Office Hours T-Th 2-3:30
or by appointment
This course provides an introduction to the context, theory, process, and practice of state and local economic development policy. The objectives of the course are 1) to provide an introduction to the concepts, ideas, and strategies employed in the pursuit of economic development; 2) to review basic principles for critically examining alternative development policies and programs; 3) to reflect on the goals and objectives of economic development efforts; 4) to examine the economic, political, and social context in which development policymaking occurs; 5) to survey and critically review the range of strategies commonly used to improve the economic prospects of neighborhoods, cities, and regions; and 6) to hone your ability to critically analyze and present your analysis in a variety of mediums.
Blair and Laura Reese. Approaches to
Other material will be available either in a reading packet or via email.
Assignments and Grading
A well functioning class that promotes learning requires good attendance. Students should inform me prior to class if they must miss class on a specific day. You are allowed two personal days (absences), after that I will deduct 2.5% from your final grade. For example, you receive a 90% as your final grade, but have missed four classes; your final grade is an 85%. I stress attendance not only for your benefit, but also for the benefit of your classmates. While it is entirely possible that you personally could excel in this course with more than 2 absences, your poor attendance makes it more difficult for your classmates, collectively, to excel. You have an unlimited number of excused absences for illnesses, family crises, etc, though they count against your two personal days.
Course Outline –This WILL change to accommodate the schedules of our guest speakers.
Charles Lindblom, “The Privileged Position of Business” Politics and Markets, 1977, pp. 170-77.
Blair/Reese. Chapter 2. "The Market Failure Approach to Regional Economic Development" by Timothy J. Bartik.
Paul Peterson, “Functional Theories of Federalism” in The Price of Federalism, Brookings, 1995. pp 16-39
Eisinger Chapters 1-3, p. 3-54
Internet Assignment: Find a state economic development agency on-line (preferably a more industrialized state)
Guest Speaker Trudy Renwick, Research Analyst, Fiscal Policy Institute
NY Office of Economic Affairs, Cutting Taxes,
Creating Jobs: The Decline and Revival
The Public Policy Institute,
The Public Policy Institute, Could
September 21 Competing for Business
Blair and Premus, Location Theory, p. 3-26
Trends in State Business Incentive Programs, Council of State Governments, p. 1-7
Tomaka, 1998, In Search of Growth: Business Incentives in the Midwestern States, Council of State Governments, 1-24
Nor'Easter - Pro vs. Con, p. 1-2
Burstein, Melvin L. and Arthur J. Rolnick
"Congress Should End the Economic War Among the States." 1994 Annual
Report – Federal Reserve Bank of
Hanson, Russell L. Bidding for Business: A Second War Between the States? Economic Development Quarterly, May 1993, 7(2), p. 183.
William Schweke, Curbing Business Subsidy
Competition: Does the European Union
Have An Answer, Working Paper, Corporation for
September 28 Improving the Process in Theory and Practice: Clawbacks, Disclosure, or Living Wages
Peters, Alan H. Clawbacks and the Administration of
Economic Development Policy in the
Good Jobs First, The Policy Shift To Good Jobs Cities, States and Counties Attaching Job Quality Standards to Development Subsidies, http://www.ctj.org/html/gjf1099.htm
Kenneth Thomas, Competing For Capital, Trade and Sustainable Development: A Newsletter, Vol 2, #1, Jan 2001 p. 1-5
Good Jobs First, Disclosure, The Best Antiseptic, An Opportunity to Clean Up Economic development in the Big Apple, Issue Brief #4, Feb 2002, p. 1-4.
Rachel Weber, Negotiating the Ideal Deal, presented at the Reining in the Competition for Capital Conference Papers, Humphrey Institute, Minnesota 2004
Guest Speaker, Ken Green,
Director of the
Blair/Reese. Chapter 18. "Shoot Anything That Flies. Claim Anything that Falls" by Rubin.
For two different views of
JFK School of Government, case study #1351.0
A major manufacturer is rumored to be considering a number of Southern state locations for a new plant. Having lost out to South Carolina and Alabama in the recent decisions of car manufacturers to site new factories, North Carolina must decide what mix of tax breaks and other incentives--if any--it should offer those who would set up shop within its borders.
