This article seeks to revisit and question the theoretical debate surrounding industrial districts and economies of localization when considering cultural production and demand, in an era of post industrial transformation of economic development models. The objective is to highlight the key factors that characterize a modern cultural city, and identify the required underlying conditions for such this definition. The paper also examines the interdependencies between these factors, and their respective roles as catalysts. Finally, it emphasizes the critical role of governmental policies (whether economic, cultural or urban) in this field. Some of these factors are analyzed with reference to Barcelona, one of the main cultural capitals in the South of Europe. The city’s process of consolidation is analyzed over the past fifteen years.