Applying strategic management to economic development: benefits and challenges

Strategic management has become one of the popular managerial techniques emphasized by policy makers and public managers in recent years. Many local government officials are especially interested in applying this technique to improve the effectiveness of their economic development policies and programs. This paper examines issues associated with the application of strategic management concepts to local economic development. The paper first provides an overview of basic concepts of strategic management and special issues of public strategic management. It then focuses on the background of local economic development and the linkage between strategic management and economic development. The paper finally addresses the benefits and challenges associated with the development of strategic economic development.