The Creative Industries,Creative Occupations and Innovation in London

London is a global hub of the creative industries. These industries are seen as both innovative in themselves and an input in innovation processes in other sectors. Yet few studies have tested these relationships. This article investigates these issues using large-scale survey data for London. Using four measures of product and process innovation, we find no evidence that London's creative industries are more innovative than other sectors. Yet, individuals doing creative occupations in other sectors are a robust driver of product innovation in London's firms. The results suggest that occupations performed in London may be an important driver of product innovation in the city, and firms in other sectors may use creative occupations to develop new products in the capital. This finding is supportive of policies attempting to stimulate the creative industries by integrating creative occupations into firms across the whole economy.     

Trees of the Essential Economic Structures: A Qualitative Input‐Output Method*

Abstract. The structure of an economy in the framework of the Input‐Output (IO) model is defined by the set of industries within, together with the set of existing links between those industries, the latter determined by the demand and supply of intermediate goods exerted by the producers. Such a structure can be characterized by a subset of those connections between industries, regarded as the essential substructure, whose analysis allows learning some of the fundamental features of the system at large. This paper presents a qualitative method to find that essential productive structure, employing endogenous IO information only. Furthermore, the proposed method has been used to compare two such structures, namely, the United States and Mexico. Results assign structural positions to each sector in each system and describe the way industries influence one another in each economy. As expected, those results confirm that these economies are structurally different, despite existing similarities.     

Threats to Common‐Pool Resources and the Importance of Forums: On the Emergence of Cooperation in CPR Problem Settings

This paper focuses on cooperation among organizations in a common‐pool resource (CPR) problem situation. Cooperation is particularly challenging in settings where resource degradation is produced by a variety of different sectors and parts of the population; and where the problem, as well as public responsibilities, transcend borders and jurisdictions. Focusing on transboundary water quality management in the Rhine catchment area, we ask: What drives two actors in a CPR problem situation to cooperate with each other? We argue that the degree of threat to a CPR is an important driver for collective action, and focus on actors’ exposure to and perception of a threat to a CPR. Furthermore, we rely on applications of the ecology of games framework (EGF), taking into account the larger institutional context of CPR management. This allows us to test whether actors’ participation in forums, such as regional and international water body associations, helps to overcome the CPR problem by further enhancing interactions among actors. Based on survey data and applying advanced network statistics (exponential random graph models [ERGM]), we conclude that although problem exposure is one factor that enhances joint cooperation, participation in forums plays an even bigger role for cooperation in a CPR problem setting. Our study contributes to research on cooperation in CPR problem settings, highlights the need to more systematically include the effects that CPR problems have on actors when analyzing CPR problem settings, and stresses the function of forums as triggers for cooperation in CPR problem situations.     

Permeability of the Mercia Mudstone: suitability as caprock to carbon capture and storage sites

The Upper Triassic Mercia Mudstone is the caprock to potential carbon capture and storage (CCS) sites in porous and permeable Lower Triassic Sherwood Sandstone reservoirs and aquifers in the UK (primarily offshore). This study presents direct measurements of vertical (k_v) and horizontal (k_h) permeability of core samples from the Mercia Mudstone across a range of effective stress conditions to test their caprock quality and to assess how they will respond to changing effective stress conditions that may occur during CO₂ injection and storage. The Mercia samples analysed were either clay‐rich (muddy) siltstones or relatively clean siltstones cemented by carbonate and gypsum. Porosity is fairly uniform (between 7.4 and 10.7%). Porosity is low either due to abundant depositional illite or abundant diagenetic carbonate and gypsum cements. Permeability values are as low as 10^?20 m² (10nD), and therefore, the Mercia has high sealing capacity. These rocks have similar horizontal and vertical permeabilities with the highest k_h/k_v ratio of 2.03 but an upscaled k_h/k_v ratio is 39, using the arithmetic mean of k_h and the harmonic mean of k_v. Permeability is inversely related to the illite clay content; the most clay‐rich (illite‐rich) samples represent very good caprock quality; the cleaner Mercia Mudstone samples, with pore‐filling carbonate and gypsum cements, represent fair to good caprock quality. Pressure sensitivity of permeability increases with increasing clay mineral content. As pore pressure increases during CO₂ injection, the permeability of the most clay‐rich rocks will increase more than carbonate‐ and gypsum‐rich rocks, thus decreasing permeability heterogeneity. The best quality Mercia Mudstone caprock is probably not geochemically sensitive to CO₂ injection as illite, the cause of the lowest permeability, is relatively stable in the presence of CO₂–water mixtures.     

