This thesis seeks to uncover how the interdependency of small and medium-sized towns (SMSTs) in polycentric urban regions (PUR) influences traditionally strong local autonomy in the decentralised Swiss context. The thesis examines local and regional drivers of local economic development. Can the local level also shape its economic development alone or does it rely on the spatial environment? While the first two papers examine which factors at the local and the regional levels explain economic development, the third paper asks if SMSTs actively try to benefit from regional development by cooperating with other SMSTs.

The thesis shows that when looking solely at export-oriented economies, there is not very much leeway for SMSTs to foster their own economic development, and regional determinism in PURs is very strong. When we look closer at four economic sectors and on development over time, we see that the residential sector also depends on local factors and that the knowledge-intensive businesses are most dependent on regional development. In order to benefit from regional development, SMSTs often voluntarily choose to engage with other SMSTs or cities instead of acting as a single regional centre, especially if they see benefits of cooperation. The thesis shows how SMSTs still have the ability to shape their economic development. While SMSTs still possess autonomy in economic sectors that rely on local demand, local governments may even actually gain local autonomy if they engage in economic policy-making at the regional level.