Inspire policy making by territorial evidence
ESPON Policy Brief 5Second Tier Cities Matter
EUROPEAN UNION
More than ever, cities today need to reinforce smart, sustainable and inclusive growth, while managing e.g. demographic change, housing, urban mobility, energy transition, all in a context of scarce public but also private resources. They function as nodes of development and contribute decisively to local, regional, national and European economic growth.
Evidence has shown that a greater distribution of investments within countries is associated with stronger economic performance of their second tier cities. Consequently, a more resilient and polycentric development of the European urban fabric can be achieved by strengthening second tier cities, and by promoting a more networked development of the system of European cities at regional, national and European level. It is therefore important for policy makers to keep in mind the significance of strong second tier cities for economic growth and jobs as well as for polycentric and cohesive territorial development.
Key messages for policy consideration
• SeveralEuropeansecondtiercitiesfaredbetterthantheircapitalsthroughouttheeconomiccrisis.Theireconomiesgrewquicker,theirpopulationisoftengrowingandhighlyeducated,andtheyimprovedtheiraccessibility.
• Second tiercitiesdifferand therefore require tailor-made,place-basedpolicydevelopment,takingintoaccounttheirnationalandregionalcontext,theirlocationintheEuropeanterritory,accessibility,availabilityofwell-educatedhumancapitalandgovernancestructure.
• PoliciesandinvestmentsshouldpromotedevelopmentinEurope’ssecondtiercitiestosupportabalancedpolycentricurbansystemand territorial cohesion inEurope.This isparticularlyimportantincountrieswherecapitalcitiesstillstronglydominatethenationaleconomy.
• Thesmallerthesocio-economicdifferencebetweensecondtiercitiesandthecapital,themoresuccessfulnationaleconomieswillbeandthebettersecondtiercitieswillperform.
• Accessibilityimprovementsforsecondtiercitiesoftenimplyinvestmentsinsecondarytransportnetworks.However,animprovedaccessibilitypotentialisnoguaranteeforpositiveeconomicanddemographicdevelopment.Itneedstobeaccompaniedbyotherdevelopmentmeasures.
• Regionalairportscanincertaincircumstancesimprovethedevelopmentpotentialofsecondtier citieswith lowaccessibilitybyair.However,air connectionsaremorevulnerablesinceprivateflightoperatorschangedestinationsmorerapidlythanoperatorsusingrailorroad.
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
• Sinceagrowingnumberofjobswillrequiretertiaryleveleducation,accesstohighereducation,eventuallywithafocusonthelocallyprevailingeconomicstructure,shouldbefurtherimprovedforsecondtiercitiessothattheycancontinueattractingyoungpeople.
• Governance, institutional capacity and cooperation of stakeholders across all levels ofgovernanceplayanimportantroleforsecondtiercitiestofurtherthrive.
Altogether,29%oftheEuropeanpopulationlived in second tier cities in 2014. ThedemographicdevelopmentofthesecitiesisareflectionofthebroaderEuropeanpicturewhereregionsinthenorth,centreandsouthof Europe tend to be more dynamic andattractmorepeoplethanregionsintheeastandintheBalticcountries.Someofthelatterexperiencedanegativemigratorybalanceintheperiod2000–2014,withmanypeoplemoving to other parts ofEurope thatweremoreresilienttothecrisisandcouldstillofferjob opportunities and higher standards ofliving.Particularlyyoungpeoplewithhighereducation degrees moved from eastern,partiallyalsosouthernpartsofthecontinentfurther west and north looking for betterjob and life prospects altogether. In somecases, threetimesasmanypeople left thecountry than people entering it. Romania,for instance, experienced a considerabledownturnintermsofpopulationdevelopment.Virtuallyallcityregionslostpopulationduring2000 – 2014.While the loss in Bucharestwasmodestwithanannualrateof-0.01%,mostsecondtiermetroregionshadtocopewith an annual population loss of -0.25%to -0.9%.Themetro regionofCraiova, for
Regional level: NUTS 3 (2010)Source: ESPON EGTC, 2016Origin of data: Eurostat, 2016
© EuroGeographics Association for administrative boundaries
This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
Annual population growth rate (%),2000 - 2014
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Second tier citiesencompassthegroupoflargestcitiesinacountryexcludingthecapital.Theireconomicandsocialperformanceissufficientlyimportanttoaffecttheperformanceofthenationaleconomy.The127secondtiercitiesinEuropevaryconsiderablyinsize,accessibilityandeconomicperformance.NosecondtiercitiesaredefinedforIceland,Cyprus,Luxembourg,MaltaandLiechtensteinduetothesmallsizeofthecountriesandconsequentlytheabsenceofotherlargercitiesapartfromthecapital.
