Big tax deals with First Five corporations or with aerospace giants have been grabbing headlines, as Connecticut tries to improve its economy. But the state is also making a much less publicized effort to recruit small companies from overseas.
The Department of Economic and Community Development is marketing the state in several countries as a base for small businesses to expand to the United States. DECD’s Beatriz Gutierrez said things that dominate the conversation here, like the cost of doing business or the tax climate, are usually not a primary concern for overseas companies.
"This state compares very favorably to other states in the region," she told WNPR's Where We Live. "And when you're talking to a foreign company, you'd be surprised how much these companies don't consider this their first barrier to entry to market. Companies are looking for thing that really help their bottom line. One thing that they look for, for example, is access to a productive workforce."
For the last six years, the Jewish community in Greater Hartford has been fostering links with Israeli businesses through the Connecticut Israel Technology Council. The council’s Brad Mondschein said providing grassroots help for the executives of relocating companies is key.
"Help them find a house," he said. "We help them understand what the school systems are like here. What are the different institutions in the community that could support them? These are things that we can do as a community to help these companies come here, that's very different, that you don't see other states doing." As a result of the Council's efforts, six Israeli companies have so far established a U.S. base in Connecticut.
One of those is Nervomatrix, an Israeli medical device company which is working on back pain. It now has an office in Farmington in UConn's TIP incubator facility. CEO Kobi Benita said the U.S. is the most important target market for his company, and locating in Connecticut made perfect sense.
"It makes the commute to Boston and New York an hour and a half away," he said. "Also having Bradley only 20 minutes away from our office for domestic flying is painless. And I think the cost of living as well, when you relocate with your family, is less than in New York or in Massachusetts, so I think it's an advantage."
The state is expanding its outreach for global companies, partnering with the Connecticut Economic Resource Center. CERC's Jason Giulietti said South America is currently offering opportunities for recruitment.
"We have a very strong aerospace industry here in Connecticut, shipbuilding, and the medical device and biotech areas," he said. "We've looked and said where can we find concentrations of companies that would benefit from being around the Sikorskys, the UTCs , the Electric Boats of the world."
DECD offers financial incentives for small businesses relocating from overseas, including a mixture of loans, grants and tax breaks. The department said the program does not treat foreign companies preferentially and is also available to local businesses.
Giulietti said representatives of as many as 60 overseas companies visited the state in the last year to discuss location opportunities.
