The Baltic Sea Region is rapidly becoming one of the world’s more competitive regions. The region is capitalising on its strengths and making the most of its diversity to stimulate innovation, build a strong pool of skilled labour and foster entrepreneurship. A deep spirit of co-operation and integration has led the Baltic Sea countries to set up ambitious governance frameworks to pursue economic development objectives jointly from Oslo to St. Petersburg. Yet major challenges at the local level lie ahead for the Eastern shores of the Baltic, where economic transition still needs to be accompanied by more innovative strategic planning, new forms of governance and dynamic civic entrepreneurship. Policies will need to be made more adaptable and capacities will need to be strengthened if prosperity and living standards are to increase on the Baltic Rim. Fortunately, the Baltic Sea Region includes some of the world’s most innovative countries. From Denmark to Finland, the Region possesses a breadth of experience in facilitating policy co-ordination, adjusting policy to local conditions and involving business and civil society in shaping policy measures. There is a great deal that other countries can learn from this experience in setting up partnerships, regional strategic frameworks and other forms of governance. The learning process has already started, with the Baltic Rim becoming a unique laboratory for governance. This book analyses the new governance developments in the Baltic States and Northwest Russia and provides suggestions on how to speed up this progress. It is essential reading for all stakeholders in the Baltic Sea Region and for those elsewhere wishing to apply emerging lessons to their region of the world.