Evaluating Economic Development Strategies

Abstract

This essay reviews recent evaluations of three of the most widely used state and local economic development strategies—traditional business recruitment, enterprise zones, and high-technology development. The studies do not succeed in their efforts to produce broadly generalizable findings that provide clear guidance to state and local policymakers and practitioners. Rather, they show that local conditions are responsible for the success or failure and level of net community benefits to be derived from any approach. Under the right conditions, each of the approaches described here might be appropriate.