Overview

Inan increasingly global economy, states struggle to decide which policieswill encourage the growth of high-value local jobs and high-technologyindustries that can compete on the international playing field. Too often,state economic policy reduces to desperate biddingby states to offer tax subsidies to businesses that will relocate to theirstate, a failing strategy that usually accomplishes little other than drainingstate budgets.

Investingin 21^st century broadband infrastructure is a far better use ofpublic funds. States cancapitalize on infrastructure build-out through local investments that nurtureexisting firms and local industry startups that, with the right support, canbecome the anchors of long-term economic growth. Technology transfers from localuniversities and community investments can tie together industrial"clusters" of firms that, in turn, can encourage the kind oflong-term, high-value jobs needed in our communities to compete in the globaleconomy. Further, by directing some of those investments to the“domestic emerging markets” of low-income communities and better coordinatingoverall economic development, states can assure that technology investmentsdeliver economic prosperity for everyone.

Core Policies for LocalInvestments for Technology-Based Growth

• Invest State Funds in Firm Startups
• Deepen Industrial Clusters
• Encourage Technology Transfer from Universities
• Invest in "Domestic Emerging Markets"
• Strengthen Regional Cooperation

Resources:
Progressive States Network - EconomicStrategies for Nurturing Innovation and Job Growth
CFED - 2007 Development ReportCard For The States
Statesand Local Investments - Community-Wealth.org
National Association of Seed and Venture Funds
SteveDubb & Gar Alperovitz - BuildingWealth: The New Asset-Based Approach to Solving Social and Economic Problems(Democracy Collaborative & Aspen Institute)