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Nursery Cities: Urban Diversity, Process Innovation and the Life-Cycle of Products
Gilles Duranton,Diego Puga +1 more
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TLDR
In this paper, a simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes and switch to mass-production and relocate to specialised cities with lower costs.Abstract:
A simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes. We build around this a dynamic general equilibrium model, and derive conditions under which diversified and specialised cities coexist. New products are developed in diversified cities, trying processes borrowed from different activities. On finding their ideal process, firms switch to mass-production and relocate to specialised cities with lower costs. When in equilibrium, this configuration welfare-dominates those with only diversified or only specialised cities. We find strong evidence of this relocation pattern in establishment relocations across French employment areas 1993u1996.read more
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Everywhere? the geography of knowledge*
TL;DR: In this paper, the authors review what we know about the spatial manifestations of knowledge and the knowledge production function, which addresses the easily measured portion of knowledge produced, and propose an interactive and collective learning approach for knowledge and its geography.
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Cities in the developing world
TL;DR: This paper reviewed theoretical and empirical work on the determinants and effects of urbanisation and concluded that there are substantial productivity benefits from cities, although unregulated outcomes may well lead to excessive primacy as externalities and coordination failures inhibit decentralisation of economic activity.
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Innovation and Input Sharing
TL;DR: In this article, the authors established a link between innovation and input sharing and showed that dense networks of input suppliers facilitate innovation by making it less costly to bring new ideas to fruition and that knowledge spillovers are not necessary in order for geographic concentration to foster innovation.
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Competencies and Institutions Fostering High-Growth Firms
Magnus Henrekson,Dan Johansson +1 more
TL;DR: In this article, the authors analyze high-growth firms using the theory of competence blocs, linking firm growth to property rights and the interaction of complementary expertise, and discuss how the institutional framework affects the prevalence and performance of high growth firms.
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Viewpoint: From cities to productivity and growth in developing countries
TL;DR: In this article, the authors review the evidence about the effects of urbanization and cities on productivity and economic growth in developing countries using a consistent theoretical framework and conclude that the traditional agenda of aiming to raise within-city efficiency should be continued.
References
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Book
Principles of Economics
TL;DR: In this article, the authors present a survey of the general relations of demand, supply, and value in terms of land, labour, capital, and industrial organization, with an emphasis on the fertility of land.
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The Economy of Cities
TL;DR: In this article, the authors studied the economy of cities and the main social problems that humanity has and the greatest source of creativity, innovation and development opportunities to solve those problems, which is relevant for a number of reasons: first of all, because most of the planet's population is grouped in them.
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Growth in Cities
Edward L. Glaeser,Edward L. Glaeser,Edward L. Glaeser,Hedi Kallal,Jose A. Scheinkman,Jose A. Scheinkman,Jose A. Scheinkman,Andrei Shleifer,Andrei Shleifer +8 more
TL;DR: In this paper, the authors used a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987 and found that local competition and urban variety, but not regional specialization, encourage employment growth in industries.
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Innovation in cities: Science-based diversity, specialization and localized competition
TL;DR: In this article, the authors consider the effect of the composition of economic activity on innovation and test whether the specialization of economic activities within a narrow concentrated set of activities is more conducive to knowledge spillovers or if diversity, by bringing together complementary activities, better promotes innovation.
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Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
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