Second tier cities growing in population
Normally,populationgrowthincapitalsishigherthantheoneinsecondtiercities(seeMap1).Onaverage,thelattergrewby0.35%peryearin2000-2014,i.e.by600000peopleperyear.SomecountriesthoughsawpopulationgrowthintheirsecondtiercitiesthatgoesbeyondtheEuropeanaverage.NorwayisleadinginthisrespectwithanannualaveragepopulationgrowthratefourtimesthatoftheEuropeanaverageinitssecondtiercities.PopulationgrowthwasalsocomparativelyhighinSwedishandSwisssecondtiercities,followedbytheonesinAustria,Finland,FranceandSpain.
Map 1. Annual population growth in European capital and second tier metro regions, 2000-2014
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
instance,lostcloseto95000inhabitantsbetween2000and2014.AsimilarsituationcanbeseeninHungary,wherethemajorityofsecondtiermetroregionsexperiencedanannuallossofpopulation.Theannualgrowth rateofBudapest, though,waswith0.4%still lower than theaverageannualgrowthrateof0.6%ofEasternEuropeancapitals.
While the described trends in European population development had unfavourable effects onsomeEasternandSouthernsecondtiercities,theycontributedtotheoverallpositivedevelopmenttrajectoryofsecondtiercitiesinthewestandnorthofEuropeafterthecrisis.Themigrationofwell-educatedandqualifiedyoungpeoplealsohelped the recoveryof theeconomiesof the recipientregions.Apartfromthefactthatthelattercouldstillofferemployment,theyalsomanagedtomaintainagoodlevelofserviceprovision,attractivelivingconditionsaswellasgoodaccessibility.
European second tier cities are experiencing faster economic recovery than capitals
Economicactivitiesconcentrateinlargercitieswheretheybenefitfromgoodaccessibility,availabilityof well-educated human capital and various services and amenities thatmake those cities alsoattractiveplacestolivein.Secondtiercitiescanachievemanyoftheagglomerationeffectsofcapitalcities,iftheyhavetherightinfrastructure,facilities,capacityandpowers.IntheEU28secondtiercitiesaccountedfor30%oftheGDPinPPSin2013.
Inmorepolycentriccountrieswitharelativelybalancedurbansystem(e.g.Germany,Italy)secondtiercitiescontributenotonlyverystronglytothenationaleconomicperformance,theyevendosotoalargerdegreethanthecapitals.
Beforetheonsetoftheeconomiccrisisin2008,secondtiercitiesinmanycountriesoutperformedtheircapitalcitiesintermsofeconomicgrowth.However,thisimprovedeconomicperformancewas,amongothers,duetosubstantialinvestmentofpublicresourcesinmanycountries.Theeconomicandfiscalcrisishadvariousimpactsonsecondtiercitiesandthreatenedtounderminetheirearlierachievements.ThemajorityofsecondtiercitiesexperiencedadropintheirGDPduring2007-2009.Afewhavenotrecoveredsince.
Whilesecondtiercitiescontributedstonglytotheirnationaleconomicperformancealreadybeforetheonsetofcrisis,theystilldosotoday.However,thedifferencetothepre-crisisperiodliesinthefactthatfromthepeakofthecrisisto2013alsoseveralEasternEuropeansecondtiercitiesfaredbetter thantheircapitals(CzechRepublic,Bulgaria,Hungary),whichoftendominatethenationaleconomytoalargedegree.Infact,in15outof24EuropeancountriestheleadingsecondtiercitieshadhigherannualGDPgrowthratesinthisperiodthantheirrespectivecapitalcity(seeFigure1).Comparedtothepre-crisisperiod,thisisanimpressivedevelopmentofEurope’ssecondtiercities,whichseemed tobemore resilient to theeconomic turmoil than thecapitals.On thecontrary, insomecountries,theleadingsecondtiercitiesthatshowedfastergrowthratesduringtheboom,areshowingslowerrecoveryratesthancapitals(Sweden,Denmark,Ireland,Croatia).
