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Governance in innovative cities and the importance of branding
Gert-Jan Hospers
Assistant Professor of Economics, NICIS Institute Urban Research & Practice; Ecorys Research & Consultancy, School of Management and Governance (MB), University of Twente, Enschede, The Netherlands
Abstract
Everywhere in the Western world we can see the rise of cities calling themselves ‘innovative cities'.
In this paper we look at these cities from a governance perspective. Making use of insights from urban economics, we understand innovative cities as competitive urban areas that combine concentration, diversity, instability and especially a positive image. Case studies of three innovative hot spots - Austin (Texas), Øresund (Denmark/Sweden) and Manchester (UK) - suggest that local governments cannot plan urban innovativeness from scratch.
We conclude however that policymakers can increase the chance that innovation in cities emerges by giving chance a helping hand and by branding the city in the outside world.
Keywords
knowledge economy, innovative cities, urban economics, governance, branding
Article Text
If anything, the twenty first century's economy may be characterised as a knowledge economy. In the Western world, knowledge and innovation have become determining competitive factors, not only in the commercial world but also in regions and cities. Greater investments will have to be made in knowledge if we wish to maintain present levels of welfare (Cooke 2002). Development of knowledge underlies new products, services and processes (innovations) that end up constituting the engine of economic progress. To express it in the words of the economist Schumpeter, knowledge-based innovation sets off a process of ‘creative destruction' whereby the existing disappears and something new is born (Schumpeter 1943). New knowledge can lead to innovations varying from breakthroughs in information technology, life sciences and nanotechnology (radical innovation) to small changes in everyday objects (incremental innovation). No company, region or city can hold itself aloof from this innovation race and its consequences. In turn, policy makers struggle with the question of how their particular urban area can become an ‘innovative city' (Simmie 2001).
This article explores the relationship between innovation and cities as well as the ways policy makers might contribute to urban innovativeness. Everywhere in the Western world mayors and aldermen are looking for recipes as to how to implement the appealing message of the knowledge economy in their local context. In this paper, we suggest that the knowledge economy indeed demands innovative cities and supporting policies if the living standards of urban populations are to be maintained. Making use of insights from urban economics we understand innovative cities as competitive urban areas that are able to combine concentration, diversity, instability as well as a positive image. After discussing these elements we deal with the policy question of what city authorities can do to create and reinforce them. Then the focus is on the experience of local authorities in three urban areas -Austin, Øresund and Manchester- with targeted policy measures in the field of innovation, with a particular focus on branding. Finally come some policy recommendations. ...continues...
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