Old wisdom and the New Economic Geography: Managing uncertainty in 21st century regional and urban development

The New Economic Geography (NEG) has over the past decades become a leading paradigm in regional science and geography. This paper seeks to provide a retrospective and prospective look into its achievements and current challenges. Clearly, regions are not oases of tranquility. Uncertainty and shocks in regional and urban development are omnipresent and call for adaptive and resilient strategies on spatial dynamics. The spatial arena is governed by many factors; this is mapped out in the present paper by means of a ‘Pentagon’ model of critical territorial capital inputs which form interdependent anchor points for policy and action based on the principle of confluence. The space-economy is multi-faceted and three prominent challenges in particular, are highlighted in this study: (i) the influence of digital technology on the standard NEG framework; (ii) the livability and proximity conditions in urban agglomerations, critically assessed through the lenses of the currently popular 15-minute city framework; (iii) the implications of social wellbeing and happiness motives for regional and urban planning in an NEG context. The conclusion of the study is that the NEG legacy and principles continue to be prominent signposts for regional and urban analysis and policy, conditional upon a flexible adaptivity of this legacy to new framework conditions in the ever-changing space-economy.