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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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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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Research on green innovation effect of industrial agglomeration from perspective of environmental regulation: Evidence in China
TL;DR: Wang et al. as discussed by the authors tested the effect of different agglomeration modes on green technology innovation (green process innovation and green product innovation) under environmental regulation, and they found that when industrial aggloomation promotes green technologies innovation, environmental regulation will inhibit agglomation innovation.
Journal ArticleDOI
Agglomeration, Opportunism, and the Organization of Production
TL;DR: In this article, the authors focus on local outsourcing and show that agglomeration reduces opportunism, a thick market effect, and so serves as a substitute for integration, and also show that the normative properties of equilibrium with local outsourcing are not as clear cut as for international outsourcing.
Book ChapterDOI
The Micro-Empirics of Agglomeration Economies
TL;DR: For instance, this paper found that 75 percent of Americans live in cities as defined by the US Census Bureau, and yet these cities occupy only 2 percent of the land area of the lower 48 states.
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Agglomeration economies in the Finnish manufacturing sector
TL;DR: In this paper, the authors examined the relationship between agglomeration economies and regional productivity in the manufacturing sector in Finland and made a distinction between the effects of urbanisation and localisation economies.
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Urbanization and Economic Development
TL;DR: A survey and guide to the literature relevant to urbanization and economic development can be found in this paper, where the authors provide some basic facts and trends about urbanization worldwide, and then review the traditional two-channel urban-rural model, but focus on the modern version, Krugman's coreperiphery model.
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.
Book
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.
Related Papers (5)
Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs:
Neil Lee,Andrés Rodríguez-Pose +1 more