Sep 22, 2022
In addition to federal incentive programs, state and local governments are active in providing incentives, usually through tax credits. These incentive programs are motivated by different objectives than those at the federal level; state and local governments typically seek to boost jobs and local economic development in their area. Competition between states and local governments may not lead to any positive net benefit for a national industrial policy effort if the incentives impact only the location of particular facilities and not the overall productive capacity of the country. However, state and local institutions can play a critical matchmaking role to ensure that industry investments are paired with local talent pools and supporting institutions, such as local universities. For example, the state of Ohio benefits from organizations such as JobsOhio, the Ohio Manufacturers’ Association, and Parallax Research, which are state-level organizations that tap into and deepen the linkages between academia, industry, and the Ohio state government.