InAustria,BulgariaandSlovakiaallsecondtiercitiesgrewfasterineconomictermsthanthecapitalcity;inGermanysixsecondtiercitiesgrewfasterthanBerlin,whichhasbeenhistoricallyconstrained.Thistrendwasalsoobservedintheboomyearsandcontinuedirrelevantofthecrisis.
InFrance,theeconomicgrowthofsomesecondtiercities(i.e.Nantes,Marseille)wasapproximatelyonaparwiththecapitalcityafterthecrisis.Beforetheonsetofrecession,someFrenchsecondtiercitiesexperiencedgrowthratesthatwere1.5timeshigherthanthatofParis.Intheperiodbetweenthepeakofthecrisisupto2013,ToulouseandLyonshowedevenhigherannualgrowthratesthanParis,justlikeintermsofpopulationgrowth.InPoland,themajorityofsecondtiercitieswerenotat
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
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Annual growth rate of GDP since the peak of crisis in second tier metro regions, %
Annual growth rate of GDP since the crisis in capital metro regions, %
Annual growth rate of GDP since the crisis, national average, %
Annual growth rate of GDP during the boom in metro regions, %
Annual growth rate of GDP during the boom, national average, %
DEROCZ NL
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Capital city recovery rate higher than all second tier cities
Recovery rate in leading second tier metro region 1 to 1.5 times capital
Recovery rate in leading second tier metro region over 1.5 times capital
Crisis had little e�ect on GDP growth in some regions Some (or all) metropolitan regions show no signs of recovery
Origin of data: Eurostat (2016)
Figure 1. Annual GDP growth rate in second tier cities, 2009 - 2013
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
allaffectedbythecrisisandthosethatwererecoveredveryquickly.
The crisis is still deepening in all of the cities inGreece, in themajority of theSpanish secondtiercitiesandinsomecitiesinItaly(Naples,Palermo,andGenoa)andHungary(Pecs).AlsotherecoveryofMadridandRometooklongerthanthatofotherEuropeancapitals.
WhenlookingatabsoluteGDPvaluesandtheirdevelopmentovertheyears2009–2013,EasternEuropeansecondtiercitiestendtoshowsignificantlylowerGDPvaluesthantheircapitals.RomaniaandHungarybothrevealratherbigdisparitiesbetweenthecapitalcityandtheirsecondtiercitiesintermsofeconomicdevelopment.Forinstance,Bucharestalreadystronglydominatedthenationaleconomyintheperiodbeforetheeconomiccrisisandthishasn’tchangedintheyearsupto2013.In2013,theGDPinPPSinBucharestwassixtimesthatofCluj-NapocaandclosetosixtimesthatofTimisoara.
Stuttgart’s fast recovery: the link between short-term and mid-term policy strategies was key
The second tier city of Stuttgart, state capital of Baden-Wurttemberg, was particularly negativelyaffectedbythecrisisbecauseofthedominanceofexportorientedautomotiveandmachineryindustry.GDPdeclinedby8.7%in2009,whiletheaveragedeclineinGermanyamountedto5.2%.However,theeconomicrecoveryafter2009wasstrongerinStuttgartandthestateofBaden-Wurttembergaltogether.WhiletheaverageannualGDPgrowthinall16secondtiercitiesinGermanyandinBerlinamountedto5.2%intheperiod2009–2013,theoneofStuttgartwasalmosttwiceashigh(9.4%).Althoughthehighexportintensitycausedahighvulnerabilityofthecitytothecrisis,italsoprovedtobethekeytoafastrecovery.IncreasingdemandsfromChinaandotheremergingeconomiesledtoswiftlyimprovingGDPgrowthandanewpeakin2013.
AnotherreasonfortheresilienceofStuttgartisthestronginnovationcapabilitiesoftheeconomy.Infact,companies tried toavoidreducing investment inresearchanddevelopmentoreven increasedtheiractivities to foster their innovativecapabilities.Furthermore,experiences frompast recessionsweresuccessfullyprocessed,i.e.insteadofmakingstaffredundant,companiesusedflexibleworking-timearrangementsandshort-termworktoretaintheirworkforce.Finally,dialogue-orientedgovernancestylesstimulated thedevelopmentofpragmaticshort-termsolutions.After the recovery,Stuttgart isevenmorecompetitivethanbeforethecrisis.
