A New Playbook for Economic Development
Economic development is becoming more complex across the United States. However, many state governments still rely on outdated strategies that focus mainly on attracting large employers. According to Brookings, this approach no longer reflects how modern economies grow. Instead, states should work more closely with regional partners to create sustainable and high-quality jobs.
The report argues that economies operate at the regional level rather than the state level. Therefore, successful policies should recognize the strengths of local industries, universities, businesses, and civic organizations. In addition, stronger coordination between state and regional leaders can improve economic opportunities and make public investments more effective.
Brookings proposes a practical playbook built around five strategic actions. First, states should identify industries where they have a competitive advantage. Next, they should help every region develop long-term economic strategies. Moreover, governments should better align public and private investment to support those priorities. The report also recommends measuring outcomes more effectively and improving coordination across government agencies.
At the same time, the authors emphasize that economic growth should benefit more communities instead of concentrating opportunities in only a few regions. Better regional planning can strengthen local institutions, encourage innovation, and create resilient labor markets. As a result, states may become better prepared to respond to technological change, demographic shifts, and future economic challenges.
The report is especially relevant as many U.S. states prepare to elect new governors and legislators. Nevertheless, its recommendations extend beyond election cycles. Overall, the playbook presents a long-term strategy that encourages collaboration, regional leadership, and smarter public investment. By modernizing economic development systems, states can expand economic mobility while supporting stronger regional economies.
Reference
Takeuchi, M., & Parilla, J. (2026, June 30). States enable, regions thrive: A state playbook for growing good jobs in the next economy. Brookings Institution. https://www.brookings.edu/articles/states-enable-regions-thrive/