2. Focus Re sources on High-Impact,
In-State Companies for Greatest Job
Growth & Business Creation Potential
With recent studies shedding new light on prior assumptions
about the source of job gains, we learn that a
state’s economic performance is driven by how successful
it is in building world-class businesses inside its borders,
not in importing businesses from elsewhere. Particularly
in mature economies, almost all job growth is organic,
due to the expansion of existing firms and the birth of
new firms. A 2010 study by the Public Policy Institute
of California, “Business Relocation and Homegrown Jobs,
1992-2006” found that job relocations at the state level
accounted for 1.9 percent of job gains.