The Regional Economic Research Institute established the Industry Diversification Project in Spring 2016 to gauge industry diversity (as opposed to concentration) in our region and state. Concerns about diversification are significant in a macro sense as more diversified economies are able to weather swings in the business cycle. This is especially true of the state of Florida, which tends to overheat during expansions and then overcorrect during recessions.
Industry diversification is significant from a micro sense as well, as diversified economies provide more choice to workers and are more likely to retain them, while expanding the array of choices available to consumers due to expanded channels of output. Both factors directly impact a region’s quality of life.
Besides providing a forum through which diversification trends can be studied, the IDP features the Industry Diversification Index, which measures industry diversification over time on the Metropolitan Statistical Area (MSA), workforce region, and state levels. It is updated quarterly. The index should be viewed as a tool to analyze the regional and state economy and the goal of sustainable economic growth in a dynamic economic environment.
Questions and comments may be sent to the Regional Economic Research Institute at firstname.lastname@example.org.