Economic Development PolicyPart 3: Demand-side policies (1)

ECON 4480 State and Local Economies

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Job growth by establishment size

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Source of Tennessee job growth 2001-2011

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Source: Business Employment Dynamics http://bls.gov/bdm/#data

Sources of Capital

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VC investments have struggled during the Great Recession

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California Dominates VC Funding

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Venture capital activity• Venture capital activity for the most recent

four quarters (2011:4-2012:3):– United States: 3,613 deals, $27.2 billion

investment ($7.5 million per deal)

– Tennessee: 37 deals, $109.9 million investment ($3.0 million per deal)

– Per capita:• United States: 11.6 deals per million population, $87.4

per capita.• Tennessee: 5.8 deals per million population, $17.2 per

capita.– Source: National venture capital association (www.nvca.org)

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VC Investment Activity United States 2011Q3 (Million $)

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