A shift-share analysis, the leading method for measuring regional growth, and digital communication, the most critical communication method today, might have more in common than most people believe.
These two concepts are powerful on their own but together equip businesses and organizations with countless opportunities and possibilities.
From equipping companies with valuable data to allowing them to communicate the necessary information effectively, there are plenty of advantages of a shift-share analysis and the digital age of communication.
Keep reading if you’re ready to find out more about it!
About the digital age of communication
Communication has been a part of our lives since the dawn of time. However, how we communicate hasn’t always been the same.
Namely, our communication methods changed with our lifestyle choices and evolved into something bigger and better over time.
Digital communication is the latest method of communication and probably the most critical communication format today. The digital age has transformed how people communicate since it involves any communication that relies on technology.
Therefore, the digital age of communication started with the first phone calls, but it now includes emails, instant messaging, web chats, video conferencing, and much more.
The digital communication age isn’t over since new technologies are still bound to emerge and elevate digital communication methods to new levels we’re yet to learn more about and experience.
For example, data has been an essential part of how and what people communicate, so we can safely say a shift-share analysis undoubtedly plays a role in how companies and business executives interact.
About shift-share analysis
A shift-share analysis provides various details concerning competitiveness and employment growth within a particular industry and region.
Besides that, it can also calculate the national growth of industries and use the acquired information to compare the development within a specific region.
Ultimately, the primary idea behind a shift-share analysis is to determine whether a particular regional industry experiences faster or slower growth compared to the national economy.
For instance, it can show a particular region experiences more significant employment growth in a specific industry compared to the national level.
Because shift-share shows the regional growth of a selected industry, it’s based on four key components:
- Industrial mix effect;
- National growth effect;
- Expected change;
- Regional competitive effect.
Let’s check out these components in greater detail.
Industrial mix effect
The industrial mix effect is the number you get when calculating the amount of lost and added jobs when it comes to a selected industry in a specific region.
You can accomplish that by examining the national job decline or growth within a selected industry and using the information to calculate expected changes on a smaller scale.
If the number of jobs within a particular industry is on the rise globally, the same will likely happen on a regional level. Therefore, the industrial mix effect takes the national industry situation and applies the same properties and features to the desired region.
National growth effect
The national growth effect looks at the expected amount of jobs to come and go within a particular industry to secure precise calculations regarding the regional industry.
For instance, if the number of jobs in an industry is in decline on a national level, you can expect quite similar effects on a regional level. Similarly, the national job growth affects most regions as well.
Ultimately, you can use the national growth effect to find more information about the expected workforce situation on a more regional level.
When it comes to the expected change component, it focuses on calculating the probable changes most likely to occur within an industry.
For instance, let’s say you want to calculate the expected increase or decrease in jobs relating to a specific industry and region. You would need to combine the findings of the national growth and the industrial mix effects.
By combining the two, it’s easy to determine the expected change in a specific industry and region and, thus, end up with data that can tell companies everything about what they can expect in the future.
The competitive effect focuses on determining unique features of an industry that could’ve affected the changes within a region.
Other components mentioned above mainly focus on examining national economic trends and using the acquired data to analyze regional economic trends. That doesn’t always lead to the most accurate results because of numerous unique features that could affect only the region’s industry while not having any significant effects on a larger scale.
Competitive effect solves this issue by helping companies focus on specific features they can’t examine and calculate using components that rely on national industry trends.
The correlation between communication and shift-share analysis
Now, let’s go back to the ultimate question – how are shift-share analysis and the digital age of communication correlated?
Well, we have already mentioned that digital communication relies on technology. While that primarily means using the internet, smartphones, computers, and other modern tech tools to communicate, there are more ways of digital communication available at your disposal.
For instance, data from the shift-share analysis can be a powerful and valuable digital communication tool that helps companies and organizations worldwide communicate ideas effectively.
That being said, digital communication is moving further away from traditional communication methods and implementing innovative communication strategies that streamline this demanding and complex process.
So, the shift-share analysis can streamline digital communication and make it much smoother by providing all conversation participants with the necessary data on which to base their discussion.
All in all, it’s safe to say digital communication is reaching new heights as new technologies emerge. While traditional communication methods still exist, the digital age of communication has brought many changes to how we exchange information and will continue transforming it in the future.
Numerous unique digital communication techniques have appeared, with the shift-share analysis being one of them. By combining the features of digital communication and shift-share analysis, companies and businesses worldwide can experience a whole new version of exchanging information.