Local economy

The local economy strengthens regional economic cycles, generates value locally and complements the export-oriented focus of the New Regional Policy (NRP). It mobilises local stakeholders and contributes to regional economic development, particularly in rural and peripheral regions.

The local economy strengthens regional economic cycles. — © MinDof - Adobe Stock

The local economy (also known as ‘économie résidentielle’ or ‘économie présentielle’) is a significant factor in regional economic development – particularly outside urban centres. It encompasses activities in trade, tourism and services that are geared towards local demand yet often have supra-regional effects. Eligible for funding (at the local, cross-business level) is anything that stimulates additional regional economic activity and encourages new entrepreneurial thinking.

Addition to the export-based approach

In the framework of the New Regional Policy (NRP), support for the local economy complements the export-based approach. This approach is based on the premise that a region’s prosperity and development potential are achieved through the export of goods and services from that region to other regions or cantons, or even abroad. In addition, the local economy strengthens regional economic cycles, reduces dependencies and increases a region’s economic resilience. Projects in this area aim to make better use of existing potential, extend value chains or establish innovative collaborations between stakeholders.

Enhancing the attractiveness of an area as a place to live and work

Particularly in rural and peripheral regions, where investment capacity and the range of economic opportunities are limited, the local economy can make a decisive contribution to the attractiveness of the area as a place to live and work. It not only promotes local supply, but also social innovation, the sustainable use of resources and the reduction of regional disparities. The local economy is therefore a key cross-cutting theme of the NRP: it injects dynamism into the regions, strengthens their competitiveness and helps to retain value creation within the region in the long term.

Further information

• Community of knowledge on local economy
  Findings of the regiosuisse community of knowledge on the topic of local economy (avaliable in German, French and Italian)