Publications on TBR

State economic development incentive programs are significant factors when attracting film, TV, commericials and video game producers to a state. This article summarizes the findings of an economic impact analysis that was performed in the late 2010 and early 2011 for the Texas Associaton of Business that focused on the… Read More

The CAPCO program can best be described as a strategic public/private partnership that leverages private capital to fund sustainable small business growth. The policy intent was to drive capital in ways that would overcome market failures and strive to counteract geographic and socioeconomic barriers. In order to estimate the value… Read More

More than ever, innovative and hard-working Texans need efficient and effective systems that promote economic mobility and opportunity. Currently, Texas faces two major public policy challenges. The first is that many Texans are outside the financial mainstream with subpar credit scores, low-wage income, and limited avenues for economic mobility. The… Read More

Since 2005, state taxpayers have provided nearly $600 million for two venture capital programs: the Texas Emerging Technology Fund (TETF) and the Texas Certified Capital Company Program (CAPCO). Both programs make investments in small companies that use the capital to make payroll and strategic investments that will lead to economic… Read More

Manufacturing firms are generally on the front lines of environmental protection because most industrial pollution is a result of manufacturing activity. The problem is that firms do not have strong incentives for pollution abatement because they see it as an additional cost and investment in nonproductive activity. This article focuses… Read More

The Texas workforce development system strives to ensure that employers, individuals, and communities have the opportunity to achieve and sustain economic prosperity. The demands on this system will increase as the state's workforce, currently over 11 million, continues to diversify and grow. To help policymakers, funders, and program staff better… Read More

In 2006, Texas initiated what would become a nationwide movement toward increased state government financial transparency by posting detailed records of the Governor's office expenses online. Since then, Texas has remained a leader in the development of web-based tools for information exchange between government and citizens. The challenge for Texas… Read More

In the past decade, Texas began to harness some of its abundant wind potential and, in the process, became an international wind energy leader. The state currently accounts for more than 25 percent of installed wind energy capacity in the United States. But for the first time since 2006, the… Read More

The U.S.-Mexico relationship has been rocky for some time, and there is little doubt that the current recession has made matters worse. The relationship between the two countries has been strained by competition for jobs, infrastructure issues, security concerns, and a general misunderstanding of the value of the relationship. The… Read More

There is no area in the U.S. where improving health coverage and availability is more urgent than in the Texas-Mexico border, where population growth and disease rates rise, yet the number of physicians and dentists in the health system remains low. How to address these needs has reached critical importance… Read More

Any strong regional economy is built on the success of its educational system, both secondary and postsecondary. The Central Texas Student Futures project is providing a new comprehensive, longitudinal study of high school graduates. This project combines surveys of high school seniors with administrative records to produce a new stream… Read More

Among the U.S. states, Texas has been at the forefront of globalization, which is characterized by the international flow not only of goods and services but also human and financial capital. A key factor in these high marks for globalization has been expanding trade, which has made Texas the top… Read More

Do changes in tolls rates affect pedestrian, car, and truck traffic across the bridges between El Paso and Ciudad Juarez, Mexico? As more and more attention is paid to the use of tolls as funding mechanisms for new road and infrastructure construction in Texas, the answer to this question has… Read More

States and regions with large numbers of educated workers enjoy many social and economic benefits, including low crime rates, high-technology-based employment, high per-capita income, and high wages. It follows that state policymakers should implement policies that increase the number of educated workers and their job opportunities. This article addresses the… Read More

Monterrey, the capital of the northeastern Mexican state of Nuevo Leon, has historically been considered an industrial city. In the last few years, a major shift has begun to propel the region beyond the confines of physical industrialization and transform it into a knowledge city. In addition to the investments… Read More

The global economy within which Texas' businesses operate is shifting rapidly from a context of resource abundance to a context of resource constrain, leading to growth that is sought through continuous and accelerating resource performance improvements. This global shift unleashes a massive global demand for eco-economic activity and innovation, a… Read More

In 2007, the Nuestra Casa program was evaluated by the Texas A&M Department of Landscape, Architecture and Urban Planning, with Dr. Cecilia Giusti as primary investigator. Her final report indicated that Nuestra Casa provides a highly effective model to improve the quality of life for residents along the border. What… Read More

