In a globalised economy, where both capital and labour are highly mobile and technology evolves rapidly, workforce development institutions have a key role to play in improving prosperity and living standards. An analysis of local drivers of growth shows that human resources are a fundamental source of economic development in a knowledge-based economy. Policy makers within the field of labour market policy and training have a major contribution to make, not only in providing the pool of skills that the economy needs locally, but also in fostering innovation, entrepreneurship and social cohesion. Labour market institutions may tackle a wide range of issues locally, from the attraction and retention of talent to solving skill deficiencies, integrating immigrants, incorporating the disadvantaged into training and employment, improving the quality of the workplace, and enhancing the competitiveness of local firms. They have a unique capacity to contribute in view of the scale of their programmes and services, and their presence throughout the national economy and at a number of layers within the administration.