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Economic Impacts Brief: The Economic Development Return on Public Investment in Indian River County ....................................................................................................................................................................................................................... The Table on the previous page shows all the companies assisted by the Chamber since 2007 that located in IRC. Those companies that were paid performance-based incentives by the County are highlighted with an asterisk. The Minnesota IMPLAN Group, Inc. (MIG) provides the software and basic data needed to formulate the economic multiplier model developed for this Brief. MIG has been providing economic multiplier models for regional economic impact analysis since 19851. Models developed using IMPLAN software have been widely used by private sector, academic economists and by Federal, State and local government agencies to measure the economic impacts of various policy alternatives. The State of Florida and County/City governments utilize IMPLAN Methodology to assess economic development projects and the granting of incentives based on results. Methodology Economic models that explicitly account for inter -industry linkages (supply relationships), the generation of labor and capital income and the spending of household income have been used since the 1960's to estimate the contribution that a particular business or industry makes to the general economy. These "input-output" models recognize that, as an industry experiences an increase in the demand for its products or services, it in turn needs more goods and services from its suppliers j and must increase its purchases from other industries in the economy. The effect on regional production resulting from successive rounds of inter -industry linkages is referred to as the indirect effect. The resulting increases in regional production also lead to expansions in employment and labor income, and the increases in labor income lead to increases in consumer spending, further expanding sales and production throughout the regional economy. The latter economic impacts are referred to as the induced effects. The successive waves of production, spending and more production result in economic multiplier effects, where the final or total increase in regional production, income and employment, respectively, is larger than the initial (or "direct") increase in production, income and employment. The total quantitative economic contribution of these activities, therefore, is comprised of a direct effect, an indirect effect and an induced effect. The ongoing economic development investments generate significant quantifiable and recurring economic impacts each year. These impacts, include high -wage employment (jobs) and the generation of Household Income for residents, economic impact (output) and public revenues for Indian River County (IRC), the State and Federal governments. 'Information on the IMPLAN Group models and the company history can be found at 1VWW.i12lan.com. ........................................................ ............................................................................................................................................... The Washing......t...on Economics . . . . . .. Group . . .. , Inc. ....(WEG) Page 4 7./`E. &