State Government Targeting in Economic Development: The New York Experience

New York State has made extensive use of social, geographic,and sectoral targeting in economic development. It has targetedboth distressed industries, particularly manufacturing, andgrowth industries. When the initial assistance provided to manufacturingin the 1960s did not stem the decline of this sector, the stateresponded by providing larger subsidies. Even though manufacturingcontinued to decline, both absolutely and relatively, supportfor its preferred status has, nevertheless, remained strong,and few of the programs initially aimed at this sector haveseen any sign cant changes in their manufacturing focus. Effortsto target distressed areas and individuals, however, were notsustained over time. The state's two most significant effortsat geographic targeting were expanded statewide over relativelyshort periods of time.