There are more than 15,000 local economic development programs in the United States. Although some may think it reduces the unemployment drastically it only decreases it minimally and usually runs under the radar of politics. A major issue is tax relief, local government relies on taxes for public school funding while many are against increases they still expect many services. The reading mentions the Virginia Tech Corporate Research Center, this center is located a mile away from the center of the university’s campus and it is key to have a strong engineering and science program. The benefit of having multiple firms neighboring each other and using the same facilities is that it creates an area where people can exchange ideas and information to help benefit each other. Also, this book doesn’t really talk about inter municipal competition but if a park in one town was improved to be nicer than a park in a neighboring town the parks wouldn’t be in competition but it would just encourage the update or growth of the older park.
The relationship between planners and economic developers is very similar which includes public investment in infrastructure, land-use controls, environmental regulations, and anything else that affects the what and where of industrial and commercial development. The difference between the two is that a developer will only exercise these goals where a planner will encourage the expansion of firms and promote more firms even if there are already firms in a community. Usually their relationship being happy is a bonus sometimes it may not be. Furthermore, many economic developers prior job was urban planner.
To promote expansion in certain communities economic growth is promoted by something call the Enterprise Zone. The Enterprise Zone is an area where there are tax breaks given and possibly certain land use regulations are waived as an incentive to move business there. Another incentive is subsidizing, these are reasons for firms to relocate or build to save money and expand easily. This was of great interest to me as I have never heard of this and am extremely interested on why certain firms or areas are more densely populated with firms than others.