Territorial strategies in a competitive world: The emerging challenge to regional authorities

The advent of the Single Market is increasing the intensity of competition between different regions of Europe at a time when national governments are experiencing a curtailment of their powers to assist them. Regions are not just competing for foreign investment, but with the increased mobility of economic factors, they are striving to hold on to domestic firms that could migrate elsewhere. What we are witnessing in this evolution is a shift in the nature of regional strategy from one which could be described as a game against nature to one that is more appropriately labelled a game against adversaries. Large industrial enterprises have experienced this shift in the late 1960s and early 1970s and, in response, have evolved tools of strategy analysis adapted to the new competitive climate. Regional and local authorities are likely to make the same transition and in so doing will experience profound changes in their dominant value systems and their organizational culture.