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Despite that small and medium‐sized towns (SMSTs) have been, and continue to be, a central part of the history of Europe, these places have largely been neglected by urban research. The ESPON TOWN project, on which this Special Issue builds, sought to redress this neglect performing a comparative analysis of their position and role across Europe. In this introductory paper we discuss some of the theoretical and methodological challenges when it came to identifying, studying and analysing SMSTs and the theoretical framework developed to inform our understanding of SMSTs. In particular, three themes are discussed. The first one is about the ontological problem of defining a town. Administrative, morphological and functional perspectives are considered. The second one reflects on a wide array of interpretative approaches about the relationship between towns and their regional context. The third one is about the thematic and multi‐scalar perspectives that can characterise the policy approach to towns.

The paper introduces the concept of territorial assets and discusses their role for regional development. Focusing on European societies and taking into account different strands of the literature on place and territorial capital, we argue that the endowment with – and mobilization of – such territorial assets could be seen as a key aspect of regional policy, producing changes in the attraction (and/or retention) of specific segments of population and, in a longer-term perspective, influencing sustainable development strategies. In this light, ‘territorial attractiveness’ – characterized in this paper in both conceptual and operational terms – is presented as a powerful element in European spatial policy, allowing regional development strategies to be more systematically integrated under an overall objective of territorial cohesion, while taking into account their implications in terms of human mobility.

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