Spin-out multiplier: Implications for a new economic development metric-why do some firms create more spin-off enterprises than others?

Traditional economic development can be divided into three broad categories: (1) attracting new firms from outside of a region--also known as hunting and gathering; (2) development of existing firms-also known as growing your own; and (3) entrepreneurship-also known as building your own. Further, traditional economic development has focused overwhelmingly on the first strategy, because it often offers the quickest results, micro-economically and politically. However, despite the popularity of hunting and gathering-primarily in terms of quick importation of outside jobs-it does not lead to maximum wealth creation; and complete economic development should include both job and wealth creation. Finally, no matter which of the three vehicles in used, existing metrics do not further the true understanding of these efforts in making a sustainable economic system, particularly in the case of technology-based economic development. If the current economic development metric systems do not provide policy makers this information, then there is cause for concern.