Locational Policies of Secondary Capital City Regions: How to Overcome Their Marginalised Economic Position

Capital cities that are not the economic centers of their nations – so-called secondary capital cities (SCCs) –lack the economic functions of multi-functional capitals what makes them particularly struggle with increased urban competition during the recent economic crisis. This paper proposes a framework that should help to understand the formulation of locational policies in SCCs.   Locational policies are the instruments behind development strategies. This paper focuses on the three kinds of locational policy categories: Innovation policies try to further develop the specific Regional Innovation System (RIS) of SCCs in which the interactions of public and private actors are the key feature. Coordination aims to strengthen coherent policy making within the city-region. Positioning strategies try to distinguish the SCC from other cities in the national urban system by pointing at its comparative advantage as the seat of government and highlights the specific entrepreneurial environment of its economy.