Analytical Tools
Case Studies




Detailed Structure




1 What is local economic development

2 Why think about local economic development?

3 What is the political rationale of local economic development?

4 What is the economic rationale of local economic development?

5 The stone soup

6 What is Local, what is Regional Economic Development?

7 Urban and rural settings

8 LED from different backgrounds

9 LED as a product


The Hexagon

1 First triangle: The target group of local economic development: companies

1.1 SME Support

1.2 SME Promotion

1.2.1 Business Development Services (BDS) Group Consultation

1.2.2 Agribusiness Services in the Agricultural Sector

1.2.3 Coaching, Mentoring

1.2.4 Networking, Business Contacts

1.3 Investment Promotion

1.3.1 Image-building techniques

1.3.2 Investment-generating techniques

1.3.3 Investment-service techniques

1.3.4 Investment incentives

1.4 Entrepreneurship Promotion / Promotion of Business Start-ups

1.4.1 CEFE

1.4.2 Technology Incubators

1.4.3 Small Business Estates

1.4.4 Regional Networks for Start-up Promotion

1.4.5 Promoting and supporting Spin-Offs

1.4.6 Business angels


2 Second Triangle: Strengthening Locational Factors

2.1 Tangible Locational Factors

2.1.1 Real Estate Development

2.1.2 Real Estate Information Systems

2.1.3 Financial Instruments Rural Finance Policies Better Practice in Agricultural Lending Sources of Funds in Agricultural Lending Enhancing Farmers Financial Management Skills Impact Monitoring and Assessment in Microfinance Programmes

2.2 Intangible Locational Factors, relevant for Firms

2.2.1 Business-friendly Orientation of Government Streamlining the Permit Process Institutional structures of economic promotion

2.2.2 Business Networking Promoting inter-firm co-operation

2.2.3 Gender-aware Economic Promotion

2.2.4 Supporting Institutions Stimulating Co-operation between Companies and Support Institutions

2.3 Intangible Locational Factors, relevant for Individuals


3 Third Triangle - Synergies: Economic Promotion, Employment Promotion, Urban/Regional Development

3.1 Business-oriented Employment Promotion

3.1.1 Employment Promotion for Youths - the Youth in Work Progamme of Northrine-Westphalia

3.1.2 Job Rotation

3.1.3 ParttimePlus

3.1.4 Personnel Transfer

3.1.5 Qualification and Re-Education for Unemployed

3.2 LED, Community Development and Community Involvement

3.3 Urban/Regional Development

3.3 Urban/Regional Development to Improve Locational Attraction: Land Use Planning (LUP)

3.3.1 Multiple Functions of Land

3.3.2 Land Evaluation

3.3.3 Zoning

3.3.4 Stakeholders

3.3.5 LUP - General Conditions for Success

3.3.6 Geographical Information Systems (GIS)


4 Fourth Triangle: Sustainable Development/Practical Approaches to Connecting Ecological, Social and Economic Development

4.1 Profitable Environmental Management (PREMA)

4.1.2 Non-Product Output

4.2 Environmental Principles Relevant for LED

4.2.1 Energy Efficiency 

4.2.2 Pollution Prevention

4.2.3 The 4Rs - Reduction, Reuse, Recycling and Recovery

4.2.4 By-Product Synergies

4.2.5 Industrial Ecology

4.2.6 Eco-efficiency

4.2.7 Eco-profit

4.2.8 Green Procurement

4.3 Transfer of Environmental Technologies

4.4 Appropriate Technology Information Service

4.5 Sustainable Tourism


5 Fifth Triangle: Governance

5.1.1 New Organizational Arrangements in Local/Regional Economic and Employment Promotion

5.1.2 One-Stop-Shops and First-Stop-Shops

5.1.3 Making government more responsive to businesses' needs: The example of NRW's MOVE initiative

5.2 Public-Private Partnership

5.2.1 PPP and LED

5.2.2 The PPP Facility of German Development Cooperation

5.3 Networking and Communication

5.4 LED Development Agencies

5.5 Reforming the Public Sector

5.5.1 "Supporting Municipalities for Local Economic Development" - how does Local Government stimulate LED?

