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. (shrink)

Inspired by the recent rediscovery of work of Schumpeter in science and policymaking the author reviews and appraises Schumpeterian theory and that of his followers in innovation studies. Although Schumpeter’s vision suffers from some defects, I argue that there is more to learn from this author than his well-known idea of “creative destruction”. In particular, Schumpeter’s view on innovation policy is something that may have vital relevance to today’s increasingly policy-dominated world. We therefore conclude that besides his key ideas on (...) innovation-led development also his policy view should be regarded as a significant legacy in innovation studies. (shrink)