In 2000, only six states had tax incentives for film and video production, and by 2010, all but six states had film incentives. What accounts for this growth in popularity? This study combines quantitative event history analysis and qualitative interview methods to try to understand why states adopted film incentive programs and how they were influenced by the adoption of incentives in other states. The analysis suggests that the diffusion processes in state adoptions of film incentives can be largely explained by two factors: (a) the size and sophistication of the existing film industry in the state and (b) a competitive “bandwagon” effect based on the total number of states that had already adopted film incentives. The results emphasize the need to broaden the ways that competitive influences can be conceptualized and modeled in policy diffusion research, especially in economic development.
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