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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

Tables 9

Table 2.1. Population thresholds to define intermediary cities, identified by the OECD survey 27

Table 2.2. Number and share of intermediary cities in the EU and OECD countries 30

Table 2.3. Half of EU residents living outside larger cities live in or close to an intermediary city 33

Table 3.1. Key considerations of geographical contexts across key functions of intermediary cities 46

Table 3.2. Territorial Organisation in the OECD and EU countries (2025) 49

Table 3.3. Key considerations of institutional and governance contexts across key functions of intermediary cities 50

Table 4.1. Profile of intermediary cities 74

Table 5.1. Indicators for the eight key functions of intermediary cities 84

Table 5.2. Functions in intermediary cities compared to larger cities 93

Table 5.3. Business and Knowledge functions often co-occur, so do Transport and Housing functions 94

Table 5.4. The five clusters ("Intermediary city types") are distinct in the functions they provide 95

Table 5.5. Contextualising the five intermediary city types 97

Table 6.1. Major characteristics of selected case study cities 102

Figures 8

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

Annex Tables 9

Table A A.1. The selected concept of cities considered to define intermediary cities 129

Table A B.1. City types in countries with complete OECD data availability 132

Table A C.1. Indicators for the eight key functions of intermediary cities 137

Table A C.2. Functional strengths of five clusters ("Intermediary city types") 138

Table A C.3. Territorial Organisation in the OECD and EU countries (2025) 138

Table A C.4. Map of the inspirational policy examples in intermediary cities 145

Table A C.5. Action planning template 158

Table A D.1. OECD resources to support analysis on intermediary cities 159

Annex Figures 9

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