Regional development policy offers a fascinating window on the interplay between the spatial distribution of economic activity and the interaction across multiple levels of government. Canada provides a compelling case to examine the theory and practice of regional development due to the diverse nature of its economy, the decentralised nature of its federation and more than five decades of federal policy activism. This article explores Canada's six regional development agencies, adopting an organisational learning lens to explain a paradigm shift in policy from redistribution to innovation. Two prominent traditions in regional studies--'nested scales' of economic innovation and 'multi-level governance' of political intervention--are brought together to interpret Canadian dynamics and draw lessons for scholarly research and policy practice.