The central aim of this study is to place into the perspective of history, economic theory, and public policy the steps taken by the states to attract new industries, to stimulate the demand for new products, to encourage more tourists, and thus to speed their economic growth and increase employment. Thus, this is a study of the state development agency and its role in employment expansion. Virtually every state has such an agency. It may be called the Department of Commerce, the Department of Economic Development, the Development Board, or the like. Whatever the name, however, it is distinguished by the fact that it has the primary responsibility for stimulating the state's economic development. The four major sections of this report are: (1) The Evolution of State Efforts, (2) The Process of Regional Growth, (3) State Development Agencies: Structure and Functions, and (4) Budgetary Planning for Growth. (Author/JS)