Bob Turner                                                                   bturner@skidmore.edu

315 Ladd                                             http://www.skidmore.edu/~bturner/turner.htm

Office Hours T-Th 2-3:30

or by appointment

State and Local Economic Development Policy

Government 331

Fall 2006

 

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. 

 

Books and Readings

John Blair and Laura Reese.  Approaches to Economic Development:  Readings from Economic Development Quarterly.  Thousand Oaks:  Sage Publications, 1999.

 

Other material will be available either in a reading packet or via email.

 

Assignments and Grading

  1. Class Presentations and Participation (10% of course grade)
  2. NC Battle for Business Case Study Memo (15% of course grade)
  3. Creating Tech Valley Policy Paper (15% of course grade)
  4. Research Paper (30% of course grade)
  5. Web Page based on your research paper (5% of course grade)
  6. Final Exam (25% of course grade)

 

Course Absences

            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. 

 

Section I.  The Political and Economic Context of Economic Development

September 7  Introduction

 

September 12  Why Should State And Local Governments Do Economic Development?

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

 

            Joseph Schumpeter, Capitalism, Socialism, and Democracy (1942) pp. 81-86, 131-34.

 

September 14  The Evolution of State and Local Economic Development Policy

Eisinger Chapters 1-3, p. 3-54

 

Internet Assignment:  Find a state economic development agency on-line (preferably a more industrialized state)

 

September 19  The Economic Context

Guest Speaker  Trudy Renwick, Research Analyst, Fiscal Policy Institute

 

Fiscal Policy Institute, The State of Working New York 2005:  (labor/lefty view)  http://www.fiscalpolicy.org, Go to web page for version

 

NY Office of Economic Affairs, Cutting Taxes, Creating Jobs:  The Decline and Revival of Upstate New York. (Governor’s view), for full version see http://www.state.ny.us/upstateeco/index.html

 

The Public Policy Institute, New York State's economy in 2004: Which way out?, http://www.ppinys.org/reports/2004/economy04.pdf , p. 1-9

 

            The Public Policy Institute, Could New York Let Upstate Be Upstate p. 1-12

 

Section II.  Industrial Recruitment and Retention or Corporate Welfare

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

 

New York’s Policy on Retention and Recruitment  from Site Selection web site, p. 1-2

 

September 26  Industrial Recruitment:  The Critics

Burstein, Melvin L. and Arthur J. Rolnick "Congress Should End the Economic War Among the States." 1994 Annual Report – Federal Reserve Bank of Minneapolis (March 1995),  p. 1-14   http://woodrow.mpls.frb.fed.us/pubs/ar/ar1994.cfm

 

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 Enterprise Development, Sep 2000, p. 1-24. 

 

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 Midwest. Economic Development Quarterly, November 1993, 7(4), p. 328.

 

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

 

October 3  Attraction and Retention in Saratoga County

Guest Speaker, Ken Green, Director of the Saratoga Economic Development

 

Blair/Reese. Chapter 18. "Shoot Anything That Flies. Claim Anything that Falls" by Rubin.

 

2001 Saratoga County Economic Development Corporation Annual Report

http://www.saratogaedc.com/2001annualreport.html

http://www.saratogaedc.com/aboutsedc.html

 

For two different views of New York’s Industrial Recruitment Policies see: 

Good Jobs New York:  http://www.ctj.org/itep/gjny/index.html

 

The Empire State Development:  http://www.empire.state.ny.us/

 

Oct 5 Industrial Recruitment in Action 

JFK School of Government, case study #1351.0 North Carolina and the Battle for Business.  Available on line at: http://www.ksg.harvard.edu/case/battle/index.html

 

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.

 

Case Study Policy Memo Due October 9

 

Section III.  High Tech Policy and the New Economy:  Creating Tech Valley

 

October 10  What is the New Economy?