Gdansk’s resilience due to various factors
ThePolishseaportcityofGdansk,likethemajorityofPolishcities,wasnotaffectedbythecrisis.Thecity’sresiliencecanbeputdowntoamultilayeredpackageoffactors.TheeconomyinthecityandthesurroundingPomorskieregionisdiversified,dominatedbystrongsmall-andmedium-sizedenterprisesandexportoriented.Europeanfundscontributedtothemodernizationofnumerouscompanies,whichhelpedtoincreaseefficiencyofproductionwhilekeepinglabourcostslow.Well-qualifiedhumancapitalworkinginshipbuilding,electronic,ITandchemicalindustriescontributedsignificantlytothehighlevelofGdansk’sresilience.Importantbranchesofthelocaleconomyarealsohealthandeducationalservices.Furthermore,Gdanskbenefitsofafavourabledemographicstructurewithoneofthehighestannualpopulationgrowthinthecountry(12.5%in2013)duetoboth,positivenaturalpopulationdevelopmentand positive immigration. It also offers the highest living conditions in the country with a rich anddiversifiednaturalenvironment,whichisimportantinattractingandkeepingqualifiedhumancapital.
RegionalauthoritiesinPolandhaveonlylimitedautonomy,buttheycansetupdevelopmentstrategiesand influence regional transport infrastructure.The regional development strategies in and aroundGdanskfocusedonimprovingtransportaccessibility.ThejointmanagementofGdanskairportbythelocalandregionalauthoritieseffectivelysupportedthefunctioningoftheregion’seconomy.
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
Accessibility dynamics in second tier cities
Regional level: NUTS 3 (2010)Source: Spiekermann and Wegener
Urban and Regional Research (S&W), 2014Origin of data: S&W Accessibility Model, 2014
RRG GIS Database, 2014S&W Flight Network Database, 2014
© EuroGeographics Association for administrative boundaries
This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
Accessibility potential, air2001 - 2014 (annual change, %)
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0 480240km© ESPON EGTC, 2016
EUROPEAN UNION
Map 2. Potential accessibility of European capitals and second tier cities by air, 2001-2014
Good accessibility is generally deemed aprerequisite for economic performance anddevelopment in second tier cities as wellas other cities and regions. It has a directimpact on attracting investors, increasingemploymentandtrade,andbuildingnetworksof cities. Accessibility is not only a locationfactorforeconomicactivitiesbutalsoprovidesforagoodqualityoflife.
Transport policies that strengthen accessto second tier cities can support thedevelopment towards a more cohesive andpolycentric European territory. Transportinfrastructure that extends secondarytransport networks can have substantialimpacts on the potential accessibility ofindividual places. Improvements in high-speed rail connections throughout Europehaveparticularlycontributedtoincreasingthepotential accessibility of places outside theEuropean core, including second tier cities.Nevertheless, the scope to which improvedaccessibility can lead to better economicperformancedependsonthecompetitivenessofthesecondtiercityinquestion.
Second tier cities in Western Europe arenormallywellconnectedbyroadandrailandbenefit of positive population development;secondtiercitiesintheeastofEuropearewellconnectedbyroadandpartiallybyrailbutchallengedwithdemographicloss.However,improvementsinaccessibilityarenoguaranteeforanincreaseinlocalandregionalpopulationnumbers,noranenhancedeconomicperformance.WhilethesecondtiercityofDebreceninHungaryinvestedinthefurtherdevelopmentoftheirairportandseveralnewflightsstartedtodepartfromthere,thecitystillhadtocopewithannualpopulationlossesduringthelastyears.
Thehighest relativechangesofmultimodalaccessibilityduring2001–2014occurred inEasternandSouth-EasternEurope.ThisispartlytheresultofastrongfocusofEasternmemberstatesonprioritizingroadinfrastructuredevelopment.Thesegrowths,however,arenotonlybasedonrelativeimprovementsinroadtransportbutalsoairtransport.
