CHAPTER 17 Peter V. SchaefferIndustrial attraction is the form of economic development that receives the most
attention in the popular press. When a new firm enters a community, the
addition to the number of jobs is evident in a way rarely experienced when
existing firms expand by adding a few jobs. Maybe it is because the results are
so visible that industrial attraction seems to enjoy strong public support. It is
both the most widely used and the most controversial economic development
Loveridge 1996).The case studies in this section illustrate both the promise and problems
associated with industrial attraction. Some of the cases reflect support for the
strategy, while others are skeptical about its results. To some extent, the
outcomes associated with industrial attraction depend on the approach used. We
distinguish between three different approaches to industrial recruitment (for a
different classification, see Isserman 1994)
|1. ||Setf-improvement. Examples of this strategy include infrastructure
investments ("build it and they will come"), site preparation, and labor force
|2. ||Industrial recruitment. Self-improvement is a passive approach that relies
on firms to make a choice. Industrial recruitment includes the pursuit of
firms, often with the promise of financial incentives if they locate in the
|3. ||Creating a favorable business climate. This approach is more effective
when used by state rather than local governments. State governments can|
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Small Town and Rural Economic Development:A Case Studies Approach.
Contributors: Peter V. Schaeffer - Editor, Scott Loveridge - Editor.
Publisher: Praeger Publishers.
Place of publication: Westport, CT.
Publication year: 2000.
Page number: 135.
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