U.S. states and territories face a wide range of economic, political and social challenges and play a critical role in the nation’s overall economy and in the lives in their residents. While federal policies set broad policy parameters, states and territories are more directly engaged in developing and maintaining the nation’s infrastructure and energy supply and providing health care services, education and training. Brookings experts examine how the states and territories are faring in today’s challenging economic climate and how innovation at the state and local level can create a stable and productive economy.