Urban Concentration of European Business Services and the Role of Regional Policies
Business-related services, and business services in particular, are key driving forces in the development of European cities and regions. These services act not only as followers of economic activity but also as a catalyst. They attract investment and help the growth of enterprises from all economic sectors (agriculture, industry, and services). Since enterprises need services to be competitive, regions, especially those less favored, need a certain endowment of them. High quality business-related services in a region attract investment from other sectors of the economy and create favorable conditions for regional development.1 However, business-related services concentrate so much in some regions and cities that there is a clear lack of such services in many regions and countries. Trends toward decentralization are still much less important than trends toward more concentration.