Many state and local groups in the Northeast are attempting to increase their employment base by attracting new industry. Unfortunately the success rate of these activities is not good. Despite the public relations hype associated with “successes,” serious evaluation of these activities raise questions regarding their efficiency. For example, the Alabama Business Research Council has documented that two-thirds of the plants that accepted industrial development bonds indicate that they would have chosen the same location even if the inducements had not been offered; thus, many “successes” were illusions. In addition, others have documented the complete failure of many types of industrial inducement programs (Cornia, Testa and Stocker; Stinson). Thus, the question is why haven't location inducement programs been more successful?