Lab greed generates capital (8)
I believe the answer is:
belgrade
'capital' is the definition.
(capital of Serbia)
'lab greed generates' is the wordplay.
'generates' is an anagram indicator.
'lab'+'greed'='labgreed'
'labgreed' anagrammed gives 'BELGRADE'.
(Other definitions for belgrade that I've seen before include "Balkan capital" , "Serbian city" , "Capital of Serbia and Montenegro" , "It was Byzantine" , "Serbian capital" .)