Search

We study the impact that the provision of a local public good (LPG) by two cities has on their ability to attract and retain members of the creative class. This creative class consists of two types of members known as engineers and artists. Engineers are wealthier than artists and they also value the LPG more. We first focus on each city in isolation. We compute the marginal value and the marginal cost of the LPG and then determine the provision of this LPG when the provision is determined by uniform contributions and majority voting. Next, we allow the creative class members to migrate between the two cities and analyze whether engineers or artists migrate, the equilibrium distribution of the creative class, and the efficiency of the LPG provision. Finally, we consider the situation in each city just before migration and study how much of the LPG is provided when proportional contributions and majority voting determine this provision. A related question we address is whether engineers or artists now have an incentive to migrate and, if yes, we identify who would like to migrate and to which city.

This paper argues that in the historical evolution of cities, large-scale urbanization is not only a fact, but a necessary outcome of the forces of globalization and competition. The current trend towards large cities and megacities in a complex global urban system, operating and interacting at a local to global multi-layer scale, is inevitable. However, their dynamics is as yet a poorly understood phenomenon that deserves full-scale policy action and research attention in our highly diversified space-economy. JEL classification: O1, O2, O3, O4, R0, R1, R2, Y1

The background of this study is the realization that our current understanding of innovation in SMEs is relatively poor, yet the encouragement of innovation in SMEs is at the heart of policy initiatives for stimulating economic development at the local, regional, national and European levels. The sample used for this analysis is drawn from a survey that questioned Dutch SMEs about their involvement in three Eastern Netherlands knowledge clusters that were part of a national economic priorities stimulation programme. SMEs that were located in the more rural sub-region Zwolle, indicated that they were not able to profit enough from the programme. The paper explores if the innovation perception of the SMEs in this sub-region is affected by its collaborative knowledge sources in terms of different types of partners, and if structure of the networks may explain the lack of involvement of these SMEs in the programme. Also, it aims to explore if the internal power relationships of an SME – represented in this study by the education level of the owner/ manager of the SME – influences these relationships. Powerful actors within and outside the organization, namely, may influence the knowledge absorption processes. Results support the strong focus of SMEs on customers and suppliers for new knowledge and the positive role of higher education on the innovation process. In this study, no significant proof is found for the interaction of higher educated entrepreneurs on the relation between knowledge sources and innovation perception. Preliminary insight into the positive and negative interaction effect of the education level of the entrepreneur on the relation between knowledge sources and innovation perception, however, may provide interesting new research directions. Resumen. Los antecedentes de este estudio son el reconocimiento de que nuestro conocimiento actual sobre la innovacion en la PyME es escaso, y que a pesar de ello el fomento de la innovacion en PyMEs es la base de iniciativas politicas para el estimulo del desarrollo economico de ambito local, regional, nacional o europeo. La muestra utilizada en este analisis fue extraida de una encuesta a PyMEs de los Paises Bajos acerca de su participacion en tres conglomerados de conocimiento en los Paises Bajos Orientales, que fueron parte de un programa de estimulo de las prioridades economicas nacionales. Las PyMEs localizadas en Zwolle, una subregion mas rural, respondieron que no fueron capaces de beneficiarse suficientemente del programa. El articulo explora si la percepcion de innovacion de las PyMEs se ve afectada en esta subregion por sus fuentes de conocimiento colectivo en terminos de tipos diferentes de socios, y si la estructura de las redes podria explicar la falta de participacion de estas PyMEs en el programa. Ademas, intenta explorar si las dinamicas internas de poder en la PyME – representadas en este estudio por el nivel educativo del propietario/gerente– influyen en estas relaciones. A saber, varios actores dominantes dentro y fuera de la organizacion podrian influir en los procesos de absorcion de conocimiento. Los resultados apoyan la idea de la fuerte dependencia de las PyMEs de sus clientes y proveedores para la obtencion de nuevo conocimiento y del rol positivo de la educacion superior en el proceso de innovacion. En este estudio no se encontraron pruebas significativas de la interaccion de emprendedores con educacion superior en la relacion existente entre las fuentes de conocimiento y la percepcion de innovacion. Sin embargo, las observaciones preliminares sobre el efecto de la interaccion positiva y negativa del nivel educativo del emprendedor sobre la relacion entre las fuentes de conocimiento y la percepcion sobre la innovacion podrian proporcionar nuevas lineas de investigacion interesantes.

Key innovation areas are a source of policy and research interest in many countries. In this paper the concept of ‘creative hotspot’ is introduced as a policy vehicle to support spatial synergy strategies in innovation. The paper provides a review of experiences and findings from a regional innovation performance assessment in the hotspot that is located in the Eastern part of the Netherlands. Its methodology is based on the technopolicy network (TPN) model. The study compares the (potential) performance of that hotspot with three other hotspot regions. Various findings are briefly summarized in the context of a systematic ‘creative hotspot’ strengths, weaknesses, opportunities, and threats (SWOT) analysis. The results from this SWOT approach are then used to provide an input for a systematic evaluation of new innovation policy in the East Netherlands and to identify future challenges and opportunities for regional innovation policy. Resumen. Las areas de innovacion claves son una fuente de interes politico y de investigacion en muchos paises. En este articulo se presenta el concepto de “foco creativo”, o hotspot, como un instrumento politico para apoyar estrategias acerca de sinergias espaciales para la innovacion. El articulo incluye una revision de las experiencias y resultados de una evaluacion del desempeno en la innovacion regional en el foco localizado en la zona oriental de los Paises Bajos. Su metodologia esta basada en el modelo de red tecnopolitica (TPN, siglas en ingles). El estudio compara el desempeno (potencial) de dicho foco con el de otros tres focos regionales. Se resumen brevemente los resultados dentro del contexto de un analisis FODA sistematico de las fortalezas, oportunidades, debilidades y amenazas de un “foco creativo”. Los resultados de este enfoque FODA se utilizan a su vez como insumo para una evaluacion sistematica de nuevas politicas de innovacion en los Paises Bajos Orientales e identificar retos y oportunidades en el futuro para las politicas de innovacion regional.