In this paper we carry out a meta-analytic review of the literature on culture-led local development models. We identify and discuss three typical fallacies characterising mono-causal culture-led development schemes: instrumentalism, over-engineering, and parochialism. We then discuss their analytical background, and provide examples illustrating the consequences of each. Based upon this critical discussion, we make a case for a ‘new territorial thinking’ approach that takes into account the tangled hierarchy of global and local viewpoints that is connatural to spatially situated cultural production, and focuses upon a non-linear, multi-causal scheme as the only possible framework for the policy design of credible, socially accountable, culture-led development strategies.