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The Case Against Targeted Industry Strategies

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  • Terry F. Buss

    (Suffolk University)

Abstract

Targeted industry studies and strategies have been widely used in economic development practice since the 1970s, and their use continues to grow. In spite of their longevity, targeting as a method never has been formally or rigorously evaluated. This article looks at dozens of studies and strategies and concludes that targeting is based on poor data, unsound social science methods, and faulty economic reasoning and is largely a political activity. Targeting studies could be improved somewhat by making their methods more transparent, encouraging use of competing studies, and building in a required evaluation component.

Suggested Citation

  • Terry F. Buss, 1999. "The Case Against Targeted Industry Strategies," Economic Development Quarterly, , vol. 13(4), pages 339-356, November.
    • Handle: RePEc:sae:ecdequ:v:13:y:1999:i:4:p:339-356
    DOI: 10.1177/089124249901300406
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    References listed on IDEAS

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    Cited by:

    1. Terry F. Buss, 2001. "The Effect of State Tax Incentives on Economic Growth and Firm Location Decisions: An Overview of the Literature," Economic Development Quarterly, , vol. 15(1), pages 90-105, February.
    2. Robert T. Greenbaum & Blair D. Russell & Tricia L. Petras, 2010. "Measuring the Distribution of Economic Development Tax Incentive Intensity," Economic Development Quarterly, , vol. 24(2), pages 154-168, May.
    3. Wandel, Jürgen, 2010. "The cluster-based development strategy in Kazakhstan's agro-food sector: A critical assessment from an Austrian perspective [Die Clusterförderungsstrategie im Agrar- und Ernährungssektor Kasachstan," IAMO Discussion Papers 128, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Calcagno, Peter T. & Hefner, Frank L., 2007. "State Targeting of Business Investment: Does Targeting Increase Corporate Tax Revenue?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-13.
    5. Lo Turco, Alessia & Maggioni, Daniela, 2022. "The knowledge and skill content of production complexity," Research Policy, Elsevier, vol. 51(8).
    6. repec:zbw:iamodp:91760 is not listed on IDEAS
    7. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, number 2005arotfrire.
    8. Elsie Harper-Anderson, 2008. "Measuring the Connection Between Workforce Development and Economic Development," Economic Development Quarterly, , vol. 22(2), pages 119-135, May.
    9. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2012. "Shared Skills: Occupation Clusters for Poverty Alleviation and Economic Development in the US," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3403-3425, November.
    10. Andrew Crawley & Max Munday, 2017. "Priority sectors in city regions? Some issues from a study of the Cardiff Capital Region," Local Economy, London South Bank University, vol. 32(6), pages 576-589, September.
    11. Peter T. Calcagno & Henry Thompson, 2004. "State Economic Incentives: Stimulus or Reallocation?," Public Finance Review, , vol. 32(6), pages 651-665, November.

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