Technology and the Life Cycle of Cities
During times of major technological change leading cities are often overtaken by upstart metropolitan areas. Such upheavals may be explained if the advantage of established urban centers rests on localized learning-by-doing. When a new technology for which this accumulated experience is irrelevant is introduced, older centers prefer to stay with a technology in which they are more efficient. New centers, however, turn to the new technology, and are competitive despite the raw state of that technology because of their lower land rents and wages. Over time, as the new technology matures, the established cities are overtaken.
|Date of creation:||Dec 1993|
|Date of revision:|
|Publication status:||published as Journal of Economic Growth, Vol. 2, no. 4 (December 1997), pp. 369-383.|
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- Henderson, J V, 1974.
"The Sizes and Types of Cities,"
American Economic Review,
American Economic Association, vol. 64(4), pages 640-56, September.
- Elise Brezis & Paul Krugman & Daniel Tsiddon, 1991. "Leapfrogging: A Theory of Cycles in National Technological Leadership," NBER Working Papers 3886, National Bureau of Economic Research, Inc.
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