Industry location, economic development incentives, and clusters

Abstract

In his Presidential Address, Professor Woodward uses South Carolina's economic development experience as a case study of significant challenges in regional development. The state has re-industrialized and emerged as a leader in attracting capital investment through generous financial incentives, after watching the demise of its major industry cluster (textiles and apparel) since the 1970s. The address argues that regional science research continues to advance our understanding of regional policies promoting industrial location. He urges caution regarding development incentives as a regional strategy. Instead, emerging research suggests that stronger agglomeration and cluster-based strategies are better suited to promote contemporary economic development. © Southern Regional Science Association 2013.