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Title page 1
Contents 7
Foreword 4
Acknowledgements 5
Abbreviations and acronyms 11
Executive summary 12
1. Introduction 14
References 17
2. A consistent definition of intermediary cities 19
2.1. Literature review 20
2.1.1. City concepts defined by size 20
2.1.2. City concepts defined by hierarchy 21
2.1.3. City concepts defined by function 22
2.2. Mapping existing definitions of intermediary cities 27
2.2.1. Definitions by size: diverse population thresholds 27
2.2.2. Definitions by hierarchy 28
2.2.3. Definitions by function 28
2.3. Defining and identifying intermediary cities 29
2.3.1. Definition 29
2.3.2. Intermediary cities at a glance 30
References 33
3. The potential of intermediary cities across different contexts 38
3.1. Global megatrends and their implications 39
3.1.1. Demographic change and evolving settlement patterns 39
3.1.2. Economic transformation and competitiveness challenges 40
3.1.3. Housing affordability pressures and spatial imbalances 41
3.1.4. Environmental risks and urban resilience challenges 42
3.2. Geographical contexts and their implications 43
3.2.1. The bridging role of intermediary cities across geographical contexts 43
3.2.2. The influence of geographical context on intermediary city functions 45
3.3. Institutional and governance contexts and their implications 48
3.3.1. Overview 48
3.3.2. Funding and financing 52
3.3.3. Administrative capacity 55
3.3.4. Cross-jurisdictional co-ordination 56
References 57
4. The economic performance, sustainability and demographic trends of intermediary cities 64
4.1. Economic performance in intermediary cities 65
4.1.1. A snapshot of intermediary cities in the national economy 65
4.1.2. The evolution of intermediary cities over time 69
4.1.3. Drivers of income differences 72
4.1.4. Income patterns in intermediary cities show signs of convergence in the analysed countries 75
4.2. Sustainability and well-being in intermediary cities 77
4.3. Demographic and migration trends in intermediary cities 80
References 82
5. An experimental typology of intermediary cities 83
5.1. Mapping territorial variation in the eight key functions of intermediary cities 84
5.1.1. Business 84
5.1.2. Knowledge 86
5.1.3. Transport 87
5.1.4. Housing 87
5.1.5. Culture 88
5.1.6. Retail 89
5.1.7. Health 90
5.1.8. Government 91
5.2. Defining experimental types of intermediary cities 92
5.2.1. How are functions distributed across intermediary cities and larger cities? 92
5.2.2. How do functions co-occur in intermediary cities? 93
5.2.3. The five types of intermediary cities 94
5.3. Demographic, geographic, environmental, governance and economic contexts of intermediary city types 96
References 99
6. Policy priorities for unlocking the potential of intermediary cities 101
6.1. Analytical framework: six case studies 102
6.2. Strengthening the bridging functions 103
6.2.1. Developing place-based visions and strategies to leverage the strength of intermediary cities 103
6.2.2. Addressing workforce shortages and skill gaps and leveraging innovation 105
6.2.3. Promoting connectivity with adequate investments in infrastructure 108
6.2.4. Enhancing well-being and environment to attract residents and workers 110
6.3. Tailoring policy mixes to different intermediary city types 112
6.4. Adapting policy approaches to different geographical contexts 114
6.5. Strengthening multi-level governance and financing frameworks 116
6.5.1. Fostering inter-municipal co-operation and ensuring vertical and sectoral coherence 117
6.5.2. Mobilising funding and financing for targeted investments 120
References 124
7. Future directions for research 127
Annex A. The concept of cities related to intermediary cities 129
References 130
Annex B. Intermediary cities by city type 132
References 133
Annex C. A pilot policy toolkit to unlock the potential of intermediary cities for regional development 134
References 158
Annex D. Supporting information for the pilot policy toolkit 159
Annex E. Self-assessment and action planning template for municipalities 160
Figure 2.1. Distribution of FUAs by population size across OECD and EU countries 20
Figure 2.2. Eight key functions of intermediary cities 22
Figure 2.3. Definition of intermediary cities used in this report 30
Figure 2.4. Over half of EU intermediary cities have a population below 150k inhabitants 32
Figure 2.5. Almost a fifth of the EU's urban population lives in intermediary cities 33
Figure 3.1. Average growth in housing prices in cities 42
Figure 3.2. Role of intermediary cities in urbanised and rural regions 45
Figure 3.3. Intermediary cities rely more on grants and subsidies than larger cities 53
Figure 3.4. Intermediary cities spend relatively less on economic affairs, but country-level patterns vary widely 55
Figure 3.5. Intermediary cities encompass fewer municipalities than larger cities 56
Figure 3.6. Intermediary cities have more municipalities per capita than large cities 57
Figure 4.1. Gross income per capita in intermediary and larger cities 65
