A RECENTLY RELEASED REPORT FINDS THAT BUSINESSES CONTINUE TO RELOCATE TO MORE BUSINESS-FRIENDLY STATES BUT OFFERS RECOMMENDATIONS TO HELP CALIFORNIA STEM THE TIDE
The report "California’s Competitiveness: A Regional Approach" was undertaken by leading researchers from some of the state's finest colleges and leading economists and examined the issue from a Southern California perspective.
June 5, 2023 10:00 am
by L.A. Area Chamber
of businesses to states with more business-friendly environments,” said Manfred Keil, Chief Economist, Inland Empire Economic Partnership (IEEP). “We wanted to take a deeper dive to examine how California could curtail businesses leaving the state and arrived at several recommendations, including the state must take a regional approach and perspective to economic development if it is serious about keeping California-based businesses.”
The report noted that other states are catching up to California partly because their regions more closely resemble California regarding industry composition, workforce opportunities, and amenities. Given the acceleration in business and population migration over the past decade, it appears the gap between California and its closest competitor states has narrowed significantly since the Great Recession.
The report also found that to understand California’s competitiveness, the state must take a regional approach and perspective to economic development. Economically, there is no “one- size-fits-all” policy for the different regions within the state. Each region and its key industry clusters must compete with, and fend off, competition from other regions. Economic policy must be tailored to meet each region’s needs to be effective.
This study has also gone to great lengths to separate perceptions from realities. The more perceptions are anchored in data and reality and reflect the complexities of California and its regions, the more likely the state can compete effectively with other states in the coming years.
“Policymakers across all levels of government need to commit to an economic plan which serves the various regions of California,” Maria S. Salinas continued. “Without it, we will continue to see further business erosion and investment outside California.”
California’s Competitiveness: A Regional Approach can be viewed here.