Abstract: The efficient mobilisation and productivity of local knowledge resources is becoming increasingly important for national productivity and industrial competitive advantage. Spatial and place qualities of urban design provide a logical platform to do this by strengthening local social capital and offering access to quality services, people and knowledge flows. The provision of quality infrastructure and amenities has become a means for cities to attract high-value human capital to enhance the knowledge development capacity of social networks. Research is only beginning to understand the relationship between urban density, local capital development and economic wealth, and how quality elements of hard and soft urban infrastructure translate into productivity advantages for a city. Based on empirical research, this paper argues that urban planning and design can positively contribute to sustainable national economic health and work productivity by strengthening local knowledge resources and networks. It identifies five key hard and soft infrastructure types impacting a region’s capacity to facilitate knowledge development and innovation. The hard infrastructure components of Kansai, Japan and Perth, Western Australia transit-oriented developments are examined for their capacity as spaces to facilitate human flows for vibrancy and knowledge transfer. This paper finds that the human movement, interaction and vibrancy generated by the planning in Kansai are more likely to deliver New Economy policy objectives of high knowledge productivity and innovation. It concludes that more research is needed to understand the economic benefits of investing in such urban infrastructure and amenities and how it can facilitate Australian national innovation and productivity agendas.