Urban governance in the knowledge-based economy: challenges for different city types
Willem van Winden
Professor, School of Economics and Business, Amsterdam University of Applied Sciences;
School of Economics, Erasmus University, Rotterdam, The Netherlands
Abstract
This paper discusses the governance of cities in the knowledge economy. It focuses on three main aspects. First, it discusses the uneven urban impacts of the structural move towards a knowledge economy, and concludes that different types of cities face different chances and opportunities because of their structural characteristics. Second, it addresses the issue of urban governance, and discusses a number of successful interventions within cities via the concerted action of a number of key actors in the urban region. Moreover, it considers the unintended impacts of national policy on the urban level. Finally, the paper defines some key policy challenges for various city types and for national governments.
Keywords
cities, governance, urban policy, innovation, urban economies, urban development
Article Text
After a long period of urban decline, the end of the 1980s marked the beginning of a remarkable revival of urban areas in western countries, notably in Europe and the US. This process is often ascribed to the structural move towards a ‘knowledge based economy'.
The urban revival is not visible everywhere, however: the outcomes are uneven. Some cities - national capitals, global cities, international service hubs - have grown very fast, acting as magnets for talent and investments, whereas others, especially small cities in rural areas and cities with an outdated economic specialisation, have lost out in relative terms: They face severe difficulties in retaining knowledge workers and knowledge-intensive companies.
It is tempting to say that this uneven spatial outcome of structural change is a given. In other words: the ‘winners' simply were lucky: they inherited a bundle of strong ‘assets', especially universities, international airports and a highly educated population that helped them thrive in the knowledge economy. However, this view largely ignores the importance and significance of local agency and governance. Cities are not passive ‘receivers' of global trends: they can take action to make themselves ‘fit' for the knowledge economy, through initiatives of local leaders or coalitions. Concerted action in the form of co-operations between municipal authorities, companies, and local knowledge institutions in the city can be effective, if designed properly and realistically given the assets and opportunities of the city. Cities all over the world are experimenting with new types of concerted action of this kind.
Urban governance is not a matter of urban actors only. Increasingly, it is becoming clear that regional and national policies (innovation policy, R&D policy, university policy) have a deep impact on the urban level, and a number of initiatives are launched to improve the alignment of national ‘knowledge economy' policies with urban and regional ones. Some national governments have recognized that cities are engines of national economic growth and innovation, and look for new ways to empower them.
In this paper, we consider the governance of cities in the knowledge economy as a form of concerted action by a number of actors that takes place in a dynamic context that can only be partially influenced by policy. We focus on three main aspects. First, we discuss the unequal urban impacts of the structural move towards a knowledge economy, arguing that different types of cities have different chances and opportunities because of their structural characteristics. Second, we focus on the issue of urban governance and discuss a number of successful interventions within cities via the concerted action of a number of key actors in the urban region. Third, we consider the role of national policy and describe a number of initiatives to improve the strategic alignment between national policy and urban policy. Finally, we define some key policy challenges for various city types and for national governments.
This paper is mainly based on an update of two comparative studies on the governance of cities in the knowledge economy conducted by the author in 2003 and 2004 (Van Winden 2004; Van Winden et al. 2007).
Cities in the knowledge economy
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