Second tier cities particularly in Eastern Europe sawmajor improvements in terms of potentialaccessibilitybyairintheperiod2001–2014(seeMap2andFigure2).Citieswithbelowaverageaccessibilitybyairin2001experiencedagrowthofuptoorsometimesevenmorethan30%.Thisis a positive development in terms of integration of these cities in the European urban system.Furthermore,suchimprovementsalsocontributetoanenhancedattractivenessandcompetitivenessof thesurrounding regions.Threesecond tiercities inPoland,Bydgoszcz,WrocławandKrakówregistered the biggest annual gains in absolute terms for potential air accessibility for the years2001-2014.Thebiggestimprovementsintermsofrelativeannualchangesduring2001-2014canbefoundinthesecondtiercitiesofKlaipedainLithuaniaandBydgoszczinPoland(seeFigure2).
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
Citiesshowinghighgrowthratesinpotentialairaccessibilityusuallybenefitfromnewflightservicestoandfromsecondaryairports.However,policystrategiesbasedonthedevelopmentofregionalairportstoimproveaccessibilitymightberisky.Airaccessibilityismorevulnerabletochangingmarketconditionsthanaccessibilitybyothermodes.Forexample,thecancelationofflightconnectionsasaconsequenceofthefinancialcrisisunderlinestheriskofregionalfluctuationsinairaccessibility.
In several Western and Central European countries, potential air accessibility comparativelydeteriorated between 2001 and 2014, both in second tier as well as in capital cities. Potentialaccessibility by air is still on a high level in these countries, but as they already enjoyed highaccessibilityvaluesinpreviousyears,therewaslessscopeforfurtherimprovement.Furthermore,areductionofflightservicesalsoledtosomedeficitsinairaccessibility,forinstanceinFrance,SpainandGermany.Thesedevelopmentscanalsobeseenasaneffectofthecompetitionwithimprovedrailservicesintherespectivecountries.InsomeEuropeancountries,secondtiercitiesshowedevenbetterpotentialairaccessibilityinabsolutetermsin2014thantheirrespectivecapitalcities,amongthemMilan,FrankfurtandMalmo.
People of many second tier cities are well educated
Citiesandurbanagglomerationsnormallyattractpeopleholdinghigher-educationdegreesbecausetheyofferavarietyofjobsthatrequiretertiaryeducationalattainmentaswellasthequalityoflifethatgraduatesarelookingfor.Secondtiercitiescanstandupthecompetitionwithcapitalcitieswhenitcomestoattractingpeoplewithtertiaryeducation.Infact,in2014therewereatleastsixsecondtiercitiesinEuropethatoutperformedtheirnationalcapitalcitiesintermsofeducationlevelsoftheirpopulation(seeFigure3).Bilbao,EdinburghandToulousealreadyperformedbetterthantheircapitalsbeforetheonsetofthecrisis.However,Arnhem,LyonandBergenarenewcasesofsecondtiercitiesthatdobetterthantheircapitalcityconcerningtheeducationalattainmentoftheirpopulation.MostofthesecitiesarecharacterisedasbeingresearchintensiveandfocusingonICT.Theyhostinstitutionsofferinghighereducationcoursesandresearchcentres;companiesfromrelatedeconomicactivitiessettle there to benefit from synergies and proximity of clients and competitors alike, reinforcingspecialisationanddrawinghighlyqualifiedstafftothecitiesandsurroundingregions.InToulouse,for instance,theaerospaceindustryisthebigpull factorthatoffersemploymentopportunitiesforgraduates.Arnhemworks togetherwith theneighbouringmunicipalityofNijmegenondevelopingtheircityregion intothesecondbiggesteconomicarea intheNetherlandsafter theRandstadby2020.Thecityregionfocusesonsiximportantclustersthatshouldhelptostrengthentheeconomic
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Origin of data: S&W Accessibility Model, 2014; RRG GIS Database, 2014; S&W Flight Network Database, 2014
Capital city Second tier city
SKCREEROHRBGPLLT
Figure 2. Accessibility potential of selected second tier cities by air, 2001-2014 (annual change, %)
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
profile.Amongtheseclustersarehealthcareandlifescience,energyandenvironmentaltechnology,and smart and sustainable logistics.Several universitiesand research centres in the city regionprovideeducationandtrainingforpeoplewhoaimatworkinginthesesectorsinhighlyskilledjobs.
