Robert T. Sumichrast
Dean and Simon S. Selig, Jr. Chair for Economic Growth

Published: January 11, 2012 | Vol. 4, Issue 6

Half a century ago, the Southeast, and especially Atlanta, was characterized by a vibrant economy, new ideas and lots of career opportunities. Every decade from the 1960s through the ‘90s, Georgia’s economy, led by Atlanta, expanded and created jobs much faster than the rest of the nation. But the past two recessions have hit the state hard and, given current policies, Georgia has fallen back to the pack.

Georgia used to be viewed as a great state for businesses to expand or relocate. Our state continues to have a very good team of economic developers, a favorable tax system, low cost of living and desirable cost structure. But Georgia has been losing to other states on the discretionary incentives that close the deal – a common practice in the Southeast. In past decades, Georgia did not need such incentives, but times have changed and we need to adapt to the current landscape.

We also need to invest in our transportation system. This has been one of Georgia’s historical advantages, and we are due for an upgrade to our highways, ports and rail. While statistics show that our deep-water ports are poised to increase traffic next year, this encouraging trend will reverse after 2014 without a major investment to deepen the Savannah Harbor to keep up with the expansion of the Panama Canal.

Compared to other states, Georgia is relatively weak in its investment on R&D. Research and development, as a share of the state’s gross domestic product, is less than half the national average. We need to focus on growing our native venture capital funds to boost both innovation and R&D activity. About 85 percent of the venture capital investment in Georgia companies comes from firms headquartered outside of the state, which is siphoning off growth.

It is a priority for Terry to ensure that its graduates are prepared for initial employment and lifelong growth in career, family and community. Our programs not only improve their futures, they promote economic development in Georgia.

The growth strategies of the past 50 years have mostly run their course. It’s time to chart a new course. Georgia must face its challenges and improve its competitiveness in order to provide the full range of opportunities for Terry graduates to begin their careers. But we can once again lead the pack nationally, if we are willing to let go of our old ways and embrace the new.

If you would like more information on this, please visit the Selig Center’s economic forecast for more of my thoughts on Georgia’s competitiveness.

To all of our alumni and friends, I wish you a prosperous and productive New Year.

Robert T. Sumichrast, Dean
Terry College of Business

Follow me on Twitter @Sumichrast

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