Gilles Duranton, Philippe Martin, Thierry Mayer, and Florian Mayneris
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199592203
- eISBN:
- 9780191595615
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199592203.001.0001
- Subject:
- Economics and Finance, Financial Economics, Microeconomics
Cluster policies have become very popular among policy makers over the last thirty years. However, the mechanisms at work behind cluster dynamics, the gains that can be expected from more clustering, ...
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Cluster policies have become very popular among policy makers over the last thirty years. However, the mechanisms at work behind cluster dynamics, the gains that can be expected from more clustering, and the determinants of cluster policies that are implemented are not so clear. This book addresses these issues theoretically and empirically on the French case. Studying France is interesting because there is a long tradition of strong government intervention regarding the location of economic activity and because French cluster initiatives are more or less unified across the country. From a theoretical point of view, spatial agglomeration brings gains until a certain point from which congestion effects can offset these gains, and under certain conditions, it is likely that firms tend to cluster too much. This raises questions about cluster policies that would aim at always increasing concentration. Moreover, cluster policies are very demanding in terms of information and are subject to many political economy issues. The empirical analysis on French firm‐level data confirms that, in the short run, firms reap gains from agglomeration until a given level of agglomeration from which congestion effects become more important. Given these agglomeration economies, the current geography in France does not seem vastly suboptimal. On the other hand, the analysis of the first cluster policy implemented in this country shows that traditional equity determinants of regional policies, instead of competitiveness considerations, were still in play. In that sense, while acknowledging the positive impact of spatial agglomeration on firm‐level performance, this book tends to tone down the worldwide enthusiasm for cluster policies.Less
Cluster policies have become very popular among policy makers over the last thirty years. However, the mechanisms at work behind cluster dynamics, the gains that can be expected from more clustering, and the determinants of cluster policies that are implemented are not so clear. This book addresses these issues theoretically and empirically on the French case. Studying France is interesting because there is a long tradition of strong government intervention regarding the location of economic activity and because French cluster initiatives are more or less unified across the country. From a theoretical point of view, spatial agglomeration brings gains until a certain point from which congestion effects can offset these gains, and under certain conditions, it is likely that firms tend to cluster too much. This raises questions about cluster policies that would aim at always increasing concentration. Moreover, cluster policies are very demanding in terms of information and are subject to many political economy issues. The empirical analysis on French firm‐level data confirms that, in the short run, firms reap gains from agglomeration until a given level of agglomeration from which congestion effects become more important. Given these agglomeration economies, the current geography in France does not seem vastly suboptimal. On the other hand, the analysis of the first cluster policy implemented in this country shows that traditional equity determinants of regional policies, instead of competitiveness considerations, were still in play. In that sense, while acknowledging the positive impact of spatial agglomeration on firm‐level performance, this book tends to tone down the worldwide enthusiasm for cluster policies.
Pontus Braunerhjelm and Maryann P. Feldman (eds)
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199207183
- eISBN:
- 9780191708886
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199207183.001.0001
- Subject:
- Business and Management, Innovation
This book examines the origins and emergence of technology-based industrial clusters — regional concentrations of related firms and organizations — in order to understand the forces that promoted ...
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This book examines the origins and emergence of technology-based industrial clusters — regional concentrations of related firms and organizations — in order to understand the forces that promoted economic development. Many places attempt to emulate the world's most famous industrial cluster Silicon Valley, with its rich institutional landscape of engaged and leveraged research universities, high-flying local venture capitalists, world class supporting business and legal consultants, and rich collaborative networks. While mature clusters may look similar, what really matters is the process by which clusters come into existence. But there is little understanding of such processes, and little guidance provided on the role of policies in promoting cluster emergence. The book attempts to bridge this gap in the literature by focusing on the early origins of high-technology cluster in Europe, the United States, and China, and the ensuing policy implications. The book is organized around three main themes: Creation Myths Revisited, Considering the Development Cluster Context, and Crafting Cluster and Economic Development Policy. The empirical analyses suggest that clusters that grow rapidly as compared to the less successful ones are distinguished by vigorous entrepreneurial activity and the active building of institutions aided by the forces of agglomeration economies.Less
This book examines the origins and emergence of technology-based industrial clusters — regional concentrations of related firms and organizations — in order to understand the forces that promoted economic development. Many places attempt to emulate the world's most famous industrial cluster Silicon Valley, with its rich institutional landscape of engaged and leveraged research universities, high-flying local venture capitalists, world class supporting business and legal consultants, and rich collaborative networks. While mature clusters may look similar, what really matters is the process by which clusters come into existence. But there is little understanding of such processes, and little guidance provided on the role of policies in promoting cluster emergence. The book attempts to bridge this gap in the literature by focusing on the early origins of high-technology cluster in Europe, the United States, and China, and the ensuing policy implications. The book is organized around three main themes: Creation Myths Revisited, Considering the Development Cluster Context, and Crafting Cluster and Economic Development Policy. The empirical analyses suggest that clusters that grow rapidly as compared to the less successful ones are distinguished by vigorous entrepreneurial activity and the active building of institutions aided by the forces of agglomeration economies.
