Economic development
As economic development is called the systems operated by public institutions efforts in the form of material or financial support to revive the economy in a given region. Upon successful promotion, the support measures recoup through increased employment, tax revenues and profit attractiveness of the site. Even private economic development is operated in individual cases. We distinguish between exogenous and endogenous economic development.
Exogenous Economic Development
The aim of the exogenous economic development is to locate companies and businesses in a specific area in order to promote this economically. The companies are set by measures such as reduced tax rates over a certain period of time or budget shared land incentives to settle in this area. The provision of buildings (eg workshops ) at low rents or temporarily free support measures by the public authorities can be.
Endogenous Economic Development
In the endogenous economic development local companies will be supported and encouraged by government policies. Such measures include: preferential loans, financial support for start- ups, technology parks, stock maintenance, etc.
In the modern economic development of the development of economic clusters is seen as an active promotion of innovation.
Germany
Economic subsidies are mostly state-owned institutions that have the responsibility to support investment projects by foreign or domestic investors in the region. Thus, each state in Germany its own economic development. In addition there are business development not only in major cities, counties or metropolitan areas ( regional development ), but also increasingly in smaller communities ( local economic development ).
Austria
Economic Development is operated at the federal level, the state level and the local level. The settlement of national funds, the Economic Development Bank Austria Economic Service ( aws) is commissioned.
Switzerland
Economic development is primarily the responsibility of the cantons in Switzerland. It is largely restricted to new recruitments. For single geographic regions, regional policy is trying to create better economic and structural policy framework; this focuses largely on structurally weak mountain regions.
Others
Due to the enlargement and deepening of the European Union and among other things, by the alignment of numerous laws, the abolition of customs duties, the granting of freedoms it is for companies easier than it used to relocate its corporate headquarters and / or productions to another location or abroad. It is not uncommon to run a subsidy of potential sites; the potential investor, the investment promotion agencies of different authorities (city, district, state, country ) played off against each other.
The tax systems of different countries compete with each other. As part of the so-called net -payer debate has long been criticized for net recipient countries are brought into the situation with the received Tansfergeldern, aggressively soliciting companies in EU net contributor countries. The existence of tax havens is criticized.
At EU level, aid is an important issue. ' Aid ' renames all Member State or through State resources in direct or indirect benefits of any kind that threaten (sectors) distort by favoring certain undertakings or the production of certain or distort competition and thereby affect interstate commerce. Aid particular public funds and guarantees for non-public companies, this providing no or inadequate consideration. The concept of aid is very general ( indefinite legal term " aid of any kind " ) because as many aid -related situations covered.