Tuesday, July 08, 2008

Business Friendly PA?

Too much of a downer of late... Here is a fascinating story from New Jersey: Rendell poaching business from N.J. It's fascinating since Pennsylvania gets beaten up so much as a place uncompetitive in business attraction and formation for various reasons.. usually having to do with tax climate. The money quote in the article:

In 2006, Pennsylvania ranked first in the nation in cross-border investments, projects whose capital comes from outside a given state, according to an IBM analysis, the latest data available.

emphasis added.

first? I have to admit I don't have the current reference research by IBM so I can't comment too much. A summary of the previous years report is here and on page 25 you will see some interesting recent trends for Pennsylvania. If you had to pick the ultimate goal of economic development at the state level it would be to attract investment from other states.

Obligatory history reference. How long have Pennsylvania and New Jersey been fighting over new investment? years? decades? try centuries. It was Alexander Hamilton who located his Society For Useful Manufacturers in 18th century New Jersey aided by some ample tax breaks to the chagrin of Pennsylvania politicians who felt it was unfair. In many ways it is a battle we would still be fighting more than 2 centuries later.

but maybe the article is just a reflection of "always greener on the other side" mentality over in New Jersey?


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