This report provides information to help state and community leaders in North Carolina better understand changes in the state's economy, important growth issues and strategies for future economic growth. Information is provided on changes in employment, income and wages from 1960 to 1980 and expected changes in major industrial groups from 1980 to 2000. This is followed by a discussion of factors affecting economic growth, priority growth issues and strategies for future economic growth. 1be report focuses on two important issues expected to affect the rate, type and location of future economic growth in the state and implications for state and local public policies and programs. The first issue pertains to improving the levels of education, technical skills and scientific training for individuals and the level of scientific knowledge. The second issue relates to improving community institutional capacity for long-term planning, financing and implementing economic and community development programs. Other issues briefly discussed include transportation deregulation, land-use planning, water management and conservation, waste management and balanced growth.