The Vancouver Innovation Center appears to be living up to its name. And that means Vancouver is closer to living up to its economic potential. Vancouver Innovation Center — a manufacturing/industrial/mixed-use site in east Vancouver — was recently announced as a future home for SVI Electronics. The electronics manufacturing company, which is based in Thailand, has leased a 46,946-square-foot space for about 100 workers and the company’s first U.S. production facility. The addition of good-paying jobs is beneficial to the community. And the recent announcement highlights several important points about the economy. One is the role that local governments play in bolstering job creation. In 2021, the city of Vancouver approved a Master Plan and zoning change for the Vancouver Innovation Center. Now, city officials are considering updates to that plan, increasing allowances for nearby multifamily housing units and increasing commercial space.

Adept preparation for the businesses of the future is essential to creating a vibrant economy. Some critics insist that zoning and manufacturing decisions should be driven solely by the demands of the free market, but foresight from local governments can help a community to meet those needs and can demonstrate a pro-business attitude that attracts a variety of businesses. Such variety is another factor in a thriving economy. Many a city of the past has relied on one or two dominant industries, only to suffer the consequences when those industries decline. One positive case study in this regard can be found in Camas. For decades, the city was primarily dependent on the local paper mill. But city leaders in the 1980s had the foresight to turn Camas into a high-tech hub. When employment at the paper mill declined, the city was well-positioned to absorb the loss because it had diversified the economic base. A paper mill that once provided more than 70 percent of the city’s property tax revenue now contributes less than 10 percent. That reflects the importance of the Vancouver Innovation Center — and other industrial sites. As demonstrated by development along the Columbia River, the city’s dining, hospitality and construction sectors have been strong in recent years, transforming perceptions about the city. But the most visible industries do not necessarily define a local economy; a balance of heavy manufacturing, service and high-tech industries also are needed.

High-tech should receive particular attention from local governments. In the 1980s, there were visions of a silicon forest to rival California’s Silicon Valley as a hub of innovative industries. Such industries have advanced in fits and starts in the Northwest, but there is hope for growth in the near future. Last week, Analog Devices Inc. announced that it expects to receive $105 million from the CHIPS Act. That legislation was passed by Congress in 2022 to provide a boost for domestic semiconductor manufacturing. Analog Devices plans to use part of the funding to bolster production at its Camas campus. Sen. Maria Cantwell, D-Wash., said: “This investment not only protects against future chip shortages like the one that drove up prices during the pandemic — it creates life-changing career opportunities for the people of Southwest Washington.” Whether it is creating space for electronics manufacturing or providing incentives to help semiconductor companies compete in the global market, government can play a productive role in boosting the local economy.