THE ANALYSIS OF LOCATION, CO-LOCATION ANDURBANISATION ECONOMIES
2006 (English)Report (Other academic)
This paper provides an overview and critical assessment of co-location and clusteringin space. Basic location conditions include accessibility to customers, input suppliersincluding knowledge providers, and regional endowments. A distinction is madebetween slow and fast location adjustments. In a basic model, it is shown howdistance sensitivity and scale economies generate self-reinforcing locationexternalities. Variations of the same model are employed to illuminate howurbanisation economies can stimulate co-location and clustering. One model variant isdesigned to examine how innovation activities also can be influenced by urbanisationeconomies. The paper concludes that a set of basic principals form the basis forlocalisation and urbanisation economies. However, there remains a challenging gapbetween model predictions and empirical observations.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2006. , 30 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 67
Location, co-location economies, agglomeration economies, urbanisation economies
IdentifiersURN: urn:nbn:se:kth:diva-72311OAI: oai:DiVA.org:kth-72311DiVA: diva2:487449
QC 201202082012-02-082012-01-312012-02-08Bibliographically approved