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The book investigates the impact on the competitiveness of cities developing creative industries (arts, media, entertainment, creative business services, architects, publishers, designers) and knowledge-intensive industries (ICT, R&D, finance, law). It provides significant new knowledge to the theoretical and practical understanding of the conditions necessary to stimulate "creative knowledge" cities. The editors compare the socio-economic developments, experiences and strategies in 13 urban regions across Europe: Amsterdam, Barcelona, Birmingham, Budapest, Dublin, Helsinki, Leipzig, Milan, Munich, Poznan, Riga, Sofia and Toulouse. These have different histories and roles; include capital and non-capital cities of different sizes; represent cities with different economic structures; and different cultural, political and welfare state traditions. Through this wide set of examples, Making Competitive Cities informs the debate about creative and knowledge-intensive industries, economic development, and competitiveness policies. It focuses on which metropolitan regions have a better chance to develop as "creative knowledge regions" and which do not, as well as investigating why this is so and what can policy do to influence change. Chapter authors from thirteen European institutions rigorously evaluate, reformulate and empirically test assumptions about cities and their potential for attracting creative and knowledge-intensive industries. As well as a systematic empirical comparison of developments related to these industries, the book examines the pathways that cities have followed and surveys both the negative and positive impacts of different prevailing conditions. Special Features: * Analyses link between knowledge-intensive sectors and urban competitiveness * Offers evidence from 13 European urban regions drawn from a major research project * Establishes a new benchmark for academic and policy debates in a fast-moving field
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Contents
Foreword by Professor Susan Fainstein, Harvard University
Preface
Contributors
PART I INTRODUCTION
1 Making Competitive Cities: Debates and Challenges
Debates and challenges
Sectors
Questions and theories
Regions and sources
Pathways, actors and policies
References
2 The Idea of the Creative or Knowledge-Based City
Essential conditions for competitive cities
‘Hard’ conditions theory
Cluster theory
Personal networks
‘Soft’ conditions theory
Three parts
References
PART II PATHWAYS
3 Pathways in Europe
Path dependency
Initial expectations and comparisons
The chapters to come
References
4 Stable Trajectories Towards the Creative Knowledge City? Amsterdam, Munich and Milan
Introduction
The economic base and the creative knowledge economy
Development path: roots and current conditions of the creative knowledge economy
Development paths: a synthesis and conclusion
References
5 Reinventing the City: Barcelona, Birmingham and Dublin
Introduction
Historical context
The trajectory of industrial development
The state and policy intervention
The challenge of soft factors
Conclusions
References
6 Institutional Change and New Development Paths: Budapest, Leipzig, Poznan, Riga and Sofia
Introduction
Socio-economic characteristics of the study areas
Development pathways shaping the city profiles and the role of the systemic change
Determinants of development of the creative knowledge sector
Conclusions
Acknowledgements
References
7 Changing Specialisations and Single Sector Dominance: Helsinki and Toulouse
Introduction
Setting the context – Helsinki and Toulouse
Pathways to knowledge-driven economies
Knowledge driving economic development: sciences, industries and policies
Future challenges
Conclusion and discussion
References
PART III ACTORS
8 What Works for Managers and Highly Educated Workers in Creative Knowledge Industries?
Introduction
Three groups of actors and a range of conditions
The following chapters
References
9 Managers and Entrepreneurs in Creative and Knowledge-Intensive Industries: What Determines Their Location? Toulouse, Helsinki, Budapest, Riga and Sofia
Introduction: places matter
Cities and the creative class: major conceptual challenges
Characteristics of the cities: a brief overview
Location decisions: ‘individual trajectory’ considerations and ‘hard’ factors
Location decisions: the role of ‘soft’ factors
In-city location decisions
Capital city versus provincial city location decisions
Policymaking: ‘soft’, ‘hard’ or ‘other’?
