Doctors, Samuel I.; Wokrutch, Richard E.
March 1983
Public Administration Quarterly;Spring83, Vol. 7 Issue 1, p76
Academic Journal
This article argues that there is a need for more state and local government economic programs specifically aimed at enhancing the development of small business. Small business plays a key role in the development of technological innovation and could increase the productivity and efficiency of state and local government operations through the introduction of more modern technology. A number of important studies have shown that small business is the key element in invention, technological innovation, and the transfer of technology which, in turn, are keys to increased productivity and economic growth. Despite the benefits that result from a flourishing small business community and the corresponding advantages of assisting fledgling small businesses so that they can eventually provide these benefits, most state and local governments appear to be more concerned with attracting and retaining large corporations. A study of subsidies to industry in Pennsylvania concluded that subsidies to large companies were largely wasted while those to smaller firms were more effective in increasing employment in their respective communities. Since it is doubtful that financial assistance programs are effective in luring or retaining large corporations, local governments should concentrate on assisting in-state businesses and would-be entrepreneurs.


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