In June 2008, Livable City released the report "Building a More Sustainable Economy: Economic Development Strategy and Public Incentives in Austin," to suggest a path that will help the City of Austin better balance economic growth with long-term improvements in the quality of life for its residents. This article is… Read More

Payday lending, sometimes known as a cash advance, is a small, short-term, high interest loan that is intended to bridge the borrower's cash flow gap between pay periods. Payday loans are secured by access to the individual's checking account, typically through a postdated check or an automated clearinghouse (ACH) authorization. Read More

"The Growth of Knowledge-Based Small Firms in Monterrey, Mexico" by Elsie Echeverri-Carroll: Monterrey, in the Mexican state of Nuevo León, long has been known for its large industrial enterprises and heavy industry. Today, however, the city is transitioning to a more knowledge-based economy marked by tech startups and innovation. "Monterrey… Read More

As housing prices slip in many parts of the country, Texas market conditions, in general seem relatively stable. This review of real estate markets around Texas reveals that Texas, especially in relation to other states in the country that have been much harder hit, has so far weathered the real… Read More

With pressure from a softening housing market and tightening credit conditions, the national economy is at greater risk for recession than it has been since 2001. The Texas economy could have been expected to show signs of fatigue this year, especially after relatively robust growth in 2005 and 2006. Yet… Read More

Both the state of Texas and the city of Austin have pursued a cluster-based approach to economic development. Since 2004, the Greater Austin Chamber of Commerce (GACC) has raised $14 million in private funds through its "Opportunity Austin" campaign to finance a five-year economic development effort targeting nine industry clusters. Read More

As the world turns to clean energy sources, Texas has a strategic opportunity to expand its traditional energy leadership capacity into solar power. This article is the second in a two-part series examining the photovoltaics (PV) industry in Texas. The first article, published in April 2007, focused on the potential… Read More

Why isn't Texas – with its natural solar endowment, semi-conductor expertise, energy business talent, and scientific leadership – a national and global leader in the solar industry? This two-part TBR article establishes the economic, public policy, and technological rationale for supporting the photovoltaics (PV) industry across the state. The first… Read More

Economic development in Oklahoma and Texas has often involved one state's efforts to snatch companies from the other. When competing against one another, the Oklahoma-Texas rivalry could sometimes become blood sport. However, leaders from both sides of the Red River realized the advantages that comes with economic cooperation. So they… Read More

In 1907, the Texas Legislature responded to the needs of Texas farmers by establishing the Department of Agriculture to better coordinate agricultural policy and services. Now, 100 years later, it is time for a similar response on behalf of Texas manufacturers. To remain competitive, Texas needs to develop the skills,… Read More

The Texas Population Projections and Estimates Program in the Texas State Data Center and The Office of the State Demographer in the Institute for Demographic and Socioeconomic Research at The University of Texas at San Antonio recently released revised post-2000 Census population projections for the State of Texas and all… Read More

Texas faces the challenge of maintaining and growing its capacity to innovate at a time when global competitors are aggressively pursuing markets that have generated economic success for Texas companies in the recent past. Thus, the Digital Convergence Initiative (DCI), a university/private/public venture was established to spur innovation, collaboration, and… Read More

Cameron County, Texas and Matamoros, Mexico face the Rio Grande River where it meets the Gulf of Mexico; it is a place of natural beauty and agricultural strength. The region has a strong economic and cultural heritage, established educational assets and a rapidly growing bi-literate workforce. Right now, the border… Read More

At the state level, the majority of Texas’ trade historically has been, and continues to be, with Mexico. Texas and Mexico have leveraged their common border to establish a relationship that shapes local economies and policies on both sides. But what will happen to both economies as China continues its… Read More

As the Texas economy continues its expansion from the 2001 recession, the need for seed and growth capital for young companies is intense. A new funding program addresses this need, authorized by the Texas Legislature in 2001 and implemented in 2005. The Texas Certified Capital Company Program provides alternative sources… Read More

In 1987, the state legislature appropriated funds for applied research to diversify the state’s economy through the Texas Advanced Technology Program (ATP). These funds targeted projects to educate the state’s scientists and engineers, create new products and production processes, and contribute to the application of science and technology to state… Read More

