Introduction to the Role of Strategy

Introduction

If you're working in local or regional economic development, you'll quickly discover that having a clear strategy isn't just helpful—it's essential. Economic development is complex, involving numerous stakeholders with competing priorities, limited resources, and high political stakes. A well-crafted strategy provides direction, facilitates collaboration, and demonstrates to the outside world that your area is serious about its economic future.

This guide explains what economic strategies are, why they matter, the key principles underpinning effective strategies, and how to develop them. It also provides practical examples from UK cities and regions to illustrate these concepts in action.

What is an Economic Strategy?

A local or regional economic strategy is a written plan for developing the local or regional economy. It's typically based on analysis of evidence and consideration of stakeholder and community needs, has discrete objectives, and sometimes extends to a detailed action plan. Most importantly, an economic strategy is commonly developed as a shared plan and vision for the economy—something that multiple organisations and sectors can rally around and work towards together.

Unlike a policy document that might focus on a single issue, a strategy provides an overarching framework that guides decision-making across multiple areas of economic development activity.

Why Strategy Matters

Economic development is inherently complex. Multiple factors influence economic performance, from education and skills to infrastructure and innovation. Different stakeholders—councils, businesses, universities, community organisations—often have competing aims and priorities. Resources are typically limited, yet the political visibility is high and the long-term future of communities hangs in the balance.

In this context, strategy serves several vital functions:

Setting Clear Objectives: A strategy helps clarify what success looks like and provides a framework for prioritising actions when you can't do everything at once.

Enabling Collaboration: When many actors are involved—local authorities, businesses, educational institutions, community groups—a shared strategy ensures everyone works towards common goals rather than pulling in different directions.

Planning Resource Allocation: When it comes to planning expenditure and using resources effectively, a strategy isn't just helpful—it's often a requirement for securing funding.

Long-Term Planning: Turning around struggling local and regional economies is the work of decades, not years. Strategy provides the long-term planning and commitment necessary for sustained transformation.

External Communication: A strategy tells the outside world what your local and regional economy is about. It can help make the case for special treatment and resources, and showcase your area as an investment opportunity. Investors like plans and strategies—they want to know their investments will be complemented by other activities and supported by government and the local community.