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What are the economic prospects of European regions in a globalizing world? One view suggests that European regions will be swamped by global forces; another suggests the rise of a new localism leading to a Europe of the regions. This book argues that neither of these accounts is correct. The authors offer detailed acocounts of the local economies of Baden Wurttenberg, Emilia-Romagna, Switzerland and Eastern Germany amongst others to support their view. In so doing they discuss a number of important and topical issues: industrial districts and their distinctiveness, organizational flexibility, regional economic planning, and the role of transnational companies. Through the application of an institutionalist perspective which stresses the importance of institutionalizing processes within the economy, the chapters in the book argue that regional economic prosperity will depend upon the degree to which regions are able to mobilize flexible institutional strategies. The book concludes that adaptable regions with a diverse institutional presence can harness the forces of globalization to their own ends. Other regions, with more rigid institutional structures, face a bleak future.