On the Continuing Popularity of Industrial Recruitment

Abstract

Classic arguments against industrial recruitment as a local economic development strategy are reviewed. These include zero-sum effect, long odds, overbidding, low multipliers, increased costs to businesses and residents, and industrial obsolescence. Potential reasons for industrial recruitment's continuing popularity are explored, including tradition, expected value, political payoff high discount rate, weak communities, diversification, broad applicability, appropriateness, perverse outcomes, potential success, and underestimated benefits. Methods for quantifying major reasons for the popularity of recruiting are outlined.