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Nursery Cities: Urban Diversity, Process Innovation and the Life-Cycle of Products

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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.

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Journal ArticleDOI

An Urban Approach to Firm Entry: The Effect of Urban Size

TL;DR: In this article, the determinants of firm entry in Spanish municipalities were explored and it was shown that size is an important determinant of a city's capacity to attract new manufacturing firms.
Journal ArticleDOI

(Un)related variety and employment growth at the sub-regional level

TL;DR: In this article, the authors use highly disaggregated employment data at the sub-regional level and find that higher employment growth in Austria is mainly linked to unrelated variety. But, in-depth analyses by sectors and regional regimes illustrate substantial heterogeneity in the results, with services and a large number of relatively small non-urban regions driving the overall results.
Dissertation

Perspectives on Regional and Industrial Dynamics of Innovation

Olof Ejermo
TL;DR: In this article, the focus is mainly empirical with four of the five essays consisting of studies of aspects of innovation economics, with an introductory chapter consisting of five essays in the field of finance.
Journal ArticleDOI

Regional business climate and interstate manufacturing relocation decisions

TL;DR: In this paper, a state-to-state relocation model for all manufacturing firms and separately for three groups of industries defined by knowledge intensity is presented. But the analysis of the data suggests that very few manufacturing firms relocate across state lines in any given year and the vast majority of those that do are small in size and move to adjoining states.
Journal ArticleDOI

A prospective review on New Economic Geography

TL;DR: The authors identify many of the persistent features and assumptions which have thwarted the evolution of New Economic Geography and led to a sprawl of criticism within the field and provide a prospective assessment of new avenues of research along which the field could improve and develop.
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

Jane Jacobs
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.
Posted Content

Growth in Cities

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.
Journal ArticleDOI

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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