ABSTRACT
This chapter presents Enrico Moretti’s analysis of regional inequality, one of the most pressing economic development problems in the United States. It explores a general strategic framework for economic development that offers an alternative to economic growth strategies. The chapter focuses on Wilbur Thompson’s and Enrico Moretti’s synthetic treatments of theory. Thompson provides one of the best examples of theoretically informed strategic thinking. Development supports the interactive process of invention, to innovation, and commercialization. Wilbur and Phillip Thompson argue that industrial targeting, the recruitment of large firms in attractive industries that are feasible given local resources, needs to examine another dimension. Development occurs as localities change skill levels and occupation mix over time, which change functional specializations and, gradually, the basis of competitiveness. Thompson’s contributions offer an unusually sophisticated understanding of local economic development. Economic growth can be measured year by year, but economic development should be examined over decades.
