In the article, Professor Coleman explained how hosting Amazon’s second headquarters (HQ2) can be seen as a good opportunity to bring significant benefits to some cities and help them solve potential economic issues.
According to Professor Coleman, such an opportunity could indeed create positive economic change, generate new entrepreneurial activity, bring an international boost and create new jobs. “With the promise of up to 50,000 new jobs and US$5 billion in construction investment, it is no surprise that over 230 US cities threw their hats into the ring for this major prize.”
On the other hand, Professor Coleman also highlighted the potential risk of this type of competition: “The big downside of this form of competition is that cities will start offering inducements of a fiscal nature – usually in the form of tax breaks – in order to capture the big prize.”
He concluded: “The race to win the new Amazon HQ should not be a quick sprint to the finish. It’s more like a marathon that needs careful, long-term planning if the full benefits are to be achieved for the winning city.”