EN
The aim of this paper is to show the evolution from traditional management towards urban governance in Łódź, one of the biggest Polish city, as well as in Łódź Region. The paper investigates innovative approach towards city and regional management which includes following aspects: • urban governance - relation between government and local society, NGO’s, entrepreneurs and other actors at local and regional level, • social capital - the importance of human capital for development of communities, • regional innovation strategy (RIS) - improving competitiveness of region. Success of this innovative approach demands overcoming number of barriers occurring within implementation processes. Therefore the paper ends with some recommendation for local and regional authorities. It point who is the subject of city and regional management, how should public offices be managed (not administrated), how the process of city and regional management should be organized to improve competitiveness of the region and increase development processes.