Location and collaboration: Manufacturing firms' use of knowledge intensive services in product innovation

The paper addresses the relation between geographical location of firms and collaboration with knowledge intensive service providers on product innovation in a small country setting. The analysis shows that even in a small country with limited geographical distances firms located in peripheral areas are less likely to be broad users of collaboration with knowledge intensive service providers in the process of product innovation than firms located in major urban areas. However, it is only amongst firms located in the periphery that collaboration strategy seems to matter in the sense that differences in development in employment can be detected between broad and rare users of collaboration.     

CREATIVE INDUSTRIES IN THE NETHERLANDS: STRUCTURE, DEVELOPMENT, INNOVATIVENESS AND EFFECTS ON URBAN GROWTH

Creativity is central in stimulating economic growth in cities, regions and advanced capitalist economies in general. There is, of course, no one-to-one relation of the number of firms in creative industries to economic growth. Innovation is a key mechanism explaining the relationship of creative industries with economic performance. Based on an empirical study in the Netherlands we explore the effect of creative industries on innovation, and ultimately on employment growth in cities. In the Netherlands the three specific domains of creative industries - arts, media and publishing, and creative business services - make up 9 per cent of the business population. Drawing on survey data we find that firms in creative industries are indeed relatively innovative. Yet substantial differences are found across the three domains: firms in the arts domain are clearly less innovative, most likely due to a different (less market-oriented) dominant ideology. In addition, firms in creative industries located in urban areas are more innovative than their rural counterparts. We go on to analyse how the concentration of creative industries across cities is connected with employment growth. With the exception of the metropolitan city of Amsterdam, we find no measurable spill-over effect from creative industries. The presence of the creative class (in all kinds of industries other than creative ones) appears to be a much stronger driver of employment growth than creative industries.     

Culturally clustered or in the cloud? How amenities drive firm location decision in Berlin

Creative firms are neither capital‐ nor land‐intensive in production. They predominantly rely on creative and specialized labor and, assuming a strong competition for workers, are therefore increasingly dependent on the location of their (potential) employees. If these creative and highly qualified employees are attracted by consumption amenities such as bars, clubs, and restaurants, then it follows that these same amenities may determine the location of creative service firms. I investigate this hypothesis by examining whether Berlin Internet start‐up firms locate in urban amenity‐rich places. Identification builds on the fall of the Berlin Wall. A 1 percent increase in amenity density raises the probability of a start‐up location by almost 2 percent. A comparison with other service industries suggests that amenities are significant to the location choice of creative sectors, whereas no effect can be observed for nonreative firms.     

TESTING URBANIZATION ECONOMIES IN MANUFACTURING INDUSTRIES: URBAN DIVERSITY OR URBAN SIZE?

ABSTRACT Whether urbanization economies stem from urban diversity or urban scale is not clear in the literature. This paper uses the 2004 China manufacturing census data and tests simultaneously the effects of urban size and industrial diversity on firm productivity, controlling for localization economies and human capital externalities. We find that productivity increases with city size—but at a diminishing rate, and the city size effect becomes negative for cities with population over two million. Firms also benefit from industrial diversity, and the strength of such benefit increases with city size but decreases with firm size. The characteristics of agglomeration economies in a transition economy are also discussed.     

全球化视角下的世界城市网络理论

城市诞生时就相互保持着联系,只有将城市纳入世界城市网络中才能正确把握城市产生和发展的本质。1980年以来在第三次全球化浪潮的背景下,世界生产要素和产品市场开始整合,世界城市的兴起是国际劳动分工在空间上的表达。Cohen、Friedmann、Sassen、Castells和Taylor等学者提出并发展了世界城市理论,世界城市网络理论已经成为研究城市问题的重要框架。联系数据的缺乏长期制约了世界城市网络的实证研究,二十世纪九十年代中期以来学者们创新性地解决了方法论的问题,对世界城市网络的各个层面进行了实证研究。     

The Impact of Childhood Migration on Educational Attainment: Evidence from rural–urban migrants in Indonesia

This paper estimates the effect of migrating permanently as a child from a rural area to an urban area; focusing on long-term educational attainment in Indonesia. We conduct a household survey specifically tailored to collect data on urban–rural migrants in four major migrant destination cities in Indonesia, and merge the data with a nationally representative survey to create a dataset that contains migrants in urban areas and non-migrants in rural areas who were born in the same rural districts. We find that individuals who migrated to the city as children attained three more years of education, compared to observably similar individuals who remained in rural areas. We find no gender differences in the benefit of childhood migration. Finally, age at migration and the size of network in the city do not significantly affect the educational attainment of childhood migrants.     

Knowledge Production,Urban Locations and the Importance of Local Networks

This paper analyses the relationship between knowledge production and urban locations in industrial design, a knowledge-intensive business service (KIBS). KIBS concentrate in urban locations. This is often explained by the co-location of client firms and market access in large cities. Recent research on knowledge production, however, reveals that knowledge productive networks are significant for both the competitiveness and location of KIBS. Thus, to understand the urban location of industrial design, it is important to analyse how knowledge production is organized within the industry. Industrial design is concentrated in urban locations, but most of its clients are located elsewhere. Hence, it seems that industrial design firms concentrate in urban locations mainly because their knowledge networks include specific types of formal and informal local social networks.     

