Purpose – This paper aims to analyze the opportunities and challenges of public policy governance in industrialized democracies in the context of a globally integrated economy on the one hand and institutional decentralization on the other. The implications of these transitions suggest the need for horizontal collaboration and coordination between policy stakeholders (domestic and international) as well as among agencies across various levels of government. The case of regional economic development policy governance in Canada over the past two decades illustrates some of the complexities of public, private and community partnerships in policy governance as the country seeks to maintain and enlarge its niche in the global economy.Design/methodology/approach – Data were collected through content analysis of policy and program documents relating to regional economic development in Canada, as well as in‐depth interviews of about 15 public officials directly involved in the administration of the policy.Finding...