Staying on Top: Why is Munich so Resilient and Successful?

Abstract

This article seeks to explain why Munich, Germany's most economically successful city in recent decades, has proved so resilient despite various challenges and shocks. It begins by discussing different theoretical understandings of resilience and our methodological approach which builds on complex adaptive systems and evolutionary economic geography perspectives. Using a blend of historical analysis and in-depth investigation of the dynamics of one of the city's most innovative clusters, we argue that Munich's resilience essentially stems from the complex interplay of Germany's distinctive political history and federal system, which has promoted multi-level governance and a strong urban system, longstanding city regional leadership and entrepreneurialism, Munich's inherent assets and diverse economy and the combined strength of its many knowledge institutions, innovation system and networks. The evidence suggests that historic, structural and locational factors and agglomeration effects largely explain Munich's rise to prominence but that sustained urban and regional leadership and effective governance and policy especially in the technological, scientific and educational spheres coupled with intelligent urban planning have played an increasingly important role in sustaining its competitiveness.

Acknowledgements

The authors are very grateful to two referees and Michael Parkinson for their comments on an earlier version of this paper. The paper draws upon a more in-depth case study of Munich which formed part of the ESPON-funded Secondary Growth Poles and Territorial Development in Europe project.