5.6 Reforming Private Sector Associations

5.6.1 Organisational Development - an Introduction to the Approach

5.6.2 Organisational Development in Business Associations in Third World Countries


6 Sixth Triangle: Planning, Monitoring and Evaluating

6.1 Participatory Diagnostic

6.1.1 Participatory Appraisal of Competitive Advantage (PACA)

6.1.2 Why Participatory Appraisal of Competitive Advantage?

6.1.3 How does PACA work in practice?

6.1.4 Where and for what purpose can PACA be applied?

6.1.5 Methodological issues regarding participation

6.2 Participatory Planning

6.3 Participatory Monitoring and Evaluation

6.4 Participatory Benchmarking

6.5 Motivation and Mobilization, Implementation, Reflection and Adjustment


Analytical tools to get a structured view of a local reality

1 Michael Porter's Diamond

1.1. Using the Diamond in a workshop setting

2 Five forces

3 Mapping

3.1. Economic mapping

3.2. Mapping of the value system (commodity chain)

3.3. Local political mapping

4 Transaction cost analysis


Methodologies for diagnosis and planning

1 Systemic Competitiveness

2 Participatory Appraisal of Competitive Advantage

3 Cluster Development

3.1 Areas of cooperation

3.2 Obstacles of cooperation

3.3 Promoting cooperation

3.4 Summary

4 Value Chain Analysis

5 Perspectivic Incrementalism

5 Regionalized Structural Policy



1 Macro-Political Framework Conditions

2 Locational Factors

3 Business Promotion

4 Regional and Urban Development

5 Local Sustainable Development, Local Agenda 21

6 Governance

7 Networks

8 Miscellaneous


Case Studies

1 Latin America

1.1 A case study of a successful Projeto Marketing Municipal: Mafra

1.2 Good and not so good practice in technology institutes: Case studies from the ceramic tile sector

1.3 Organizational Development in Chambers of Industry and Commerce    (ACIs) in Santa Catarina, Brazil

1.4 Regional Economic Promotion (REP) Approaches in Chile

1.5 Governing a Regional Development Initiative: The Experience of Vale do Itajaí, Southern Brazil

1.6 Ruedas de Negocios - exchange markets for initiating business contacts for micro, small and medium-sized enterprises (MSMEs)

1.7 Red de Cajas de Herramientas de Gestión Empresarial para MIPYME en Centroamérica y el Caribe

2 Asia

2.1 Promotion of the Regional Economy in the Sri Lankan - German Technical Co-operation

2.2 Thailand - A Practical Tool to Start a Local Economic Development Initiative!

3 Africa

3.1 The Perverse Effects of Mixing Local Economic Development and Community Development: An Example from South Africa

3.2 A case of Local Economic Development in South Africa

3.3 Integrated Development Planning (IDP) in South Africa

3.3.1 Roles and Responsibilities of District and Local Municipalities

3.3.2 Planning Approach and Methodology

3.3.3 Public Participation in the Integrated Development Planning Process

3.3.4 How to Prepare Development Strategies

3.4 Principles for Local Economic Development: Options for South Africa

3.5 One year of operation of Loja de Negocios Inhambane and Balcão Único Zambésia. Résumé of experiences

4 Europe / North America

4.1 Good and not so good practice in technology institutes: Case studies from the ceramic tile sector

4.2 Change Management - a dialogue-oriented approach to master structural change - case study on the region of Nuremberg

4.3 Creation of Enterprises out of Unemployment - The Case of Brandenburg

4.4 Economic Promotion in the District of Schwäbisch Hall

4.5 Launching a Regional Development Initiative: The Experience of IBA Emscher Park

4.6 InnoRegio - Programme Innovation in the new federal states in former East Germany