Regional development tendencies in Western Europe in recent decades are analyzed. They show a mosaic-like pattern of dynamic and declining regions in all parts of Europe, while there is no uniform core/periphery polarization. On this basis, an inductive theory of regional development in economically advanced societies is constructed. It states that the structural composition of the economy of each region plays a role in its development. However, locational shifts occur within all sectors. Whether a region gains or loses depends largely on the local conditions, such as political institutions, regional policy assistance, infrastructure, supply of skilled people, social qualifications, factor prices and population density. This theory fits well into the picture of the emerging service society.