Abstract

This paper explores the function of cities in the knowledge economy. The knowledge economy asks for “creative cities,” i.e. competitive urban areas that combine concentration, diversity, instability and a positive reputation. For a review of the concept of creative cities from a historical and theoretical perspective, we draw the conclusion that knowledge, creativity and innovation cannot be planned from scratch by local governments. However, creative cities par excellence such as Austin, the Øresund and Barcelona demonstrate that local policymakers in fact can play a part in preparing cities for the requirements of the knowledge economy. We conclude that local governments can increase the chance that urban creativity emerges by providing the appropriate underlying framework conditions.