The objective of this article is twofold. First, why did states adopt enterprise zones, which allow designated economically distressed areas to provide significant financial incentives to attract firms? Second, why did some states significantly increase the number of zones within the state and transform what began as a spatially targeted program aimed at helping poor places into a state-wide incentive program aimed at improving the state's competitive position? We also demonstrate the value of examining how changes in a state's policy environment can undermine a policy innovation, namely, the adoption of place-based economic development policies. Copyright (c) 2007 Southwestern Social Science Association.
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Article provided by The Southwestern Social Science Association in its journal Social Science Quarterly.