The territorial dimensions of the state are undergoing substantial changes. Political entities, such as cities and regions, are gaining in importance. Described as entrepreneurial city politics, policy-makers of contemporary cities are using new, economically oriented strategies to strengthen their city's position in interurban competition. Despite this state of affairs, social science still tends to treat local politics as equal to sub-national politics. This has especially been the case in Scandinavia, where local governments have traditionally functioned as an extension of the central welfare state. Since processes associated with entrepreneurial city politics are manifested in Scandinavia as well, this article argues that there is a need to rethink what local politics ultimately is about. The article proposes the ideas recently formed at the 'Lancaster School of Cultural Political Economy' as an approach with which to reconceptualise local politics. In the final section, some remarks on a future research agenda, centred on the cultural political economy of contemporary city politics, are presented. [ABSTRACT FROM AUTHOR]