This research investigates the differences in local economic development in developing and developed countries. It used the model by Pennink (2014) which is based on developing countries and applies it to a developed country. The findings are that MNEs and their activities do not seem to play a role in LED; universities have a supporting role and the regional and local level overlap. The supranational power and the role of social capital are added to the model. The supranational power appears to a supportive role in LED, like other institutions on all levels. Social capital plays a critical role as entrepreneurs and their relations need to take initiative.