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ALLANA MANAGEMENT JOURNAL OF RESEARCH, PUNE - Volume 6, Issue 2, July 2016 - December 2016

Pages: 92-98
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Author: Ms. Aditi Deshpande

Category: General Management


In the onset of The Make in India campaign launched by Prime Minister Narendra Modi in India on September 25, 2014, manufacturing is being put on the urban economy orbit once again; albeit manufacturing remains a major challenge for India. The manufacturing sector has been slow, and this has taken a heavy toll on overall economic growth (Stephanie Johnson, 2015). Looking at the world scenario, in cities in developed and developing countries, the share of manufacturing has declined drastically, whilst the share of service based economy has grown. There is an emergence of ‘knowledge based economy’ in the recent decades. Peter Drucker, who outlined the rise of the ‘knowledge economy’, has been the most noted proponent of this view: “The basic economic resources-'the means of production’, to use the economist’s term is no longer capital, nor natural resources nor ‘labour’. It is and will be knowledge” (Peter Drucker, 1993). The process of growth of knowledge economy has resulted in the shift of manufacturing from industrial economy to service or rather knowledge economy. This paper discusses the new role of ‘manufacturing’ in the emerging knowledge based economy of cities. The paper discusses how ‘manufacturing’ in industrial cities relates to ‘knowledge based’ activities. Through a case study of a Dutch industrial city, the paper explores how important is the link between manufacturing and knowledge activities and how do poticies help the cities to the advantage of economic growth.


Manufacturing, knowledge-based economy, economic geography, urban policies, urban quality