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Top Trends in State Economic Development

Report from the National Governors Association on what states have focused on in economic development in the past two years.

"Traditionally, state economic development agencies have focused on attracting investments by larger firms and often competed with one another in offering incentive packages for such investments. Many state agencies and leaders still see attracting companies from beyond their state’s border to be the top priority, even though only 2 percent of annual job gains across states can be attributed to business relocations.

Recently, however, as studies have shown that the majority of job creation in any given year comes from very small firms (those with fewer than 20 employees) and newly formed firms (established within the past five years), some states are shifting some of their attention to focus on startup and continual growth companies within their own borders."