Luigi Orsenigo
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199207183
- eISBN:
- 9780191708886
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199207183.003.0010
- Subject:
- Business and Management, Innovation
This chapter presents a survey of factors associated with the crafting of new innovative high-technology clusters. The evidence strongly supports the view that there are strong agglomeration forces ...
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This chapter presents a survey of factors associated with the crafting of new innovative high-technology clusters. The evidence strongly supports the view that there are strong agglomeration forces in high-technology sectors, mainly related to the concentration of scientific knowledge. Adequate incentive structures and entrepreneurial activity are also important, as are spin-offs from highly capable universities and research centres. Thus, the emergence of clusters is not a purely random phenomenon. Initial conditions and ‘endowments’ play a crucial role in defining the geography of innovation. However, these do not suffice to account either for the genesis of clusters, neither for the failures. The literature forcefully points to the observation that processes are the essence of what clusters are made of.Less
This chapter presents a survey of factors associated with the crafting of new innovative high-technology clusters. The evidence strongly supports the view that there are strong agglomeration forces in high-technology sectors, mainly related to the concentration of scientific knowledge. Adequate incentive structures and entrepreneurial activity are also important, as are spin-offs from highly capable universities and research centres. Thus, the emergence of clusters is not a purely random phenomenon. Initial conditions and ‘endowments’ play a crucial role in defining the geography of innovation. However, these do not suffice to account either for the genesis of clusters, neither for the failures. The literature forcefully points to the observation that processes are the essence of what clusters are made of.
Terje Grønning
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199551552
- eISBN:
- 9780191720819
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199551552.003.0009
- Subject:
- Business and Management, Political Economy, Innovation
The prevalence of successful biotechnology firms has long been associated with the existence of national or regional agglomerations of the biotechnology firms themselves and partners such as large ...
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The prevalence of successful biotechnology firms has long been associated with the existence of national or regional agglomerations of the biotechnology firms themselves and partners such as large corporations, universities, research institutes, and venture capital firms. It is, however, acknowledged that such agglomeration trends may be most closely associated with medical biotechnology. This chapter examines ninety-three firms that may be classified as biotechnology-related firms in Norway. While there is indeed a great preoccupation with medical biotechnology in Norway, the survey shows that two other distinct traits are present: a concentration of firms focused on diagnostics and related fields, and a focus on marine biotechnology. In a path dependency perspective, these foci may be explained at least in part by the existence of knowledge bases and market opportunities within chemistry based reagents and fish oils respectively, which were present from the times prior to the advent of modern biotechnology. The chapter contributes to the theories on capabilities of individual firms and agglomeration of different firms and other organizations, and suggests that foci on such niches as those which are prevalent in Norway may function with more disperse geographical distribution patterns as compared to cases described in existing literature.Less
The prevalence of successful biotechnology firms has long been associated with the existence of national or regional agglomerations of the biotechnology firms themselves and partners such as large corporations, universities, research institutes, and venture capital firms. It is, however, acknowledged that such agglomeration trends may be most closely associated with medical biotechnology. This chapter examines ninety-three firms that may be classified as biotechnology-related firms in Norway. While there is indeed a great preoccupation with medical biotechnology in Norway, the survey shows that two other distinct traits are present: a concentration of firms focused on diagnostics and related fields, and a focus on marine biotechnology. In a path dependency perspective, these foci may be explained at least in part by the existence of knowledge bases and market opportunities within chemistry based reagents and fish oils respectively, which were present from the times prior to the advent of modern biotechnology. The chapter contributes to the theories on capabilities of individual firms and agglomeration of different firms and other organizations, and suggests that foci on such niches as those which are prevalent in Norway may function with more disperse geographical distribution patterns as compared to cases described in existing literature.
