.7    4,040     13,561
                                ------------------------------------------------------------------------------------------------------------------------
    Total......................      34000  .......  .........  ...........  .........     13,600  .........  ...........  .........    1,700     15,369
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    Dated: January 25, 2013.
Mary Bohman,
Administrator, Economic Research Service.
[FR Doc. 2013-02606 Filed 2-5-13; 8:45 am]
BILLING CODE 3410-18-P
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