Tennessee Economic Development Guide

As the business cycle rises and falls, new technologies emerge and economies reinvent themselves. Those changes present states with unique opportunities that can lay the foundations of future economic growth, spawning new industries, new jobs and new chances to create wealth.

Since taking office in January 2003, Gov. Phil Bredesen’s strategic focus of creating “higher skilled, better paying jobs” has yielded remarkable results. With leadership from Commissioner Matt Kisber, nearly all of the Tennessee Department of Economic & Community Development’s processes and strategies have been retooled.

The results of that effort can be seen in the more than 141,000 new jobs created since Gov. Bredesen took office and in the more than $21 billion in new business capital invested in the state. Tennessee has seen a resurgence in its skilled workforce, with 38 new corporate headquarters moving to the state in the last five years. In July, Volkswagen Group of America Inc. announced it would build an auto production facility in Chattanooga, a $1 billion investment that will create some 2,000 jobs.

In its annual Governor’s Cup rankings, Site Selection magazine ranked Tennessee’s 2007 performance third among U.S. states. Site Selection also ranked Tennessee No. 1 among U.S. states in its coveted 2008 competitiveness rankings.

“Success breeds further success, and we believe Tennessee has what it takes to attract business development that lasts,” Kisber says. “We’re working to attract jobs that raise Tennesseans’ living standard and are sustainable as well. We’re going to be a major player in economic development for a long time to come.”

Gov. Bredesen has been widely praised for his efforts to ensure that Tennessee’s rural residents share in economic opportunity equally with the state’s urban and suburban residents. In 2008, the state launched a series of programs aimed at rural job growth through an effort called the Rural Opportunity Initiative, or ROI.

The expanding reach of broadband Internet technology has allowed rural Tennessee companies to reach markets around the world and Tennessee is moving to become a force in global markets. Whether it’s promoting Memphis’ place as the world’s busiest freight airport or helping a rural entrepreneur ship to a customer in Asia or Europe, Tennessee is prepared to help people move forward.

Foreign direct investment in Tennessee grew 78 percent in 2007, showing that companies around the world understand the productivity of Tennessee workers. And Gov. Bredesen’s collaboration with the University of Tennessee and Oak Ridge National Laboratory is positioning Tennessee to become a leader in research on alternative fuels.

Changing economies present unique challenges, but they are challenges Tennessee is prepared to meet. The future looks bright.