The role of cognitive-cultural economy in city's global positioning

Abstract

Transition to post-Fordist economy and knowledge society has intensively influenced ways cities compete and position in global hierarchy. In Fordist cities competitive advantage was coming from its industry value. In globalization position of cities in urban hierarchy was a result of concentration of globally important cooperations, highly specialised services and international organizations. The 21st century brought new shift. The concentration of knowledge, innovation, talent and educated people in the city are primary determinants of its global competitiveness. Growth and strength of leading cities is deriving from highly developed cognitive-cultural economy. Cognitive-cultural economy presents groups of industries and occupations that require deductive reasoning capacities, technical knowledge, cultural skills and visual imagination, such as hightechnology industries, business and services (especially ITC) and cultural industries bond with technology (especially games, film and media). Cognitive-cultural economy is intensely concentrated in cities, especially in the top cities of global urban hierarchy, contributing to city’s wealth and position. Cognitive-cultural economy is not equally present in cities, not even in all cities at the top of the global urban hierarchy. It has boomed in some cities and enhanced their global position, and in others is present only as support for financial and service sectors. The paper will try to investigate what is it that contributes to the cognitive-culture economy development in cities. Does amenities and special atmosphere of the city that attract creative people contribute to cognitive economy, or does clustering of companies, or social networks and jobs opportunities? The paper aims to assume cognitive-cultural development stimulation methods, which can influence city’s global position.