Regional development is about fostering unrealized economic potentials in particular places. It involves the growth of production, employment, and income based on a competitive and innovative economy in a subnational territory. It also includes the improvement of social, cultural, and political conditions in that region.
A broad range of scholars — geographers, economists, sociologists, and political scientists — have contributed to the study of regional development. They use different theories and methodologies, including spatial analysis, economic policy analysis, comparative studies, and historical research. They are united in their interest in understanding the processes of economic development, assessing its impact, and providing solutions to regional challenges.
One of the most influential approaches to the study of regional development is evolutionary economic geography (EEG). This theoretical perspective emphasizes that the clustering of activities due to lower competition and transport costs explains why certain regions have an initial endowment advantage for specific activities. The EEG literature argues that regional development policies can be effective by targeting the most advantageous development barriers and implementing the necessary conditions for new economic opportunities to develop.
Another important approach to the study of regional development is regional institutional systems theory (RIS). Unlike, or rather complementary with EEG, this theoretical framework focuses on the way in which different institutions and actors interact in a specific region. It emphasizes that the success of a region in developing new economic opportunities depends on the existing networks, capabilities, capacities and resources of the local players.