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The Analysis Of Location, Co-Location And Urbanisation Economies

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  • Johansson, Börje

    ()
    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Forslund, Ulla

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper provides an overview and critical assessment of co-location and clustering in space. Basic location conditions include accessibility to customers, input suppliers including knowledge providers, and regional endowments. A distinction is made between slow and fast location adjustments. In a basic model, it is shown how distance sensitivity and scale economies generate self-reinforcing location externalities. Variations of the same model are employed to illuminate how urbanisation economies can stimulate co-location and clustering. One model variant is designed to examine how innovation activities also can be influenced by urbanisation economies. The paper concludes that a set of basic principals form the basis for localisation and urbanisation economies. However, there remains a challenging gap between model predictions and empirical observations.

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Bibliographic Info

Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 67.

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Length: 30 pages
Date of creation: 31 May 2006
Date of revision:
Handle: RePEc:hhs:cesisp:0067

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Keywords: Location; co-location economies; agglomeration economies; urbanisation economies;

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  1. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers 75, Queen's University, Department of Economics.
  2. Philip McCann & Daniel Shefer, 2003. "Location, agglomeration and infrastructure," Papers in Regional Science, Springer, vol. 83(1), pages 177-196, October.
  3. Charlie Karlsson & Martin Andersson & Urban Grasjo, 2006. "Knowledge Accessibility and Regional Economic Growth," ERSA conference papers ersa06p93, European Regional Science Association.
  4. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
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  7. Johansson, Börje & Quigley, John M., 2004. "Agglomeration and Networks in Spatial Economies," Berkeley Program on Housing and Urban Policy, Working Paper Series qt6g49t7n4, Berkeley Program on Housing and Urban Policy.
  8. Barbara J. Spencer & James A. Brander, 1982. "Tariff Protection and Imperfect Competition," Working Papers 517, Queen's University, Department of Economics.
  9. Audretsch, David B & Feldman, Maryann P, 1995. "Innovative Clusters and the Industry Life Cycle," CEPR Discussion Papers 1161, C.E.P.R. Discussion Papers.
  10. Starrett, David, 1978. "Market allocations of location choice in a model with free mobility," Journal of Economic Theory, Elsevier, vol. 17(1), pages 21-37, February.
  11. Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
  12. Andersson, Martin & Karlsson, Charlie, 2004. "The Role of Accessibility for the Performance of Regional Innovation Systems," Working Paper Series in Economics and Institutions of Innovation 9, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  13. James D. Adams, 2001. "Comparative Localization of Academic and Industrial Spillovers," NBER Working Papers 8292, National Bureau of Economic Research, Inc.
  14. Roberta Capello, 2002. "Entrepreneurship and spatial externalities: Theory and measurement," The Annals of Regional Science, Springer, vol. 36(3), pages 387-402.
  15. Takayama, T, 1994. "Thirty Years with Spatial and Intertemporal Economics," The Annals of Regional Science, Springer, vol. 28(3), pages 305-22, September.
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Cited by:
  1. Purwaningrum, Farah & Evers, Hans-Dieter & Ariff Lim, Syamimi & Anthony Banyouko, Ndah, 2014. "The Governance of Knowledge: Perspectives from Brunei Darussalam and Malaysia," MPRA Paper 55170, University Library of Munich, Germany.
  2. Klaesson, Johan & Johansson, Börje, 2008. "Agglomeration Dynamics of Business Services," Working Paper Series in Economics and Institutions of Innovation 153, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Shanzi Ke, 2010. "Agglomeration, productivity, and spatial spillovers across Chinese cities," The Annals of Regional Science, Springer, vol. 45(1), pages 157-179, August.
  4. Hans Lööf, 2011. "R&D-Persistency, Metropolitan Externalities and Productivity," ERSA conference papers ersa11p1396, European Regional Science Association.
  5. Liargovas, Panagiotis & Daskalopoulou, Irene, 2011. "Capital allocation in the Greek regions," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 866-888.

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