ABSTRACT
Planning schools offer courses in economic development planning, and the American Planning Association has an economic development planning division. Planning for economic development is an old American tradition. To understand the present situation in local economic development, it is necessary to make clear two different perspectives. For several decades, local economic development efforts were heavily shaped by federal funding and federal legislation. On the tax expenditure side of the budget, the federal government has for a number of decades aided local economic development efforts through the mechanism of Industrial Revenue Bond (IRB) funding. For many years the states have supported local economic development efforts. State departments of commerce provide information on the state and try to guide firms to municipalities within the state. The economic development agency provides technical assistance for beginning entrepreneurs, perhaps by arranging mentoring relationships with other business people in the community. Many economic development programs try to foster small-business development through the use of incubator buildings.
