Cities have always been cradles of innovation and economic growth, from ancient Athens to 20th century New York. The information-based economy of the 21st century, more than ever, is based in cities and depends on what cities have to offer: high densities, diversity, technological infrastructures, high mobility, networking opportunities, and amenity-rich living environments. Today, roughly three out of four new jobs in the U.S. are created in metropolitan areas with over a million inhabitants. But not all cities are prospering in the new economy and some face fundamental challenges of adaptation, resilience, and transition. Many smaller cities and towns witness economic decline, resulting in a growing urban-rural divide and regional patterns of growth and shrinkage. While these trends are evident close to home, for example in the state of Georgia and other parts of the USA, they can be observed around the globe. This part of the research agenda of the Institute focuses on questions of urban economic resilience, regional patterns and processes of urbanization, and policies of urban and regional development.