Here's the best economics writing I found last week:

Kerry's economic balancing act
A look at next week's economic reports
Vital Signs for the Week of July 12
Update 1: Consumer Confidence Still Growing
Weak data raises concern over US economic outlook
Message war over economy
Non-manufacturing activity sinks

A number of states and localities tie incentives to different measures of job quality. Here's a report that reviews these provisions. Download.

Add the chamber in Athens, OH to the ED groups that have figured out that the name of the game has shifted from recruitment to innovation. Read more.

Someone estimated that there are about 10,000 economic development organizations in the US. My guess is that only about 5% are managed by people who really understand that strengthening regional innovation systems represents the central challenge for economic development in the years ahead.

"Clusters" represents a shorthand term to describe regional innovation systems. The problem is that most EDPros don't really understand the concept. Many of us think "clusters" (a productivity concept) represents the same thing as "targeting" (a marketing concept). (See, for example, the comments of Mike Olivier, Louisiana's new economic development chief here.

The changes sweeping our economy are far more profound. We are moving into an era of Netowrk Cappitalism in which value is generated by networks. These changes will carry deep impacts on our regional economies. For example, read how one venture capitalist in Silicon Valley predicts that the emergence of India and China will have profound impacts on Silicon Valley. Go.

The Iowa Supreme Court struck down the Iowa Values Fund, but it is likely to come back in some form. A new report by The Iowa Policy Project outlines a road map to improve the legislation when it is reintroduced. Read more.

The report explores the thorny problem of providing incentives to "high wage" jobs. The author maintains that the wage and job thresholds in the old scheme were too low and that the policy was full of loopholes. Download a copy of the report.

Jacksonville, FL is reviewing its incentive policy, a step other communities should follow on a regular basis. But the experience also points to the frustrations that often pop up with public reviews: You have to explain the policy and be open to critiques. In the end, though, this transparency is critical to building political consensus. Read more about the process in Jacksonville. Go.

Civic leaders in Nebraska and South Dakota are seeing a new technology corridor along the Missouri River. They have come to an important insight: in a world of global competition, far more unites us than divides us. Our interdependencies are the source of our economic strength. Read more.

Missouri enacted new legislation to spur economic development in the state. The Job Now legislation provides more incentives for incumbent worker training, among other initiatives. The training support is targeted to companies with more than 100 employees. Read more.

One thing is for sure: When it comes to incentives, Dell is in the dirver's seat. Forsyth County (Winston-Salem) in North Carolina is putting together the biggest package in a decade. Read more.

Many rural communities are coming to understand the importance of a tourism strategy built around their natural, cultural, and historical resources. One consulting firm, Fermata, has built a business advising rural communities on these strategies. Learn more about one community in Kansas. Go.

Visit the Fermata web site.

One of the important aspects of economic development comes in the emergence of new technology clusters. As EDPros we like to think that we can "target" clusters and develop them.

The truth is that clusters emerge largely on their own. Here is an example from Indiana. Read more. You can read the original article here.

We are far better off identifying these emerging market patterns and facilitating the connections among companies and support organizations. Clusters are not "things", like industrial parks or spec buildings. They are systems of innovation. We can strengthen these systems by promoting collaborations among related organizations.

In the knowledge economy, competitive communities are building quality, connected places...places that people want to live and work. Not surprisingly, major natural features that we tended to ignore in the past have become focal points for new business development.

Here's an example. In Maine, the revitalization of the Kennebec has led to new development opportunities all along the river. Read more.

Here is a good guide from the National Governors Association on policies to promote rural entrepreurship. Download the report. It provides a useful framework to focus your thinking on options available for rural communities.

Some weaknesses: The report does not explore in sufficient detail the connections among heritage or eco-tourism strategies, branding, and the development of other business clusters in arts, culture and specialty foods. In addition, the report does not address how broadband internet strategies are opening new opportunities for rural areas. Finally, the report does not address the promising approach of social network analysis to build networks of rural entrepreneurs.

New York State has awarded $10 million to establish a new center on the campus of Rensselaer Polytechnic Institute. The center represents a parterneship among RPI, Cornell University and the Brookhaven National Laboratory.

The center will focus on renewable energy and energy conservation systems, including fuel cells and the hydrogen economy, smart lighting, smart displays, and emerging renewable energy systems.Read more.

More communities are moving to integrate GIS into their web sites. Greensboro is the latest. Read more. Visit the site.

Kentucky is moving on a new branding campaign. Read more Article 1. Article 2.

Mike Olivier, Louisiana's new economic development chief, is starting out with some blunt talk and a small cloud of controversy. Article 1 and Article 2.

The state doesn't need a harder sell. Instead, Louisiana needs leadership to wake itself to the new realities of global competition in the knoweldge age. Here's a place to start. Read an excellent paper on best practices from the National Governors Association. Download.