Performance frameworks for regional development policies

While there is broad consensus that public investment policies should focus on performance, policy makers face a number of practical challenges when designing performance systems. This chapter addresses some of the key questions that policy makers are seeking to address, including, how can they measure and monitor performance, how to design incentives to ameliorate performance and how performance information can inform budgetary discussions. For this, the chapter explores recent advances in theoretical analysis as well as practical approaches to performance and incentives. This includes a focus on the behavioural aspects of incentives and how to balance the desire for innovation, performance, and compliance, while keeping administrative costs and regulatory burdens manageable.