Conclusions and implications
Acknowledgement
References
10 Transnational Migrants in the Creative Knowledge Industries: Amsterdam, Barcelona, Dublin and Munich
Introduction
Conceptualising transnational migrants and the creative class
Places and potentials
The attractiveness of European metropolitan regions
Conclusion
Acknowledgments
References
11 Attracting Young and High-Skilled Workers: Amsterdam, Milan and Barcelona
Introduction
Competing for young, high-skilled workers
Young and high-skilled workers in European cities
The Amsterdam, Barcelona and Milan city-regions
Conclusions
References
12 Working on the Edge? Creative Jobs in Birmingham, Leipzig and Poznan
Introduction: creative work – precariousness, uncertainty and risk?
Methodology
Insecure, casualised or long-term, sustainable employment?
Discussion
Conclusions
References
PART IV POLICIES
13 What Policies Should Cities Adopt?
Introduction
What should cities do?
European cities
Which policy agendas?
Networking policy
The following chapters
References
14 Strategic Economic Policy: Milan, Dublin and Toulouse
Introduction
Distinctive policy traditions
Existing strengths in creative knowledge policy
New strategic economic policy approaches
Key actors in entrepreneurial cities
Addressing barriers and obstacles
Conclusion and new challenges
References
15 Beyond Cluster Policy? Birmingham, Poznan and Helsinki
Introduction
The cluster policy paradigm
The state of the creative and knowledge economy
Supporting the creative and knowledge economy: three approaches
Conclusions
Acknowledgments
References
16 Policies for Firms or Policies for Individuals? Amsterdam, Munich and Budapest
Introduction
Do policies help in competition? – a theoretical framework
Economic development and political conditions
The creative and knowledge sector and policies enhancing its development
Conclusions
References
17 New Governance, New Geographic Scales, New Institutional Settings
Introduction
Conceptual prerequisites: understanding governance in creative and knowledge industries
New governance dimensions
Professionalisation – self-regulation and self-governance of new professions
Towards new geographical scales?
Governance approaches in Barcelona, Leipzig and Sofia
Knowledge-intensive industries in regard to governance perspectives
Conclusions
Acknowledgements
References
PART V SYNTHESIS
18 Synthesis: Re-making the Competitive City
Introduction
A city is not a T-shirt
Multi-layered cities: the importance of pathways
Personal actor networks: key conditions
New governance approaches
Conclusion
References
Index
This edition first published 2010
© 2010 by Blackwell Publishing Ltd
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Library of Congress Cataloging-in-Publication Data
Making competitive cities / edited by Sako Musterd, Alan Murie.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4051-9415-0 (hardback : alk. paper) 1. City planning. 2. Community development, Urban. 3. Urban policy. 4. Urban economics. I. Musterd, Sako. II. Murie, Alan.
HT166.M246165 2010
307.1916094—dc22
2009048119
A catalogue record for this book is available from the British Library.
Foreword
In the present age of hyperglobalisation, neo-liberalism and intense competition among places to attract investment, urban policy makers everywhere are seeking to find approaches to foster development. About every 5 years, a new formulation comes along, and leaders hop on the bandwagon, hoping that they have found a path to growth. Along with the traditional emphasis on infrastructure, we have witnessed promotion of subsidies to firms, deregulation of land use controls, creation of enterprise zones and urban development corporations, and fostering of science parks, sectoral clusters, office mega-projects, festive retail malls, iconic architecture and tourism development; most recently attracting the ‘creative class’ through developing social diversity and cultural amenities has become the most prominent tactic. Sako Musterd and Alan Murie have drawn together a group of scholars from a number of ‘ordinary’ European cities to test whether any of these strategies did, in fact, contribute to urban competitiveness. They especially looked at the creative class hypothesis.
Whereas traditional scholarship identified the decisions of firms as determining the location of industries, recent location theorists have placed a greater emphasis on the choices of individuals possessing skills in creative and knowledge-based industries. In addition to Richard Florida’s identification of individual creativity as the fount of development, human capital theorists have contended that the presence of a highly educated stratum offers the key to growth in a post-industrial age. There is a certain chicken and egg problem: Does employment follow firms or do knowledge workers generate industrial development? The answer seems to be both, but the authors in this volume regard firm location as the dominant factor. In particular, they emphasise that political and business leadership and historical forces matter more than the city’s appeal to footloose knowledge workers.
