Regional economic development is a social change process. This paper focuses on how the creation of social networks can support economic development. Action research methodology, the theoretical foundations of which are presented, was used to support network development. The paper describes and analyzes the social shaping of several types of new networks in coastal Norway over the 5-year period of 1986-1991. Networks linking entrepreneurs resulted in establishing several new enterprises. The shaping of networks for interorganizational cooperation promoted the survival and growth of existing economic activity. Networks that developed between the public and private sectors also promoted economic development and a new role for the public sector, network broker, emerged. This new role required public sector initiatives, provision of necessary resources, and active and equal participation among all parties involved in the development effort.
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