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The Case Against Targeted Industry Strategies

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  • Terry F. Buss

    (Suffolk University)

Abstract

Targeted industry studies and strategies have been widely used in economic development practice since the 1970s, and their use continues to grow. In spite of their longevity, targeting as a method never has been formally or rigorously evaluated. This article looks at dozens of studies and strategies and concludes that targeting is based on poor data, unsound social science methods, and faulty economic reasoning and is largely a political activity. Targeting studies could be improved somewhat by making their methods more transparent, encouraging use of competing studies, and building in a required evaluation component.

Suggested Citation

  • Terry F. Buss, 1999. "The Case Against Targeted Industry Strategies," Economic Development Quarterly, , vol. 13(4), pages 339-356, November.
    • Handle: RePEc:sae:ecdequ:v:13:y:1999:i:4:p:339-356
    DOI: 10.1177/089124249901300406
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    References listed on IDEAS

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    2. Beason, Richard & Weinstein, David E, 1996. "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 286-295, May.
    3. Timothy J. Bartik, 1999. "The Market Failure Approach to Regional Economic Development Policy," Book chapters authored by Upjohn Institute researchers, in: John P. Blair & Laura A. Reese (ed.),Readings in Urban Economics: Issues and Public Policy, pages 14-24, W.E. Upjohn Institute for Employment Research.
    4. Kuhn C. Lee, 1987. "Modeling Target Industries With Differential Weights," Papers in Regional Science, Wiley Blackwell, vol. 62(1), pages 125-135, January.
    5. Timothy J. Bartik, "undated". "Better Evaluation is Needed for Economic Development Programs to Survive," Upjohn Working Papers tjb1994edq, W.E. Upjohn Institute for Employment Research.
    6. Rural Economy Division, 1995. "Business Assistance and Rural Development," Staff Reports 278872, United States Department of Agriculture, Economic Research Service.
    7. Unknown, 1962. "Community Development and Economic Development," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 17(3), pages 1-2.
    8. Radin, Beryl A., 1996. "State Rural Development Councils Are Creating Public-Private Partnerships," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 11(2), February.
    9. Timothy J. Bartik, 1994. "Better Evaluation Is Needed for Economic Development Programs to Thrive," Economic Development Quarterly, , vol. 8(2), pages 99-106, May.
    10. Aldrich, Howard & Kalleberg, Arne & Marsden, Peter & Cassel, James, 1989. "In pursuit of evidence: Sampling procedures for locating new businesses," Journal of Business Venturing, Elsevier, vol. 4(6), pages 367-386, November.
    11. Rural Economy Division, 1995. "Business Assistance and Rural Development," Staff Reports 278789, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Peter T. Calcagno & Henry Thompson, 2004. "State Economic Incentives: Stimulus or Reallocation?," Public Finance Review, , vol. 32(6), pages 651-665, November.
    2. Andrew Crawley & Max Munday, 2017. "Priority sectors in city regions? Some issues from a study of the Cardiff Capital Region," Local Economy, London South Bank University, vol. 32(6), pages 576-589, September.
    3. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2012. "Shared Skills: Occupation Clusters for Poverty Alleviation and Economic Development in the US," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3403-3425, November.
    4. Wandel, Jürgen, 2010. "The cluster-based development strategy in Kazakhstan's agro-food sector: A critical assessment from an Austrian perspective [Die Clusterförderungsstrategie im Agrar- und Ernährungssektor Kasachstan," IAMO Discussion Papers 128, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    5. Russell S. Sobel & Gary A. Wagner & Peter T. Calcagno, 2024. "The political economy of state economic development incentives: A case of rent extraction," Economics and Politics, Wiley Blackwell, vol. 36(1), pages 104-151, March.
    6. Calcagno, Peter T. & Hefner, Frank L., 2007. "State Targeting of Business Investment: Does Targeting Increase Corporate Tax Revenue?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-13.
    7. Mark Drabenstott, 2005. "A review of the federal role in regional economic development," Monograph, Federal Reserve Bank of Kansas City, number 2005arotfrire, March.
    8. repec:zbw:iamodp:91760 is not listed on IDEAS
    9. Elsie Harper-Anderson, 2008. "Measuring the Connection Between Workforce Development and Economic Development," Economic Development Quarterly, , vol. 22(2), pages 119-135, May.
    10. Terry F. Buss, 2001. "The Effect of State Tax Incentives on Economic Growth and Firm Location Decisions: An Overview of the Literature," Economic Development Quarterly, , vol. 15(1), pages 90-105, February.
    11. Robert T. Greenbaum & Blair D. Russell & Tricia L. Petras, 2010. "Measuring the Distribution of Economic Development Tax Incentive Intensity," Economic Development Quarterly, , vol. 24(2), pages 154-168, May.
    12. Lo Turco, Alessia & Maggioni, Daniela, 2022. "The knowledge and skill content of production complexity," Research Policy, Elsevier, vol. 51(8).

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