The space-economy has always been characterized by polarization across many dimensions. As a result, regional economic change has proved very difficult to fully explain using conventional theories and methods. This course examines the theoretical linkage between related trends of globalization, vertical disintegration, technological and organizational innovation, regional specialization, and the locational behaviour of firms. We will focus on the seemingly counter-intuitive finding that regional economic change in a time of increasing global interdependence is only becoming more dependent on the local context. We will see why economic activity is becoming ever more concentrated in space even as it globalizes.