Industrial Park as Instrument of Local Economic Development

This chapter is focused on numerous issues with respect to establishment, operation and sustainable development of an industrial park. The reason for choosing this topic lies within a realistic assumption that light industrial development may be a generator of economic development in Serbia. On the other hand, decentralization is, undoubtedly, one of significant processes which have affected the state and therefore it is inevitable to focus on local government as an entity which is more than ever responsible for its development. Given local government's legal position and financial capacity, the cooperation between local government and private capital in the form of public-private partnerships has been examined as a particularly interesting form with potential. The chapter is built on the fact that industrial parks are of multidisciplinary character (involving economy, technical-urban planning, demography, sociology, politics, etc.), and in that sense it analyses in detail numerous factors of impact in the quest for an optimal solution with positive economic and financial outcomes for founders and positive impact on the population and environment. Relevant legislation is rather complex and immature. It covers several areas: laws which regulate the use of land, planning and construction as well as those which regulate business establishment and operations and investment climate and policies for attracting domestic and foreign direct investments (strategies, tax and other incentives, competitiveness, environmental protection, etc.).