Urban Knowledge Economy

Abstract

Abstract The urban knowledge economy describes how urban areas support knowledge production and concentrations of knowledge‐intensive industries and human capital which draw on agglomeration economies. The “knowledge economy” is an economy in which the acquisition, creation, and utilization of knowledge are the key factors explaining the competitive advantages of firms, industries, and cities and regions. In this entry the term “the knowledge economy” is introduced, together with “urbanization economies” and “localization economies.” Two interrelated themes are then presented. First, the focus is on knowledge production, innovation, competitiveness, and urban and regional growth, including the recent emphasis on human capital and the creative class as a key input factor – this is a regional perspective. Second, there are a wide range of new economic sectors and industries whose location and contemporary urbanization are explained by a variety of urbanization economies, knowledge spillovers and modes of access to input–output relations, transportation, and communication networks – this is an industry perspective. Knowledge‐intensive business services provide a case study. Finally, some remarks are offered on the state of the urban knowledge economy since the financial crisis and its importance for small and medium‐size cities.