Shoppers around the world cross borders from one country in order to shop in another. In fact, shopping is increasingly recognized as a primary motive for international travel. Nowhere is this more evident than at the Texas-Mexico border. A report on the Mexican market, prepared for the Texas Economic Development… Read More

As government seeks to hold the line on broad-based tax rates, some departments and agencies have implemented market-based activities as a means to maintain and expand public services. Two entrepreneurial success stories can be found in the voluntary programs of Austin Energy and the State of Texas Parks and Wildlife… Read More

Rich natural resources, abundant land, a central location within the United States, and a business-friendly environment have long attracted both immigrants and U.S. natives to Texas. As a result, the state has grown faster, with a younger and more diverse population, than the nation. The key challenge Texas faces now… Read More

The State of Texas invests in higher education in order to develop the human capital of the state. These investments result in a large number of benefits, including increased productivity, earning gains, market entry of products and services, and many more. Three major areas of impact of having a University… Read More

In 2004, Mexican immigrants in the United States sent a record of $16.6 billion dollars to their relatives in Mexico. Cross-border consolidation of banks has created the opportunity for migrants to send money home at no cost. However, most migrants do not choose this cost-free option of sending money home. Read More

What creates growth in a local economy? Answers to this question have varied markedly over the last forty years. In the 1980s, the revolutionary concept that knowledge, rather than labor and physical capital, was the prime engine of economic growth. This idea prompted policy makers and analysts to associate local… Read More

During the 1990s, the number of Latina small businesses grew by an extraordinary 209 percent. These privately-held, majority-owned businesses accounted for $29.4 billion in receipts and employed nearly 198,000 workers. Research shows that growth rates for Latina entrepreneurs and microentrepreneurs are related to factors unique to the Latino community. What… Read More

In recent years, renewable energy has gained ground as a viable future source of energy in the electric industry. Such recognition has been due to the environmentally friendly aspects of renewables resources, federal government incentives and state government mandates, and declining costs due to technological progress. With natural gas price… Read More

In the early 1990s, the proposed North American Free Trade Agreement, linking Canada, Mexico, and the United States, prompted intense debate. Today, ten years after the agreement took effect, it remains a flash point, much criticized in both Mexico and the United States. Two key complaints have been that many… Read More

The Small Business Innovation Research Program (SBIR) is a $2 billion federal set-aside for small, technology-oriented business development. SBIR funding helps young firms bring their products to market. Texas, despite a richly deserved and growing reputation as a technology hub for business start-ups, lags behind many other states in the… Read More

In many developing countries, venture capital investing remains a nascent industry. However, investment in private equity has been picking up in Mexico and throughout Latin America over the past year as investors regain confidence in the region and learn to select deals more wisely. Mexican authorities want to keep investors… Read More

An increasingly volatile market price for U.S. natural gas, the inadequacy of domestic natural gas reserves, and the continuing development of new natural gas-based electric generation capacity have created a heightened interest in imported liquefied natural gas (LNG), and plans are underway to add more LNG to the U.S. fuel… Read More

The Mexican in-bond assembly, or maquiladora, manufacturing sector has taken its fair share of lumps in recent years. The industry has experienced a business cycle downturn in the U.S., intermittent border closures, higher tax burdens, fiscal uncertainty, competition from offshore assembly plants in China, and national legislative gridlock. Nevertheless, with… Read More

Approximately 5.6 million baby boomers live in Texas, comprising 26.9% of the state's population. As this group matures, so does the Texas workforce. This aging trend will significantly affect the state's general workforce and have an even more pronounced impact on the public sector workforce in Texas. Read More

Developed in 2002 by the Bureau of Business Research (BBR), the Austin Index began as a pilot project to benchmark the economy of the Austin-San Marcos metropolitan statistical area (MSA). The Index uses twenty indicators (measurements) to illustrate Austin's performance today and compares it to that of other leading U.S. Read More

A major change is underway in the relationship between mainstream financial institutions and the U.S. Latino population. From small independents like Second Federal Savings in Chicago to the nation's largest retail bank, Bank of America, these institutions display an intense and fundamentally new interest in the banking potential of this… Read More

