Executive summary  1

I. The case for a new state-regional economic development model  11

The economic context: An uneven, rapidly changing economy  12

Current state economic development systems are not prepared  14

Mutual interdependence: States need regions, and regions need states  15

II. A state-regional playbook for economic transformation  18

Plays, not programs  19

Play #1: Define direction – Identify a small number of 'right-to-win' opportunities grounded in data, regional assets, and intentional stakeholder engagement  21

The critical shift and why it matters now  21

Identifying right-to-win opportunities in Virginia  22

Identifying right-to-win opportunities  23

What it takes  24

Where to start  24

Common pitfalls, and how to avoid them  25

Play #2: Make regions investable – Build the coordination capacity and institutional structures needed to design and execute investable regional strategies  26

The critical shift and why it matters now  26

Strengthening regional planning and collaborative capacity in Virginia  27

What makes a great investable strategy  28

What capacity does a region need to develop an investable strategy  29

Where to start  30

Aligning regions to strengthen multi-jurisdictional collaboration in Indiana  31

Common pitfalls, and how to avoid them  32

Where CEDS and state maps fall short  32

The importance of tailored capacity-building  34

Play #3: Align capital – Coordinate public, private, and philanthropic investment around shared regional and state priorities  35

The critical shift and why it matters now  35

Aligning resources to maximize local impact in a fiscally constrained  36

What it takes  37

Where to start  37

Common pitfalls, and how to avoid them  37

Competition, in moderation, can catalyze bigger visions  38

Match is key  39

How states can ensure fair access for less-resourced regions  39

Play #4: Learn and scale – Measure outcomes, learn from performance, and reallocate resources toward strategies that demonstrate impact  40

The critical shift and why it matters now  40

What it takes  41

Where to start  41

Common pitfalls, and how to avoid them  41

Clarity on core objectives strengthens regional alignment  43

Play #5: Run as one team – Institutionalize state-regional coordination across agencies and regions to ensure durable alignment and execution  44

The critical shift and why it matters now  44

What it takes  44

What makes an ideal hire for a state-regional economic development team?  45

Where to start  46

Common pitfalls, and how to avoid them  46

Choosing the right institutional structure  47

The challenges of cross-agency alignment  48

III. The path forward  49