Robert Atkinson, The 2002 State New Economy Index:  Benchmarking Economic Transformation in the States, Progressive Policy Institute, June 2002

 

Ross DeVol, America’s High Tech Economy, Milken Institute, July 13, 1999, Executive Summary, 1-18

 

October 12  Creating a Regional Success Story:  Silicon Valley

Annalee Saxenian, Regional Advantage:  Culture and Competition in Silicon Valley and Route 128, Harvard University Press, 1996.   Pages 1-11, 83-132, 161-171.

 

October 17  The Cluster Strategy

Michael E. Porter, Location, Competition, and Economic Development:  Local Clusters in a Global Economy, Economic Development Quarterly, Vol 14, Feb 2000, 15-34

 

            Robert Forrant, Erin Flynn.  Seizing Agglomeration's Potential: The Greater Springfield Massachusetts Metalworking Sector in Transition, 1986 – 1996;  Regional Studies, 1997.

 

October 19  Albany’s Tech Valley Initiative

Guest Speaker- David Rooney, Senior Vice President, Center for Economic Growth

 

Empire State Development, New York State’s Technology Driven Industries:  Software and Related Services, September 2000.  p 1-12. 

 

New York’s Tech Valley in the News, Assorted News Articles 

 

Joel Kotkin, Tech Economy Creates An Altered Landscape; WallStreetJournal.Com   April 4, 2002   p. 1-3

           

Peruse the two web sites to get a flavor of what is actually happening in Tech Valley (think about Saxenian’s argument)

Center for Economic Growth  http://www.ceg.org/

Tech Valley, http://www.techvalley.org/

 

October 24 Business Incubators  

            Kelsey Kohler Watervliet Innovation Center

 

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

Also check out the National Business Incubator Association at http://www.nbia.org/

 

October 26  Technology Parks—Field Trip Albany NanoTech

Guest Speaker Michael Fancher, Director of Economic Outreach, Albany NanoTech

 

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

 

Braun, Bradley M. and McHone, Warren W. Science Parks as Economic Development Policy: A Case Study Approach. EDQ, May 1992, 6(2), p. 135.

 

Peruse Albany NanoTech web site.http://www.albanynanotech.org/

 

October 31  High Technology Catch Up Day

 

Section IV.  Urban Revitalization

November 2 The Urban Dilemma and Implications

Blair/Reese. Chapter 3. "City Jobs and Residents on a Collision Course: The Urban Underclass Dilemma" by John D. Kasarda.

 

KR Ihlanfeldt, The Importance of the Central City to the Regional and National Economy: A Review of the Arguments.  Cityscape, 1995

 

Bolton, R. 'Place Prosperity vs People Prosperity' Revisited: An Old Issue with a New Angle” 1992, Urban Studies, 29, 185-303

 

 

 

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, “Opportunity Newark:  Jobs and Community Development for the 21st Century”

 

See also http://www.opportunitynewark.com/default.aspx

 

Response: Michael Porter's conservative urban agenda will not revitalize America's inner cities: what will? Timothy Bates. Economic Development Quarterly, Feb 1997 v11 n1 p39(6)

 

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 Baltimore, p. 125-67

 

A great anti- sports stadium site, the url says it all http://www.fieldofschemes.com/

 

November 16 Growth Machine

 

Peter Eisinger, The Politics of Bread and Circuses, Urban Affairs Quarterly

 

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. Washington Monthly, May 2002

 

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

 

Florida, “Revenge of the Squelchers,” The New American City, www.creativeclass.org/acrobat/squelchers_document050204.pdf, p. 1-31

 

November 28 Quality of Life Policies

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)

 

Section V  The Politics and Evaluation of Economic Development Policy

 

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

 

December 5 Evaluation

Blair/ Reese. Chapter 20. "The Economic Impact of Development: Honda in Ohio" by Marvel and Shkurti.

 

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

 

December 7 Policy Evolution: Federal, State and Local Role

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

 

December 12  Conclusion