Figure 4.2. Gross income per capita by city population size 66
Figure 4.3. Unemployment rates in intermediary and larger citiesUnemployment rate 67
Figure 4.4. Employment rates in intermediary and larger cities 67
Figure 4.5. High educational attainment in intermediary and larger cities 68
Figure 4.6. Employment share by sector in intermediary and larger cities 69
Figure 4.7. Share of cities outperforming national income growth 70
Figure 4.8. Gross income per capita in 2015 and 2019 70
Figure 4.9. High educational attainment in 2011 and 2021 71
Figure 4.10. Population growth in intermediary cities between 2011 and 2021 72
Figure 4.11. Gross income quartiles of intermediary cities 73
Figure 4.12. Theil index of gross income per capita, 2015 and 2019 75
Figure 4.13. Gross income per capita growth in intermediary cities 76
Figure 4.14. Convergence rates of intermediary cities by country, 2010-22 77
Figure 4.15. Availability of green areas in urban centres of intermediary cities 78
Figure 4.16. Population exposure to NO2 in intermediary cities 79
Figure 4.17. Walking access to pharmacies in intermediary cities 79
Figure 4.18. House transaction prices in intermediary cities 80
Figure 4.19. Change in old-age dependency in intermediary cities 81
Figure 4.20. Net migration rate in intermediary cities 81
Figure 5.1. Knowledge Intensive Business Services in selected intermediary cities in Europe 85
Figure 5.2. HEI students per capita in selected intermediary cities in Europe 86
Figure 5.3. Road transport performance in selected intermediary cities in Europe 87
Figure 5.4. Share of working population with jobs outside the city in selected intermediary cities in Europe 88
Figure 5.5. Cultural amenities per capita in selected intermediary cities in Europe 89
Figure 5.6. Number of shopping centres per capita in selected intermediary cities in Europe 90
Figure 5.7. Number of hospitals per capita in selected intermediary cities in Europe 91
Figure 5.8. Expenditure in public employment per capita in selected intermediary cities in Europe 92
Figure 5.9. Intermediary city types span across countries 96
Figure 5.10. Income is highest in "Knowledge Hub" cities and lowest in "Service Hub" cities 98
Boxes 9
Box 1.1. The OECD Survey on Intermediary Cities 16
Box 2.1. Gateway cities 23
Figure A C.1. Key functions and city types of intermediary cities 134
Figure A C.2. Three sets of city characteristics used in the pilot toolkit 135
Figure A C.3. Overall structure of pilot policy toolkit 136
Annex Boxes 9
Box A C.1. i) General policy checklists (applicable to all intermediary cities) 140
Box A C.2. ii) Policy checklists by city type (use the checklist that corresponds to your city type) 141
Box A C.3. iii) Policy checklists by geographical context (use the checklist that corresponds to your geographical context) 143
Box A C.4. iv) Policy checklists by institutional context (applicable to all intermediary cities) 144
Box A C.5. Policy example 1. Joint transportation association in Alba Iulia, Romania 146
Box A C.6. Policy example 2. Dual education systems - Your Professional Partner Initiative in Alba County, Romania 146
Box A C.7. Policy example 3. Case di Quartiere in Brindisi, Italy 147
Box A C.8. Policy example 4. Appia 2030: an inter-municipal slow tourism strategy in Brindisi, Italy 147
Box A C.9. Policy example 5. Intermunicipal co-operation in the Ústí Region, Czechia 148
Box A C.10. Policy example 6. Smart City Concept in Most, Czechia 148
Box A C.11. Policy example 7. Lakeside Science & Technology Park in Klagenfurt, Austria 149
Box A C.12. Policy example 8. New high-speed railway connection in Southern Austria, Austria 149
Box A C.13. Policy example 9. Cultural strategy and initiatives in Liepaja, Latvia 150
Box A C.14. Policy example 10. Offshore wind farms in the special economic zone, Liepaja, Latvia 150
Box A C.15. Policy example 11. Leveraging ERDF for strengthening urban centres in Valence, France 151
Box A C.16. Policy example 12. Regenerating the retail sector through the "Action Coeur de Ville" programme in Valence, France 151
Box A C.17. Policy example 13. Regional Health Campus, in Girona, Spain 152
Box A C.18. Policy example 14. Urban regeneration through social housing in Como, Italy 152
Box A C.19. Policy example 15. Local housing strategy in Braga, Portugal 153
Box A C.20. Policy example 16. Leveraging the silver economy through Public-Private Partnerships (PPPs) in Guimarães, Portugal 153
Box A C.21. Policy example 17. Green-and-Blue City Transformation in Ostrów Wielkopolski, Poland 154
Box A C.22. Policy example 18. Cross-border central heating system in Görlitz, Germany and Zgorzelec, Poland 154
Box A C.23. Policy example 19. Rural Rail Mobility in Reutlingen and Tübingen, Germany 155
Box A C.24. Policy example 20. Regenerating a city centre into a mixed-use neighbourhood in Waterford, Ireland 155
Box A E.1. Intermediary Cities Pilot Policy Toolkit: Self-Assessment and Action Planning Template 160
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