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This lecture explores the research project on Swiss small and medium-sized towns (SMSTs) and their role in local economic development. It delves into the relevance of SMSTs in a globalized economy, the case of polycentric Switzerland, and the impact of spatial planning policies. The presentation covers the background research project, the theoretical framework, and the multimethod research design used to analyze the economic heterogeneity in Swiss SMSTs. It also discusses the spatial planning policies in Switzerland, the role of local spatial planning, and the upcoming project on densification in Swiss cities. The lecture concludes with a discussion on the preliminary results and the implications for shaping economic development in SMSTs.