Stephen D. Cohen
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195179354
- eISBN:
- 9780199783779
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195179354.003.0008
- Subject:
- Economics and Finance, International
Because not even the largest MNC can afford to invest in every country, an important phase of the FDI cycle is the process by which a country chooses where to establish its foreign subsidiaries. The ...
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Because not even the largest MNC can afford to invest in every country, an important phase of the FDI cycle is the process by which a country chooses where to establish its foreign subsidiaries. The heterogeneity of business strategies and objectives means that no single guideline exists for manufacturing and services companies when selecting appropriate overseas sites. This chapter begins with a statistical breakdown showing the asymmetrical geographical distribution of MNCs, with emphasis on their concentration in industrial countries. Next, the various positive factors that attract MNCs to certain countries, including financial incentives, are examined in detail. A separate section examines the various conditions that tend to repel incoming FDI. A recurring theme is that those persons believing MNCs to be a negative force on host countries would applaud government policies to discourage their entry or impose comprehensive regulation; advocates of private enterprise would have the opposite value judgment.Less
Because not even the largest MNC can afford to invest in every country, an important phase of the FDI cycle is the process by which a country chooses where to establish its foreign subsidiaries. The heterogeneity of business strategies and objectives means that no single guideline exists for manufacturing and services companies when selecting appropriate overseas sites. This chapter begins with a statistical breakdown showing the asymmetrical geographical distribution of MNCs, with emphasis on their concentration in industrial countries. Next, the various positive factors that attract MNCs to certain countries, including financial incentives, are examined in detail. A separate section examines the various conditions that tend to repel incoming FDI. A recurring theme is that those persons believing MNCs to be a negative force on host countries would applaud government policies to discourage their entry or impose comprehensive regulation; advocates of private enterprise would have the opposite value judgment.
Yannis M. Ioannides
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691126852
- eISBN:
- 9781400845385
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691126852.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines the impact of social interactions on firms' location decisions, focusing on the effects of proximity to other firms, the size of the total urban economy, the availability of a ...
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This chapter examines the impact of social interactions on firms' location decisions, focusing on the effects of proximity to other firms, the size of the total urban economy, the availability of a suitable labor force, and risk pooling. It first introduces models that take into account the location of firms under uncertainty, with particular emphasis on the role of site rents in guiding location decisions and the problems that site rents encounter in the presence of more complex economic geography. The model is expanded to allow for randomness in firms' evaluations of alternative sites and for interdependence among firms' location decisions. The model is also extended to a framework for defining empirical measures of agglomeration, and the chapter concludes with a review of empirical studies that explore localization or urbanization effects via the measurement of total factor productivity at the plant level.Less
This chapter examines the impact of social interactions on firms' location decisions, focusing on the effects of proximity to other firms, the size of the total urban economy, the availability of a suitable labor force, and risk pooling. It first introduces models that take into account the location of firms under uncertainty, with particular emphasis on the role of site rents in guiding location decisions and the problems that site rents encounter in the presence of more complex economic geography. The model is expanded to allow for randomness in firms' evaluations of alternative sites and for interdependence among firms' location decisions. The model is also extended to a framework for defining empirical measures of agglomeration, and the chapter concludes with a review of empirical studies that explore localization or urbanization effects via the measurement of total factor productivity at the plant level.
Aradhna Aggarwal
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198077275
- eISBN:
- 9780199081035
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198077275.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book is a systematic analysis of the special economic zone (SEZ) programme in India. The book highlights the critical importance not just of investment in SEZs but also of investment in the ...