An Interactive Approach to the Central Facility Location Problem: Locating Pediatric Hospitals in Warsaw

Most of the conventional approaches to the central facility location problem neglect the interaction of analyst and decision-maker during the locational choice process. This paper presents a new interactive approach to the central facility location problem. It is assumed that the problem is formulated by an analyst as a multiobjective optimization problem. Then the decision-maker searches for a satisfactory solution working directly with the computer system. The interactive procedure was implemented on IBM-PC XT/AT as the decision support system DINAS (Dynamic Interactive Network Analysis System) which enables the solution of various multiobjective location-allocation problems. DINAS has been successfully used for solving a real-world planning problem, namely for finding locations for pediatric hospitals in the Warsaw region.     

京津冀都市圈制造业产业链的空间集聚度分析

本文利用产业间空间集聚度方法,计算京津冀都市圈制造业的空间集聚度,并通过时间趋势分析和区际对比,分析京津冀都市圈制造业的空间集聚水平。研究结论为:①2004年,京津冀都市圈制造业产业链的空间集聚度平均值为0.0151,属于低度空间集聚。②京津冀都市圈制造业产业链的空间集聚度呈逐年上升趋势。其中,资源密集型产业和资金技术密集型产业的空间集聚度上升趋势明显;劳动力密集型产业变化趋势不显著。③京津冀都市圈制造业产业链的空间集聚度低于长江三角洲地区,且产业链空间集聚与产业属性的关系不明确;技术密集型产业链的空间集聚度较低,而资源密集型产业的空间集聚度较高。     

Programming Models for Facility Dispersion: The p-Dispersion and Maxisum Dispersion Problems

The p-dispersion problem is to locate p facilities on a network so that the minimum separation distance between any pair of open facilities is maximized. This problem is applicable to facilities that pose a threat to each other and to systems of retail or service franchises. In both of these applications, facilities should be as far away from the closest other facility as possible. A mixed-integer program is formulated that relies on reversing the value of the 0–1 location variables in the distance constraints so that only the distance between pairs of open facilities constrain the maximization. A related problem, the maxisum dispersion problem, which aims to maximize the average separation distance between open facilities, is also formulated and solved. Computational results for both models for locating 5 and 10 facilities on a network of 25 nodes are presented, along with a multicriteria approach combining the dispersion and maxisum problems. The p -dispersion problem has a weak duality relationship with the (p-1)-center problem in that one-half the maximin distance in the p-dispersion problem is a lower bound for the minimax distance in the center problem for (p-1) facilities. Since the p-center problem is often solved via a series of set-covering problems, the p-dispersion problem may prove useful for finding a starting distance for the series of covering problems.     

Russia's Energy Policy, 1992-2005

A team comprising a former Russian policymaker and American analysts of the current Russian energy policy examines the course of that policy and its limitations during the post-Soviet period. In the process, they critically analyze key problems in Russia's oil, gas, coal, and electricity sectors that represent a potential drag on growth of the entire Russian economy and at the very least call into question the sustainability of further increases in exports to the West. The authors explore in considerable depth and detail both the factors underlying the recent increase in government intervention in the energy sector and the likely consequences for domestic production, consumption, resource security, and critical exports. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 11 figures, 3 tables, 29 references.     

The Role of Personal Factors in the Location Decision of Software Services Start-up Firms

This paper explores the factors which influence the business location decisions of start-ups, focusing in particular on the role of personal factors. Established explanations of industry location emphasize proximity to firms in the same or related industries and proximity to a wider set of business services, though recent research suggests that personal factors may play an important role in explanations of industry location—particularly in technology-enabled sectors. A survey of 97 new firms, founded between 2008 and 2012, in the Irish software services sector, shows that the business location decision is influenced by the personal motivation of entrepreneurs to attain a desired quality of life, and that this outweighs economic factors such as proximity to firms within the same or related industries, proximity to a broader set of supporting business services, infrastructure or the availability of government support schemes. Personal factors are particularly important to firms located outside the Dublin metropolitan area and to home-based businesses. This has important policy implications for national and regional governments seeking to encourage entrepreneurship in technology-enabled service sectors.     

Scientific Principles for a General Long-Range Scheme of Location of the Productive Forces of the USSR

The general long-range scheme of economic location, evidently being worked out by the Council for Study of Productive Forces, Gosplan USSR, involves three aspects: a regional aspect, designed to determine the regional specialization and the prospects of an integrated regional economy on a given resource base; an analysis of economic sectors, evaluating locational factors in specific industries, types of farming, and transportation; and a “synthetic” analysis of major national development problems, such as manpower redistribution, utilization of the underemployed population of small towns, rational use of energy and water resources, etc.).     

Simulation of the impact of faults on CO2 injection into sandstone reservoirs

Numerical simulations of multiphase CO₂ behavior within faulted sandstone reservoirs examine the impact of fractures and faults on CO₂ migration in potential subsurface injection systems. In southeastern Utah, some natural CO₂ reservoirs are breached and CO₂‐charged water flows to the surface along permeable damage zones adjacent to faults; in other sites, faulted sandstones form barriers to flow and large CO₂‐filled reservoirs result. These end‐members serve as the guides for our modeling, both at sites where nature offers ‘successful’ storage and at sites where leakage has occurred. We consider two end‐member fault types: low‐permeability faults dominated by deformation‐band networks and high‐permeability faults dominated by fracture networks in damage zones adjacent to clay‐rich gouge. Equivalent permeability (k) values for the fault zones can range from <10^?14 m² for deformation‐band‐dominated faults to >10^?12 m² for fracture‐dominated faults regardless of the permeability of unfaulted sandstone. Water–CO₂ fluid‐flow simulations model the injection of CO₂ into high‐k sandstone (5 × 10^?13 m²) with low‐k (5 × 10^?17 m²) or high‐k (5 × 10^?12 m²) fault zones that correspond to deformation‐band‐ or fracture‐dominated faults, respectively. After 500 days, CO₂ rises to produce an inverted cone of free and dissolved CO₂ that spreads laterally away from the injection well. Free CO₂ fills no more than 41% of the pore space behind the advancing CO₂ front, where dissolved CO₂ is at or near geochemical saturation. The low‐k fault zone exerts the greatest impact on the shape of the advancing CO₂ front and restricts the bulk of the dissolved and free CO₂ to the region upstream of the fault barrier. In the high‐k aquifer, the high‐k fault zone exerts a small influence on the shape of the advancing CO₂ front. We also model stacked reservoir seal pairs, and the fracture‐dominated fault acts as a vertical bypass, allowing upward movement of CO₂ into overlying strata. High‐permeability fault zones are important pathways for CO₂ to bypass unfaulted sandstone, which leads to reduce sequestration efficiency. Aquifer compartmentalization by low‐permeability fault barriers leads to improved storativity because the barriers restrict lateral CO₂ migration and maximize the volume and pressure of CO₂ that might be emplaced in each fault‐bound compartment. As much as a 3.5‐MPa pressure increase may develop in the injected reservoir in this model domain, which under certain conditions may lead to pressures close to the fracture pressure of the top seal.     

An Investigation of Characteristic Periods of Seismic Ground Motions

The design seismic base shear was obtained from the spectral elastic acceleration S_a divided by a system behavior factor R, accounting for ductility and overstrength. The behavior factor is currently taken as a constant for a given type of structures in various codes regardless of structural periods. In fact, the behavior factor is also a spectrum varying with the natural periods of structures. In order to understand the relationship between the spectral values and the corresponding characteristic periods in these two spectra, S_a and R_μ, this article carries out an investigation into the characteristic periods of 370 seismic ground motions from 4 site types. It is found that the periods T_ga at which the peak values appear in the S_a spectra are much less than the periods T _gR at which the R_μ spectra take a maximum value. Two characteristic periods are necessary to determine the seismic action if a more elaborate procedure is required in practice. Statistical study on these two periods is carried out for the 370 records, and results are presented. For site types A–D, the ratio of these two periods has a statistically averaged value of 5.5–6.7.

