This input paper provides a theoretical basis for the development of the design of a federal strategy for mountain and rural areas in Switzerland. The paper reviews common attributes of mountain and rural areas as well as theoretical models for fostering economic development in these types of regions. Insights from this review are applied to an in-depth investigation of four types of regions: periurban regions, pe-ripheral regions, alpine tourism centers and small and medium-sized towns. A qualitative system-dynamics model, the so-called NEXUS-model, is used to illustrate defining features, challenges, opportunities and threats for each type of region. In addition, a set of selected levers for the implementation of prosperity-oriented policies as well as the most appropriate development models and measures are identified.