How do you gauge urban economic development success?

1 Challenges of measuring urban economic development

One of the main challenges of measuring urban economic development is defining what it means and what it entails. Urban economic development can encompass various aspects, such as income, employment, productivity, innovation, entrepreneurship, social inclusion, environmental quality, and cultural diversity. However, these aspects may not be equally relevant or important for different urban areas, depending on their history, geography, governance, and vision. Moreover, some aspects may be easier to quantify and compare than others, but may not capture the full picture of urban economic development. For example, GDP per capita may indicate the level of economic output, but not the distribution of wealth, the quality of public services, or the satisfaction of residents.

2 Approaches to measuring urban economic development

Given the diversity and complexity of urban economic development, there is no one-size-fits-all approach to measuring it. However, researchers, practitioners, and policymakers have proposed several methods for assessing urban economic development. Composite indicators are indices that combine multiple indicators into a single score or ranking. The Global Cities Index is an example of this, as it measures the performance of 129 cities across five dimensions. Dashboard indicators provide a comprehensive and flexible way to monitor and evaluate urban areas, offering data on 79 indicators for over 900 European cities. Qualitative methods, such as interviews, surveys, focus groups, case studies, or narratives, can capture the perceptions and opinions of stakeholders. The OECD LEED Programme uses qualitative methods to assess the local development impacts of policies and programmes in different urban areas. Each approach has its own benefits and drawbacks; composite indicators offer a simple way to compare and benchmark cities but may mask trade-offs between indicators; dashboard indicators are more comprehensive but may require more data collection; qualitative methods offer a deeper understanding but may be more subjective.

3 How to choose the best approach for your project

Choosing the best approach for measuring urban economic development success for your project is not a straightforward task, as it depends on various factors such as purpose, audience, resources, and context. You can ask yourself questions to guide your decision, such as what the objectives and outcomes of your project are and how they align with the indicators you want to measure. Additionally, consider the interests, expectations, and preferences of the stakeholders of your project. Furthermore, assess what data sources and methods are available and feasible for your project and how reliable, valid, and timely they are. Finally, think about how you will communicate and use the results of your urban economic development measurement and how you will ensure their relevance, credibility, and usefulness.

4 How to improve your urban economic development measurement

Measuring urban economic development success is an ongoing process that requires constant reflection and improvement. To improve your urban economic development measurement, it is important to involve and engage stakeholders throughout the process, from defining indicators to interpreting and disseminating results. This helps ensure that the measurement is responsive, inclusive, and participatory. Additionally, you should review and update indicators regularly to ensure they are relevant, accurate, and consistent with objectives. Comparing other urban areas can help benchmark performance and identify best practices. Incorporating feedback and learning loops into the process can help monitor progress, identify strengths and weaknesses, and make evidence-based decisions.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?