Capital cities in Europe saw the highest productivity growth between 2001 and 2021, while other cities lagged behind.
Metropolitan regions centred around national capitals, such as Paris and Berlin, outperformed other urban areas in increases to economic output per worker over the past two decades, according to an analysis by the Centre for Economic Policy Research (CEPR) distributed by the European Commission on Thursday.
Researchers measured productivity by looking at economic value produced relative to the number of workers in given regions.
Across Europe, cities are often considered engines of national and regional growth. However, the analysis noted that productivity dynamics at the local level are more complex than simply cities performing better than non-urban areas.
Regional differences remain notable — some non-capital cities and areas outside major urban centres saw lower growth.
The researchers have called for policies that consider the distinct challenges and strengths of individual regions, as the effect of location on productivity is varied.
