Using program attributes to measure and evaluate state economic development strategies

In this article, the author analyzes the substance of state-level economic development programs and distills their essential attributes to create meas ures that distinguish locational from entrepreneurial economic development strategies. After assessing the validity and reliability of the measures, t he author assesses whether these strategies are associated with economic gr owth. Findings indicate that entrepreneurial economic development strategie s increase manufacturing employment but have no effect on changes in total state product or aggregate employment. Industrial recruitment strategies ar e found to have a negative effect on employment growth in the finance, insu rance, and real estate sectors. Na positive "spinoff" effects to secondary or tertiary economic sectors are associated with either strategy.