Comparative localization of academic and industrial spillovers

This paper studies geographic localization of academic and industrialknowledge spillovers. Using data on US research and developmentlaboratories that quantify spatial aspects of learning aboutuniversities and firms as well as the locations of closely affiliateduniversities and firms, I find that academic spillovers aremore localized than industrial spillovers. I also find thatlocalization is increased by nearby stocks of R&D, but reducedby laboratory and firm size. These results on localized academicspillovers reflect the dissemination of normal science and theindustry–university cooperative movement, which encouragefirms to work with nearby universities, so that geographic localizationcoincides with the public goods nature of academic research.This situation contrasts with relations to other firms, wherecontractual arrangements are often needed to access proprietaryinformation, often at a considerable distance.     

Airport delays and metropolitan employment

This study provides the first empirical assessment of the impact airline delays have on urban employment. While previous works have suggested that road congestion can slow down regional development, the influence of air traffic delays on metro‐level jobs has not been examined comprehensively. The present study uses a nine‐year panel of quarterly data, which covers passenger airline traffic and delays at airports across urban areas in the United States. The panel also includes data on total and industry‐specific employment at the metropolitan‐area level. Our empirical estimates of the impact of air traffic on total employment are comparable to previously reported measures in the literature. However, we find that service‐sector employment is less sensitive to air traffic than other studies suggested. We provide new evidence confirming that delays have a negative effect on employment, a finding that is robust to various specifications of our empirical model. Our results indicate that a 10 percent increase in the number of delayed flights leads to up to a 0.15 percent decrease in total and service‐sector employment, a 0.47 percent decline in leisure and hospitality employment, and a 0.7 percent reduction in the employment level of goods‐producing jobs.     

THE EFFECT OF LAND‐USE CONTROLS ON THE SPATIAL SIZE OF U.S. URBANIZED AREAS*

ABSTRACT On a sample of U.S. urbanized areas in 2000, we test theoretical hypotheses of the effect of land‐use controls on the spatial size of urban areas. We find that minimum lot‐size zoning and maximum FAR restrictions expand the urban area, while maximum lot‐size zoning, urban growth boundaries, minimum square footage limits, maximum building permit restrictions, minimum person per room controls, and impact fees contract the urban area. All of these findings are consistent with theoretical predictions although the effect of urban growth boundaries and minimum square footage limits are not statistically significant.     

IMMIGRATION AND FIRM EXPANSION*

ABSTRACT Research generally focuses on how immigration affects native workers, while the impact of immigration on domestic firms is often overlooked. This paper addresses this important omission by examining whether firms respond to immigration by expanding their production activities within a city in order to utilize the abundant supply of low‐skilled workers. Using data on immigration and the universe of establishments in U.S. cities, the results indicate that firms respond to immigration at the extensive margin by increasing the number of establishments. Not surprisingly, immigration has a more positive impact on the number of establishments that are small in size and in relatively mobile, low‐skill intensive industries. Additional evidence indicates that immigration has little impact on employment within existing establishments, the intensive margin, or on the number of establishments in service industries which may expand simply due to immigrant consumption.     

CAN REGIONALIZATION OF LOCAL PUBLIC SERVICES INCREASE A REGION'S WEALTH?*

ABSTRACT. In the presence of agglomeration and congestion externalities the sequence of location choices made by firms results in an inefficient distribution of economic activity, since individual firms do not bear the congestion costs they impose on other firms. In this paper, we model the interaction of public authority service strategies and firm location choices. We show that a self-interested regional authority can effect a welfare-improving distribution of economic activity when compared with an economy without an authority or an economy with local authorities. However, we also show that the conditions under which the authority would induce a welfare enhancing distribution depends on the authority's strategic posture, as well as the nature and size of public subsidies for the authority. The conditions necessary for a regional authority to choose an efficiency enhancing strategy may be difficult to achieve.     

Digital gravity? Firm birth and relocation patterns of young digital firms in Germany

This paper analyses the spatial patterns of young (<10 years) digital firms in Germany between 2008 and 2017 on county level. Determinants of firm birth locations as well as relocations are considered jointly to understand differences in location choices within firms' life cycles. I match commercial register data of 107,321 firms with county-level administrative data to capture local characteristics. Using an OLS model with fixed effects, I find that the local knowledge base—that is, universities, research institutes, and colocated incumbents—are significant key determinants of digital firm birth when controlling for a host of local characteristics. My results indicate that for five firms per 1000 inhabitants, there is around one firm birth. Second, using a fixed effects gravity model for the analysis of relocations, I find that the most dominant explanatory factor for firm relocation across specifications is distance, that is, relocation costs. Relocation flows are more than twice as high to neighboring counties relative to other locations which shows that digital firms are not as footloose as their business model may suggest. Jointly, my results reflect economic activity's regional persistence, particularly for new firms. My paper provides evidence for policies targeting homogenous digital clusters based on strong colocation and that digital economic activity is not shifted over long distances, but the regional entrepreneurship capital is crucial for local growth.     

