Ted K. Bradshaw

What are “Third-Wave” State Economic Development Efforts? From Incentives to Industrial Policy

“Third-wave” state economic development strategies have been widely acknowledged to reduce high-stakes incentives and promotions and have shifted emphasis from firm-based programs to broader regional programs. Although the change is well documented, less consensus has emerged about what has taken their place. Based on analysis of economic development programs in 16 states competing for high-technology industry, the study documented that the emerging third-wave economic development efforts—especially leadership, information, and brokering—are the essential tools by which states can establish their industrial policies. These policies are based on extensive strategic planning, public-private partnerships, foundations of technology, human resources and capital, and the development of strategic industrial clusters. The report concludes that the third wave is a state policy direction that focuses rather than replaces earlier strategies and that downplays expensive programs by mobilizing many established state programs to build strategic advantages in industry clusters that will stimulate the entire state economy.

The Contribution of Small Business Loan Guarantees to Economic Development

Analysis of the outcome of economic development programs is essential for improved public policy. This study reports on the California State Loan Guarantee Program, which guaranteed small business bank loans to carefully selected firms that could not otherwise obtain credit. The study tracked the actual change in employment at 1,166 firms that received 1,515 loan guarantees from 1990 to 1996 during the depths of the California recession. The study found that employment increased in firms receiving loan guarantees by 40% among all firms and 27% among nonagricultural firms. The program also increased state tax revenues by

The Post-Place Community: Contributions to the Debate about the Definition of Community

25.5 million, well in excess of the

GLEANERS, DO-GOODERS, AND BALERS: OPTIONS FOR LINKING SUSTAINABILITY AND ECONOMIC DEVELOPMENT

13 million the state spent on the program. Firms receiving loan guarantees had a default rate of only 2%.

Planning Local Economic Development: Theory and Practice

One of the continuing theoretical debates in community studies is about the definition of community, especially whether the concept of community includes groups of people who share common interests and interaction but who do not share common geographical locality. Starting with the classic dichotomy of Gemeinschaft and Gesellschaft, many scholars have described a weakening of traditional ties among community members due to urbanization and industrialization. Today, it is useful to define community in terms of the networks of people tied together by solidarity, a shared identity and set of norms, that does not necessarily reside in a place. This concept of community, what I call a post-place community, helps reconcile the fact that cities and suburbs may lack social involvement of Gesellschaft, while individuals find Gemeinschaft solidarity through global networks. This makes a lot of difference for how to plan, govern, and restore regions.

Impacts of Rapid Urban Growth on Farmland Conversion: Application of New Regional Land Use Policy Models and Geographical Information Systems1

Sustainability and economic development are typically treated as conflicting goals in the literature and in practice. In this paper gleaners, do-gooders, and balers are used metaphorically to suggest that certain people outside the mainstream economy are in fact contributing to employment and generating wealth while acting in a sustainable manner, thus providing an example of how sustainable principles can complement economic development in all types of businesses. Third wave economic development strategies are shown to be compatible with gleaners who turn waste into a resource, do-gooders who find profit in being virtuous about conserving resources, and strawbale house builders who find ways to cut through the cost barrier to develop sustainable technologies that are both better and cheaper. Local economic development officials can support these technologies through the use of third wave tools of leadership, information, and brokering, thereby helping to promote local economies that satisfy the short-term goals of businesses, support interdependent networks of growing firms, and minimize environmental damage.