In 1996, SB 1809 further clarified the legislative intent of the program and defined regional planning, priority setting and coordination as well as adding accountability and audit requirements. In 1997, AB 1578 expanded the scope of regional centers, added regional collaboratives and job development incentive funding to assist in increasing business productivity and expansion in the interest of creating more new jobs. The success of business in global trade and domestic markets is tied to regional competitive success. Businesses are part of larger regional production systems that include infrastructure, services, capital, skills, knowledge and information, and communication systems. The quality and capability of regional economies contribute directly to the rapid growth and attraction of businesses and to the generation of well paying jobs.
Regional competitiveness is enhanced by focusing local and regional efforts.
Barriers, such as local jurisdictional boundaries, overlapping federal, state, and local services, and top-down state economic development initiatives make it a challenge to target resources to support the distinct regional economies of California. The California Economic Strategy Panel has affirmed the importance of regional competitiveness and recommended the development of new regional models of collaboration. The new regional collaboration model should be a public-private partnership, flexible, agile, decentralized, networked, and driven by local needs. California economic development programs are not often organized to meet regional needs. State agencies need to develop and implement policy consistent with the California Economic Strategy Panel's new collaborative governance principles.