ED Now

ED Now recently caught up with Don Iannone, former CUED and AEDC board member, who retired from economic development at the end of 2016 after four decades.

The Organisation for Economic Co-operation and Development’s recent webinar on the internationalization of smart specialization provided a clear link between innovation and internationalization, both crucial components of economic development. The presentations provided reports on systems already in place, as well as policy recommendations for the implementation of such systems elsewhere. In Europe, an ideal system promotes innovative economic transformation, with good governance as the most important factor. This system would offer traditional internationalization support, such as financial and investment support, counseling, and support for participating in international research projects. Done well, this will scale up innovation ...

Critics of tax incentives often point out the inconsistencies of their outcomes—some bring financial risk, do not fulfill promised economic development benefits, and do not have a positive impact on the communities they are intended to help. A shift towards economic recovery has led states to reevaluate their incentive programs to attract businesses and create new jobs in a post-pandemic world. To outline the pitfalls of certain incentive practices and suggest ways to combat common problems, the Pew Research Center produced a number of pieces on strategies to effectively use and monitor incentives.

States have made a lot of progress in measuring the effectiveness of their economic development incentives, but there’s plenty of room for improvement. That’s according to “How States Are Improving Tax Incentives for Jobs and Growth,” a national assessment of evaluation practices conducted by the Pew Charitable Trusts. By Pew’s standards, there are just 10 states that “excel” in measuring incentive impact. Those states are Florida, Indiana, Iowa, Maine, Maryland, Minnesota, Mississippi, Nebraska, Oklahoma, and Washington. What makes their programs stand out? These states all have three things in common: 1) well-designed plans for regular reviews, 2) experience in producing quality evaluations, and ...

What metrics are relevant to both sustainability offices and economic development? With funding from the Urban Sustainability Directors Network, IEDC reviewed the sustainability and economic development performance indicators used by 10 North American communities to identify common elements. These data can help governments demonstrate the impact of programs that promote the health of the business, social, natural, and built environments.

Economic development is not easily explained to the layperson, and perhaps no facet faces more public scrutiny and misunderstanding than tax incentives. And with new GASB reporting requirements going into effect this year, municipalities across the United States are discussing how to improve transparency. One community already doing a great job is Grand Rapids, Michigan (MiBiz). Last month, the city’s economic development department released an easily digestible report that quantifies the value of incentives (starting p. 23) it issued between 2010 and 2015. An infographic accompanying the report visualizes the money foregone through various abatements, plus the new tax revenue these programs returned. All told, Grand Rapids can show ...