Cities, systems of innovation and economic development

Abstract

Innovative cities are essential for the economic growth and development of countries. At the same time, however, social and environmental problems related to city growth can be serious threats to the full realisation of the socio-economic contribution that cities can make. In this paper it is argued that the notion of a ‘system of innovation’ is helpful in understanding the factors that shape the processes of innovation and that determine the extent to which problems related to city growth may be solved. It is also argued that it is in cities, especially big cities, that the power of innovation to promote economic growth and development will be tested and that, in this context, institutional innovation and political innovation as compared to technical innovation are of special importance.