Free Talent Zones—Using Talent to Drive Economic Development

All of this public interest in talent could have another intriguing side effect on economic stimulus programs. Nations and communities alike work hard to “sell” their locales to businesses. This phenomenon creates a chicken-or-the-egg question. Should state and local leaders follow the traditional path, working to lure businesses to their area and then counting on talent to show up? Or would it be more cost-effective, especially in smaller communities, to create incentives that lure talent to the region first, and then use that new community asset to attract businesses? Tackling economic incentives from the talent perspective might allow smaller communities to pull together existing people and resources and become more competitive in the hunt to attract business and jobs. And in the global economy, those jobs can come from just about anywhere.

Switzerland, long known for its creative tax-planning provisions, has made itself and some of its cantons (municipalities) attractive for multinational companies, some of whom have moved their European headquarters there. By providing the lowest corporate tax rates, Switzerland has brought thousands of new jobs into the country; many are filled by expatriates who bring in new currency for upgraded schools, new housing, and other beneficial projects. These companies provide new work and new jobs for the locals and add to the country's talent base, many who might never leave.