OECD regions vary more in their economic performance than do individual OECD countries (see Box 1.1 for a definition of regions). At the national level the main determinants of growth are macroeconomic factors, institutions and policies. The latter two factors have a strong regional dimension. OECD regions are very heterogeneous. Each is endowed with very different production capacities, comparative advantages, geographic characteristics, institutions, policies and assets. It is no surprise, therefore, that some regions are in a better position to reap the benefits of globalisation than others.