California’s major job clusters include high-tech, biotech, and entertainment. Dr. Bill Gilmer of the UH Bauer College of Business says the intellectual power behind those industries is firmly rooted on the West Coast — and Governor Perry likely won’t be able to persuade entire companies to leave California.
“But sometimes, those very same companies have pieces of it they can sorta farm out. Whether it’s manufacturing, call centers, or tech support — lines of their business that don’t have to be in the knowledge loop.”
Austin was a major beneficiary of that kind of farming out a decade ago. Even if the governor’s tour doesn’t result in a mass exodus of business from California to Texas, Dr. Gilmer says it’s still a chance for Perry to highlight the state’s philosophy:
“As a low-tax, relatively weak social safety net state — and it’s a philosophy, however, that offers opportunity and growth.”
California Governor Jerry Brown does not seem to be too concerned about Perry’s mission to poach jobs. The Office of Business and Economic Development in California says business relocations account for three-hundredths-of-one-percent of the state’s job losses every year.