Someothersecondtiercitiesdisposeofhighsharesofpopulationwithtertiaryeducationalthoughnotashighasinthecapitalcity.ThisgoesforinstanceforAntwerp,Barcelona,Bristol,Cork,Eindhoven,Glasgow,Salzburg,TampereandThessaloniki(seeFigure3).
In some second tier cities, though, the share of population with tertiary education is below thenationalaverage.ThisgoesforinstanceforAalborg,Odense,OstravaandPlzeň,thesecondtiercitiesinHungary,andsomesecondtiercitiesinthesouthofSpainandItaly.Concerningthelatter,thereismostprobablyalinkbetweenthecomparativelylowereconomicperformancesofsomeofthesesecondtiercitiesduringandafterthecrisiswiththelowershareofhighlyeducatedpeoplethere.Throughoutthecrisis,particularlyyoungpeoplewithhighereducationdegreeshadsubstantialdifficultiesfindingorkeepingtheirjobsinthelabourmarketsofSouthernEuropethatwereheavilyaffectedbytheeconomicdownturn.Manyofthesepeoplemigratedtootherpartsoftheircountryorabroadtotryandfindemploymentthere.However,theSouthernItaliansecondtiercitiesdidactuallyshowamodestpopulationgrowthbetween2000and2014(seeMap1),albeitbelowthenationalaveragegrowthrate.InthesouthofSpain,secondtiercitiesexperiencedevenhigherpopulationgrowthratesduring2000–2014thanothercitiesinthecountry.
Figure 3. Share of population with tertiary education levels, %
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Origin of data: DG Regio and Urban, EC, 2016
Share of population with tertiary education in capital city higher than all second tier cities (persons aged 30-34)
Share of population with tertiary education in leading second tier city higher than capital city (persons aged 30-34)
Capital city Second tier city
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ESPON Policy Brief Second Tier Cities Matter
ESPON Policy Brief Second Tier Cities Matter
Tampere’s transition to a node in the global knowledge economy
TheFinnish second tier city ofTampere is the secondmajor economic centre in the country afterHelsinki.The localeconomyunderwentaprocessof restructuringandgraduallyputastrong focusontheICTsector.Thetwouniversitiescontributedtothecreationoftheregionalknowledgebaseandtherebyalsotothegradualtransitiontoaknowledgeeconomy.ResearchinstituteswereestablishedinthecityandNokiasetupalocalresearchunit.TheknowledgeeconomywasfirmlysettledinTampereandinnovationprocesseswereongoingwhentherecessioninthe1990shittheglobaleconomy.
Universitiesandhighereducation institutions form thebackboneof the regional innovationsystem,togetherwithlargeR&Dorientedcompanies.TampereisnowthesecondR&Dhubinthecountry,withastrongscienceandtechnologybase,especiallyinthefieldsofICT,healthandbiotechnology.Thereisa long traditionofcooperationbetween the twouniversitiesand local industry that takesvariousforms,e.g.studentshavewrittentheirmasterthesisincooperationwithcompanies,anduniversitystaffhasprovided trainingcourses forcompanies.University initiativessuchaspart-timeprofessorshipsforexpertsfromindustryalsoindicatecloselinksbetweenthelocalscientificcommunityandindustry.
Theuniversitiesandotherhighereducationinstitutionsattractstudentstothecity,whooftenstayaftergraduation to takeup jobs in the localor regionalknowledgeeconomy.Togetherwith thepresenceofresearchinstitutes,theeducationalinstitutionsaccountforthehighshareoflocalpopulationwithtertiaryleveleducationalattainment(42%in2014),whichisabovetheEUaverageof30%.TampereisthereforeamongthetopEuropeancitieswiththebesteducatedhumancapital.Itisalsoamongthe26secondtiercitiesinEuropethatexperiencedhighpopulationgrowthintheperiod2000–2014.
Thecity’spositivedevelopmentandresiliencethroughoutthecrisiswassupportedbytheeffectivenessofaspecificnationalurbanpolicy,theCentreofExpertiseProgrammethathadfocusedonknowledgeintensivesectorsofthecountry’slargestcityregionssince1994.
