In summary, we can see that urban cores are major sources of economic value: not only materially, in the form of infrastructure and housing, for example, but also in the form of social capital.
In the study, we present a number of policy recommendations aimed at managing these sources of value. Essentially, these recommendations focus on strengthening city centers from an economic point of view.
For example, we suggest that we should work actively to ensure that more residents and offices move into city centers. A growing population leads to greater purchasing power, which benefits retailers and restaurants. Attracting more companies helps boost clustering effects, contributing to economic growth.
We also believe that we should work proactively to identify future challenges. This may, for example, involve ensuring that the town’s labor market is not too dependent on one individual industry. The broader the spread of industries, the better equipped the town is to deal with cyclical fluctuations and structural changes that can quickly change the need for labor. For example, if a major player leaves the city center, this may have significant effects on the town’s attractiveness.
Development of city centers sometimes focuses too little on strengthening trade and other visit-intensive industries. We believe it is important to understand that urban development is about strengthening the town as a whole as well as the surrounding region. What’s good for the town is good for the region, and vice versa.
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