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State Economic Policy: The Emerging Paradigm

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  • R. Scott Fosler

    (Committee for Economic Development)

Abstract

The conventional paradigm of state economic development policy focused on the attraction of firms from outside the state. Since the early 1970s, the states have expanded their concern to include development of the state economy as a whole. Out of the ad hoc experimentation of the past 2 decades is emerging a new paradigm of state economic development policy with three principal elements. The first is a concept of economic development as a process rooted in a market-driven private sector. The second is a new set of state responsibilities, including a wide range of public actions that affect the process of development. And the third is a set of new institutional capacities required for shaping and carrying out those new responsibilities. During the 1980s, states attempted to devise economic strategies that accounted for their new responsibilities, which had been only dimly defined. In the 1990s, states also will need institutional change strategies required to develop the capacity to more sharply define and carry out those responsibilities.

Suggested Citation

  • R. Scott Fosler, 1992. "State Economic Policy: The Emerging Paradigm," Economic Development Quarterly, , vol. 6(1), pages 3-13, February.
    • Handle: RePEc:sae:ecdequ:v:6:y:1992:i:1:p:3-13
    DOI: 10.1177/089124249200600101
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    Cited by:

    1. Michael McGuire, 2000. "Collaborative Policy Making and Administration: The Operational Demands of Local Economic Development," Economic Development Quarterly, , vol. 14(3), pages 278-293, August.
    2. Hanas A. Cader & John M. Crespi & John C. Leatherman, 2013. "What Factors Affect Information Technology Firm Location Choices in Middle America? An Examination of Regional and Industrial Variation in Kansas," International Regional Science Review, , vol. 36(2), pages 207-234, April.
    3. Ted K. Bradshaw & Edward J. Blakely, 1999. "What are “Third-Wave†State Economic Development Efforts? From Incentives to Industrial Policy," Economic Development Quarterly, , vol. 13(3), pages 229-244, August.
    4. Charles D. Taylor, 2012. "Governors as Economic Problem Solvers," Economic Development Quarterly, , vol. 26(3), pages 267-276, August.
    5. Andrew M. Isserman, 1993. "State Economic Development Policy and Practice in the United States: A Survey Article," International Regional Science Review, , vol. 16(1-2), pages 49-100, April.
    6. Lingwen Zheng & Mildred Warner, 2010. "Business Incentive Use Among U.S. Local Governments: A Story of Accountability and Policy Learning," Economic Development Quarterly, , vol. 24(4), pages 325-336, November.

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