Unlike Detroit, Chicago’s diversified industrial base has helped it to successfully switch from a material to a knowledge economy

In recent decades, some cities with a strong history of manufacturing have been able to make the switch to a strong knowledge economy, and thus have maintained a relative level of economic prosperity in the current economic climate. In the wake of the city of Detroit’s filing for bankruptcy, Saskia Sassen looks at how a city that was once economically very similar – Chicago – has made that successful transition. She argues that the gearing of Chicago’s agro-industrial economy, and its associated financial and legal support services, towards international markets have allowed it to succeed in its transition to a knowledge economy. Detroit, on the other hand, has been historically dominated by the automotive industry, and has not been able to redeploy its knowledge and practices in the same way.