Regional development is the process of transforming a region’s economic opportunities, creating jobs, reducing poverty levels, and improving infrastructure. It is a complex concept that encompasses many factors, from socioeconomic differences to environmental concerns. The field of regional development is continually changing and expanding. As such, it is important to remain aware of the latest research and developments in the area.
In recent geographic accounts, the etiology of regional technological development has been primarily linked to the capacity of firms to mobilize local resources and to develop their own production networks. However, externalities and market failure (such as information asymmetries or coordination failures) are often neglected. These factors, together with interfirm links and coordination problems at multiple spatial scales, play a crucial role in determining the endogenous conditions for regional development.
Another major issue that has been emphasized in the literature on regional development is the desirable balance between efficiency and equity within a system of regions. It has been argued that efficiently operating regions are more likely to attract investors, while simultaneously generating a better standard of living.
Noneconomic factors are widely cited as explanations for regional development, but they are usually treated as black boxes that are beyond further analysis. This approach may obfuscate the complexity of these dynamics. Instead, scholars have been advocating a more thorough consideration of the underlying power relations that shape the dynamic social processes that are at the heart of regional development.