California boasts the country's largest economy and population, as well as Silicon Valley - a haven of technology, venture capital and entrepreneurship. It also holds a 12.5 percent unemployment rate and a $28 billion budget deficit.
Texas, on the other hand, has a faster growing population and job creation rate, a below-average unemployment figure of 8.3 percent and rapidly expanding technology markets. But it is also stricken with a $27 billion budget shortfall and a relatively poor public education system.
These are just some of the considerations made by UCLA economist Jerry Nickelsburg in a recent report that aims to objectively assess the economic, political and cultural divides between the two states.
While the study intends moreover to provide guidance to the Golden State in maintaining its reputation as a hub of innovation and encouraging entrepreneurs to incorporate in California, it also seeks to show that both states have their faults and strengths, with neither maintaining a clearly dominant standing.
"Policies that just try to keep firms from moving are probably not going to be the most effective policies," Nickelsburg said. "What California does best is rely on its knowledge communities, so you should nurture those and rely on innovation and entrepreneurship. So things that foster those would give you the most bang for the buck."
Tags : ca, incorporation news, small business management, tx
Posted: Mar 9th, 2011