INC.: To Drive Innovation, Cities Need to Look to Ecosystems Rather Than Incentives

ByDigital Curator Digital Society, Smart Cities

Traditional local governments have used subsidies and tax incentives to convince new companies to open a factory or office in their constituency. In this article on Inc. Greg Satell argues against this practice. To create a welcoming environment for new and often innovative companies the local ecosystem needs to be strengthen. An ecosystem of companies that are already there and other institutes like higher education and research firms.

How Should Cities Attract Businesses?

When Amazon announced it would pull out of its HQ2 project in Long Island City due to local opposition, many were shocked. How could local residents oppose a deal that would generate 25,000 jobs and $27 billion in tax revenues for a relatively meager $3 billion in tax breaks?

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