This paper discusses the governance of cities in the knowledge economy. It focuses on three main aspects. First, it discusses the uneven urban impacts of the structural move towards a knowledge economy and concludes that different types of cities face different chances and opportunities because of their structural characteristics. Second, it addresses the issue of urban governance and discusses a number of successful interventions within cities via the concerted action of a number of key actors in the urban region. Moreover, it considers the unintended impacts of national policy on the urban level. Finally, the paper defines some key policy challenges for various city types and for national governments.