Traditionally the economy of the area had been characterised by textile and heavy industry. Employment in Dundee changed dramatically however during the 1980s with the loss of nearly 10,000 manufacturing jobs due to closure of the shipyards, cessation of carpet manufacturing and the disappearance of the jute trade. However, over time, despite economic periods of difficulties, the city has managed to reinvent itself focusing on culture and services. A notable example of this reinvention is the opening of the V&E Design Museum in 2018. Dundee is also home to two Universities: Abertay University and the University of Dundee.

One key industry that is reshaping the current economic, productive and social landscape is the Video Games industry. According to some commentators, Dundee is the capital of Video Games in Scotland and has seen over the years the creation and establishment of successful ventures. The world-wide successful game Grand Theft Auto was created in Dundee in the 1990s by a studio called DMA Design, today known as Rockstar North. Prior to that, DMA also was the creator of another successful game called Lemmings. Since then, Rockstar moved its offices to Edinburgh (in the early 2000s), however over time a Video Games cluster has appeared with companies of different size and shape.