Abstract
The commitment to develop a bottom-up approach in terms of regional policy management in the English regions under New Labour went hand in hand with the introduction of decentralized institutions. Persistent intervention has not prevented the concentration of economic problems within the same areas. However, it would be misleading to attribute this uneven economic development mainly to economic factors. In fact, notwithstanding the negative consequences of the transformation of production systems, other variables, notably indigenous governance practices, should be emphasized. This has become a highly contentious and much debated question. Relying on a case study approach with a particular reference to the North East of England, this paper draws upon the institutional changes adopted since 1999, while analyzing the impact of the initiatives that were deployed in the English regions with the intention of promoting innovative projects.
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