Local development is productive transformation of specific area by expanding product and services market, by promoting opportunity of employment and income improvement. Local development implies infrastructure building, including improvement of education, school and health department, municipal services, building traffic roads, coordinating public and private initiatives and promoting new methods and technologies.

Local economy development consists one series of disciplines.
Local communities respond to needs of local economic growth on many ways and different approaches can be applied. Those approaches include:

• assurance that the local investing climate is stimulating for business
• supporting small and medium companies
• promoting establishment of new companies
• attracting external investments (internal or international)
• investing in spatial infrastructure.

Regional development is a support and assistance to regions that have lower economy growth. Regional development can be “internal” (“inner”) and “international”. Therefore, implication and area of development can vary, according to the definition of the region, and the inner and external perception of borders of the region.

The process of development is consisted of producing the strategic plan for economy growth. Economy development model stresses the ability of local autonomy to manage its own economy development.
Regional, as well as local development, apart of building infrastructure (traffic roads to difficult accessible places, connecting people by bridges etc.) is based on legal and regulatory framework, and providing services of education, research, training, etc.