Thursday, April 10, 2003
Governor Pawlenty in Minnesota wants to carve out a bunch of tax free zones, despite weak evidence that these things work.
Now business leaders are weighing in. Not all of them are impressed with the idea. Read on.
One technology executive puts the problem in a nutshell: "Anything that helps foster growth in Greater Minnesota is a good thing. But saying your competitive advantage is that you don't pay taxes, that's not something that draws high-paying jobs."
Tax free zones are a 1950's idea out of step with the demands of a global economy that runs on brainpower.
Here are some better approaches. Governor Rendell is building Innovation Zones anchored -- not by political decisions on tax free zones -- but by initiatives from the state's colleges and universities.
But what about rural areas? Well, that problem is tougher, but there are options that make sense. In a recent Rural Summit, Nebraska's Lt. Gov. Dave Heineman outlined how rural economic development must change to be competitive.
posted by Ed Morrison |
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Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Riding into the future in an Edsel
