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The Analysis Of Location, Co-Location And Urbanisation Economies

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Author Info
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)

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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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Publisher 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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Related research
Keywords: Location; co-location economies; agglomeration economies; urbanisation economies;

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Find related papers by JEL classification:
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General

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References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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  12. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-67, March. [Downloadable!] (restricted)
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