theories_of_urban_success

Theories of Urban Success

Theories of Urban Success Joseph Cortright


Objective

Describe and appraise the principal theories ofurban success that are guiding efforts torevitalize U.S. metropolitan areas

Provide advice to policy makers on how to usethese theories in their cities


Three Families of Theories

• Firms• People• Place


Theories of FirmsBusiness costs, productivity, industrystructure and factors of production all

influence economic opportunities


Business Climate City

• Be the low-cost place to do business

• A persistent narrative

• Indexes and rankings

• Is my city the cheapest place? Do we want to bethe cheapest?


Global City/Headquarters City

• Attract corporate headquarters

• Declining number of headquarters; the shrinkingrole of the headquarters operations in “lean”enterprises

• The “Global City” theory

• In a merging, converging world with fewerheadquarters, where can my city compete in thisdeclining market?


Diversified City

• Develop an economic base less dependent onexisting specializations

• An analogy to portfolio theory

• Size, diversity and stability are inter-correlated

• Is diversification a plausible strategy?


Technology and Transport City

• Improve infrastructure

• Some cities are transport hubs

• When is additional infrastructure disruptive, andwhen is it marginal?

• Does my city have a true competitive edge in itstechnology or transport infrastructure?


Government City• Develop activities that compete well for federal funds

• Federal government is 20 percent of GDP– Key industries (Defense) ‏– Research (NIH and Biotechnology)‏– Entitlement programs

• State government is important in some cities, especiallystate capitals

• What role does government spending play in my city’seconomic growth?


Cluster City

• Develop industry clusters

• A tool for understanding economic structure

• Developing existing clusters

• Cluster “wannabes”

• What are the distinctive industry clusters inwhich my city is highly competitive?


Entrepreneurial City

• Encourage innovation and entrepreneurship• Cities foster creativity and innovation (Jane

Jacob’s “new work”)• Is my city successful at spawning and growing

start-up companies?


Theories of People

Skills, demography and socialinteractions shape urban economic

prosperity


Human Capital City

• Develop skills, attract talent

• Three distinct components

– Local education infrastructure

– Skill enhancement in cities

– Attracting (or losing) talent

• How does my city invest in talent and attracttalented workers?


Human Capital Matters

Education Drives Metro Prosperity

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R2 = 0.6318

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4-Year College Attainment Rate

Source: Impresa calculations, Census Bureau data, 2000

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Gateway City (Immigration)‏• Open to immigrants

• Immigration is a generally positive force forcities

– Drives population growth

– Raises wages

– Entrepreneurship and innovation

• What role do immigrants play in my city’seconomic growth?


Open/Connected City

• Encourage a well-connected populace

• Aspects of social capital

– Loose-ties and bridging

– Risk-taking

– Tolerance and diversity

• Is my city a place that bridges the diversity of itspopulation?


Creative City

• Provide a fertile environment for creative people• Creative workers contribute to the productive

efficiency of cities, to their amenities and to civiclife

• Does my city encourage and support a widerange of creatives?


Sorting City

• Develop a demographic niche

• Trends toward increasing polarization andsorting of population on socio-economic andpolitical lines

• Superstar cities vs. second tier cities vs. ruralcommunities

• What demographic groups find my city mostappealing?


Theories of Place

Aspects of place—location, the naturaland built environment, and location-

specific amenities—influenceeconomic opportunities


Icon City• Develop signature assets

• What makes my city distinctive?


Amenity City

• Create or improve public goods for residents

• A catchall for many kinds of public investments

• Amenities include

– Local education

– Safety

• What role do amenities play in my city’s “valueproposition?”


Consumer City• Better meet the needs of consumers for private goods

• Most jobs in city economies cater to demand from localresidents

• There are important variations in taste among places

• Differences in consumption opportunities influencetalent attraction and innovation

• Does my city have a diverse and competitive set ofconsumer opportunities--shops, services andexperiences--for all of its residents and neighborhoods?


Green City

• Emphasize sustainability, environmental quality

• Denser places have a smaller carbon footprint

• Environmental ethic attracts talent

• Sustainable industries may be a source of futureeconomic growth

• Is my city a leader in sustainability? Can weleverage this to our economic benefit?


Distinctive City• Accentuate distinctive characteristics of local culture

and place

• Porter’s dictum: Strategy is about differentiation

• Every region has unique local habits, activities, tastesand events.

• Can my city build on specific characteristics and a “senseof place” to influence economic development?


“Megapolitan” City• Connect to a bigger region

• A new scale for “cities”?

• The connections that bind mega-regions together:

– Transportation

– Economic base

• What advantages can my city gain from strengtheningconnections with other metros?


Mega-regions


Advice to Policy Makers

• Set clear goals

• Think of theories as a color palette

• Cities have common problems but differentopportunities


Lessons for Policy

• There’s a difference between theory and practice

• Your mileage may vary

• Sharp turns ahead

• One-hit wonders

• Timing matters

• Beware of following fads