This paper explores the tension between forces of globalization and regionalization. Of key importance at both levels is the emergence of strategic network relations between firms and other agencies involved in planning, promoting and developing urban regional prosperity. For practical purposes 'globalization' equates to worldwide competition, qualified by the particular nature of the key actors involved. Networks are the means by which regional and global actors share risks and reduce transaction costs. Innovative milieux are the means by which the two levels become integrated. Game theory, new growth theory and regional science all point to the viability of networking, while a growing empirical literature testifies to its prevalence in practice.