A LOS ANGELES TIMES - FINANCIAL TIMES SPECIAL REPORT : The Next California--The State’s Economy in the Year 2000 : The Next California / HOLLYWOOD AND TECHNOLOGY : ACTION FILE / Elizabeth Daley : Climate Control

In the area of technology and entertainment, she argues, the one key step to take is providing a business climate small companies want to stay in.

“The most creative, technological innovations usually come from small companies, which are then acquired or grow into big companies. We need to be able to nurture small companies, to make their life easy in terms of dealing with city hall or state government. They need tax incentives and ease in getting permits. They need services from the government that help them grow. My sense is that the private sector can nurture them very well as long as the public sector won’t get in their way.”

WILL IT WORK?

There are heartening signs that the business climate is improving. For example, Daley notes that the Entertainment Industry Development Corp. is making it easier for people in the movie and television industries here to find locations and get shooting permits. But there are serious questions about whether California can maintain its competitive edge as an attractive location for creative new businesses--in entertainment, technology or any other industry.

Meter: MAYBE