1. Policy for Cities in the Age of Austerity: Why Invest Beyond the Capitals? SGPTDE Project Professor Michael Parkinson CBE ESPON Seminar, Krakow 2011

2. Answer 3 Questions 1.WHO ARE WE? 2.WHAT POLICY QUESTIONS TRYING ANSWER HOW? 3.WHAT EMERGING POLICY STORY?

3. 1. Who Are We? Partners EIUA MRI Budapest University of Tampere Advisers University College London University of Paris

4. 2. What Policy Questions Trying Answer ? Contribution capital & secondary cities national, EU performance Which secondaries punching weight nationally & Europe, how and why? Who doing what to help? What works policy? What impact & implications crisis? Who does what policies better, differently in future?

5. And How? Research & policy literature – performance, policies, prospects Quantitative data 124 secondaries, 31 capitals Interviews - European, national policy makers, private sector E-questionnaire 9 case studies – Tampere, Cork, Leeds, Lyon, Turin, Munich, Barcelona, Katowice, Timisoara

6. 3. What Emerging Policy Story ? Contribution capital & secondary national economies varies Historical, economic, institutional reasons capital dominate national economy even more in east than west Capitals dominate - but size gap varies & some cases falling Many secondaries growing contribution national prosperity Some secondaries outperform capital

7. 3. What Emerging Policy Story ? Gap capitals & secondaries big

8. Few Exceptions - Top Secondary Outperforms Capital: Germany, Austria, Italy, Belgium, Ireland

9. Top Secondary Lags Capital by 5-20%: Spain, UK, Netherlands, France

10. Top Secondary Lags Capital by 20-30%: Denmark, Poland, Sweden, Finland, Portugal

11. Top Secondary Lags Capital by 30-45%: Hungary, Romania, Lithuania, Greece, Czech Republic, Slovenia, Croatia

12. Top Secondary Lags Capital by 50-65%: Bulgaria, Estonia, Latvia, Slovakia

13. 3. What Emerging Policy Story ? Territory matters

15. 3. What Emerging Policy Story ? Governance matters

16. Productivity Capitals and Secondaries 2007

17. 3. What Emerging Policy Story ? Places can improve

18. Capitals and Secondaries Total GDP - % Change 2000-7

19. 3. What Emerging Policy Story ? But crisis is hurting

20. Change Unemployment Rates % NUTS 2 2007-10 Source: Bubbico & Dijkstra, 2011

22. 3. What Emerging Policy Story? Significant risk

23. 3. What Emerging Policy Story ? RISK: Economic, fiscal crises undermine achievements secondaries Competition public & private sector investment widen gaps within secondaries Competition widen gap between secondaries & capitals Increased inequality across Europe & failure hit EU 2020 targets

24. 3. What Emerging Policy Story? Policy matters

25. 3. What Emerging Policy Story ? Countries typically concentrate attention, resources capitals at expense secondaries Little explicit policy debate relationship. Most focus cohesion But some beginning focus economic performance secondary Some have national policies promote urban competiveness - innovation, diversity, skills, connectivity, place quality, governance. Some policies made difference & helped secondaries grow Cities seem do better countries less administrative centralisation & economic concentration, where cities more powers, resources Some cities helped their national economy perform better

26. 3. What Emerging Policy Story ? Policy implications and prospects: Relationship capital secondary not zero sum but win-win Diseconomies scale suggest governments encourage development secondary cities complement capital Secondaries could absorb growth when costs growth start outweigh benefits to capital Little demand artificially limit capitals contribution national prosperity Trick increase national economic pie - encouraging secondaries not kill golden goose capital

27. 3. What Emerging Policy Story ? Policy implications & prospects – investment age austerity: Number secondaries country sustain depends size, level development Smaller countries and currently East less scope develop secondary cities complement capital But policy aim should still be more high performing secondaries Economic governance at scale crucial Government territorial investment decisions - leading or lagging, bigger or smaller, capital or secondary - must be more explicit Deconcentration, decentralisation, policy focus secondaries can help EU future policy needs greater focus territory - economic place making