This paper describes the current structure of the economy of the Toronto region, including economic clusters, and recent trends that have affected economic development. The author looks at locationally flexible businesses and the locations they might be attracted to within the region, and examines the extent to which the location of businesses can be influenced by planning policies. Finally, he suggests approaches to attracting new economic activity to the region and makes five recommendations for a smart growth strategy designed to strengthen the region's economy.

Professor Meric Gertler is with the Faculty of Geography and Program in Planning, University of Toronto .

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