Attachment H - 60-day FRN

ATTACHMENT H

60-DAY FEDERAL REGISTER NOTICE

Federal Register, Volume 78 Issue 25 (Wednesday, February 6, 2013)

[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
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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.
----------------------------------------------------------------------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
[email protected].
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)

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Federal Register, Volume 78 Issue 25 (Wednesday, February 6, 2013)

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.

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Federal Register, Volume 78 Issue 25 (Wednesday, February 6, 2013)

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 respondentfriendly 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, prenotification 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).

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Federal Register, Volume 78 Issue 25 (Wednesday, February 6, 2013)

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