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This book is a systematic analysis of the special economic zone (SEZ) programme in India. The book highlights the critical importance not just of investment in SEZs but also of investment in the wider domestic economy in which they operate. It is the result of detailed surveys of SEZs conducted at different points in time during 2004–9. It traces the history and evolution of SEZs in general and in India, and examines the justification of continuing with SEZs in India. It covers almost every aspect of the benefit and cost of SEZs and finds that they can be instrumental in economic and social transformation. However, merely setting up an SEZ is not sufficient; it requires a comprehensive strategy to develop networks between SEZs and various actors in the domestic economy with an explicit emphasis on the promotion of industrial activity outside SEZs. This would enhance backward and forward linkages of SEZs with the domestic economy and strengthen the growth processes triggered by them. There is thus a need to integrate them with the broader industrial policy. While SEZs do entail costs, these can be addressed through a long-run vision, strong commitment, a pragmatic and flexible approach, dynamic learning, and institution-building.Less
This book is a systematic analysis of the special economic zone (SEZ) programme in India. The book highlights the critical importance not just of investment in SEZs but also of investment in the wider domestic economy in which they operate. It is the result of detailed surveys of SEZs conducted at different points in time during 2004–9. It traces the history and evolution of SEZs in general and in India, and examines the justification of continuing with SEZs in India. It covers almost every aspect of the benefit and cost of SEZs and finds that they can be instrumental in economic and social transformation. However, merely setting up an SEZ is not sufficient; it requires a comprehensive strategy to develop networks between SEZs and various actors in the domestic economy with an explicit emphasis on the promotion of industrial activity outside SEZs. This would enhance backward and forward linkages of SEZs with the domestic economy and strengthen the growth processes triggered by them. There is thus a need to integrate them with the broader industrial policy. While SEZs do entail costs, these can be addressed through a long-run vision, strong commitment, a pragmatic and flexible approach, dynamic learning, and institution-building.
V. N. Balasubramanyam and Ahalya Balasubramanyam
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199250011
- eISBN:
- 9780191596216
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199250014.003.0014
- Subject:
- Economics and Finance, International
The software cluster in Bangalore, South India, represents in a microcosm several of the developments associated with globalization identified in Ch. 1. It is a knowledge‐oriented or ...
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The software cluster in Bangalore, South India, represents in a microcosm several of the developments associated with globalization identified in Ch. 1. It is a knowledge‐oriented or human‐capital‐intensive industry that has attracted multinational firms to Bangalore, both as producers and consumers of software, turning the city into an international gateway for trained labour. The state has actively assisted the growth of the industry. This chapter addresses the reasons for the success of the software cluster. The main sections provide a brief description of the size and structure of the software cluster in Bangalore, discuss the Bangalore cluster in the light of received explanations of clusters from geographers and regional economists, and analyse the cluster in the context of the economics of agglomeration and developments associated with globalization.Less
The software cluster in Bangalore, South India, represents in a microcosm several of the developments associated with globalization identified in Ch. 1. It is a knowledge‐oriented or human‐capital‐intensive industry that has attracted multinational firms to Bangalore, both as producers and consumers of software, turning the city into an international gateway for trained labour. The state has actively assisted the growth of the industry. This chapter addresses the reasons for the success of the software cluster. The main sections provide a brief description of the size and structure of the software cluster in Bangalore, discuss the Bangalore cluster in the light of received explanations of clusters from geographers and regional economists, and analyse the cluster in the context of the economics of agglomeration and developments associated with globalization.
Allen J. Scott
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296041
- eISBN:
- 9780191596070
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296045.003.0016
- Subject:
- Economics and Finance, Microeconomics
Takes a broader and more conceptual approach to the effect of the local environment on firm performance than that taken by Fujita and Ishii in the previous chapter. The firm is treated as a player in ...
