Regional development refers to the economic growth and improvement of a region. This involves both the private and public sectors with governments setting policies and providing public services while businesses drive growth through investments and job creation. A balance between equity and efficiency is key.
Various theories of regional development have been developed over time. One prominent approach is called endogenous regional development or bottom up regional development, and it emphasizes development initiatives that are based on local resources, aimed at regional benefits and created and carried out by actors from the region itself. This includes development of craft based industries, agriculture and tourism. Another aspect is to support regional entrepreneurship (formation of new firms).
Other development theories take into account the importance of peculiar local or regional characteristics that can be used for competitive advantage and as a source of unique innovation potential for companies in a given region. These include cultural or geographical features, as well as the specific conditions in a given region such as its climate or the way it is organized.
More recently, a shift towards a more holistic and human-centric view of regional development has been advocated by some academics. This approach places greater emphasis on human wellbeing and social inclusion, and tries to broaden the scope of economic policy discourses by including concerns such as the resiliency of regions against environmental and economic shocks and disruptions. However, a rigorous synthesis between wellbeing and regional economic research remains a challenge that requires careful consideration of the epistemological foundations of the two concepts.