Over the past decade, the insurance industry has begun using credit histories to create credit scores for individuals who apply for or, sometimes, renew automobile and other insurance policies. Insurers use these scores in rate-making decisions, raising premiums for individuals with poor credit history and lowering premiums for those with… Read More

The modern corporation is an efficient means of organizing large-scale production because it encourages efficient contracting. The corporate form of organization also facilitates combining the capital from many dispersed investors with the skills of a professional management team. Therefore, it is not necessary for the investors who provide the capital… Read More

"Internet Business Method Patents" by John R. Allison and Emerson H. Tiller: Companies operating over the Internet have aggressively pursued business method patents in recent years. While there has been much criticism about the PTO’s generosity in granting such patents, recent reforms may have curtailed much of the perceived abuse,… Read More

Among the projects listed in 1926 for the newly established Bureau of Business Research (BBR) at the University of Texas at Austin was the "issuance of a publication setting forth the economic health of the state." And so began Texas Business Review (TBR) in April 1927. This special 75th anniversary… Read More

As defined by the World Bank, "e-government" refers to the use by government agencies of information technologies (such as Wide Area Networks, the Internet, and mobile computing) that can transform their relations with citizens, businesses, and other areas of government. These technologies offer better delivery of government services to citizens,… Read More

"Empresarias Decididas: Women Entrepreneurs in the Americas" by Elsie L. Echeverri-Carroll and Daniela Brandazza: Statistics indicated noteworthy increases in the numbers of U.S. and Canadian women entrepreneurs in the 1990s. What factors contributed to this growth? And do these factors also translate into success for their colleagues in Latin America?… Read More

The terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001, brought the issue of U.S. border security to the forefront. In the weeks following the attacks, heightened U.S. security measures caused serious delays on the northern and, especially, the southern borders. Increased security will increase… Read More

The Austin Equity Commission (AEC) was created in May 2000 and charged with building a consensus around a strategic vision for long-range economic prosperity and social equity. Using the Austin Index and the U.S. Census of Population to compare wage and wage inequality data between 1980 and 1990, wage and… Read More

If all goes as planned, by January 1, 2002, customer choice will have been introduced to most Texans currently served by investor-owned electric utilities. In some other states, like California, the transition to a competitive retail electricity market has proven disastrous. Texas policymakers, however, remain optimistic that they have crafted… Read More

From the days when the oil and cattle industries reigned in Texas to the current dominance of the information technology and manufacturing sectors, the state export environment has been historically rich. The second largest exporter in the U.S., Texas accounts for more than 13% of all U.S. exports and lists… Read More

Computers route actual data packets according to Internet protocol addresses, but these numbers are difficult for people to remember. The domain name system was developed so that easily remembered names, rather than their numeric equivalents, could be used as address locators. With the growth in electronic commerce, the issues surrounding… Read More

All over the world, companies increasingly depend on new products and services to spark profit growth and renewal of their assets. One of the main challenges facing executives at these companies is how to apply information technology and the Internet to raise the productivity and increase the return on investment… Read More

Scattered throughout the state budget, these programs surface not only in the Texas Department of Economic Development and the Texas Workforce Commission, but also in agencies as disparate as the Texas Agricultural Extension Service, the Texas Department of Criminal Justice, and most institutions of higher education. Historically, economic development efforts… Read More

Understanding the factors that drive corporate site location decisions is critical to the public officials, economic development professionals, and local leaders responsible for attracting new business locations and expansions to their communities. More than 30 foreign corporations that had recently located in Texas were surveyed. Given the size of this… Read More

Policymakers in high-technology cities have become increasingly concerned that large segments of their populations are not reaping the benefits of the economic growth associated with these industries. Though it should be noted that our perception of the positive correlation between income inequalities and the growth of high-tech industries result from… Read More

In the late 1970s, Texas experienced a remarkable spurt of migration-induced population growth. One of the main reasons for the surge in migration was the much-touted Texas business climate. This part of the Sun Belt was awash in energy and capital: oil prices had tripled. In those days, we considered… Read More

