Federal defense industrial policy, firm strategy, and regional conversion initiatives in four American aerospace regions

This article examines divergent experiences among U.S. defense regions in t he post-cold war era, highlighting the interplay between shifting federal p olicies, large defense firm investment and location decisions, and adjustme nt policies implemented by regional actors. Case studies of four defense ae rospace centers reveal that economic impacts were highly uneven across majo r defense regions. Regional conversion and diversification efforts mitigate d some adjustment costs when local actors overcame interjurisdictional conf lict and vested leadership in a single agency or government department Comm unities that had experienced structural downturns in previous periods were better able to draw on prior knowledge, pull actors together; and plan more strategically. While the scale of local initiatives has not been large eno ugh to have mensurable impacts on aggregate regional economic performance, conversion programs did succeed in overcoming specific market failures and improved outcomes at the level of firms and individual workers.