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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.

Suggested Citation

  • Johansson, Börje & Forslund, Ulla, 2006. "The Analysis Of Location, Co-Location And Urbanisation Economies," Working Paper Series in Economics and Institutions of Innovation 67, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0067
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    References listed on IDEAS

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    Cited by:

    1. Liargovas, Panagiotis & Daskalopoulou, Irene, 2011. "Capital allocation in the Greek regions," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 866-888.
    2. Shanzi Ke, 2010. "Agglomeration, productivity, and spatial spillovers across Chinese cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 157-179, August.
    3. Hans Lööf, 2011. "R&D-Persistency, Metropolitan Externalities and Productivity," ERSA conference papers ersa11p1396, European Regional Science Association.
    4. Börje Johansson & Johan Klaesson, 2011. "Agglomeration dynamics of business services," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 373-391, October.
    5. 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.

    More about this item

    Keywords

    Location; co-location economies; agglomeration economies; urbanisation economies;

    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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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