The chapter begins by briefly reviewing the rationales for regional development initiatives to promote knowledge transfer and development. This review provides an important backdrop to discussions of how knowledge transfer and development can be facilitated. We then seek to identify some key managerial challenges in publicly funded regional development initiatives, particularly those using a network approach. Analysis of these managerial challenges indicates that the problems facing network development initiatives are known in the literature on the management of complex projects, and that this literature can be drawn on in addressing these challenges.