Economic Innovation

Economic Innovation

Metropolitan Chicago's long-term prosperity hinges on the ability of our region to compete in the face of future economic, fiscal, and market uncertainties. The region’s infrastructure and intellectual assets foster innovation, creating new products and services while making them faster, cheaper, and better. As new circumstances require creative solutions, economic innovation saves us time and money, enhances our quality of life, and improves our health and life expectancy.

ON TO 2050 and its predecessor GO TO 2040 emphasize economic innovation because of its major role in producing sustainable economic prosperity and enhancing our region's global competitiveness. To foster economic innovation will require improving government policies, measuring and tracking relevant data, fostering regional coordination, and providing services that can enhance innovation and support the region's industry specializations.

Reorienting State and Regional Economic Development

Beginning in 2014, CMAP has developed a series of studies to explore how other states and metropolitan regions have developed innovative strategies to reorient economic development practices. These examples are instructive for Illinois and metropolitan Chicago. The first report examines lessons learned for broad-based state policies, the implementation of regional collaboration and cluster support, and improvements to transparency and accountability. Based on this research, a second report examines policy and practices impacting economic development in northeastern Illinois. Drawing on prior case studies, the series explores how the State of Illinois and metropolitan Chicago are advancing efforts to improve current economic development practices.

Follow-up analysis in 2018 revisited these case studies to assess how economic development policies and practices have evolved over time. Two Policy Updates looked at the outcomes of policy changes in the State of New York and Pacific Northwest.

Reforming local development incentives

State and local governments spend or forgo significant tax revenues to spur and support development. ON TO 2050 calls on the State of Illinois and local governments across metropolitan Chicago to pursue performance-based approaches that help make the best use of limited resources and use data and stakeholder feedback to improve decision-making. In support of this plan recommendation, CMAP conducts analysis on local development incentives. In 2020, CMAP released a technical guide for local governments on reforming incentive use. Prior work on development incentives include policy updates on the recurring use of sales tax rebates and their effects across jurisdictional boundaries. CMAP also published a 2013 report analyzing how local governments use incentives to accomplish a variety of policy and planning objectives.  

 

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Economic Innovation

Metropolitan Chicago's long-term prosperity hinges on the ability of our region to compete in the face of future economic, fiscal, and market uncertainties. The region’s infrastructure and intellectual assets foster innovation, creating new products and services while making them faster, cheaper, and better. As new circumstances require creative solutions, economic innovation saves us time and money, enhances our quality of life, and improves our health and life expectancy.

ON TO 2050 and its predecessor GO TO 2040 emphasize economic innovation because of its major role in producing sustainable economic prosperity and enhancing our region's global competitiveness. To foster economic innovation will require improving government policies, measuring and tracking relevant data, fostering regional coordination, and providing services that can enhance innovation and support the region's industry specializations.

Reorienting State and Regional Economic Development

Beginning in 2014, CMAP has developed a series of studies to explore how other states and metropolitan regions have developed innovative strategies to reorient economic development practices. These examples are instructive for Illinois and metropolitan Chicago. The first report examines lessons learned for broad-based state policies, the implementation of regional collaboration and cluster support, and improvements to transparency and accountability. Based on this research, a second report examines policy and practices impacting economic development in northeastern Illinois. Drawing on prior case studies, the series explores how the State of Illinois and metropolitan Chicago are advancing efforts to improve current economic development practices.

Follow-up analysis in 2018 revisited these case studies to assess how economic development policies and practices have evolved over time. Two Policy Updates looked at the outcomes of policy changes in the State of New York and Pacific Northwest.

Reforming local development incentives

State and local governments spend or forgo significant tax revenues to spur and support development. ON TO 2050 calls on the State of Illinois and local governments across metropolitan Chicago to pursue performance-based approaches that help make the best use of limited resources and use data and stakeholder feedback to improve decision-making. In support of this plan recommendation, CMAP conducts analysis on local development incentives. In 2020, CMAP released a technical guide for local governments on reforming incentive use. Prior work on development incentives include policy updates on the recurring use of sales tax rebates and their effects across jurisdictional boundaries. CMAP also published a 2013 report analyzing how local governments use incentives to accomplish a variety of policy and planning objectives.  

 

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Incentives guide

Reorienting State and Regional Economic Development: Lessons Learned from National Examples

Reorienting State and Regional Economic Development: Challenges and Opportunities for Metropolitan Chicago

Examination of Local Economic Development Incentives in Northeastern Illinois