As Arizona’s economy has skyrocketed, Gov. Doug Ducey has been clear about who deserves the credit.
“Arizona’s growing economic momentum owes itself to the hard work of entrepreneurs, business owners and their employees across our state,” he says. “Government doesn’t create jobs but it does create the environment in which job creators make decisions.”
Like the state’s momentum, Arizona’s business environment, undoubtedly a direct product of the governor’s leadership, has catapulted to the top of the class over the last eight years.
Across more than a dozen nationwide business rankings, Arizona has experienced sizable improvements. Arizona ascended to the top four in Chief Executive Magazine’s most recent Best States For Business ranking. That score followed a No. 1 ranking for economic performance from the American Legislative Exchange Council.
Arizona’s policies have played a big role.
“Under Ducey's watch, Arizona has become a kind of policy mecca for the states,” writes former diplomat and publisher James Glassman in the fall edition of National Affairs.
Those policies span issues, such as unleashing innovation, cutting burdensome regulation, empowering workers and implementing the lowest flat income tax in the nation. They also include more than a few firsts among U.S. states.
For example, in his first year in office, Ducey issued one of the nation’s first frameworks for the safe development of automated vehicle technology, paving the way for further innovation and economic development.
Today, companies that have operated automated vehicle testing in the state include Waymo, Mobileye, TuSimple, Nuro, Imagery, Embark, Lunewave, Udelv and Cruise, with Phoenix becoming one of the world’s first cities to feature Waymo’s automated robotaxi service.
The governor’s pioneering policies have sought to empower individuals as well as industry. In 2019, Ducey signed legislation making Arizona the first state in the nation to grant universal recognition of out-of-state occupational licenses for new residents.
Over the years, licensing regimes around the country had gradually expanded their reach, with economic advisers to President Barack Obama writing in 2015: “Current systems of licensure can place burdens on workers, employers, and consumers, and too often are inconsistent, inefficient, and arbitrary.”
Arizona’s pioneering law laid out a welcome mat for skilled workers and became a model for other states. Since the law’s passage, at least 10 states have passed their own universal licensing laws, with four states passing similar laws for military spouses.
Technology also has been a hallmark of the governor’s policies. In 2018, Ducey signed legislation making Arizona the first state in the nation to establish a fintech sandbox, enabling real-market testing of innovative financial products, putting the state in rare company with countries such as the United Kingdom, Singapore, United Arab Emirates and Australia.
In 2019, the governor established the first-in-the-nation proptech sandbox, a program that enables the testing of real estate technology.
Under the governor’s leadership, Arizona has spearheaded regulatory innovations related to blockchain, ridesharing, home sharing, telemedicine, broadband, 5G and more, including becoming the first state in the nation to streamline the deployment of 5G wireless communication.
Amidst this welcoming framework, advanced industries in Arizona have flourished. Semiconductors, electric vehicles, batteries, renewable energy, biopharma and more have taken off. Emerging technologies including artificial intelligence, the Internet of Things, freshwater science, quantum computing, smart materials, cybersecurity and nanosatellites are thriving.
The state’s growing tech buzz has caught global attention. The Phoenix area recently was named one of the top 46 tech hubs in the world by commercial real estate and research firm CBRE. The Dice Tech Job Report ranks Phoenix in the top 10 of cities nationwide for growth in tech job postings year over year, outpacing hubs such as Boston, Dallas, Seattle and Chicago.
Business Facilities recognized Tucson as having one of the highest concentrations of startups and Phoenix ranked 20th globally as one of the best emerging startup ecosystems (7th in North America). And CompTIA’s Cyberstates Report predicts Arizona will experience the second-fastest tech job growth in the nation over the next decade.
Amazingly, perhaps the governor’s most significant economic reform has yet to take effect. On Jan.1, 2023, Arizonans will have the lowest flat income tax in the nation, at 2.5%. The new rate is taking effect a year early thanks to faster than predicted economic and state revenue growth.
U.S. Supreme Court Justice Louis Brandeis famously described states as the “laboratories of democracy.” Under Ducey, Arizona has become a laboratory of innovation, pioneering approaches to empower individual enterprise and technological advancement.
As a result, people and businesses have flocked with opportunities that are only just beginning.
Read more about how Arizona empowers innovation at azcommerce.com.
