States in the USA have been reacting to increased budgetary pressures by reducing discretionary budgets, including those for economic development. As a result, state economic development organizations are adopting new strategies such as innovation, clusters, entrepreneurship and economic gardening. They are increasingly partnering with regional organizations and the private sector, including in some instances reorganizing as a public-private partnership in lieu of a stateagency. Calls for increased efficiency and effectiveness of economic development investments have not to date been met by increased evaluation or accountability.
