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Economic development today is more sophisticated than at any point in its history. Yet sophistication alone is an insufficient measure of success. The real test is whether the growth it generates produces prosperity that is broad-based, durable, and genuinely shared.
The field possesses greater technical capability and institutional influence. Public-private partnerships are generally more effective, incentive structures are becoming more transparent, and regional strategies are more data-informed. Yet these advances matter little if the growth they produce does not translate into stronger, more resilient communities.
Mistaking Economic Activity for Impact
Despite this progress, the field has shown a persistent tendency to equate activity with impact. Projects are announced, incentives negotiated, and capital investment tallied, each serving as visible markers of momentum. Far less attention is given to what follows: whether the jobs endure, whether opportunity broadens, and whether the investment meaningfully alters a community’s long-term trajectory.
Part of this dynamic reflects the frameworks that have long guided the profession. Return-on-investment models, while useful, tend to favor what can be readily counted (estimated tax revenue) over what must be cultivated over time. Political and market cycles reward visible wins, often on compressed timelines, while the deeper work of expanding opportunity and strengthening regional competitiveness unfolds more gradually. The result is a system that can favor the immediate over the enduring, even when long-term prosperity is the stated objective.
Applying a Public Value Lens to Economic Development Decisions
There is, however, another path. This one is grounded less in theory and models than in disciplined practice. In one of my former state leadership roles, I directed that proposed projects be evaluated through a due diligence framework designed to test not only their projected returns, but their broader public value.
The questions were straightforward: Would the investment occur without public support? Would it strengthen long-term competitiveness? Would it expand opportunity in ways market forces alone were unlikely to produce? Not every project met that standard.
Some highly visible deals were set aside not because they lacked merit, but because public resources were better directed where they could meaningfully change a community’s trajectory.
Those decisions were not always popular. Passing on high-profile projects meant fewer press releases from the governor, fewer opportunities for self-congratulation, and fewer immediate wins. But it preserved limited incentive resources for places where investment could truly alter economic direction by anchoring employers, stabilizing local economies, and expanding access to opportunity.
For much of its history, economic development has been measured primarily by the pace of growth, mainly jobs created, capital invested, and deals closed. Those indicators matter, but they do not fully capture whether a region is becoming more opportunity-rich, more resilient, or better positioned for the future. Experience suggests that growth, while necessary, is not sufficient. The harder work lies in ensuring that growth translates into lasting prosperity.
Across many regions, there are growing signs that communities are looking beyond headline growth to ask harder questions about long-term impact. Concerns about housing affordability, infrastructure capacity, fiscal sustainability, and uneven access to opportunity are prompting a more careful examination of how success is defined. Momentum still matters, but so does durability, and increasingly, the public expects both.
The Emergence of Inclusive and Durable Economic Growth
Over a decade ago, the US Economic Development Administration convened a select committee, on which I was asked to serve, to develop a definitive triple-bottom-line tool for assessing the social, environmental, and economic impacts of public investment. The framework was thoughtfully constructed and spoke directly to the kind of durable growth many communities now seek.
However, despite its promise, the tool gained little traction because, I think, it was not yet an idea in good currency. We literally could not sell it. This is a stark reminder that sound ideas alone do not advance the field unless they are fully embraced by those responsible for shaping economic outcomes.
Encouragingly, signs of this broader orientation are beginning to emerge within the profession itself. The Ohio Economic Development Association’s Economic Development for All platform is one such example. It establishes a framework that calls for aligning growth with inclusion, accountability, and long-term prosperity. It reflects the recognition that how growth occurs matters just as much as the pace at which it is achieved.
Redefining Success in Economic Development
Economic development is demanding work. It requires balancing urgency with patience, opportunity with stewardship, and measurable progress with long-term consequence. That balance is not always easy to sustain, particularly in environments that reward visible wins. Yet the profession’s credibility and the trust placed in it by the communities it serves increasingly depend on its ability to look beyond growth alone.
Growth remains essential. But over time, it has become clear that the true measure of success lies in whether that growth expands opportunity, strengthens communities, and endures. The work is complex, expectations are rising, and the responsibility is shared by those entrusted with shaping economic futures. Meeting that responsibility will define not only the next chapter of the profession, but its lasting contribution to the places it exists to serve.
About the Author
Dan Gundersen, FM, HLM, is Senior Vice President at Camoin Associates. Before joining Camoin Associates in 2018, Dan served more governors of different states than any other economic development professional, helping transform communities and create and retain more 150,000 jobs. He has advised governors, county executives, mayors, corporations, and national organizations on economic growth, business development, place-based competitiveness, and technological and industrial transformation. For his many accomplishments in the field, Dan was recognized by the International Economic Development Council (IEDC) as a Fellow Member and Honorary Life Member, the highest awards bestowed in the profession. Dan holds a graduate degree in governmental administration from the University of Pennsylvania and a Bachelor of Arts degree from Hope College, with studies at the Harvard Business School, Georgetown University, and Cornell University.
