Last fall the head of economic development in Mitchell, South Dakota admitted to me that most of his peers were still “chasing semis down the Interstate.” Semis meant somebody somewhere was making something that had to be shipped, and those were the kinds of jobs that city officials wanted. But in some towns there is a growing recognition that talent can sometimes do more than tax incentives to bring income to a community. In Western Michigan, for example, economic development folks working through an organization called the West Michigan Strategic Alliance are hoping to keep and attract talented people. They want to make sure their communities are “telecommuter friendly.” They are looking at innovative ways to support home-based entrepreneurs, including setting up “third places,” where these entrpreneurs can meet or teleconference with clients far away. The group in Michigan recently received a $15 million grant from the Michigan Department of Labor to help them help displaced workers transition to the knowledge economy and to attract knowledge workers to their community. The approach reflects a growing emphasis on the importance of human capital to economic growth and prosperity.
