OPERATING COSTS

Efforts to reduce operating costs receive more attention than perhaps any other economic development strategy. They are increasingly popular, yet politically controversial. As a result, the effectiveness of incentive programs has captured the interest of many policymakers and researchers. There have been numerous efforts to measure the impact of incentive and business assistance programs on economic growth.

Studies that attempt to determine the efficacy of incentive programs face a difficult challenge in isolating the effect of incentives and developing appropriate methodologies. Evaluation of business assistance programs most often takes the form of individual case studies that assess the effectiveness of specific programs. While this complicates generalizing findings, it assembles valuable information about the experiences of various regions. This section concludes with an overview of important considerations in developing programs that target cost reduction for firms.

see corresponding section in Strategies & Tools