Virginia's Big Coup

What is it that draws big corporations and high-tech firms to Virginia instead of Maryland?

Is it lower taxes? A better regulatory climate? Huge cash and loan incentives? A right-to-work law? Or an aggressively pro-business governor and legislature?

Whatever the reason, Virginia's development approach is working. This month, it landed a $1.2 billion computer-chip manufacturing plant that could one day mean 4,000 workers and 8,000 jobs in related industries. Four months ago, another chip manufacturer chose Virginia for its $3 billion semiconductor plant that will eventually employ 5,000 workers.

It's not just in computer technology that Virginia is winning the jobs war. It also outbid Maryland for Solarex Corp.'s solar panel manufacturing plant, though the company has its headquarters in Frederick. Similarly, American Type Culture Collection of Rockville, which distributes biotechnology products to researchers, found an offer to move its 230 workers to Virginia irresistible.

Virginia employs targeted subsidies to lure solar power companies in hopes of creating a "Silicon Valley" for a futuristic industry. The commonwealth clearly has a strategy and is forcefully pursuing it. Maryland is playing catch-up.

Not that the situation is totally bleak for Maryland. Economic development officials have committed $15 million in economic incentive funds to bring roughly 1,000 new jobs to Maryland and to keep another 600 jobs in-state this year. Maryland won a heated contest with other states for Dr. Robert Gallo's Institute for Human Virology -- a biotechnology project that could have enormous spinoff potential in the decades ahead.

But state officials also concede that Maryland has certain competitive disadvantages that must be removed. To address some of these concerns, James T. Brady, the secretary of Business and Economic Development, is working on a strategic plan with his new commission of private-sector members. That should give Maryland much-needed focus as it pursues business leads.

At the same time, this state must start putting more trust in its corporate citizens by relaxing burdensome regulatory requirements. State government should be helping businessmen solve problems, not creating problems for them.

And the state's tax structure must be carefully scrutinized to ensure that the total tax burden is competitive with neighboring states.

More than anything, though, attitudes among bureaucrats and government officials have to change. Job growth holds the key for future prosperity in Maryland. Attracting those jobs is a long-term assignment, one the Glendening administration must keep at the top of its priority list.