Listen Up Cities -- What Businesses Want

Cities increasingly are creating incentives to attract businesses to their area. In this competitive environment, cities are committing valuable resources to these efforts. But city officials do not know for certain what causes a business to move.

1 minute read

August 28, 2000, 9:00 AM PDT

By Chris Steins @planetizen


Three new reports address various aspects of the business location decisionmaking process. In the first, Business Location Decision-Making and the Cities: Bringing Companies Back, Natalie Cohen at the Brookings Institution draws on data directly from business decisionmakers to determine why businesses choose to locate in one place rather than another. A second new report, Cautionary Notes for Competitive Cities, assembles findings from a number of sources to look at the effectiveness of four strategies cities currently use to attract businesses and fuel economic growth. In this paper, Amy Ellen Schwartz and Ingrid Gould Ellen of New York University’s Wagner School warn cities thinking about investing in infrastructure, lowering taxes, stimulating high-tech enclaves, or promoting tourism to consider the drawbacks as well as the advantages.In the final report, Bidding for Business: The Efficacy of Local Economic Development Incentives in a Metropolitan Area, John E. Anderson and Robert W. Wassmer of the W.E. Upjohn Institute for Employment Research use regression analysis to look closely at one tool cities frequently rely on to compete for businesses. Their findings indicate that local fiscal incentives might not give cities the edge they are seeking.

Thanks to Chris Steins

Saturday, August 26, 2000 in HUD News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

The Seat of Government

Good Planning Under Bad Leadership

Planners must sometimes work under bad leadership. Here are suggestions for responsive planning in challenging political environments.

February 3, 2025 - Todd Litman

Amtrak train with downtown Seattle in background.

Amtrak Cascades Line Breaks Ridership Record

The route linking Portland, Seattle, and Vancouver, BC served nearly one million riders in 2024.

February 2, 2025 - Daily Hive

Close-up of Donald Shoup during interview.

Legendary Parking Guru Donald Shoup Dies at 86

Urbanists are mourning the loss of a dynamic voice for parking reform and walkable cities.

February 10, 2025 - StreetsBlog NYC

Vacant interior of open plan office with large buildings and stacked wood planks on floor.

Over 71K Office-to-Apartment Units in the Pipeline for 2025

Adaptive reuse projects are continuing to bring thousands of new housing units onto the market as demand for office space remains low.

4 hours ago - RentCafé

Crane and construction on multi-story buildings in downtown Houston, Texas.

How Houston Can Be a Model for Housing Reform

The city builds more new housing than almost any other and has dramatically reduced homelessness, yet low-income families struggle to find affordable housing.

5 hours ago - Urban Edge

Small rural USPS post office in manufactured one-story grey building with American flag in front.

Delivering for America Plan Will Downgrade Mail Service in at Least 49.5 Percent of Zip Codes

Republican and Democrat lawmakers criticize the plan for its disproportionate negative impact on rural communities.

6 hours ago - Cowboy State Daily