Substantial population inflows have meant that, in terms of per capita growth and employment creation, the region of Skåne has had to run to stand still. Nevertheless, a strong innovation sector, a relatively young labour force and high stocks of human capital ensure that the region is well placed to capitalise on these inputs over the coming years. This chapter presents an overview of recent demographic, economic, and social trends in the region, setting them in both a Swedish and an international context. It attempts to get behind the drivers of these trends, with a closer look into productivity and human capital as well as innovation and entrepreneurialism in the region. This chapter presents evidence of a series of policy challenges for the region – challenges relating to innovation, social cohesion and the environment – to which key recommendations are outlined in subsequent chapters.