One of the problems for proponents of the various strategies mentioned above is that different contexts call for different approaches. Once every place follows the same strategy, cities lose their individuality and the market becomes saturated. In other words, convention centres may stimulate economic activity when there are relatively few of them, but when every city has one, very few will have sufficient draw to benefit their locales. Thus, policy makers need to figure out what makes their city distinctive rather than picking out a one-size-fits-all formula.
The great strength of this collection of essays is that it takes into account both the particular and the general in relation to the causes of competitiveness. By rigorously following a similar methodology in a number of European cities, the authors are able to select characteristics that seem to apply generally and those that depend on the specific path followed by each city. They also point to the tension between focusing on knowledge-based development and sustaining those large sectors of the population that do not have the skills to participate in the knowledge economy. In other words, dependence on elite activities can foster greater inequality. Furthermore, creative and financial sectors display considerable volatility, meaning that a narrowly based economy focused on these sectors can result in long-run instability.
To the extent that the authors find general causes of competitiveness, they are largely in the traditional determinants of attractiveness: the personal circumstances of workers and the available job opportunities rather than the urban environment. Amenities seem to be the icing on the cake – less drivers of growth than consequences of it. Rather than relying on either anecdotal evidence or regression analysis, this book employs carefully developed comparative case studies to discover the attributes that have allowed cities to prosper under new circumstances. In its excellent blend of empirical investigation and theoretical argument, Making Competitive Cities reveals the challenges presented to cities by the changing global economy and the disparate ways in which cities are transformed.
Susan S. Fainstein
Harvard University
Cambridge, MA
Preface
Making Competitive cities has been developed on the basis of a large-scale international comparative research programme, called ACRE.1 This is the acronym for Accommodating Creative Knowledge. The subtitle of that programme – Competitiveness of European Metropolitan Regions within the Enlarged Union – shows our ambition to learn more about the urban conditions that are seen as essential to enhance the competitiveness of urban regional economies across Europe.
Despite the ambitious title of this book, our aim is to provide balanced and grounded knowledge which contributes to the understanding of what makes urban regions more or less attractive for essential economic activities. We are aware of the fact that the field we address is wide and multidimensional and we would also like to stress that regional contexts vary a great deal. Therefore, we decided to limit the economic sector focus to creative and knowledge-intensive industries, and within these subsectors additional selections were made to enable comparison between the regions. We also put limits on the scope of this project by including ‘only’ 13 European regions.
However, writing a book is more than presenting research material. The extra efforts require strong commitment. That is what we got from all of the researchers who were involved in the wider project. Thirteen highly enthusiastic and ‘driven’ research teams from a similar number of European urban regions have contributed to this volume. All of them swiftly responded to our comments on earlier versions of manuscripts, and therefore, our acknowledgements go to them in the first place. But others also played a very important role in bringing the writings further. We would like to mention Olga Gritsai, who did not stop reminding contributors what the deadlines and limits were; and Puikang Chan, who was of tremendous help in making the texts of all chapters more uniform and technically readable. We also would like to thank Pieter Musterd for shooting the wonderful cover photos, and Christian Smid and Hans de Visser (UvA-map makers) for smoothly producing the graphics.
Sako Musterd and Alan Murie
1 The programme was funded under priority 7 ‘Citizens and governance in a knowledge-based society’ within the Sixth Framework Programme of the European Commission (contract 028270). Over a 4-year period, various surveys were carried out and a large series of publications have been written on aspects of urban economic development. Published results and more information about that research programme can be found on the ACRE website http://www2.fmg.uva.nl/acre/.
Contributors
Elena dell’Agnese ([email protected]) is Associate Professor of Geography, and teaches in Political Geography and Geography of Development at the University of Milan Bicocca.