Territorial governance matters for the performance of second tier cities
Whileexpliciturbanand/orterritorialpoliciescanaddressparticulardevelopmentopportunitiesandchallengesofthecitiesconcerned,itisimportanttokeepinmindthattheoverallperformanceofsecondtiercitiesdependstoalargedegreeonmainstreampoliciescomingfromnationalgovernments.Forinstance policies addressing infrastructure development, education and skills, research and ICTdevelopmentall influencethewaysinwhichsecondtiercitiesperform.Theexamplesmentionedaboveallservetoillustratethispoint.
Localauthoritiescan,amongothers,stimulate thecreationofnetworksbetweencompaniesandeducationalinstitutionstoimprovethedevelopmentofaparticularsector;theycanworkonenhancingtheirattractiveness for residents,enterprisesandvisitors. Indeed, the latteraspect isconsideredhighlyrelevantbystakeholdersonalllevelsofgovernance,fromEuropeantolocal.AstheESPONworkshopon“Europeansecondtiercities”on1June2016showed,policymakersandpractitionersagreethatdevelopmentstrategiesfosteringsecondtiercitiesshouldnotonlyjustfocusoneconomicfactors.Investmentsinthesocialandculturallifeofcitiesarejustasimportantandcanplayamajorroleincreatingaspecificidentitythatthelocalpopulationissatisfiedwith,andthatcanbecomeanassetforfurtherdevelopmentandgrowth.
TheLatviansecondtiercityofDaugavpilsforinstanceinvestedinthecreationoftheMarkRothkoArtCentre,amultifunctionalcontemporaryartandculturalcentre.Thisprovedtobeanimportantdevelopmentforthecitybecauseitcontributedtothegradualimprovementofthecity’simageandattractivenessaswellasthecreationofanewidentity.Asaconsequence,thecitizenofDaugavpilsalsofeltbetterabouttheirhometownthatusedtobeknownexclusivelyasanindustrialcity.
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ESPON Policy Brief Second Tier Cities Matter
Possiblepolicymeasuresthatmightbetaken,forinstancetofurtherstrengthentheaccessibilityofsecondtiercitiesdepend,amongothers,onthedistributionofresponsibilities,theinstitutionalcapacityparticularlyoflocalstakeholders,andthecooperationofrelevantpolicymakers.Infact,cooperationamongstakeholdersacrossalllevelsofgovernanceiskeyinthesustainabledevelopmentofsecondtiercities.However,cooperation requires thenecessaryhumancapacity that tends tobe lackinginmanycities,particularlysmallerones.Capitalcitiescanplayasupportiverolehereandsupportsecondtierandothercitiesincapacitybuilding.ThisisanapproachthatAmsterdamfollowswiththeir“ResponsibleCapital”policy,whichisbasedontheappreciationofthecapitalthatitisresponsibleforandfeelssolidaritywithothercitiesinthecountry.Therefore,Amsterdamprovidescivilserviceknowledge and expertise to three shrinkingmunicipalities that are challengedwith restructuringtasks.Furthermore,ithelpswithfacilitating(private)initiativesthatcansupportthemunicipalitiesbypromotingtheirattractiveness,qualityoflifeandsustainability.
All inall, theexistinggovernancestructure is relevant for thesuccessfuldevelopmentofsecondtiercities.Likewise,thefactifthesecondtiercityislocatedinacountrywithamorecentralisedorfederalpoliticalsystemplaysacrucialrole.Forsecondtiercitiestofurtherthrive,itisimportanttorespectandapplyamultilevelterritorialgovernanceapproachthat:
• Coordinates actions of actors and institutions (as in the case of the joint management ofGdanskairportbylocalandregionalauthorities);
• Integratesrelevantpolicysectorsacrossalllevelsofgovernance;
• Mobilises stakeholder participation (as in Tampere, where universities and local industrycooperatetotheirmutualbenefitaswellasthatofthecity’sprosperity);
• Adapts to changing contexts (as in Stuttgart, where during the peak of the crisis flexibleworking-timearrangementswereappliedtoavoiddismissingstaff);and
• Realisesplace-based/territorialspecificitiesand impacts,alsostemming fromconsideringawiderterritorialcontextthanhitherto.
Disclaimers:
The content of this publication does notnecessarily reflect theopinionof theESPON2020MonitoringCommittee.
ISBN:978-2-919777-97-6
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PublishedinJune2016
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