What Business for Bethlehem?

Years after its flagship company - Bethlehem Steel - closed, my city of Bethlehem, Pennsylvania is still trying to reinvent itself as something else than the fake tourist magnet it has become, drawing retirees eager to buy Christmas decorations or spend their Social Security checks on slot machines. (The area outside the city itself is very pretty, though, and we have music festivals for all tastes, ranging from Bach to Celtic tunes to pop. Judge for yourself here.) Officials have pursued various strategies to revitalize the area; for instance, the South Side of Bethlehem (past home of Bethlehem Steel, future home of the casino) has been declared a Keystone Innovation Zone, in an attempt to attract new business that would not be dependent on the tourism industry. I don't understand why any company in its right mind would put up with crime on the South Side when it can go to a more pleasant area just down Routes 378 or 22, but apparently the Lehigh Valley offers sizable advantages in financing for companies willing to give it a try. Another much-touted initiative is Wall Street West, an attempt to position the Bethlehem area as a natural choice for backup data centers aimed at companies operating on Wall Street. Recent news coverage, however, suggests that the economic slump has hampered the efforts to attract financial firms (the Pocono Record has an article here, dated April 30, 2008, and the Morning Call here, dated May 25, 2008).

Making Pennsylvania more attractive to business is not just a local affair, although the Lehigh Valley, with its proximity to both New York City and Philadelphia and its cheap rents, presents itself as a natural first choice - if we can't make people come here, they're not going to come to rural Western Pennsylvania (nicknamed Pennsyltucky by the locals) either. In particular, Ben Franklin Technology Partners has been actively "foster[ing] innovation to stimulate Pennsylvania's economic growth and prosperity." More precisely, it "link[s] early-stage technology firms and established manufacturers with funding, people, technology, universities and other resources to help them prosper." It has four regional centers, with Bethlehem at the center of its northeastern area. About ten days ago, the i-xchange event, held at Lehigh University's Zoellner Arts Center, recognized innovation leaders in the area - a welcome bright spot in the economic landscape. In an odd kind of way, the lack of large companies in the area (besides PPL and Air Products) might well motivate local residents develop their entrepreneurial skills and become small-business owners. Whether officials' efforts will lead outsiders to set up shop in the Valley remains to be seen.