Austin Barber ([email protected]) is a lecturer in Urban Development and Planning at the Centre for Urban and Regional Studies (CURS), University of Birmingham.
Marco Bontje ([email protected]) is Assistant Professor in the Department of Geography, Planning and International Development Studies of the University of Amsterdam.
Julie Brown ([email protected]) is a research fellow at the Centre for Urban and Regional Studies (CURS), University of Birmingham.
Joachim Burdack ([email protected]) is Professor of Geography at the University of Leipzig and a senior researcher at the Leibniz-Institute for Regional Geography (IfL).
Caroline Chapain ([email protected]) is a research fellow at the Center for Urban and Regional Studies, University of Birmingham.
Veronica Crossa ([email protected]) is a lecturer in the School of Geography, Planning and Environmental Policy at University College Dublin.
Evgenii Dainov ([email protected]) is Professor of Politics at the New Bulgarian University, Sofia.
Denis Eckert ([email protected]) is a senior researcher at the French National Center for Scientific Research (CNRS) and Head of the Interdisciplinary Center for Urban Studies (LISST-Cieu), University of Toulouse.
Tamás Egedy ([email protected]) is a senior research fellow at the Geographical Research Institute of the Hungarian Academy of Sciences (GRI HAS) and a lecturer at the Budapest Business School.
Vassil Garnizov ([email protected]) is Professor of Social Anthropology, New Bulgarian University, Sofia.
Sabine Hafner ([email protected]) is a lecturer and researcher at the Department of Geography of the University of Bayreuth.
Kaisa Kepsu ([email protected]) works as a researcher at the Department of Geography at the University of Helsinki.
Zoltán Kovács ([email protected]) is a scientific advisor at the Geographical Research Institute of the Hungarian Academy of Sciences (HAS-GRI) and Professor in Human Geography at the University of Szeged.
Bastian Lange ([email protected]) is a postdoctoral researcher at the Leibniz-Institute for Regional Geography in Leipzig, Germany.
Philip Lawton ([email protected]) is a post-doctoral research fellow in the School of Geography, Planning and Environmental Policy, University College Dublin.
Hélène Martin-Brelot ([email protected]) is a research fellow at the Interdisciplinary Centre for Urban Studies (LISST-Cieu), University of Toulouse.
Michal Meczynski ([email protected]) is a lecturer and researcher in the Institute of Socio-Economic Geography and Spatial Management at the Adam Mickiewicz University in Poznan.
Manfred Miosga ([email protected]) is Professor of Urban and Regional Development at the Institute of Geography in the Faculty of Biology, Chemistry and Geosciences, University of Bayreuth.
Silvia Mugnano ([email protected]) is a lecturer in Urban Sociology at the Department of Sociology and Social Research at the University of Milan Bicocca.
Alan Murie ([email protected]) is Emeritus Professor of Urban and Regional Studies at the Centre for Urban and Regional Studies, University of Birmingham.
Enda Murphy ([email protected]) is a lecturer in the School of Geography, Planning and Environmental Policy at University College Dublin.
Sako Musterd ([email protected]) is Professor of Urban Geography at the University of Amsterdam and Director of the Centre for Urban Studies in the same university. He coordinated the ACRE research programme, which formed the basis for this volume.
Robert Nadler ([email protected]) graduated in Geography, Sociology and Business Administration at the University of Leipzig. He is currently working in the international PhD programme ‘URBEUR – Urban and local European studies’ at the University of Milan-Bicocca.
Marianna d’Ovidio ([email protected]) is a research fellow at the Department of Sociology and Social Research of the University of Milan Bicocca.
Montserrat Pareja-Eastaway ([email protected]) is Associate Professor at the Faculty of Economics and Business of the University of Barcelona.
Heike Pethe ([email protected]) is a post doctoral researcher in the Department of Geography, Planning and International Development Studies of the University of Amsterdam.
Marc Pradel i Miquel is Assistant Professor in the Department of Sociological Theory in the Faculty of Economics and Business of the University of Barcelona.
