City Branding as a Response to Global Intercity Competition

Globalisation is dramatically changing the context of urban communities and the premises for urban development policy. In the context of global intercity competition, cities' major goal is to increase their competitiveness, in which the positioning and attractiveness of a city have a critical function. Attraction-oriented development strategies aim at effective absorption of external resources from the global space of flows. At the core of attraction strategy are business promotion activities with appealing incentives, but it is assumed that such a competition is risky and may lead to a race to the bottom. Therefore the emphasis is increasingly on less costly and more synergistic city marketing, which utilises city branding and “city profiling” that aim at attract high value-adding services or high-tech firms. This paper proposes a city attraction hypothesis that states that global intercity competition is essentially about a city's ability to attract the highest possible value from global flows of values in order to promote urban development. The result of such a global intercity competition determines cities' functions and positions in the global division of labour and thus in the global urban hierarchy, and ultimately determines their ability to increase prosperity and welfare in urban communities.