Job Creation on a Budget: Regional Cluster Strategies

As a new class of governors mulls how to reignite job creation, it’s safe to bet that too many of them will go in for firm "recruitment." Eager to deliver results fast, these well-intentioned executives will seek to out-compete rival states in an expensive race to poach companies and jobs from elsewhere. Their hope: secure some splashy ribbon cuttings and early announcements of job-creation.

And yet, smart governors may want to spare themselves the expense. As it happens, growing jobs "organically" from among existing businesses and local entrepreneurship is by far a surer bet for lasting job creation than firm "chasing," and, what is more, state "cluster" strategies furnish a powerful, cost-effective framework for action. Wise governors should take a look.

Mark Muro, Senior Fellow and Policy Director, Metropolitan Policy Program

Full Story: http://www.brookings.edu/opinions/2011/0125_regional_clusters_muro.aspx