(Un)related variety,urban milieu and tourism-company differentiation

High tourism growth in single-asset tourism cities is often associated with a standardization of supply of products and services by tourism entrepreneurs. However, and in contrast to this common-sense view, tourism growth in specific urban tourism milieus in the ‘sun-sea-sand’ tourism city of Antalya has stimulated tourism entrepreneurs to differentiate their products. Contrary to most economic-geography literature on spatial clusters, evolutionary economic geographers argue that inter-industry relations of (un)related variety are crucial in inter-firm differentiation. The aim of the paper is to define the factors that influence tourism-firm differentiation in the single-asset tourism city of Antalya. The empirical research is theoretically informed by evolutionary economic-geography literature, and pays much attention to the role different urban sub-milieus play in tourism-firm differentiation. It is the first research on the relation between (un)related variety and tourism-firm differentiation in tourism studies. The empirical research is based on primary data collected by a firm-level survey (hotels, restaurants, jewellery- and retail-trade firms) in the city of Antalya. The factors that influence tourism-firm differentiation are explored by using quantitative methods of analysis (an econometric logit-regression model and a correspondence analysis). The main result of the empirical research is that investments in firms in related sectors, in our case jewellery companies and hotels, are positively and significantly related to tourism-firm differentiation. In addition, the location tourism firms in areas visited by a mix of consumers (tourists and locals) also is positively and significantly related to inter-firm differentiation whereas urban milieus visited by locals only have a negative effect.     

DOES AGGLOMERATION MATTER EVERYWHERE?: NEW FIRM LOCATION DECISIONS IN RURAL AND URBAN MARKETS*

We test whether commonly used measures of agglomeration economies encourage new firm entry in both urban and rural markets. Using new firm location decisions in Iowa and North Carolina, we find that measured agglomeration economies increase the probability of new firm entry in both urban and rural areas. Firms are more likely to locate in markets with an existing cluster of firms in the same industry, with greater concentrations of upstream suppliers or downstream customers, and with a larger proportion of college‐educated workers in the local labor supply. Firms are less likely to enter markets with no incumbent firms in the sector or where production is concentrated in relatively few sectors. The same factors encourage both stand‐alone start‐ups and establishments built by multiplant firms. Commuting decisions exhibit the same pattern as new firm entry with workers commuting from low to high agglomeration markets. Because agglomeration economies are important for rural firm entry also, policies encouraging new firm entry should focus on relatively few job centers rather than encouraging new firm entry in every small town.     

关中、中原、山东半岛三城市群产业结构与分工的比较研究

采用区位商、相对专业化指数和相对多样化指数等指标定量分析了关中、中原、山东半岛三城市群的产业结构、专门化和多样化,并考察了它们与城市群发展之间的关系。通过指标计算与回归分析发现,目前三城市群总体上,相对全国而言的偏高的产业专门化和偏低的多样化,不利于城市群的发育;沿海和内地城市群的产业在发展动力方面存在着差异,沿海对产业多样化较敏感,而内陆则不显著;产业专门化不利于城市群发展,而多样化对城市群发展有一定的正向作用,但短期内作用并不明显。     

城市少数民族社区地方认同的消解与重构

在城市空间生产与再生产过程中,城市少数民族社区空间形态及功能的重大改变,需通过地方重构以维系少数民族地方特色及文化传承。开封善义堂回族社区案例研究发现,城市少数民族社区的地方形成以及地方认同建构,依赖于自身独特的居住环境及文化传统。少数民族社区由聚居转变为散居的地方变迁,对居民的地方感知及地方归属感具有重要影响。集中代表地方意义的独特空间,有助于地方及认同的重构。城市少数民族社区中被赋予特殊意义的空间,对地方的建构及文化的传承具有关键作用。     

WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION

This paper aims at disentangling the role played by different explanations on the urban wage premium along the wage distribution. We analyze the wage dynamics of migrants from lower to higher density areas in Italy, using quantile regressions and individual data. The results show that unskilled workers benefit more from a wage premium accruing over time, while skilled workers enjoy a wage premium when they migrate as well as a wage increase over time. Further, we find that for unskilled workers the wage growth over time is mainly due to human capital accumulation in line with the “learning” hypothesis, while for skilled workers the wage growth is mainly explained by the “coordination” hypothesis, i.e., cities enhance the probability of better matches between workers and firms.     

Consumer city

Urban economics has traditionally viewed cities as having advantagesin production and disadvantages in consumption. We argue thatthe role of urban density in facilitating consumption is extremelyimportant and understudied. As firms become more mobile, thesuccess of cities hinges more and more on cities' role as centresof consumption. Empirically, we find that high amenity citieshave grown faster than low amenity cities. Urban rents havegone up faster than urban wages, suggesting that the demandfor living in cities has risen for reasons beyond rising wages.The rise of reverse commuting suggests the same consumer cityphenomena.l