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Takes a broader and more conceptual approach to the effect of the local environment on firm performance than that taken by Fujita and Ishii in the previous chapter. The firm is treated as a player in regional production systems in line with the avowed objective of explaining the collective performance of these regional systems, and dovetailing the argument of the previous chapter, Scott finds that geographical space has become more, not less, important in terms of its economic effects in today's global economy. However, he raises a more fundamental point in that the observed patterns of locational differentiation and specialization, and of inter‐regional trade have in effect become more finely grained. Spatial characteristics are argued to underpin much of industrial performance, as illustrated by the localized clusters of economic activity (regional development) that have appeared historically and continue to do so; these are identified as being transactions intensive, feeding off increasing returns and agglomeration economies. Scott goes on to develop the notion of path dependency of regional clusters over time, and the dangers that may hold, before proposing a generic policy agenda that boosts the critical system of formal and informal collective order found in clusters.Less
Takes a broader and more conceptual approach to the effect of the local environment on firm performance than that taken by Fujita and Ishii in the previous chapter. The firm is treated as a player in regional production systems in line with the avowed objective of explaining the collective performance of these regional systems, and dovetailing the argument of the previous chapter, Scott finds that geographical space has become more, not less, important in terms of its economic effects in today's global economy. However, he raises a more fundamental point in that the observed patterns of locational differentiation and specialization, and of inter‐regional trade have in effect become more finely grained. Spatial characteristics are argued to underpin much of industrial performance, as illustrated by the localized clusters of economic activity (regional development) that have appeared historically and continue to do so; these are identified as being transactions intensive, feeding off increasing returns and agglomeration economies. Scott goes on to develop the notion of path dependency of regional clusters over time, and the dangers that may hold, before proposing a generic policy agenda that boosts the critical system of formal and informal collective order found in clusters.
Aradhna Aggarwal
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198077275
- eISBN:
- 9780199081035
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198077275.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter critically examines the theoretical propositions that seek to explain the rationale and economic impact of special economic zones (SEZs) in developing countries and argues that the ...
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This chapter critically examines the theoretical propositions that seek to explain the rationale and economic impact of special economic zones (SEZs) in developing countries and argues that the existing theoretical approaches do not fully capture the rationale and effects of SEZs. For a better understanding of the socio-economic impact of SEZs, it proposes an alternative approach based on the economics of agglomeration, in general, and industrial clustering, in particular. It integrates relevant theoretical accounts with an agglomeration-theoretic framework to develop an eclectic theoretical framework of their relevance and impact and provides a comprehensive criteria for their evaluation. It argues that SEZs are not an alternative strategy and, therefore, there is nothing ‘second best’ about them. They need to be viewed as a component of the broader industrial strategy and their development needs to be synthesized with the overall cluster development policy.Less
This chapter critically examines the theoretical propositions that seek to explain the rationale and economic impact of special economic zones (SEZs) in developing countries and argues that the existing theoretical approaches do not fully capture the rationale and effects of SEZs. For a better understanding of the socio-economic impact of SEZs, it proposes an alternative approach based on the economics of agglomeration, in general, and industrial clustering, in particular. It integrates relevant theoretical accounts with an agglomeration-theoretic framework to develop an eclectic theoretical framework of their relevance and impact and provides a comprehensive criteria for their evaluation. It argues that SEZs are not an alternative strategy and, therefore, there is nothing ‘second best’ about them. They need to be viewed as a component of the broader industrial strategy and their development needs to be synthesized with the overall cluster development policy.
Michael Storper, Thomas Kemeny, Naji Philip Makarem, and Taner Osman
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780804789400
- eISBN:
- 9780804796026
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804789400.003.0003
- Subject:
- Business and Management, Innovation
The specialization of urban regions in different tradable industries is the source of significant differences in wages and income levels. Los Angeles was more specialized than San Francisco in 1970 ...
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The specialization of urban regions in different tradable industries is the source of significant differences in wages and income levels. Los Angeles was more specialized than San Francisco in 1970 but considerably less specialized in 2010. During this period, San Francisco consolidated its specialization in activities related to information technology, and Los Angeles consolidated its hold on the entertainment industries, but Los Angeles lost many other high-wage specializations it formerly contained, replacing them with low-wage specializations. Los Angeles also lost its lead over San Francisco in innovative sectors, as the latter soared in its per capita patenting rate. All in all, Los Angeles’s economy came to have less overall focus and sophistication, while San Francisco’s came to have more.Less
The specialization of urban regions in different tradable industries is the source of significant differences in wages and income levels. Los Angeles was more specialized than San Francisco in 1970 but considerably less specialized in 2010. During this period, San Francisco consolidated its specialization in activities related to information technology, and Los Angeles consolidated its hold on the entertainment industries, but Los Angeles lost many other high-wage specializations it formerly contained, replacing them with low-wage specializations. Los Angeles also lost its lead over San Francisco in innovative sectors, as the latter soared in its per capita patenting rate. All in all, Los Angeles’s economy came to have less overall focus and sophistication, while San Francisco’s came to have more.
Philip Cooke and Kevin Morgan
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780198290186
- eISBN:
- 9780191684784
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198290186.003.0009
- Subject:
- Business and Management, Innovation, Political Economy
This chapter seeks both to chart the evolutionary processes of economic restructuring and change at the regional level and to offer the outline of a mode of civic, political, and economic action ...
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This chapter seeks both to chart the evolutionary processes of economic restructuring and change at the regional level and to offer the outline of a mode of civic, political, and economic action which is polarized by an emphasis neither on state nor market as the ultimate arbiter of economic fortunes. This chapter also attempts to tie together the master themes of the book in respect of evolutionary economic theorization, the centrality of innovation and interactive learning to industrial and institutional creativity, the importance of decentralized industrial and other public policies to regions in a globalizing economic context, and the importance of regions as economic bases for firms that are increasingly disposed towards agglomeration, externalization, and specialization.Less
This chapter seeks both to chart the evolutionary processes of economic restructuring and change at the regional level and to offer the outline of a mode of civic, political, and economic action which is polarized by an emphasis neither on state nor market as the ultimate arbiter of economic fortunes. This chapter also attempts to tie together the master themes of the book in respect of evolutionary economic theorization, the centrality of innovation and interactive learning to industrial and institutional creativity, the importance of decentralized industrial and other public policies to regions in a globalizing economic context, and the importance of regions as economic bases for firms that are increasingly disposed towards agglomeration, externalization, and specialization.
Allen J. Scott
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296584
- eISBN:
- 9780191685255
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296584.003.0005
- Subject:
- Business and Management, International Business, Political Economy
To further understand the network of regional economies, this chapter explains economic ‘performance’ through looking into growth and development manifested in variables such as productivity, ...
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To further understand the network of regional economies, this chapter explains economic ‘performance’ through looking into growth and development manifested in variables such as productivity, employment, competitiveness, innovation, and others. The author attempts to develop a location view that considers the dependence of economic order on geographical aspects. The author introduces the notion of an economic space that can assume various forms in characterising any social division of labor. Externalities that cause either benefits or costs on producers are also discussed in relation to economic space. The chapter also analyses several theories that may have influenced the author's concept of a location theory and spatial agglomeration theory.Less
To further understand the network of regional economies, this chapter explains economic ‘performance’ through looking into growth and development manifested in variables such as productivity, employment, competitiveness, innovation, and others. The author attempts to develop a location view that considers the dependence of economic order on geographical aspects. The author introduces the notion of an economic space that can assume various forms in characterising any social division of labor. Externalities that cause either benefits or costs on producers are also discussed in relation to economic space. The chapter also analyses several theories that may have influenced the author's concept of a location theory and spatial agglomeration theory.
Roger White, Guy Engelen, and Inge Uljee
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780262029568
- eISBN:
- 9780262331371
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262029568.003.0004
- Subject:
- Political Science, Environmental Politics
The structure of a system of retail centres as described by their size, composition, and location, is a result of competition among the centres for customers. The evolution of the system is described ...
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The structure of a system of retail centres as described by their size, composition, and location, is a result of competition among the centres for customers. The evolution of the system is described by a set of cost and revenue equations. The revenue equations include a distance decay parameter. When this parameter is below a critical value, retail activity tends to agglomerate in a major, centrally located centre; otherwise, it tends to be dispersed among a number of similar centres. This fundamental bifurcation appears in actual retail systems. It underlies such phenomena as itinerant medieval trade fairs, the historical migration of the major retail centre of cities like London and New York, and innovations like the department store, the regional mall, and power centres. Since a lower distance decay parameter is associated with higher energy densities, a direct link is established between spatial structure, energy, and technology.Less
The structure of a system of retail centres as described by their size, composition, and location, is a result of competition among the centres for customers. The evolution of the system is described by a set of cost and revenue equations. The revenue equations include a distance decay parameter. When this parameter is below a critical value, retail activity tends to agglomerate in a major, centrally located centre; otherwise, it tends to be dispersed among a number of similar centres. This fundamental bifurcation appears in actual retail systems. It underlies such phenomena as itinerant medieval trade fairs, the historical migration of the major retail centre of cities like London and New York, and innovations like the department store, the regional mall, and power centres. Since a lower distance decay parameter is associated with higher energy densities, a direct link is established between spatial structure, energy, and technology.
