A major criterion for the selection of the two neighborhoods studied was a mixture of industrial and residential land uses. Other criteria were (1) recognized problems of physical deterioration, crime, and fear of crime in the area; (2) concern over industrial relocations within the area; (3) the potential for industrial expansion in the area; and (4) location within an Industrial Council area and a Neighborhood Strategy area. Data were obtained from interviews, field observations, and crime data. A majority of the industrialists in the two neighborhoods felt that the neighborhoods posed problems for their businesses. Of those interviewed, however, less than one-fifth were planning to relocate or seriously considering relocating part or all of their businesses. Those planning to relocate identified neighborhood conditions as a motivating factor. Other factors were business related. A substantial proportion of all the industrialists as well as community leaders felt that the physical and social environment of the neighborhood heightened perceptions that the area is dangerous. Thus, it appears that neighborhood conditions constitute an important factor in industrial development and retention in inner city areas. The environmental approach to crime prevention may be a particularly useful means of addressing these issues. The appendixes present details of the findings and study methodology; about 180 bibliographic entries are provided. For an executive summary of the report, see NCJ 90474.