An exploratory study of sustainable wealth for European knowledge cities

Abstract

In recent years, cities have become a key factor for economic recovery and growth. The new knowledge-based economy models indicate that knowledge is an important, endogenous factor in economic growth. Researches have summarised all sources of knowledge in an index but there is no measure in monetary terms. In this paper, we have developed a monetary measure based on an intellectual capital approach for 158 European cities. Using this measurement we analyse the effect of different levels of knowledge city development on economic variables in the labour market and service sector, which all governments consider key to economic recovery. The results demonstrate that cities with more sustainable wealth are better positioned in terms of the labour market and that accessibility, tourism and connectivity between cities are key factors for the development of knowledge.