TABLE 4-1 Large Recruitment Incentives

Company Year Site State Incentive (Millions of Dollars)
Boeing 2003 Everett WA 1,984
AMD 2006 Malta NY 1,118
ThyssenKrupp 2007 Mt. Vernon AL 734
Scripps 2003 Palm Beach FL 567
IBM 2000 East Fishkill NY 533
Volkswagen 2008 Chattanooga TN 450
Kia 2006 West Point GA 353
Toyota 2006 Blue Springs MS 292
Nissan 2000 Canton MS 290
Sematech 2007 Albany NY 269
Dell 2004 Winston-Salem NC 242
Hyundai 2002 Montgomery AL 234
Ford 2006 Detroit MI 220
Toyota 2003 San Antonio TX 218

manufacturing base, and in recruiting out-of-state firms with knowledge-based incentives rather than (or in addition to) traditional fiscal and infrastructure incentives.3

FROM INDUSTRIAL RECRUITMENT
TO SCIENCE-BASED DEVELOPMENT

Industrial Recruitment

The modern practice of systematic promotion of local industry began in the first decades of the Twentieth Century, when southern states sought to attract companies by offering tax incentives, capital, and subsidized plant and industrial sites4. The practice of industrial recruitment eventually spread to the rest of the country and evolved from “smaller deals with manageable incentive amounts in the 1950s and 1960s to fiercely competitive megadeals involving hundreds of

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3For a review of the growth and scope of contemporary innovation-based economic development policies by U.S. cities, regions and states, see David B. Audretsch and Mary L. Walshok, Creating Competitiveness, Entrepreneurship and Innovation Policies for Growth, Northampton, MA: Edward Elgar, 2013.

4In 1971, the New Jersey legislature incorporated Alexander Hamilton’s private firm, the Society for Establishing Useful Manufactures, to promote industrial development. The society received a state tax exemption, control over much of the water supply of northern New Jersey and the power to condemn property for its own use. Eisinger, The Rise of the Entrepreneurial State: State and Local Economic Development Policy in the United States, op. cit., p. 15.



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