Economic Development Policy and Public Values

Abstract

The shift from closed to open innovation is the major cultural evolution underlying the transition from industrial to knowledge societies. Cities have become associated with volatile economies, dense nodes of information and knowledge and social networks, globalised markets, cosmopolitanism, competitive higher education institutions, creativity and vibrancy, but also with issues like social polarisation and social diversity as these dynamics produce growing inequalities within the cityscape. City governments alone cannot tackle these challenges effectively and in economically sustainable ways. Novel solutions are thus required if our cities are to have any hope of a more sustainable and resilient future.

Economic growth is increasingly being driven by cities and institutions. Cities, not nation states, will determine our future survival and therefore, how cities and citizens participate in public value dialogue is crucial. As citizens and residents become problem-solvers, co-designers and co-producers of public services, the economy should be understood from a broader perspective than just efficiency and effectiveness to also include the dimensions of public values.

Economic development and the activities of the collaborative knowledge society differ fundamentally from those of the industrial period. This change can also be seen in a public values context. Moreover, this is fundamental not only to addressing the social and economic needs of the cities, but also when contributing economically effective and sustainable approaches to cities in the future.

Some industrial cities have already undergone a period of economic restructuring. The fate of these cities has been the consequence of the forces of ‘creative destruction’, melding social capital, technology, information flows, creativity, inclusiveness and the public values backing and supporting them. Success in this new environment is however widely differentiated.