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The purpose of this book is to analyse the process of regionalisation and to plot its future development. Regionalisation is a common feature of the changing territorial organisation of European states today. Regionalisation alone, however, cannot produce any of the benefits we attribute to it without looking into the conditions in which it occurs. Therefore, this book tackles the following questions, bringing together theory and empirical applications: What are the main determinants and implications for regional policy? How does economic policy affect the growth and integration process? Why is innovation important for regional economic development? Why is the regional dimension important for the innovation promotion? What has been our policy response so far and what lesson did we learn from it? And finally, what are our action lines for the future?