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Cities as self-organizing innovative complexes
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Cities are the seedbeds for creativeness, innovation and spatial competitiveness. They are
characterized by product heterogeneity and behave according to the laws of monopolistic
competition in economics (see Frenken et al. 2007). Modern cities try to offer the highest possible
quality or image in terms of culture, arts, sports, innovativeness, entrepreneurship, financial
markets, sustainability etc. Density and proximity are the key features of modern cities (or, in
general, urban areas). The past centuries have been characterized by a structural trend towards
urbanization. Some 200 years ago less than 20 percent of the world population lived in cities,
whereas nowadays the urbanization degree is moving towards 80 percent. Not only has the
number of cities increased rapidly, but also the size of cities.