ABSTRACT
Economic development has been a central mission for U.S. states, especially since the 1970s. Three waves of activity are evident. The first wave focuses on lowering business costs, while the second tries to nurture existing businesses and improve production processes. The third wave emphasizes broader capacity building and is less directly interventionist. Despite mixed evidence of effectiveness, first-wave policies appear to be the most widely used. Over the last 20 years or so, there has been no clear evidence of a fourth wave, although a few states have begun to focus on issues such as equality and sustainability.
