Introduction: Why Local and Regional Economic Development?

What is Local and Regional Economic Development?

Local and Regional Economic Development (LRED) is a collaborative, bottom-up process involving local councils, community organisations, and the private sector to create jobs, generate wealth, and improve quality of life within specific geographical areas. It recognises and leverages each locality's unique assets, challenges, and opportunities, distinguishing it from top-down national or regional strategies.

Why Local and Regional Economic Development Matters

Place-based policies are gaining renewed interest due to persistent underperformance in some areas and the risks associated with asymmetric transitions and shocks. The OECD's 2025 guidance emphasises that while macrostructural policies are important, complementary place-based policies are essential to enhance development quality, mobilise assets efficiently, and prevent regions from being left behind. These policies address spatially differentiated market failures and improve local public good provision, with objectives tied to productivity, sustainability, and inclusion.