A metropolitan economy refers to the cohesive, naturally evolving concentration of industries, commerce, markets, firms, housing, human capital, infrastructure and other economic elements that are comprised in a particular metropolitan area. Rather than the definition of distinct urban and suburban economies that evolve and function independently, a metropolitan economy encompasses all interdependent jurisdictions of particular regional clusters. This type of economy has all its units functioning together in a trans-boundary landscape that often crosses city, county, state, province, and even national lines.[1] Metropolitan economies expand from the parochial view taken in urban economics which focuses entirely on a city's spatial structure, and broadens it into a metropolitan's spatial and social/economic structure.
More and more developed nations are becoming defined and fueled by their local, metropolitan economies.[1] Before, analysis focused on what happens inside companies, how inputs of labor and capital are used for productivity of output. Now, what happens outside companies in the immediate business environment is just as important.[3] With global competition in innovation of processes and products, the clustering of knowledge (such as the research community), consulting firms, skilled laborers, financial institutions, legal services, government entities, and specialized technology industries have become vitally important. Such agglomeration and diversity, unique to a metro, catalyzes growth. Additionally, auxiliary industries in local services and trades evolve in such metropolitan areas, such as the production of wind turbines in the automotive industry of the greater Detroit and Cleveland areas.[3] Cultural ambience even emerges with the area's quality of place and historical heritage in the form of the arts (art galleries, music halls, publishing houses), non-profit venues (museums, performing artstheaters), and public assets (libraries, parks).
Legislation
Consequently, this new configuration of metropolitan economies requires equally new and adaptive government policymaking.[1] For effective legislation, contemporary nations must[according to whom?] reformulate their understanding of place, moving away from disparate states, provinces, and regions and embracing a network of integrated metropolitan economies. Hence, metros must[according to whom?] become a recognized actor among the usual federal-state-local apparatus. Additionally, government departments and ministries must[according to whom?] acknowledge the interplay of arenas such as the inflexible tandem of housing and transportation as well as energy and the environment. Coordinated efforts across agencies and programs must[according to whom?] take place to ensure best performance outcomes and high efficiency. Even more, management must[according to whom?] change from prescriptive, formulaic, hierarchical leadership to more nimble, networked, and compact collaborations.[1] These organizational reforms would influence a host of policies including among others transportation infrastructure, housing systems, employment hubs, energy standards, green spaces, and environmental protection.
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Mark, M., Katz, B., Rahman, S., and Warren, D. MetroPolicy: Shaping A New Federal Partnership for a Metropolitan Nation. Brookings Institution: Metropolitan Policy Program Report. (2008). 4-103.
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Sassen, S. (1990). Economic Restructuring and the American City. Annual Review of Sociology, 16(1), 465-490.