State Economic Development Policy and Practice in the United States: A Survey Article

Abstract

The states have taken an increasingly active role in economic development policy during the past two decades. This article presents both a comprehensive overview of the state strategies and a statistical overview of the changing economic conditions from which they arise. The strategies can be grouped into three distinct orientations. Chasing and acquisition focuses on bringing into the state businesses, export orders, federal facilities and contracts, tourists, retirees, and other external sources of growth. Self-improvement focuses on helping businesses and people in the state become more competitive by improving education systems, stimulating research, helping firms adopt new technologies, providing venture capital, and improving roads, communications, and other infrastructure. Knowledge and process focuses on doing those things better by making greater use of markets and business practices.