Economic Development 101: Why It Matters for the Whole Region – Daniel Ryley, VP of Corporate Attraction
Economic development was established on the core principle of creating and retaining primary jobs—those that bring new dollars into a region by selling goods and services outside of it. Manufacturers that export products, corporate HQs that serve national clients, and distributors that ship components across the world all generate income that circulates through local economies. Not only do they employ locals, but they also support everything from bank loans to coffee shops to accountants to real estate. Without these types of primary jobs, economic circulation runs dry, and the local economy stalls.
To better understand this, picture the Colorado mining boom of the 1800s. Towns sprang up overnight where veins of silver and gold were discovered. These were true primary jobs: miners pulled precious metal from the earth and sent it elsewhere, bringing new money into their communities; that money paid for workers to mine more. As a result, those workers opened general stores, stables, and saloons. Before long, law enforcement and schools were needed, and a local government was established. But when the mines dried up, so did the towns. Many became ghost towns almost as quickly as they appeared. These true-story examples of where economic development failed exist all over Colorado.
From an academic perspective, economic development is the foundation of a sustainable tax base. When businesses grow, and jobs are created, local governments collect more in property, sales, and income taxes—without having to raise rates. In Colorado specifically, retail spending from gainfully employed residents and tourists supports a significant portion of most municipal budgets. That revenue gets reinvested into what we call “quality of life infrastructure,” including roads, water systems, parks, schools, broadband infrastructure, and more. This foundation generates the environment for more investment, and thus, the cycle continues.
From an altruistic perspective, economic development is about creating opportunity, which is foundational to the Denver Metro Chamber of Commerce’s vision: Economic Empowerment for Every Coloradan.” A competitive environment for business investment fosters more sustained jobs, and good jobs allow people to provide for themselves and their families When we create the conditions for business growth, innovation and vitality, we also open the door for residents to build meaningful careers, start companies that employ others, engage civically, and participate in our economy.
The lesson? Relying on a single primary job source is the proverbial “all your eggs in one basket” scenario. Economic development focuses on intentionally diversifying a region’s economic base and proactively attracting new investment into communities. By intentionally nurturing many sectors, we reduce the risk of collapse if one industry falters. It’s akin to a personal investment portfolio where diversity provides resilience. Economic development organizations work with public, private, and educational partners to support the growth and expansion of these industries. Metro Denver EDC’s core role to proactively recruit companies around the globe to establish these primary job-creating facilities in our region and coordinate a strong network of local economic development practitioners to effectively retain the companies that are here.
Ultimately, economic development is not just the work of chambers or cities. It’s a shared effort among private-sector leaders, educators, public officials, and community organizations to set a vision for the future and proactively pursue it. We all have a stake in building a stronger, more resilient economy—one that brings continued investment into the region, builds our shared quality of life infrastructure, and creates meaningful opportunities for every resident.