Local Administration Journal 17(4) • October – December 2024 • 665-686 665 Received: March 30, 2024 • Revised: July 22, 2024 • Accepted: August 6, 2024 ACADEMIC ARTICLE CORRESPONDING AUTHOR Suriyanon Pholsim, College of Local Administration, Khon Kaen University, 123 Khon Kaen University, Mittraphap Road, Khon Kaen 40002, Thailand. Email: Suripho@kku.ac.th © College of Local Administration, Khon Kaen University. All rights reserved. Collaborative Governance for Local Economic Renewal: Lessons Learned from the Local Development Corporation of the Nagahama City Municipality, Japan Suriyanon Pholsim College of Local Administration, Khon Kaen University, Thailand Abstract Global economic and social transformations present multifaceted management challenges for government agencies, particularly in addressing the impacts of urban expansion and free-market capitalism, which have contributed to a persistent decline in local economic systems. This academic article examines strategies for local economic renewal in Nagahama City, Japan, a region significantly affected by the expansion of free-market capitalism. It also provides recommendations to enhance local governance in Thailand. The findings highlighted five key processes integral to local economic renewal in Nagahama City: 1) Identifying common ground and shared goals; 2) developing an area-based collaborative mechanism; 3) promoting development activities through a learning-oriented approach; 4) creating a unique and innovative business model; and 5) ensuring sustainability by mobilizing partnerships. These processes are led by the local third-sector organization “Kurokabe Corporation,” a collaborative entity co-founded by Nagahama City Municipality, local businesses, and civil society groups. Drawing on lessons from Nagahama City, the article proposes five actionable strategies to advance local governance in Thailand: 1) Enhancing local governments’ capacity for collaboration; 2) developing innovative approaches to local governance; 3) emphasizing learning-oriented processes; 4) conducting comprehensive area-based analyses, and 5) establishing a dedicated fund mobilized jointly by local partners. Keywords collaborative governance, local economic renewal, local development corporation, Japan