TABLE 4-1 Large Recruitment Incentives
|Company||Year||Site||State||Incentive (Millions of Dollars)|
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
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
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.