The state role in economic development

Development economics The scope of economic development includes the process and policies by which a nation improves the economic, political, and social well-being of its people. The concept, however, has been in existence in the West for centuries. ModernizationWesternisation, and especially Industrialisation are other terms people have used while discussing economic development.

The state role in economic development

However, proposed cuts to federal support and policy guidance could encourage more state governments to take on new or larger roles in developing innovation policy priorities. Speakers also discussed the ways in which economic development efforts in states and regions drive innovation and economic growth.

He opened by describing how states are more important now than any other time he can remember during his time working in state policy.

According to Pattison, the main question states are asking is: How can we prepare our workforce and our economy—our citizens and our society—for unprecedented change? By his observations, governors and research universities are recognizing that they must address the skills gap together, regardless of political affiliation.

States also have the desire to work regionally. At an energy summit we held in Colorado recently, governors of both parties from across the west announced a pact to ensure there are enough charging stations for electric vehicles throughout the region.

Economic development - Wikipedia

And now nearly every governor has joined a pact to fight opioid addiction together. Similar interest is coming from governors and subnational leaders in other countries.

States and local government agencies retain vast amounts of data on residents, and critical services depend on digital systems. Page 2 Share Cite Suggested Citation: Proceedings of a Workshop - in Brief. Proceedings of a Workshop—in Brief.

The National Academies Press.


For example, how can ridesharing apps help women get to prenatal care appointments—potentially reducing the likelihood that babies are born prematurely—and thereby help reduce Medicaid expenditures on neonatal care?

State policymakers need to feel like they are part of collaborative dialogue when it comes to solving policy issues related to research and innovation.

More people and more public universities are competing for a piece of public funding.

The state role in economic development

Increasingly, the notion of sustainable development will be the widely used lens through which we view investment decisions and priorities.

Those states will do best that choose to use existing resources more effectively. This is more than a fad or an ideology. Flexibility, efficiency, timeliness, and responsiveness to customers or citizens—all of these become drivers for this shift, which is enabled by rapidly evolving technology.

States must invest in centers of excellence that can command international respect and attract international investment. For states, it is important to encourage radical changes in institutional behavior, from regulation to partnership, in order to put a premium on timely responses and transparent conduct.

Social issues—poverty, juvenile violence, the opioid epidemic, aging—press for attention alongside a healthy environment and a vital economy and cry out for insights from science. Because of this, states must develop tools to measure and communicate the value public investment in science and technology has for the economy, the environment, and health.

Any system of research investment that squeezes our best scientists out of regular engagement with young students is misdirected.

The state role in economic development

Partnerships derive their value less from the dollars added together than from the changed relationships they create. The private sector has to be deeply engaged in moving research into the marketplace. States need to work hard to get beyond technology push programs toward more market-directed initiatives.

The reality of global competition requires that every investment test itself against world-class measures. We need to emphasize the importance of curiosity-driven research and show its linkage over time to applications that improve quality of life.

We also need to help people think beyond the 2- and 4-year election cycle and understand the metabolism by which science and technology contribute to society. The results were the proportion of workers in high-tech industries, the proportion of workers in science and technology occupations, and the percentage of population that was above average in postsecondary educational attainment.

Arkansas had an economy based on subsistence farming until the s, when a member of the Rockefeller family bought a lot of land and founded the Arkansas Industrial Development Commission, which leveraged a lot of development in Arkansas.

During the next 20 to 25 years the state saw significant industrial and manufacturing development, with low-skilled jobs that had attractive labor rates for corporations.

But as low-wage job markets emerged in other nations, that model lost traction.The role of state in economic development is enormous not only as regulator but also in law enforcement, the provision of education, adequate infrastructure until on health.

The achievement of all the government’s role in economic development is depends on the readiness and the government itself.


Developmental state, or hard state, is a term used by international political economy scholars to refer to the phenomenon of state-led macroeconomic planning in East Asia in the late twentieth century. The Role of the State in Economic Development Guido Tabellini ‘y a wise and frugal Government which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industryandimprovement, and shall not.

Download a PDF of "The Role of State Governments in Economic Development and R&D Competitiveness" by the National Academies of Sciences, Engineering, and Medicine for free. The Role of State Governments in Economic Development and R&D Competitiveness: Proceedings of a Workshop–in Brief.

Washington, DC: The National Academies Press. doi: / Washington, DC: The National Academies Press. doi: / Sean M. Robbins recently served as the state of Oregon’s chief economic development officer under Governors Kitzhaber and Brown, after leading Portland’s regional economic development partnership.

Role of State in Economic Development