Tom Snyder: New tech + existing industry: NC must attract both to grow economy

While large tax incentives have traditionally attracted major companies, Tom Snyder, executive director at RIoT, emphasizes the importance of fostering entrepreneurship and supporting local startups to create sustainable, high-wage jobs and a resilient econom…
Zachery Lindgren · 3 days ago · 2 minutes read


North Carolina's Economic Development Evolution

Rediscovering the Power of Small Businesses

Despite past successes in recruiting large corporations, North Carolina's Economic Development Partnership (EDPNC) is shifting focus toward supporting local businesses.

Statistics show that small businesses account for over 44% of jobs in the state, emphasizing their importance to the economy.

Technology Based Economic Development (TBED)

EDPNC is collaborating with organizations like NC IDEA and First Flight Venture Center to foster TBED.

"Technology startups create high-wage jobs, which in turn circulate money through the economy, benefiting lower-wage sectors," said Krista Covey, CEO of First Flight Venture Center.

The New Tech Landscape

Investing in emerging technology industries is crucial for economic growth as new technologies often solve market problems that have never been addressed before.

However, it's not just about creating new jobs but also attracting and retaining corporate headquarters, as exemplified by Toyota's recent battery manufacturing plant in Randolph County.

The Zero-Sum Game of Traditional Economic Development

The big-game hunting style of economic development is often a zero-sum game, where incentives for one company can lead to closures and downsizing elsewhere.

Toyota, for example, has closed or downsized several factories globally while expanding its facilities in other locations.

The Need for State Support

While EDPNC's shift to TBED is commendable, more support is needed from the state.

Neighboring Virginia has established a non-profit to provide capital and support to tech startups and Entrepreneur Support Organizations (ESOs).

The Future of Economic Development in North Carolina

North Carolina must invest in entrepreneurial and tech communities to stay competitive.

"ESOs have an incredible force-multiplier effect," said Ron Markezich, Founder & Executive Director of RIoT. "With corporate taxes now 0%, we need to find other ways to support economic growth."

By nurturing small businesses, embracing TBED, and providing more state support, North Carolina can build a robust and diverse economy that fosters innovation and job creation for years to come.