Do the American States Do Industrial Policy?

Abstract

Although students of American political economy argue that the United States has no industrial policy, this view misses entirely the recent emergence of industrial policies at the state level. An examination of twenty states that have written strategic economic development plans shows that in varying degrees state industrial policies resemble the national industrial policies of France and Japan both in terms of the structure of the underlying economic plans and in their programmatic emphasis. On the basis of the evidence here it is reasonable to conclude that the American taste and capacity for planned intervention and state participation in the market economy is far greater than might be supposed from an exclusive focus on national economic policy making.