A business expert has warned local authorities must do more to encourage development of manufacturing companies in Devon.
The call follows an impasse between Hymec Industries and Teignbridge District Council over building on green fields at Bickington near Newton Abbot.
The Plymouth-based firm, which makes aerospace components, has been talking to the council for two years.
But the council says a former industrial site would be more suitable.
Peter Gripaious, Professor of Applied Economics at the University of Plymouth, said: "If you get inquiries from good companies you have got to be as welcoming as you can.
"There are not many around and inward investment has dried up.
"It would be a real boost for the area. Just because unemployment is low now, that shouldn't lead local authorities to believe they shouldn't be encouraging the growth of local industry."
Teignbridge said it had offered the firm a five-acre industrial estate site - the old Devon Desserts base in Newton Abbot.
Councillor Tom Archer said: "We have to balance the need to bring in more industry against the importance of preserving green field sites.
"There is nothing more we can do at this stage."