The maximum input energy S _EI , relative velocity S _v , power density P _SD , and the Fourier amplitude F _S spectra were constructed to determine their characteristic periods, respectively. These four spectra predict similar characteristic periods to T _gR . T _gR is very close to the characteristic period T _gd of the elastic displacement spectra.

Analysis of SDOF systems under combined harmonic excitations shows that the S_a spectrum is more sensitive to high-frequency excitations, while the displacement spectrum is more sensitive to long period excitations. For the elastic-plastic S_a spectra, peak values tend to appear at shorter periods even the amplitudes of the longer periods are greater than that of the shorter period. This provides an explanation on different characteristic periods in the S_a and R_μ spectra.     

Making creative industries policy in the real world: differing configurations of the culture-market-state nexus in the UK and South Korea

ABSTRACT

This paper compares creative (content) industries policies in the UK and South Korea, highlighting the coevality in their development. Seeing them as ‘industrial policies’, it focuses on how state intervention is justified and why a certain set of policy options have been chosen. The UK policy-makers prefer passive and decentralised roles of the state that addresses market failures via generic and horizontal policies. Meanwhile, Koreans have consistently believed in the strong, resourceful and ambitious state in developing centralised, sector-specific policies for cultural industries. While demonstrating two contrasting approaches to the nation state’s management of cultural turn in the economy, both cases seem to present a ‘paradox’. Despite its neoliberal undertone, the horizontal and fused approach taken by the UK’s creative industries policy engenders some space for ‘cultural’ policy. On the contrary, the non-liberal and state-driven content industries policy in Korea has shown a stronger tendency of cultural commodification.     

Innovation in knowledge intensive industries: The nature and geography of knowledge links

Knowledge has become a key source of competitiveness for advanced regions and nations, indicating a transformation of capitalism towards a “knowledge economy”. Knowledge intensive sectors in production and in services have a lead in this respect, they can be considered as role models for the future. The innovation process, the mechanisms of knowledge exchange and the respective linkages in those industries differ quite markedly from those in other sectors. Clustering and local knowledge spillovers are frequently stated phenomena, although it is still unclear as to what the nature and geography of those knowledge links are. The aim of this paper is to examine the character of the innovation process and the type of interactions in those industries, in order to find out how strongly they are related to regional, national and international innovation systems. We will analyse the sources and the mechanisms of knowledge exchange and their relevance for innovation. The paper develops a typology of innovation interactions and provides empirical evidence for Austria based on data from a recent firm survey.     

VERTICAL INDUSTRY RELATIONS,SPILLOVERS, AND PRODUCTIVITY: EVIDENCE FROM CHILEAN PLANTS*

ABSTRACT We use disaggregated data on Chilean plants, and the Chilean input–output table to examine the impact of agglomeration spillovers on total factor productivity (TFP). In common with previous studies, we find evidence for intraindustry spillovers, but none for general cross‐industry spillovers. This picture changes when we take vertical industry relations into account. There are important productivity spillovers from plants in upstream industries. Interestingly, a similar effect cannot be found from plants in downstream industries. The number of plants in these sectors has no effect on plant‐level TFP, just as the number of plants in other industries that are neither important upstream suppliers nor downstream customers also has no effect.     

A Study of the Role of Regionalization in the Generation of Aggregation Error in Regional Input –Output Models

Although the need for aggregation in input –output modelling has diminished with the increases in computing power, an alarming number of regional studies continue to use the procedure. The rationales for doing so typically are grounded in data problems at the regional level. As a result many regional analysts use aggregated national input –output models and trade –adjust them at this aggregated level. In this paper, we point out why this approach can be inappropriate. We do so by noting that it creates a possible source of model misapplication (i.e., a direct effect could appear for a sector where one does not exist) and also by finding that a large amount of error (on the order of 100 percent) can be induced into the impact results as a result of improper aggregation. In simulations, we find that average aggregation error tends to peak at 81 sectors after rising from 492 to 365 sectors. Perversely, error then diminishes somewhat as the model size decreases further to 11 and 6 sectors. We also find that while region – and sector –specific attributes influence aggregation error in a statistically significantly manner, their influence on the amount of error generally does not appear to be large.     

