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This paper examines the applicability of the concept of endogenous regional development to Central European post-socialist countries. Endogenous development emerged in response to the pressures of the global economy in Western Europe, and focuses on exploiting locally rooted competitive advantages that can counteract the cost advantages of less developed economies, providing a “high road” of socio-economic development. In Central Europe, industrial restructuring has mainly followed a development path based on Foreign Direct Investment, which has reinvigorated competitiveness, but now faces the need to go beyond low costs, and counteract the unfavourable effects of external capital dependency. The paper identifies two different paths to encourage endogenous development, drawing attention to their institutional background and the expected consequences on territorial development

Endogenous Development: The New Challenge for Central European Industry