Monthly Archives: September 2017

The Pre-Clustering of High Tech Centers in the US and China – Economic Development PR Discussed

It is quite common for cities and economic development associations to make a wish list of the types of companies they would like to bring into their city. Over the last couple decades it has been determined that clean industries are the kind of businesses that are the most desirable to recruit to set up shop in a city. And this is not just something that happens in the United States of America, it also happens in China. This is been going on for quite a while and in China they call this scheme; clustering.Some are called high-tech manufacturing clusters, or other such labels. In the United States we generally set up areas and zone them for high tech centers. Perhaps the largest high-tech center would be Silicon Valley, as the whole region became the high tech center of the world for almost a decade before it collapsed. Still, to this day it is known for its high-tech status even after the collapse as things rebounded and got back to normality, since the bubble burst.

(adsbygoogle = window.adsbygoogle || []).push({});
Having traveled to every single city in the US over 10,000 population, and having talked to over 500 economic development associations during my seven years of travel domestically, I noted how many cities have set up high-tech office parks, or telecommunication centers, or clean industry zoning. Indeed they got together with local universities and community colleges to train future employees and they set up recruiting teams to recruit new startup businesses, and large corporations into the hightech world to come and put in their facilities and set up shop.Of course, I was also very careful, because at the time I was running a franchising company and we cater to doing services for high-tech office centers, namely mobile car washing and detailing for the employees; thus, I would go and actually check out the hightech center to see what kind of companies where they are and how many cars were in the parking lots.What I had noticed was that many of the tech-centers had not been built yet, all the plans had been done at City Hall and they even had a model of the area, and complete zoning in their master plan all completed, but sometimes there were only one, two or even no companies that had come to set up shop yet.

(adsbygoogle = window.adsbygoogle || []).push({});
The companies that did set up shop, were the first ones and they had negotiated incredible deals such as a rebate on all sales tax revenue collected for the first five years, no interest loans for building the building, no developer fees, and the ability to set up shop in an Enterprise Zone, Federal Trade Zone, or some specially designated business friendly area.Beware of pre-clustering propaganda, and beware of economic development hype, no matter what nation you are in or what business you run. Please consider this.