As urban populations grow and resources come under strain, there is a growing need for our cities to be “smarter”, more innovative on transport and telecoms solutions, more energy efficient, less polluting, and more able to exploit their diversity to generate long term jobs. Policies need to be adapted to become more responsive to the needs of small business, especially those with growth potential. In the current economic climate, businesses in Europe's cities are reducing overheads and pleading for the elimination of unnecessary regulatory burdens, while looking for new market opportunities. Meanwhile city authorities are under pressure to improve efficiency and reduce costs, while improving service delivery.

Successful and sustainable cities will have very strong international outlooks. Jobs will be created, and sustained for the long term, by globally competitive businesses marketing and selling products and services worldwide. Industries running international businesses find that cities are highly integrated into a global business culture. The diverse communities in cities provide them with excellent skills in languages, and experience with the trends, practices, standards and the regulatory frameworks of other countries. This gives them a competitive edge in terms of export promotion, marketing and customer service activities.

The European Single Market must offer the most open and accessible opportunities for business growth, and continue to be a magnet for successful cities. In the Single Market, businesses, particularly SMEs, can exploit consumer or business demand that can be easily reached through a short journey, where the ability to establish a business requires a minimum of cost and red tape, and where legal rights and intellectual property can be safeguarded. Single Market expansion is a lower risk route for young businesses to build an export infrastructure, before tackling higher risk opportunities like Brazil or China.

The framework for the European Single Market has taken major steps forward over the last few years, particularly with the opening of the services market. Enlargement has brought new countries into the Single Market fold. The Prime Minister has given great leadership, with other likeminded governments, to promoting the Single Market. The European Parliament instigated a new political programme, the Single Market Act, which is setting clear targets for all EU Governments to implement existing Single Market rules, modernise existing frameworks and tackle obstacles to the digital economy. Right at the top of the priority list is the need to reduce the bureaucracy that hinders local business from innovating and stifles competitiveness.

Super-fast broadband and high speed wireless connections are an indispensable infrastructure for the modern, globally connected city. Through the optical fibre, city businesses can deliver high value services anywhere in the world. They can design, develop and evaluate new products, then market, sell and deliver them.

Cities need to transform themselves using the same digital technology. Citizens want better services delivered at lower cost. Education, transport, health, energy, water and waste are all services where ICT can transform performance. City dwellers can interact with their service providers and make choices through far better information.

To help cities deploy imaginative and innovative solutions, a major reworking of the EU public procurement rules is underway to simplify the rules and release the potential of the public purse as a driver of innovation. The centre piece will be the promotion of new procurement tools that will engage innovative companies, especially SMEs, in developing more efficient solutions to the delivery of public policy objectives. The recently adopted EU patent will underpin all innovation projects by allowing companies to protect inventions at a much lower cost. The overall impact will enable cities and regions to develop high value added innovative products and services. (For more information, see the interview with the author in Science Business)

 Electors are looking for city leadership that will focus on meeting new challenges of job creation and sustainability. They will support those administrations that are ready to deploy bold solutions. Within the European Union, we have the knowledge and the capabilities to support city decision makers, and to help them defray risks by building expert networks with other cities. We must build partnerships for innovation and growth.

This article has been published in the ResPublica Fringe magazine, a collection of articles and essays from our party conference partners. 

Malcolm Harbour will be speaking at ‘A Good Deal: Creating Sustainable Growth for Cities’, a ResPublica fringe event co-hosted with Core Cities at Conservative Party Conference: Sunday 7th October, 6.30pm – 7.45pm, the ResPublica Marquee, the ICC Birmingham (secure zone)