Towards a 21st Century Pennsylvania Economic Development Strategy

Keystone Research Map: Look up where business subsidies are being invested in communities across the state.

OVERVIEW

The deep recession and high unemployment, coupled with the forthcoming gubernatorial transition, offer a chance for Pennsylvania to implement an updated strategic approach to stimulating economic growth. Two new reports from the Keystone Research Center (KRC) provide an overview and assessment of current programs in Pennsylvania that aim to create jobs and promote economic growth. These reports point to the need to strengthen disclosure, accountability, and targeting—to companies with good jobs in industries and places that make sense—when the state gives out subsidies to individual businesses to create jobs. KRC’s reports also point to the need to focus state economic development dollars on “growing Pennsylvania’s own” businesses and on investments that benefit multiple companies in key industry clusters, not just one company. Economic development investments that will deliver a high return on investment include traditional public goods (such as infrastructure and education) as well as “21^st century” public goods such as industry training partnerships, technology and innovation initiatives by industry groups, and broad-band infrastructure. KRC’s newest report shows that the targeting of Pennsylvania business subsidies to places that make sense has improved since 2003—strengthening disclosure and targeting provides an opportunity to build on success and lock-in smart growth for the future.