4 New Economies, New Spaces Stefan Krätke The breakdown of the neoliberal ‘dealer economy’ and the finance dominated model of capitalist development at the end of 2008, which led to a worldwide economic crisis, marks the peak of a round of ‘abbreviated restructuring’ episodes of urban economies since the early 1990s and indicates the need for a review of this period’s urban economic development concepts and growth ideologies. A major trend in this period was the rise of ‘new economy’ sectors like ICT, bio-technology, media and culture industry, etc. and the emergence of new urban space economies focusing on the intra-metropolitan scale. The rise of new ‘city industries’ (including knowledge- intensive production activities and the culture industries) lies at the heart of the resurgent urban economy. ‘City industries’ that prefer to locate and expand in the inner-city area were expected to take on the role of core growth sectors which might compensate for the decline of Fordist industries. This chapter intends to review the most influential urban economic development concepts of the last decades with particular emphasis on the rise of new leading growth sectors. Secondly, it deals with the emerging new economy of the inner city and its impact on the reshaping of the urban regions’ spatial fabric. The proliferation of new industrial sites in the inner city can be regarded as a global phenomenon that includes cities in Europe and North America as well as cities in the growth economies of Pacific Asia such as Singapore, Shanghai, Tokyo and Seoul (Hutton, 2010). The rise of new ‘city industries’, however, entails a marked variation in the particu- lar reindustrialization processes and experiences of individual cities and inner-city districts (Hutton, 2010). The extent to which these new economies and new spaces are reshaping the city varies according to different types of cities (such as metropolis, large city, medium-size city) and is particularly pronounced in large cities and metro- politan regions, where the new city industries can develop a ‘critical mass’. The cul- ture industries, for example, are characterized by a highly selective concentration within the urban system, so that the formation of viable clusters of the cultural economy only applies to a limited number of cities. Furthermore, the rise of new city industries varies according to the type of economies in which the cities are embedded: