THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, September 13, 1995 TAG: 9509130433
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 66 lines
Miles Friedman speaks plainly.
The executive director of the National Association of State Development Agencies told business and community leaders Tuesday in Chesapeake that the lack of regional cooperation hurts economic development.
``You can't have regional cooperation if the primary concern is who gets the credit,'' said Friedman, who runs the Washington-based nonprofit organization that serves state economic development agencies. ``If for no other reason but for defensive and competitive reasons, you must be working together.''
It is a lesson that Hampton Roads residents hear countless times from visiting business or national leaders as well as from those within their communities.
State and local governments have been forced to play bigger roles in their economic futures due to the changing national landscape, Friedman said.
As the U.S. government has trimmed excess fat, federal agencies have abdicated more and more responsibility.
Although states, cities and counties are meeting this challenge, they mistakenly use the term ``economic development'' (which most people translate into ``jobs'') to describe the attraction of outside industries or relocation of companies to a particular area.
Hampton Roads, like other regions, must concentrate on existing businesses and companies for its primary source of new jobs and economic growth, he said.
``The real growth, the real strength, the real job opportunities, are in the existing industries,'' Friedman said before a Hampton Roads Chamber of Commerce luncheon.
Virginia has long advocated a ``minimalist approach'' to economic development, but the state and region must take a more aggressive and even interventionist stance.
Not only does it help to get ahead, but ``you'd better be competitive to keep the companies you have,'' he warned. Retention of existing industries is just as important as attracting new businesses.
Hampton Roads must decide what it wants to be and plan strategically to determine the most appropriate industries and companies.
That includes the use of incentives.
They should be tied to public policy goals, long-term investment for the region and companies' performance, instead of being purely cash giveaways, Friedman said.
For instance, cities that offer incentives can link them to job training and infrastructure investment because they will benefit the existing community.
Failure to plan will hurt the community later.
A scatter-shot approach will only result in traffic, pollution and a stressed infrastructure, a situation that exists in many urban centers, Friedman said.
Hampton Roads must also address its lack of image, too. It should remind outsiders continually of its strengths without feeling that it needs to give away the farm to gain recognition.
``You haven't been tried in the national press the way Alabama was for the Mercedes deal,'' he said, referring to the successful $253 million incentive package to attract a Mercedes-Benz sport utility plant to that state.
``You don't have an image of giveaways. (Incentives) have got to fit into a strategy.'' by CNB