This book sets out a vision of devolved economic development policies capable of responding to the challenges of globalisation. The key features in this vision are flexible and networked institutions and local strategies emphasising entrepreneurship, human capital and social cohesion. Based on the proceedings of the OECD-Scottish Enterprise Glasgow conference, this publication examines how city and region governments and development agencies need to use their devolved powers to respond to globalisation. Trends and challenges are discussed and examples drawn from across the OECD. They address how cities and regions can develop strategies to assure their competitiveness in the globalising economy and how they can help counteract the negative effects of globalisation on marginalised people and places. Devolution is more than just a transfer of power, it is also a new spirit of co-operation and networking between different levels of government and their civil society partners. Brought together at the level of cities and regions, they can apply some promising development tools, for example for strengthening enterprise clusters, promoting training for a knowledge economy and regenerating distressed areas. This book will help those areas looking to innovate in reply to the challenge of globalisation. This book is based on the proceedings of the Glasgow conference held by Scottish Enterprise and the Local Economic and Employment Development (LEED) Programme of the OECD's Territorial Development Service.