PROJECT: L.A. ECONOMY STUDY TARGETS LURING NEW BUSINESSES.

Byline: Evan Pondel Staff Writer

For the first time in nearly a decade, the Los Angeles County Economic Development Corp. and the Milken Institute are partnering to study the region's economy for ways to lure new business.

``This is not the kind of study that we're simply going to conduct and put on the shelf,'' said Ross DeVol, director of regional and demographic studies at the Milken Institute. ``We're going to take a broad look at the L.A. economy, and then seize the opportunity to improve what we find.''

``We're going to ask a lot of questions, including why we lost so many of those Fortune 500 companies,'' said Jack Kyser, chief economist for the LAEDC. Compounding the loss of major employers, economists expect 73,000 jobs will be lost in the county as a direct result of the Sept. 11 terrorist attacks.

Beginning in March, DeVol and at least eight other economists from the Santa Monica-based Milken Institute will collaborate with the LAEDC to decipher where the economy stands. The project, which is funded by Milken and the LAEDC, is expected to run through the first half of 2003.

Researchers will study most closely the technology, entertainment, banking and biotechnology sectors.

The study emerged after David Fleming, chairman of the LAEDC's board, had several discussions with the Milken Institute about the economy's fortitude in Los Angeles. Fleming said as the 16th-largest economy in the world, a comprehensive examination would help Los Angeles County realize its full potential as a global economic leader.

One anticipated outcome of the study is a strategic blueprint for future political action throughout the region. The report will highlight several ways local businesses and political leaders can work together more effectively, DeVol said.

``We want to target specific industries that could use recruitment and policy changes,'' he said.

Among the industries that have been hit particularly hard: the banking sector. Downtown's skyline was once illuminated by the names of banking behemoths. Today, many of those banks, including First Interstate Bancorp and Security Pacific, have blended with other banks, leaving the city without a major bank headquarters.

While wooing those companies back to Los Angeles may be a difficult feat, Kyser said it's important to identify specific reasons as to why the region is still geographically attractive.

``Part of my ongoing frustration is that we have so many assets that we never utilize to their maximum potential,'' Kyser said.

A portion of the study targets companies that currently dominate Los Angeles' economy. DeVol said economists will scrutinize their financials and other characteristics that have fostered success.

``We'll be talking to the likes of Disney and other key players,'' he said.