This article critically addresses how cities have reacted to the economic crisis of 2008 in a context of austerity and increasing inter-territorial competition. The case study of Lyon is analysed. Firstly the chapter shows that the industrial transition of Lyon urban economy largely relied on a proactive and integrated economic strategy promoted at the metropolitan scale. It then analyses how the current economic crisis has accelerated this post-industrial trend, while also revealing some possible dysfunctions of the government model. Indeed, a growing dualization of interventions tackling economic development and social cohesion can be observed both in the field of housing and employment. This disconnection is related to exogenous and endogenous factors. On the one hand, international competition pressures lead local policy makers to prioritize the most profitable sectors; on the other hand, the institutional matrix, in particular the structure of local administration, do not facilitate the articulation of economic and social integration objectives.