“…This paper aims to conceptually reflect on new growth opportunities for cities, provided by 4.0 technologies, departing from a narrative and speculative approach, and making use of a theory‐based approach and its empirical validation. A way to proceed in this direction is to revisit the Baumol's model (Baumol, 1967), its criticisms and, especially, its version with a dichotomous urban–rural space while putting a renewed emphasis on spatial income distribution rather than on pure production (Aydalot & Camagni, 1986; Behrens et al, 2021; Brueckner & Sayantani, 2022; Camagni & Capello, 2020) (Section 2) and introducing the adoption of 4.0 technologies (Section 3). On conceptual grounds, despite the possible spatial dispersion of service activities generated by 4.0 technologies, urban growth is expected to take place, since the city still prevails over the non‐city in both a production and distribution sense, namely through favourable exchange prices (terms‐of‐trade).…”