"A Giant Awakens: The Promises and Challenges of MERCOSUR" by Chandler Stolp: Mercosur (Mercado Comun del Sur, or the Common Market of the South) is the largest trade and investment bloc in the world after the European Union (EU) and the North American Free Trade Agreement (NAFTA). Mercosur offers tremendous… Read More

High-tech industries are our most strategically important source of new products and processes. These industries generate much, if not most, of the competitive advantages that U.S.-made goods and services enjoy in domestic and international markets. Consequently, news about anything high tech consistently commands the attention of the general public. The… Read More

According to many economic development specialists, cities that support high-tech industries can expect to show higher and longer running rates of growth. Such has been the case in Austin. However, economic growth does not come without a price. The Austin boom has been accompanied by increased pollution and traffic congestion,… Read More

In recent years, the Texas Department of Criminal Justice (TDCJ) has emerged as the largest state agency and, with approximately 40,000 jobs, probably the largest employer of any type in Texas. Most of its employees are correctional officers guarding 144,000 felony offenders – the result of the Texas prison building… Read More

Daunting air quality problems in Texas have brought state government under increasing public pressure to enact strict controls on air emissions. The Texas Natural Resources Conservation Commission (TNRCC) launched a voluntary emissions reduction (VERPs) program to encourage plants to reduce their emissions. If the program does not produce significant reductions,… Read More

The digital economy is made possible by the World Wide Web is growing at an astounding rate. Digital products can be assembled, customized, and packaged in almost an infinite number of ways to meet changing customer demands for instant delivery. Over time, the sale and transmission of goods and services… Read More

The increasingly rapid rate of change in technology has been accompanied by an increasingly rapid rate of consumer acceptance and the effects of this new technology on industry have been revolutionary. The main driver of the transition toward a more electronic future is, of course, cost reduction. The expense of… Read More

The Workforce Investment Act (Public Law 105-220), signed into law August 7, 1998, represents the culmination of bipartisan efforts to reform the nation’s workforce development programs. On July 1, 1999, Texas began implementing the provisions of this law, one of only a handful of states to do so. Texas was… Read More

Traditionally, the U.S. electric utility industry has been subject to a comprehensive system of government regulation. However, in the 1980s, policymakers and economists increasingly questioned the need for regulatory oversight of some utility functions. Particularly in Texas, the potential for competition in the generation of electricity had become greater. Beginning… Read More

The debate over the value of tax incentives as an economic development tool is primarily based on disagreement over the ability of state and local governments to act rationally and competently to improve the welfare of their residents. The real challenge, then, is to develop decision rules and regulations that… Read More

In the late 1980, it became apparent that Austin’s Robert Mueller Municipal Airport would not be equal to the demands generated by the growth of the city surrounding it. Consequently, in September 1993, Austin voters approved $400 million in revenue bonds to build a new airport at the site of… Read More

Imagine you are an entrepreneur. You have started a rapidly-growing venture, or at least you have devised a realistic plan for one. after carefully assembling an operating plan, including a detailed budget, you determine that you will need $960,000 to build and run the company for the next year. Where… Read More

The venture capital business is changing, again. Coincident with the rapid evolution of technology and industry, the venture capital business has in its short history, reinvented itself and its image. The number of services has increased and grown more varied. a glimpse into the brief life of the venture industry… Read More

The end of the 20th century finds major U.S. cities in the midst of significant change, precipitated by important economic and demographic trends. first, the foundations of the U.S. economy have definitively shifted away from the blue collar “resource economy” of the Industrial Age into the more problematic “knowledge economy”… Read More

At the beginning of this century, a new advertising industry came of age in the United States. Now, at the turn of the 21st century, new global media and audiences are reshaping this industry and the advertising we see. The next frontier is worldwide, and the new media are as… Read More

The rapid employment growth of the Mexican in-bond plants, or maquiladoras, lists prominently among the most conspicuous industrial phenomena occurring the wake of the North American Free Trade Agreement. In the four years from December 1993 to December 1997, maquiladora employment increased by 71.5%. This recent dramatic growth in maquiladora… Read More

The financial sector promotes a nation’s economic growth and performance. By facilitating the transfer of funds from surplus income units to deficit spending units, financial intermediaries foster expansion of the economic system. But do financial markets and institutions merely facilitate the real forces driving development or do they play a… Read More

