What should EDA fund? Developing a model for preassessment of economic development investments Upjohn Institute Working Paper, No. 09-155

an annual basis, which would also reflect its status as a-living‖ document that changes with the strategic needs of the community. Awareness of the CEDS should also be increased, possibly though staff presentations, media coverage, and electronic media. 3. EDA can enhance its relationship with EDDs by providing more feedback, by changing the way funding applications are handled at the federal level, and by promoting formal interregional collaborations that allow EDDs to combine forces for projects with other agencies. There was vocal support among EDDs for more communication with EDA, such as constructive feedback on the CEDS and notification of opportunities that could fit with regional goals. A simple application form for all federally-funded projects, regardless of agency, and clear information on grant application evaluation processes were also cited as desirable. Finally, encouraging EDDs to form multi-regional collaborative groups could also allow the organizations to be relevant players in other areas of development and could help regions to take advantage of larger-scale funding opportunities through other agencies. This section of the report provides an overview of what current research literature can say about regionalism and economic development. Outlining a-theory‖ of regionalism is a first step in developing a framework for identifying where EDA's efforts fit into the broader spectrum of regional development and economic development practice. Following the introduction, this section addresses the following primary themes: Cluster Theory-Focusing on the development of interrelated business activity in a region. Product Cycles and Innovation-How new and old industries play a role in regional economies. Partnerships and Networks-The way individuals work together in the marketplace. Regionalism-The development of regional networks and formal boundaries. Entrepreneurship and Human Capital Development-Talent as a key component of business activity. Leadership-The ability of a small number of leaders to drive development. Challenges to Rural Areas-Aspects of development unique to rural areas, which are often a focus for EDA.

This paper describes the completion of a "comprehensive study of regionalism" that was conducted by a joint team of economists and economic development specialists for the Economic Development Administration (EDA). The project consisted of two main activities: an examination of the factors associated with economic development success and the creation of a practical interactive tool for EDA project assessment and comparison. Findings from surveys, interviews, and project case studies are discussed in terms of their support for a positive relationship between successful economic development efforts and factors such as leadership and private investment. Also, the authors discuss the creation of a quantitative assessment model utilizing well-known approaches such as economic impact multipliers and cluster theory. The primary contribution of this work to the existing body of EDA-focused research and evaluation literature is introducing a means of using standardized scores, also known as z-scores, to compare and assess economic development projects across both industries and regions.JEL Classification: O21