What Do State Economic Agencies Do?

States spend billions of dollars every year on economic development activities that range from recruiting new businesses to helping local businesses expand. At the heart of each state’s economic development strategy is an agency, department, or government-supported nonprofit that coordinates the state’s efforts. More than mere boosters, state economic development agencies (EDAs) are tasked with supporting existing businesses, encouraging entrepreneurship, recruiting new businesses, and coordinating the economic development activities of their local governments and other local EDAs. This brief is part of the Urban Institute’s State and Local Finance Initiative Economic Development Strategies project.