Territory-Based Regional Development Policy and Planning in a Learning Economy

Abstract

In addressing the intersections between territory-based regional industrial development programs and the challenges faced by firms in the emerging information-based economy, a prerequisite for a more holistic approach to region-wide economic policy development and planning is a public-sector strategic outlook that itself is informed about economic, sectoral and strategic trends and which is built around an understanding of organizational learning. The requirement for public sector ‘know-how’ and ‘know-why’ deviates substantially from past practice wherein the knowledge of sectoral change and economic trends was embedded in separate programs created to provide services to firms. Absent from this model is a feedback loop which builds this understanding into policy making and program design. The most common approach to sectoral programming, which involves linking sectoral problems with programmatic interventions, relies on investigations of markets, products, and production processes that form bottlenecks and areas of technological backwardness which require corrective action. Sectoral approaches should be broadened to incorporate a more complex understanding of how information-based competition is altering the business environment. Accomplishing this requires a new approach to firm-based support services that feeds directly into regional planning functions and seeks to improve this environment for both citizens and the business community.