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Finally,states need to foster cooperation between local jurisdictions to ensure mutualgains from growth, not play a zero-sum game of wasting development dollarsluring businesses to move a few miles. Good Jobs First in a series of reports, most recently on Minnesota and Michigan, hashighlighted how funds are wasted as development dollars from wealthier suburbsare directed towards raiding jobs from urban centers rather than creating newjobs.  

Anumber of efforts have been launched to encourage more cooperation in regionalgrowth strategies. 

  • In Northeast Ohio, the Fund for Our Economic Future was created by more than 100 foundations, organizations and individuals to work with state and local governments to overcome fragmented economic development in favor of more shared strategies for growth.
  • With $250,000 in federal grant help, the Golden Capital Network will establish eight regional networks of "angel investors" to support startups. "A lot of economic development activity is city versus city, or it is county versus county. This is a better approach," said Sandy Baruah, U.S. assistant secretary of commerce, as he awarded the grant. 
  • After bouts of destructive regional revenue loss as municipalities competed in business tax giveaways, Arizona in 2007 enacted HB 2515 to stop towns in Maricopa and Pinal counties from offering tax subsidies to move jobs around from other locations within the region.

Resources:
GoodJobs First - The Thin Cities: How SubsidizedJob Piracy Deepens Inequality in the Twin Cities Metro Area andThe Geography of Incentives:Economic Development and Land Use in Michigan
ProgressiveStates Network - ReformingFailed Tax Subsidies