Specialisation and Networking in Medium-sized Cities

Medium-sized cities in search of new sources of dynamism face a difficult agenda. The dynamic high-tech developments with which every place would like to be associated are difficult to grow. By definition, innovative, entrepreneurial ventures are risky and might fail. They are also unlikely to create, by themselves, high levels of employment. Quicker, less exacting routes to providing large numbers of jobs are more likely to be found at the other end of the scale of knowledge intensity. But these will not bring much autonomous development, and some, though by no means all, are vulnerable to global competition. Crucial to local dynamism are local collective competition goods, which, as explained below, can provide the focus of a citylevel policy agenda. However, the fact that many advanced sectors of the new economy tend to favour capital and other large cities raises doubts over the continuing capacity of individual medium-sized ones to “go it alone”.