Regional development is the process through which a region becomes capable of improving its economic, political and social welfare. Regional development agencies (RDOs) have a broad range of objectives to achieve, from developing entrepreneurship to improving public services and infrastructure. They are also tasked with balancing the economy and environment in a manner that is equitable for all communities.
One of the most influential theoretical approaches to regional development is represented by EEG, which takes a primarily economic approach to the study of the phenomenon and views it as largely driven by external forces. However, there is also a growing literature that sees regional development as an interrelated set of processes rather than a linear path. These processes include agglomeration, network formation and interconnection of different actors that create new development paths.
RIS is another popular theory of regional development and is characterized by its holistic view of the phenomenon. It also takes into account a variety of noneconomic factors and emphasizes the importance of building a culture of innovation. In addition to these aspects, RIS pays particular attention to the role of power and politics.
This perspective also recognizes that the development of a region depends on the quality and quantity of its human resources, its technological base and the extent to which it is able to take advantage of opportunities offered by globalization. In addition, it recognizes that the capacity of a region to innovate is enhanced by its ability to build networks and interconnections with other regions. This requires a high level of collaboration, which in turn depends on the development of communication capacity.