Economic development is a challenging issue to all involved in local government to some capacity; small downtowns may struggle with ways to expand their business appeal, while larger metropolitan areas are faced with sprawl and a need to more tightly regulate development for the benefit of the community. Whatever the challenge, the tools to deal with are diverse and the tradeoffs significant. This new edition examines the context, theories, and tools essential for an understanding of local development in an era of changing labor trends and globalization. Readers will understand the major economic theories behind local development and gain a larger sense of how local government can foster innovation at the local development level. You'll learn how to apply a variety of development tools to various economic scenarios, including tax policies, financial and nonfinancial policies, and incentives. You'll be able to identify strategies for business creation, understand the effects of globalization, and gauge your community's culture and receptivity to economic development. This textbook is perfect for MPA or upper-division undergraduate students in strong state and local government policy and administration programs. The book is also written for local government practitioners such as managers, assistant managers, economic development directors and coordinators, and community development and downtown rehabilitation committees.