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Innovation, creativity and governance: Social dynamics of economic performance in city-regions
David A Wolfe
Professor of Political Science, Program on Globalization and Regional Innovation Systems, Centre for International Studies, University of Toronto, Toronto ON, Canada
Allison Bramwell
Centre for International Studies, University of Toronto, Toronto ON, Canada
Abstract
The pressure towards a globalizing, knowledge-based economy raises questions about the underlying determinants of economic performance in city regions. The creation and diffusion of new knowledge drives innovation in knowledge-intensive production and service activities, which in turn, drives economic performance and growth. Although these processes are strongly shaped by national institutions and global knowledge flows, recent analyses of innovation and creativity emphasize the continuing relevance of regions in general and urban regions, in particular, as critical sites for determining economic performance.
This work also suggests that the underlying social dynamics of urban regions are particularly significant in shaping economic outcomes. This paper explores some recent evidence on the social nature of innovation dynamics in urban regions, the increasing significance of talent and creativity in urban economies and their implications for the economic performance of city regions. It concludes with a discussion of the need for the strategic management of urban economies to cope with the challenges they face.
Keywords
knowledge-based economy, city/region economic performance, innovation dynamics, urban economies, strategic management
Article Text
The pressure towards a globalizing, knowledge-based economy raises questions about the underlying determinants of economic performance in city regions. The creation and diffusion of new knowledge drives innovation in knowledge-intensive production and service activities, which in turn, drives economic performance and growth. Although these processes are strongly shaped by national institutions and global knowledge flows, recent analyses of innovation and creativity emphasize the continuing relevance of regions in general and urban regions, in particular, as critical sites for determining economic performance. Many aspects of the contemporary economic changes make cities more, not less, important as principal sites for innovation, creativity and the production of knowledge-intensive goods and services.
This work also suggests that the underlying social dynamics of urban regions are particularly significant in shaping economic outcomes. The interactive and social nature of innovation makes city-regions the ideal space in which social learning processes can unfold. Knowledge transfer between highly skilled people happens more easily in cities, because the sheer density and concentration of economic players in large cities offer multiple opportunities for contact, interaction and knowledge circulation (Orlando & Verba 2005). From this perspective, the foundations of economic success in an increasingly competitive world are the social qualities and properties of urban places. Decisions that shape the social character of cities also have a direct impact on our economic well-being. ...continues...
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