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Place-bound versus Footloose Firms in a Metropolitan Area

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Author Info
Geenhuizen, Marina van (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
Nijkamp, Peter

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Abstract

In the development of modern urban systems we are facing a shift from central cities as the major location of coordination functions, high-order services and innovative activities, to interconnected nodes at some distance in a larger metropolitan area. However, which cities in the emerging new spatial constellation qualify to become such a node is not yet clear, and depends also on the organizing capacity of the municipalities involved. In the present paper we address spread over a larger metropolitan area from the point of view of place-bound versus footloose behaviour of young, innovative firms as the drivers of economic renewal in this area. A theoretical review of location needs and footlooseness is followed by an empirical contribution to identify whether an increased footlooseness of such companies is emerging in the Netherlands. The results prompt the need for a more thorough reflection on related policy issues. The policy part of the paper addresses in particular some evolutionary views to understand why urban policymaking is subject to various systemic constraints, while next some empirical results on weaknesses in the urban organizing capacity to benefit from a shift towards a global metropolitan area are highlighted. In this context we focus the attention specifically on policies dealing with information and communication technology.

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Publisher Info
Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0011.

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Date of creation: 2005
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Handle: RePEc:dgr:vuarem:2005-11

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Related research
Keywords: World cities; agglomeration theory; resource-based theory; footlooseness; urban organizing capacity; ICT;

Find related papers by JEL classification:
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General
R50 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - General

This paper has been announced in the following NEP Reports:

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
    Other versions:
  3. James Simmie, 2003. "Innovation and Urban Regions as National and International Nodes for the Transfer and Sharing of Knowledge," Regional Studies, Taylor and Francis Journals, vol. 37(6-7), pages 607-620, August. [Downloadable!] (restricted)
  4. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October. [Downloadable!] (restricted)
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  5. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September. [Downloadable!] (restricted)
  6. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    • Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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