The knowledge economy and urban economic growth

In this paper we contribute to the longstanding discussion on the role of knowledge to economic growth in a spatial context. We observe that in adopting the European policy strategy towards a competitive knowledge economy, the Netherlands is-as most European countries-mainly oriented towards industrial, technological factors. The policy focus is on R&D specialized regions in their spatial economic strategies. We place the knowledge economy in a broader perspective. Based on the knowledge economy literature, we value complementary indicators., the successful introduction of new products and services to the market ("innovation") and indicators of skills of employees ("knowledge workers"). Using econometric analysis, we relate the three factors "R&D", "innovation" and "knowledge workers" to regional economic growth. We conclude that the factors "innovation" and "knowledge workers" are more profoundly related to urban employment and productivity growth than the R&D-factor. Preferably, urban research and policy-makers should therefore take all three knowledge factors into account when determining economic potentials of cities.