The basic assumption in this paper is that policy makers intervene to help regional businesses because they believe they need to correct for market failures. And the sources for these imperfections in the context of regional development might be: • The individual firms do not understand the need to be innovative • The individual firms do not exploit the potential in collaboration and cooperation • Firms do not exploit their full market potential • Firm managers do not choose to grow their business • Etc. This paper deals with the following question: “Can Best Business Practice Studies support regional policy makers with knowledge about imperfections that might need policy interventions?” The basis for this discussion is a regional study in the county of Dalarna in Sweden.