Across OECD countries, the geography of opportunity is fractured. Access to good jobs, quality of life and economic dynamism varies considerably from one place to another, and when shocks hit, not all communities are equally equipped to respond. For places facing economic restructuring, transformation means more than restoring what was lost. It requires reshaping industries, renewing institutions and rebuilding identities around new sources of prosperity. Many places that have undergone major industrial transitions find themselves at a crossroads, caught between a legacy that defined them for generations and a future that has yet to take shape.
In some of these places, the prevailing identity narrative can actually become part of the problem, reinforcing a sense of decline that makes transformation harder to imagine and harder to achieve. But the opposite can also be true: when communities can reconnect with and communicate what makes them distinctive, articulate a credible and forward-looking vision, and harness local pride as a resource, identity can help feed renewal.
This report provides concrete actions for how policymakers can better integrate place identity, pride and branding into their local development toolkit. It represents a first-of-its kind effort to bridge a recent and growing body of academic literature with emerging experiences from policy actors, including from the practice of place branding. In addition to bringing these different strands of discourse and practice together, this report adds value by translating theoretical discussions about place identity into practical policy and programme implications, through the use of concrete cases. In this way, place identity can be better leveraged as a new tool that can serve both economic and social goals.
The upside to doing so can be illustrated through some well-known examples. In Bilbao (Spain) for instance, culture was the main character in the story of the city’s reinvention, following economic decline driven by industrial restructuring. The iconic Guggenheim Museum symbolises Bilbao’s cultural and creative renewal, helping to put the city on the global map and attract visitors and investment, which translated into new economic and social opportunities. The city’s wider façade pays homage to its shipbuilding heritage, anchoring Bilbao’s identity in its industrial history, while reframing it through a hopeful story of renewal. A similar dynamic can be observed in the Ruhr Valley (Germany), where a shared regional identity was strengthened through its reinvention as a “Green Metropolis”. Its flagship cultural site Zollverein Nature Park combined the restoration of natural vegetation and wildlife with striking artworks built around its former mining infrastructure, reinterpreting industrial landmarks as cultural and environmental assets.
This report is part of the OECD’s broader Transforming Places project, which explores how communities can better navigate structural economic shifts. This project puts forward a more holistic approach that expands the policy tools considered, integrates economic and social outcomes, and emphasises the role of local “soft infrastructure” such as leadership, social capital, and place identity. This report contributes to the work of the Local Economic and Employment Development (LEED) programme, created in 1982 to provide practical solutions about how to build vibrant communities with more and better jobs for all. It was submitted to the Local Economic and Employment Development Directing Committee via written procedure for comments [CFE/LEED(2026)8].