The extensive literature on state economic development efforts has not been much help to states in developing competitiveness strategies. The materials are primarily descriptive, with little evidence on success or failure of the experiments. In addition, state initiatives have not been viewed in a larger analytical framework that would permit generalizations and understanding of the dynamic processes underlying these changes.

This article adopts production life-cycle models as a framework in which to analyze systematically the interrelationships between industrial and technological change, human resource needs, and state economic development policies. The framework suggests that states that incorporate the dynamics of industrial and technological change into their competitiveness strategies will reap employment and productivity benefits that technology can provide.