Arizona Business Magazine


Special Inserts:	Greater phoenix economic council \| east valley partnership



		Statewide Economic Teamwork	By Kerry Duff
		Economic development officials boost international efforts

		A consortium of economic development practitioners from across Arizona recently came together and formed the Arizona Global Network (AGN), a joint venture designed to attract foreign direct investment in Arizona. The program will also bring new, higher wage jobs into the state, contribute to international trade integration, trigger technology spillover and create greater economic diversity. Members of the statewide partnership include the Greater Phoenix Economic Council (GPEC), Arizona Department of Commerce (ADOC), Greater Flagstaff Economic Council (GFEC), Tucson Regional Economic Opportunities (TREO), Greater Yuma Economic Development Corporation, Arizona Association for Economic Development and Arizona Rural Development Council. “This is the first time I have ever seen the economic development practitioner community come together as a team,” says Stephanie McKinney, president and CEO of GFEC. “In the scheme of things, Arizona is not a big place, especially when you think about the global marketplace. And while we are a strong region from border to border, when you look at our assets and what we have to offer, we are too small to attack foreign investment alone. We all need to stand together. We can do things the hard way or the way it makes sense in this 21st century environment.” Arizona’s state ranking is currently 17th in trade and 31st in foreign direct investment (FDI). If Arizona’s FDI ranking improved to match its trade position over the next three to five years, it would mean an additional $12.5 billion invested in the state and 84,000 new jobs. FDI jobs provide an average compensation per U.S. worker that is up to 32 percent higher than compensation at all U.S. companies and up to 81 percent higher than the average wage in Arizona. “Those are very substantial numbers and we’re not talking construction jobs, but rather R&D and long-term sustainable jobs like those in the medical field, engineering, testing and technology,” says Therese Thill, executive director of AGN and vice president of international economic development for GPEC. “Without a doubt, Arizona has what it takes to be internationally competitive. The biggest problem is that no one here or outside Arizona knows it. It’s time to stop touting the weather and start promoting our state’s centers of excellence.” AGN has requested $1.3 million from the state to target potential investors in countries with similar industries to Arizona such as Germany, Canada, UK, Japan and throughout Asia and Europe. Most international prospects are tech-based companies in aerospace/defense, next-generation electronics, life sciences, sustainable industries and information/communication technology—all key industries supported by the Governors Council on Innovation and Technology, Science Foundation Arizona and Arizona universities. AGN also plans to leverage relationships already established by some of their partners. For example, Tucson has a strong relationship with an optics company in Ottawa, Canada, so AGN plans to leverage that relationship to further penetrate the market. Based on AGN’s projections, the $1.3 million investment will generate substantial returns for the state. After the first year, AGN will produce 200 new jobs and $2.6 million in direct investment to the state, which is about a 2-1 ratio return on investment. Over a five-year period at a consistent funding level of $1.3 million, AGN will generate over 5,000 direct jobs and over $152 million in direct revenue to the state. “There’s really no downside,” says Thill. “Arizona has been overshadowed by California and Texas for high-wage jobs in the past, but this is an excellent opportunity for us to capitalize on our proximity to these states and pick some low hanging fruit from these areas.”