The paper investigates the role that small and medium-sized cities (smcs) can play in the knowledge economy and, specifically, in the creativity-led economy. After defining the distinctive features of this pattern of development, the paper identifies the relevant agglomeration economies, focusing on the urban ones. The investigation leads to formulation of a set of hypotheses concerning the location rationales of the activities typical of the creativity-led economy, as well as the possible role of smcs. The hypotheses are tested with reference to the Italian case. The results show that smcs can play even a structuring role, provided that they are located in industrialized regional contexts.
Keywords: Creativity-led economy; agglomeration economies; small and medium-sized cities
Jel Code: O14, O18, O30