Traditional development policies have normally been supply-side strategies, based on a sectoral rather than a territorial dimension. Decision-making has mainly top-down, with mixed or bottom-up approaches virtually ignored. The process of globalisation is however, affecting the distribution of economic activity and reshaping territorial structures across the world. Globalization and changes in governance have resulted in the emergence of a new territorial structure where existing territorial links are being altered, leading to the formation of a more heterogeneous and complex socio-political and economic landscape. In the new (global) economy firms with competitive advantage can be located anywhere on the globe. Traditional national top-down development strategies are struggling to cope in this new environment. Hence a need for an alternative or a complement to traditional development strategies has become more evident. Local economic development (LED) strategies are increasingly regarded as a valid and viable way to overcome the development problems of territories around the world, regardless of their level of development or institutional conditions.