Annalee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and
Michael E. Porter, Location, Competition, and Economic Development: Local Clusters in a Global Economy, Economic Development Quarterly, Vol 14, Feb 2000, 15-34
Empire State Development,
October 24 Business Incubators
Markley and MacNamera, 1995. Economic and Fiscal Impacts of a Business Incubator, “Economic Development Quarterly 9, 273-8
Hansen Morton T.; Chesbrough, Henry W.; Nohria, Nitin and Sull, Donald N. (2000) ‘Networked Incubators: Hothouses of the New Economy’, Harvard Business Review, (September/October)
Bennett Harrison, Lean and Mean, Chapter 2, "The Myth of Small Firms as the Predominant Job Generators,"
Business Incubators in the Region: http://www.techvalley.org/incubators.php
Guest Speaker Michael Fancher, Director of Economic
Walter Plosila, State Science and Tech Based Economic Development Policy: History, Trends and Developments, and Future Directions, EDQ 18, 2, May 2004, 113-126.
National Science Foundation, Division of Science Resources Studies, What is the State Government Role in the R&D Enterprise?, NSF 99-348, John E. Jankowski (Arlington, VA 1999). http://www.nsf.gov/sbe/srs/nsf99348/text.htm
Peruse Albany NanoTech web site.http://www.albanynanotech.org/
Section IV. Urban Revitalization
KR Ihlanfeldt, The Importance of the Central City to the Regional and National Economy: A Review of the Arguments. Cityscape, 1995
November 7 Election Day/Is capitalism the answer?
Blair/Reese. Chapter 4. "New Strategies for Inner-City Economic Development" by Michael Porter.
K Pothukuchi, Attracting Supermarkets to Inner-City Neighborhoods: Economic Development Outside the Box, Economic Development Quarterly, 2005
Initiative for a Competitive Inner City,
Response: Michael Porter's conservative urban agenda
will not revitalize
November 9 Place Based Strategies – Enterprise Zones in Practice and Theory
Ladd, H. (1994). "Spatially-Targeted Economic Development Strategies: Do They Work?" Cityscape 3: 193-218.
Executive Summary, Comprehensive Evaluation of the Performance of New York State Economic Development Zone n, Empire State Development, September 199.
Turner and Cassell, Who Benefits When Enterprise Zones Are Zoned-Out?
The Case of the Ohio Enterprise Zone Program, under review EDQ
November 14 Entertaining for Development
Mark S. Rosentraub, The Local Context of a Sports Strategy for Economic Development, Economic Development Quarterly, August 2006, 278-291.
Donald Norris, If We Build It, They Will Come,
Tourism Based Economic Development in
November 16 Growth Machine
Judd and Simpson, Reconstructing the Local State: The Role of External Constituencies in Building Urban Tourism American Behavioral Scientist, Vol. 46, No. 8, 1056-1069 (2003)
November 21 The Creative Class
Guest Video Speaker, Richard Florida, peruse http://creativeclass.org
Richard Florida, The Rise of the Creative
Class: Why cities without gays and rock
bands are losing the economic development race.
Richard Florida and Gary Gates, Technology and Tolerance: Diversity and High Tech Growth
Steven Malanga, The Curse of the Creative Class, City Journal, Winter 2004, http://www.city-journal.org/html/14_1_the_curse.html
Joel Kotkin and Fred Siegel, Too Much Froth: The latte quotient is a bad strategy for building middle-class cities. Blueprint Magazine - January 8, 2004
Ann Markusen and David King, The Artistic Dividend: The Arts' Hidden Contributions to Regional Development, the Humphrey Institute of Public Affairs
Elizabeth Strom, Let's Put on a Show!: Performing Arts and Urban Revitalization in Newark, New Jersey, Journal of Urban Affairs, Volume 21, Number 4 (1999)
November 30 Politics of Economic Development Policy
Margaret Dewar, Why Do State and Local Economic Development Programs Cause So Little Economic Development," Economic Development Quarterly 12:1 (1998)
Turner, Fleming, and Kaufman, The Political Economy of Trophy Industrial Recruitment Projects
Blair/ Reese. Chapter 20. "The Economic Impact
of Development: Honda in
Blair/Reese. Chapter 19. "What Works Best? Values and the Evaluation of Local Economic Development Policy" by Reese and Fasenfest.
Good Jobs First, Minding the Candy Store: State Audits of Economic Development, http://www.ctj.org/itep/audits.htm
Blair/Reese. Chapter 14. "State Economic Development in the 1990s: Politics and Policy Learning" by Peter Eisinger.
Blair/Reese. Chapter 13. "The Next Wave: Post Federal Local Economic Development Strategies" by Clarke and Gaile.
Blair/Reese. Customization and Macroeconomic Efficiency, p. 307-314 by Blair and Reese