How Many Household Formation Systems Were There in Historic Europe? A View Across 256 Regions Using Partitioning Clustering Methods

Abstract

This paper reconsiders one of historical demography’s most pertinent research problems: the fiddly concept of historical household formation systems. Using a massive repository of historical census micro-data from the North Atlantic Population Project and the Mosaic project, the four markers of Hajnal’s household formation rules were operationalized for 256 regional rural populations from Catalonia in the west to central Siberia in the east, between 1700 and 1926. We then analyze these data using the Partitioning Around Medoids algorithm in order to empirically derive the “natural groups” based on the similarity and the dissimilarity of their household formation traits. Although regional differences between European household formation systems are readily identifiable, the two statistically most valid clustering solutions (k?=?2; k?=?4) provide a more complex picture of household formation regimes than Hajnal and his followers have been able to compile. Our finding that when regional populations cluster on similar household formation characteristics, they often come from both sides of Hajnal’s “imaginary line,” calls into question strict bipolar divisions of the continent. By and large, we show that the long-lived idea of two household formation systems in preindustrial Europe obscures considerable variability in historical family behavior, and therefore needs to be amended.     

TESTING FOR CAUSALITY BETWEEN PRODUCTIVITY AND AGGLOMERATION ECONOMIES

ABSTRACT The productivity effects of agglomeration economies are often treated as endogenous in empirical work due to the potential for reverse causality. The extent to which these relationships are actually simultaneously determined, however, remains largely unobserved. This paper estimates panel data vector autoregressions for different sectors of the economy to test for bidirectional causality between productivity and both localization and urbanization economies. The aim is to address some key questions that will help to identify the extent of the endogeneity problem. Can we actually observe bidirectionality in the data? Does it feature more for some industries than for others? Is it more prevalent for localization or urbanization economies? The results show that agglomeration economies are not strictly unidirectional and that higher levels of productivity can induce growth in the scale of local urban and industrial environments. The paper discusses the difficulties that these issues pose for the estimation of agglomeration economies.     

Rousseau,Diderot and the Spirit of Catherine the Great's Reforms

In the Social Contract, Rousseau predicted that Europe would experience a cycle of increasingly intense wars, culminating in invasion from the east: first, Russia would conquer Europe's exhausted and war-torn states; then, Russia would itself become overextended and Europe would ultimately be overrun by the Tartars. The future of the modern state would be a version of the fall of Rome. The present essay provides an explanation of why Rousseau held such apocalyptic views by placing them in the context of projects to reform Europe's political economy in the aftermath of the Seven Years’ War. In 1767, when Catherine the Great was planning a major revision of the Russian legal code, she outlined her goals in a manifesto called the Grand Instruction, key sections of which were derived from Montesquieu's analysis of depopulation of the countryside caused by uncontrolled industrialisation. The Grand Instruction became the subject of a critical exchange between the Physiocrat Le Trosne and Diderot, who, drawing upon Rousseau, was by turns both sympathetic to and sceptical of Physiocracy. This discourse reveals a triangular debate about the possibility of stabilising the international order by imposing a balance between the agricultural and manufacturing sectors of Europe's rapidly growing economies.     

Getting the China Story Right: Insights from National Economic Censuses

Two Hong Kong-based geographers critically interrogate competing interpretations of the nature and dynamics of China's ongoing economic transformation. Based on the data gathered from China's first and second national economic censuses, they examine the pattern and process of ownership transformation in the Chinese economy, focusing on employment, capital assets, and output as well as productivity and industrial innovation. Emphasis is placed on the following critical issues: (1) after three decades of opening, China's national economy continues to be dominated by domestic enterprises (with foreign and overseas Chinese-invested enterprises limited to only a few industrial sectors and highly specific locales); (2) the bulk of capital assets and key large-scale industrial sectors remain in state ownership; and (3) spontaneous, bottom-up privatization of the labor market has occurred without a corresponding privatization of the capital market. In examining these and other issues, the authors argue that the evolving, complex "China story" can be better understood only after abandoning reliance on preconceived theoretical models derived primarily from Western experience. They support their case by first challenging the conventional neoliberal view of privatization as an independent force or predetermined condition, arguing instead that it is conditioned by prevailing social and political influences. Likewise, they posit that rapid expansion of private and individual businesses at the grassroots level has owed more to relaxed state control than to active state involvement envisioned by the thesis of state corporatism. Journal of Economic Literature, Classification Numbers: E22, E23, E24, O11, P20. 8 figures, 6 tables, 87 references.