Sowing the Seeds for Growth: State Support for R&D in the South

Abstract

More than ever before, our economy relies on technology and innovation to remain globally competitive. In the past, both technology and the research and development that undergird it have been regarded as objects of federal policies and business investments. In the 1980s, however, states have entered the picture in force. Nowhere is that more apparent than in the South, which is now losing many of the low tech jobs once drawn South by low taxes and wages. Today, the southern states are completely rethinking their development policies, and the newest strategies are based heavily on research and development. The anticipated results are a continuing flow of ideas and innovations out of its R&D centers to achieve a more secure economic base and to provide a more favorable business climate for emerging industries. There are, however, risks to such investments, and as state economic development strategies, these investments clearly require patience and commitment and for maximum effectiveness, interstate cooperation from state legislatures.