Economic development in peripheral or non-urban spaces has long been charac
teristic of so-called 'branch plant' and 'back office' economies. This conc
lusion has been premised on the explanatory potential of the product cycle
model (PCM). The PCM suggests preliminary product and process innovations o
ccur in core urban areas. Under that model, the diffusion of economic activ
ities across space occurs only when the production process has been streaml
ined and routinized. Additionally, the geographic concept of spatial agglom
eration has underscored the explanatory account of the PCM. In concert, the
PCM and agglomeration illustrate the urban or core bias of traditional eco
nomic geography. This paper will reconsider regional development in periphe
ral areas within the context of an emerging new economic geography. Several
themes of new economic geography, including the role of the state, the spa
tial division of labor, producer services, information technologies, and am
enities, will be used to construct a proposed cumulative framework.