This chapter explores the knowledge economy strategies of the local authorities. It analyses the foundations of the knowledge economy for Amsterdam. They include the knowledge base, the economic base, the quality of life, accessibility, urban diversity, urban scale, and the city's social equity. Amsterdam is very attractive to knowledge workers because of its high metropolitan quality of life, its international atmosphere and its good international accessibility, in spite of drawbacks such as the shortage of residences and the relatively high costs of housing compared with other Dutch cities. The Amsterdam strategy towards the information society takes the form of a strategy towards a diverse economy, with emphasis on the knowledge-based sectors. The chapter discusses knowledge activities and explores how the city manages to: attract and retain talented people, create new knowledge, apply new knowledge and make new combinations and develop new growth clusters.