Cities are the engines of growth for most national economies. As centers of production, innovation, creativity, trade and connectivity, urban areas are taking a leading role in stimulating global economic growth and competitiveness, resulting in higher incomes per capita and higher productivity. However, cities can also be places where some of the most important challenges of the 21st century, such as inequality, unemployment, segregation and poverty, are concentrated and exacerbated.How can cities balance the economic advantages they have and the associated challenges brought by rapid urbanization and economic growth? What is the role of local governments in achieving and ensuring sustainable economic growth and facilitating job creation? Can cities foster economic development? This volume is part of a book series called "IESE Cities in Motion: International Urban Best Practices." Cities and the Economy focuses on how cities can address these challenges in order to achieve sustainable economic growth, and assess the role of city governments and firms in promoting and ensuring local economic development. The book aims to be: - an insightful analysis of the main urban economic trends and challenges- a collection of international best practices on sustainable urban economies and local economic development- a tool to help city managers and policymakers in their endeavors to develop and deploy policies and initiatives to achieve urban areas that are economically, socially and environmentally sustainable.