The Role of Two Agglomeration Economies in the Production of Innovation: A Comparison between Localization Economies and Urbanization Economies

Little agglomeration research is directly associated with innovation production. Therefore this study compares two aspects of agglomeration economies to determine a dominant force in innovating. Urbanization economies proves to be important because cities are a space for new ideas, information, and...

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Bibliographic Details
Published in:Enterprise and innovation management studies 2001-05, Vol.2 (2), p.103-117
Main Author: Ki, Jung-Hoon
Format: Article
Language:English
Subjects:
Agglomeration
Business studies
Co-OPERATION
Comparative analysis
Competition
Cooperation
Economics
Innovation
Innovations
Localization
Localization Economies
Research and development
Size of enterprise
Small & medium sized enterprises-SME
Studies
Urban areas
Urbanization
Urbanization Economies
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Summary:Little agglomeration research is directly associated with innovation production. Therefore this study compares two aspects of agglomeration economies to determine a dominant force in innovating. Urbanization economies proves to be important because cities are a space for new ideas, information, and learning facilities through residential amenities for R&D and foreign-born workers; better business conditions; and an effective cumulative learning than are localization economies. Big firms tend to decentralize functions beyond the localized areas, or develop vertical integration where innovation depends more on primate cities than a localized area. Small-and-medium-sized firms are found to be more competitive than co-operative in a localized industry.
ISSN:1463-2446
DOI:10.1080/14632440110083373