Robert J. Bennett
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199584734
- eISBN:
- 9780191731105
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199584734.003.0005
- Subject:
- Business and Management, Business History
Chambers were initially small in number and focused in the main ports. This was explained by their political weight, experience of lobbying for private Bills for infrastructure development ...
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Chambers were initially small in number and focused in the main ports. This was explained by their political weight, experience of lobbying for private Bills for infrastructure development (especially wet docks and canals), and their focus on networks of economic and social exchange. This chapter shows that their diffusion was generally down the population rank-size distribution of cities, eventually penetrating the whole market for local voice. However, the chapter shows that there was important regional differentiation, and there were some notable barriers to diffusion as a result of resistance. In London this included resistance from central government. In centres, such as Bristol, Dublin, Cork, and Londonderry, it was resistance from the pre-Reform local corporation; other centres had mixed support from pre-existing bodies such as the Merchant Adventurers, Staplers, and commercial committees.Less
Chambers were initially small in number and focused in the main ports. This was explained by their political weight, experience of lobbying for private Bills for infrastructure development (especially wet docks and canals), and their focus on networks of economic and social exchange. This chapter shows that their diffusion was generally down the population rank-size distribution of cities, eventually penetrating the whole market for local voice. However, the chapter shows that there was important regional differentiation, and there were some notable barriers to diffusion as a result of resistance. In London this included resistance from central government. In centres, such as Bristol, Dublin, Cork, and Londonderry, it was resistance from the pre-Reform local corporation; other centres had mixed support from pre-existing bodies such as the Merchant Adventurers, Staplers, and commercial committees.
Dariusz Wójcik
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199592180
- eISBN:
- 9780191729089
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199592180.003.0008
- Subject:
- Business and Management, Finance, Accounting, and Banking
Chapter 8 summarizes the argument of the book, proposing a theory of stock market centres, understood as concentrations of stock market intermediaries, investors, and issuers' headquarters, operating ...
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Chapter 8 summarizes the argument of the book, proposing a theory of stock market centres, understood as concentrations of stock market intermediaries, investors, and issuers' headquarters, operating through a global network. The theory is supported with evidence presented in Chapters 1–7, as well as new empirical evidence on the size and evolution of stock market centres in the six largest economies of the world: the United States, China, Japan, Germany, France, and the United Kingdom. In this way, the book completes the journey from the map of stock markets focused on countries to a more complex, but also truer map on which cities play a key part. The chapter finishes with speculations about the implications of the theory of stock market centres, as well as other theoretical and empirical findings of the book, for the future of the global stock market and cities.Less
Chapter 8 summarizes the argument of the book, proposing a theory of stock market centres, understood as concentrations of stock market intermediaries, investors, and issuers' headquarters, operating through a global network. The theory is supported with evidence presented in Chapters 1–7, as well as new empirical evidence on the size and evolution of stock market centres in the six largest economies of the world: the United States, China, Japan, Germany, France, and the United Kingdom. In this way, the book completes the journey from the map of stock markets focused on countries to a more complex, but also truer map on which cities play a key part. The chapter finishes with speculations about the implications of the theory of stock market centres, as well as other theoretical and empirical findings of the book, for the future of the global stock market and cities.
Zoltan Acs, Niels Bosma, and Rolf Sternberg
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199580866
- eISBN:
- 9780191728716
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199580866.003.0007
- Subject:
- Business and Management, Innovation
Entrepreneurs are of key importance in translating creativity into economic output. Consequently the urban dimension of entrepreneurship is a subject of great interest. This chapter sets out a ...
