A recent Wall Street Journal article is reporting on the increasing number of cities sweetening the incentives for high-tech companies to move operations to places like Kalamazoo MI, or Toledo OH. Diversifying the kinds of industries these cities rely on and investing in the future are shrewd goals that will serve to bolster their local economies. Since VC and traditional bank funding have become extremely tight in these times, cities are taking an aggressive approach and capitalizing on the strong demand for investment in innovative technology companies. These cities are using financial incentives such as tax breaks, direct funding, grants, and relocation assistance in their arsenal.
Local investment firms are also working in conjunction with cities to offer attractive and aggressive packages to prospective firms with viable business plans and lure them away from traditional hot beds such as Silicon Valley.
Conventional wisdom that pushed companies to locate themselves within close physical proximity of like-minded corporations is no longer a hard and fast rule. The high cost of living, and unbearable commutes in the typical high-tech hot spots may be reason enough for startups or small tech companies to take these cities up on their offer.
This is a great example of communities creating opportunities locally through creative partnerships, even in one of the worst economies since the 1930s. Despite a sharp downturn, there are still opportunities for tech companies to flourish and evolve, creating products and service that will push us into a brighter information age.
Danny Kim
0 comments:
Post a Comment