Can Regional Cooperation Work in Economic Development?

Lately, economic development incentives has been a very buzzworthy topic. The New York Times is currently running a series based on its investigation into "How Taxpayers Bankroll Business." http://www.matr.net/article-53035.html The reason for this newfound focus? As always, it usually comes down to following the money. And since money is tight (on both the state and local levels), taxpayers are paying extra attention to where their money is being spent.

Unfortunately, in many cases, the funds used for economic attraction are deployed unproductively. On the local level, this can mean neighboring communities using incentives to induce companies to pull up their stakes and locate only a few miles away to the detriment of the home jurisdiction. On the state level, cities that lie directly on the border between two states can fight perpetual border wars over firms and the jobs they provide.

Competition is usually a good thing, but is this unscrupulous variety worth it, especially when tax incentives are often relatively low on a firm’s list of location priorities?

by Brett Common

Full Story: http://citiesspeak.org/2012/12/07/can-regional-cooperation-work-in-economic-development/

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In relentless war to attract jobs, are we a nation and state of incentives gone wild? http://www.matr.net/article-53153.html

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Regional Cooperation Agreements in Economic Development

By: Brett Common

Competition between countries, states, and cities for talent, jobs, and businesses can be a very healthy activity. It incentivizes governments to formulate policies that promote economic growth and improve local assets such as workforce development programs, quality of life enhancements, infrastructure investments, and efficient regulatory and tax structures.

Full Story: http://www.nlc.org/find-city-solutions/center-for-research-and-innovation/economic-development/economic-development-leadership/regional-cooperation-agreements-in-economic-development