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Entrepreneurs are of key importance in translating creativity into economic output. Consequently the urban dimension of entrepreneurship is a subject of great interest. This chapter sets out a framework encompassing the process between entrepreneurial perceptions and entrepreneurial activity at the individual level and demonstrate how an urban environment can have an impact on this process. The chapter creates entrepreneurship indices for thirty-five world cities exploiting the Global Entrepreneurship Monitor (GEM) Database 2001-2006. We investigate differences between city-level and country-level for a selection of these indices and show that, indeed, most of them are higher for world cities than for the rest of their respective countries. Albeit very preliminary, the results provide an initial exploration of the entrepreneurial advantage of world cities.Less
Entrepreneurs are of key importance in translating creativity into economic output. Consequently the urban dimension of entrepreneurship is a subject of great interest. This chapter sets out a framework encompassing the process between entrepreneurial perceptions and entrepreneurial activity at the individual level and demonstrate how an urban environment can have an impact on this process. The chapter creates entrepreneurship indices for thirty-five world cities exploiting the Global Entrepreneurship Monitor (GEM) Database 2001-2006. We investigate differences between city-level and country-level for a selection of these indices and show that, indeed, most of them are higher for world cities than for the rest of their respective countries. Albeit very preliminary, the results provide an initial exploration of the entrepreneurial advantage of world cities.
Edward L. Glaeser (ed.)
- Published in print:
- 2010
- Published Online:
- February 2013
- ISBN:
- 9780226297897
- eISBN:
- 9780226297927
- Item type:
- book
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226297927.001.0001
- Subject:
- Economics and Finance, Microeconomics
When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume ...
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When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities, industrial clusters remain vital. This book brings together chapters that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance the understanding of agglomeration and its implications for a globalized world.Less
When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities, industrial clusters remain vital. This book brings together chapters that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance the understanding of agglomeration and its implications for a globalized world.
Hirotsugu Uchida and Andrew Nelson
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199590148
- eISBN:
- 9780191595493
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199590148.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental, Public and Welfare
The United Nations (UN) compiles information on urbanization (urban population and its share of total national population) that is reported by various countries. But there is no standardized ...
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The United Nations (UN) compiles information on urbanization (urban population and its share of total national population) that is reported by various countries. But there is no standardized definition of ‘urban’, resulting in inconsistencies. This situation is particularly troublesome if one wishes to conduct a cross-country analysis or determine the aggregate urbanization status of the regions and the world. This chapter proposes an alternative measure of urban concentration, an agglomeration index (AI). It is based on three factors: population density, population of ‘large’ city centre, and travel time to that large city centre. The main objective of AI is to provide a consistent definition of settlement concentration to conduct cross-country comparative and aggregated analyses. As an accessible measure of economic density, AI lends itself to the study of concepts such as agglomeration rents in urban areas, the ‘thickness’ of a market, and the travel distance to such a market.Less
The United Nations (UN) compiles information on urbanization (urban population and its share of total national population) that is reported by various countries. But there is no standardized definition of ‘urban’, resulting in inconsistencies. This situation is particularly troublesome if one wishes to conduct a cross-country analysis or determine the aggregate urbanization status of the regions and the world. This chapter proposes an alternative measure of urban concentration, an agglomeration index (AI). It is based on three factors: population density, population of ‘large’ city centre, and travel time to that large city centre. The main objective of AI is to provide a consistent definition of settlement concentration to conduct cross-country comparative and aggregated analyses. As an accessible measure of economic density, AI lends itself to the study of concepts such as agglomeration rents in urban areas, the ‘thickness’ of a market, and the travel distance to such a market.
Henry G. Overman and Anthony J. Venables
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199590148
- eISBN:
- 9780191595493
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199590148.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental, Public and Welfare
This chapter reviews the literature on the forces driving urbanization in developing countries. It presents a model outlining how globalization can lead to the evolution of an urban structure which ...
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This chapter reviews the literature on the forces driving urbanization in developing countries. It presents a model outlining how globalization can lead to the evolution of an urban structure which may approximate Zipf's law. Policy implications are outlined.Less
This chapter reviews the literature on the forces driving urbanization in developing countries. It presents a model outlining how globalization can lead to the evolution of an urban structure which may approximate Zipf's law. Policy implications are outlined.
