State, Local, and Federal Economic Development Policies: New Federal Pattern, Chaos, or What?

State and local governments are increasingly engaged in efforts to create jobs and stimulate economic activity. While these economic development policies have a momentum of their own, many depend on federal tax, spending, and regulatory policies. State and local officials view some past and potential future federal policies as threats to their development efforts. In turn, federal officials view some state and local economic development activities as counterproductive. Some oppose issuance of tax-exempt bonds and other efforts which they think threaten the internal United States free market. Debates over federal tax reform and the federal deficit provide considerable room for continuing federal/state/local conflicts. In the long run, incentives for cooperation are stronger than those for conflict, and cooperative forces should prevail. State and local officials need federal cooperation to pursue many development objectives. Particularly important are federal research activities that can be linked to state and local efforts to expand technology transfer capabilities of state and local governments. [ABSTRACT FROM AUTHOR]