2010
Abstract:
Cities play a critical role in economic
development. Considered engines of growth,
cities also are places where people do their
best work. Economists recognize the key role
of entrepreneurs in driving innovation; the economist
Joseph Schumpeter established in the early 1900s
that specializing in discovery is the key economic
activity. Entrepreneurship involves discovering new
products and services as well bringing them to market
in new and better ways. At least as important as
Schumpeter’s contribution is F.A. Hayek’s insistence
that local knowledge spreads among large numbers
of decentralized actors who implement the many
important details, including supply chains. The unique
spatial arrangements within urban areas can be
expected to form in ways that facilitate the flow of
ideas and innovation, enabling successful cities to be
congenial hosts to innovative and entrepreneurial
activities.
