Regional economic development (RED) refers to changes in the economic structure of a region that increase the range and value of economic activity conducted within it. The geographic scale generally refers to areas circumscribed by the regular home and work locations of most people. This is usually a territory smaller than the nation-state; in poorer, rural cultures it may be the village, while in wealthy urban cultures it may be an extended metropolitan area.

To take an 18th-century liberal view of political economy, the purpose of an economy and of economic development is to improve people's material well-being where they live. Since the employment, education, and health of people depend on the opportunities available in their regions, RED and its sustainability across generations are important processes. ...