In 1997, a new privatized, government-mandated retirement system came into existence in Mexico. Within this system, private companies called Administradoras de Fondos de Retiro (AFORE) manage pension funds for workers who joined the labor force on or after July 1, 1997. Each worker chooses an AFORE to receive the 6.5%… Read More

Business services, also called producer services, are intermediate activities that provide inputs for the production of goods or other services, rather than directly serving final consumers. They enhance efficiency and add value at various stages of production processes, both upstream (e.g., research) and downstream (e.g., marketing) of actual physical production. Read More

Defining “high technology” is not easy. However, one component of defining it has been widely accepted: a high percentage of both R&D expenditures and engineers and scientists. The assumption here is that high-tech industries, because of their innovative nature, spend more on R&D and employ more skilled workers than other… Read More

In today’s knowledge-based global economy, intellectual assets often supersede physical assets as the basis of corporate value. Increasingly, companies build their competitive advantage upon a foundation of intellectual assets, and shareholder value has become a direct reflection of the ability to leverage and extract value from the intellectual asset portfolio. Read More

Technology transfer describes a formal transferring of new discoveries and innovations resulting from scientific research conducted at universities to the commercial sector. This article explores the reason why there has been tremendous growth in technology transfer programs, the benefits and successes of technology transfer, and how technology transfer has impacted… Read More

In recent years, public concern for environmental quality, high compliance and disposal costs, and reduction of landfill space has prompted many manufacturers and businesses to consider recycling or selling their wastes and to use recycled materials in their processes or activities. A major concern is finding buyers and sellers for… Read More

By some calculations, Texas became a new energy importer in 1991. In that year, the BTU (or heat) value of Texas consumption of petroleum products, natural gas, propane, and renewable energy (wood, wind, and solar) exceeded the BTU value of production of these materials for the first time since oil… Read More

Since the late 1980s, the growth of the Austin regional economy has outpaced that of other medium-sized high-tech centers. Austin’s economic expansion was based on four private sector growth drivers: computer and office equipment, electronic and electrical equipment, software, and research and engineering services. Each sector showed rapid employment growth,… Read More

High-technology firms compete globally by bringing products to market quickly and efficiently. In a recent sample of high-technology companies in Texas, 84% reported the introduction of a new process or product during 1994-96. However, only 33% introduced new products and processes faster than their competitors. A key question for policymakers… Read More

The Texas Telecommunications Policy Institute on the Texas Poll surveyed a random sample of 1,000 Texans on a quarterly basis in order to understand how people in the state are currently using telecommunications and computers and to explore their attitudes toward deregulation and electronic privacy issues. Survey results suggested that… Read More

In this era of the virtual corporation, three Texas cities ranked in the top ten of Fortune magazine's 1995 best places that "serve the evolving workplace": Austin, Dallas, and Houston. This new workplace embraces the "work anywhere, anytime" paradigm – a flexibility, experts insist, facilitated but not dictated by communications… Read More

Commercialization of the Internet has been one of the hottest topics around the world in recent years. The growth of this medium and the new capabilities deliverable on the World Wide Web has excited entrepreneurs, transforming some of them into multimillionaires overnight. There has been an explosion of new firms… Read More

Report on a study of the opportunities for and challenges of incorporating recycled materials in the production processes of twelve important manufacturing industries in Texas, including, among others, the primary and fabricated metal, computer and electronics, and printing and paper industries. Read More

By-product synergy (also known as “green twinning,” “industrial symbiosis,” and “zero waste/zero emissions/100% product emissions”) emphasizes the cooperation among diverse industries, agriculture, and communities that results in profitable conversion of by-products and wastes to resources promoting sustainability. This article examines the case study of Chaparral Steel Company of Midlothian, Texas. Read More

Examination of whether Texas has become a new importer of energy resources. The answer depends on the method of comparison, by heating value or economic value. Read More

Examination of the production potential and demand in Texas for renewable energy from three sources: solar photovoltaic cells, wind and bioenergy. Read More

Case study of the successful commercialization of a new rapid prototyping process, Selective Laser Sintering (SLS), developed at The University of Texas at Austin and licensed in 1987-88 to the startup DTM Corp. Read More