Arnis Sauka ([email protected]) is a lecturer in Entrepreneurship and a research fellow at the Stockholm School of Economics in Riga, TeliaSonera Institute.
Krzysztof Stachowiak ([email protected]) is a lecturer and researcher in the Institute of Socio-Economic Geography and Spatial Management at the Adam Mickiewicz University in Poznan.
Anne von Streit ([email protected]) is a researcher and lecturer at the Department of Geography, Ludwig-Maximilians-University of Munich.
Tadeusz Stryjakiewicz ([email protected]) is Professor in the Institute of Socio-Economic Geography and Spatial Management, Adam Mickiewicz University in Poznan, and Head of the Department of Regional Policy and European Integration.
Mari Vaattovaara ([email protected]) is Professor in Urban Geography at the Department of Geography, University of Helsinki.
Part I
Introduction
1
Making Competitive Cities: Debates and Challenges
Sako Musterd and Alan Murie
Debates and challenges
From the start of the twenty-first century, challenging debates have taken place about the essential conditions for the development of new economic activities in advanced economies. In particular these have included the conditions that enable the development of creative and knowledge-intensive industries in urban or metropolitan environments. The key questions addressed in this book in ‘Making Competitive Cities’ are about how to facilitate the rise of so-called ‘creative knowledge cities’ and how to anticipate and address issues associated with this.
Best-selling books by authors including Landry and Florida – ‘The Creative City: a Toolkit for Urban Innovators’ (2000), ‘The Rise of the Creative Class’ (2002) and ‘The Flight of the Creative Class’ (2005) – have shaped new debates about knowledge and creative cities. They have done this, in the first place, through sophisticated marketing of the books. But, because they have also suggested that successful urban economies could easily be established or engineered by local governments and other actors, they have attracted attention from beyond the academic and research communities. The messages in these books are that it is crucial to nurture the qualities of cities and urban environments that attract ‘the creative class’. Cities that do this successfully benefit from the intelligence and creativity of that class and these cities perform better, achieve higher rankings on the ‘creative index’ and increase their competitive advantage. Whereas previous policy preoccupations were with the formation, retention and attraction of firms and what influenced the location decisions of firms the new theoretical orientation has switched attention to creative individuals and how attracting and retaining them underpins economic success. In a nutshell, the basic argument is that cities should create conditions to attract talent and when that talent – the creative class – is there, economic activity will follow. To be able to attract talent, cities should be attractive places to live in, they should be tolerant places and their urban residents should be open to new initiatives and to diversity. Although arguments about the importance of associations between urban amenities and economic growth are not new (Hall, 1998; Clark et al., 2002), the new presentation of an old argument and of the concept of creativity and the way the argument is ‘sold’ has resulted in increased attention to the economic geography of cities, particularly in more affluent sections of the world.
However, especially from within the academic world, the robustness of the arguments advanced about creative cities has been challenged. Critical commentaries have been published in academic and other journals and have presented both conceptual and empirical critiques (Hall, 2004; Peck, 2005; Markusen, 2006; Storper and Manville, 2006). These commentaries argue that the research evidence mobilised to justify the emphasis placed on urban conditions is very thin. In addition, from a historical point of view, and unrelated to any short-term boom and bust-related fluctuations in cities’ performance, there is nothing new in the argument that cities will be centres of creativity and innovation. This has been the case throughout history as Hall (1998) and Simmie (2005) have noted. Markusen (2006) has also argued that the connection between ‘being creative’ and ‘being successful’ is not straightforward. And perhaps the urban attributes referred to are more a consequence of city growth than a cause? Moreover creative cities or regions can hardly be created ‘out of thin air’ (Hall, 2004) and not all cities can aspire to become creative cities by adopting the approach recommended by Florida and others. A final set of criticisms levelled at some accounts of competitiveness and notably at Florida’s contribution is that at best they pay scant regard to wider impacts on social inequality and at worst are recipes for increased social polarisation. They are preoccupied with attracting the creative class and ignore other citizens or assume that they will benefit from trickle-down effects.
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