Examines the emergence of the city-region concept in Britain with the ODPM's Northern Way strategy and reports on how this approach could balance the needs of urban centres and their hinterlands while stimulating economic growth. The concept has been strongly supported by a recent report from the University of Salford's Centre for Sustainable Urban and Regional Futures, which proposes that increased public sector investment on the demand side in northern England would help bridge the north-south gap. Birkbeck College's Local Futures group has also reported that public spending has been vital in propping up the knowledge economy outside of southern England, making a case for regional Keynesianism. Concludes that regional growth in northern England will not happen by itself but needs the development of the city regions, public sector investment and long-term commitment. Table gives a regional breakdown of gross value added and proportion of jobs in the knowledge-driven sector.