The role of government in subnational economic development

This research examines the role of government in the economic development of subnational areas, with a particular focus on the role of subnational governments. It analyses the economic policies of governments from 46 subnational areas across six continents at various stages of economic development, as well as relevant literature, to develop and propose a subnational economic development policy framework. The research focuses on key factors which contribute to economic growth and sustainable competitive advantage (SCA), as economic growth is a central objective of economic development policy and SCA is seen as a means of securing economic growth in the long term. The four key drivers of both economic growth and SCA are defined as 'innovation', 'capital development', 'institutions', and 'trade'. Accordingly, the focus of this research is on national and subnational government policies which are thought to positively influence these four factors. Some contemporary policy frameworks apply similar thinking, however, they predominantly consider the of role national governments without comprehensively considering the role of subnational governments; they consider the role of both the national and subnational governments but not in relation to the nominated growth drivers; or they consider the role of both national and subnational government in a specific area of policy, such as innovation policy. The framework proposed by this research provides insight into the role of both national and subnational governments that seek to generate economic growth and SCA from a broader range of factors.