ED Now

With higher ed institutions feeling the strain from the COVID-19 pandemic, what will happen to the students and talent in colleges and universities that are on the brink of closure? Will we see larger institutions conducting mergers and acquisitions to avoid bankruptcy?

Earlier this month, Delaware Governor Jack Markell signed a bill approving $9.6 million in tax incentives for DuPont (Philly.com). The goal is to keep the highly profitable chemical giant from relocating and to encourage its future investment in the state. DuPont is in the midst of a $130 billion merger with Dow Chemical and has already laid off 1,700 employees (Delaware Online). The company has operated in Delaware since 1802. The bill also eliminates a “$5 million aggregate cap on research and development tax credits and makes the credits refundable.” In addition, it “restores a never-used new jobs tax credit and expands it to include jobs retained after a corporate restructuring” (Delaware State News). Local ...

The International Trade Administration estimates that foreign direct investment supports 12 million U.S. jobs (8.5 percent of the labor force). Though attracting FDI is an expensive, time-intensive endeavor, the benefits for state and local economies are many (Brookings). Wages at foreign-owned firms are 20 percent higher than at domestic companies. Foreign companies make up a disproportionate amount of corporate R&D (19 percent), even though their employment footprint is small overall. While a domestic merger or acquisition often is a signal of impending layoffs, a foreign M&A often leads to increased investment in the acquired asset, as the foreign company typically is seeking a foothold in a new market. On average, ...

No man is an island, and the same concept applies to communities and their business retention and expansion (BRE) efforts. Though BRE is built upon strong local networks, it pays to keep an eye on regional and global trends. Regional cooperation strengthens BRE by: Expanding your network of partners; Creating a stronger workforce, as laborsheds typically cross multiple boundaries; and Allowing a better picture of broader regional trends through data-sharing (JumpStart). Think globally, retain and expand locally: Global trends also impact BRE efforts (Brookings). After Columbus, Ohio’s regional EDO, Columbus 2020, realized its foreign-owned firms were too busy with day-to-day operations to fully explore global opportunities, it ...