Local politics, national policy, and the taxpayer-payback of manufacturing extension

Abstract

Expansion of the manufacturing extension system, and consequent diversification of center models and services, suggest the evaluation system may need to expand its focus to take into account diverse program features and outcomes and the need to use evaluation data in different state political economy contexts. In the Wisconsin environment detailed here, demonstrating hard “taxpayer-payback” and shaping the politician's view of manufacturing extension as an “investment,” rather than as an “expenditure” item, may be important requirements for future in-state manufacturing extension funding. This article attempts to demonstrate empirically the taxpayer-payback outcomes to manufacturing extension activities, using representative corporation financial balance sheet data, along with field-credible scenarios about simulated extension service impacts on the balance sheets, and actual program service costs and fee levels. The implications of the analysis are explored both for program evaluation and the broader economic and political justification of manufacturing extension at state and national levels.