Come Together, But How? Zooming Into Economic Development Collaboration Between State and Local Governments, and Nongovernmental Organizations

Abstract

Economic development at the local level presents an intrinsic tension produced by competitive and cooperative dynamics. While empirical studies have identified drivers for collaboration at the local level, less is known about the scope of activities promoted by state-level agencies and the institutional mechanisms that state and local actors create to cooperate. This study exploits a unique data set created by the State of Iowa reporting the economic development agreements from 2007 to 2018. The findings illustrate how workforce development activities are the most prevalent activity while fiscal incentives are the least recurrent practice. In terms of institutional mechanisms, service contracts are used most frequently. Additionally, a state agency and nonprofit organization dyad is the most common collaboration, which highlights the role of state governments in shaping local economic development strategies. This exploration of mechanisms, activities, motivations, and duration contributes by improving theories of formal collaboration and intersectoral governance.