In the i92o's a group of forward-looking business and professional men in New England undertook to study the economic basis of this 6-state region-the oldest industrialized region in the United States. This research was stimulated by the fact that industrialization was speeding westward and southward, drawing with it manufacturing concerns long rooted in New England. Evidently here was a trend which required diagnosis and perhaps action. The most interesting conclusions drawn by this group were

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... these: x. That the New England economy is based primarily on industry, not agriculture. 2. That small and medium-sized industries, not large mass production industries thrive best in New England. 3. That small industry has special problems of finance, management, research, marketing, etc., not adequately met by existing facilities. 4. That a special service organization equipped to assist small industry in solving these problems should be set up to provide, at reasonable costs, the services and facilities found to be needed by small industry. As a rule several years elapse between the formulation of an idea and putting it into practical use. After what proved to be an abortive start in 1929, ten years later several of the original group began the definite planning which resulted in the organization of the New England Industrial Development Corporation. The first published statement began with these carefully worded paragraphs: "PuosE AND OBJCTIVE: Throughout New England there are many small and intermediate-sized companies in expanding industries whose continued growth and profits are dependent upon their ability to secure long-term or permanent equity financing. "Existing agencies cannot solve this problem. Commercial banks, investment bankers, investment trusts, and insurance companies cannot by their very nature supply longterm or permanent capital in amounts up to $ioo,ooo. "Meeting these needs with capital alone will not always solve the problem. A complete and continuous advisory management service based upon analysis of data relating to operating problems should be supplied as well. Sound management even more than collateral is the strongest security the supplier of capital can have.