Abstract
ABSTRACTThe central locations of metropolitan areas have some specific attributes, leading to an accumulation of large knowledge exchanges and extensive knowledge externalities, which encourage the concentration of various economic activities, especially knowledge-based industries (KBI). Other agglomeration economies found in metropolitan areas – such as telecommunications and transport infrastructures connected to global productive circuits and complementary labour markets – are key factors for KBI employment growth. This paper explores the Helsinki Metropolitan Area’s (HMA) spatial clustering of KBI at the sub-district level, and the role played by agglomeration economies (both specialization and diversity economies) in fostering this process. The results reveal that KBI employment shows patterns of concentration in the core and adjacent areas. The specialization and diversity economies found in the metropolitan core and the specialization economies found in others areas lead to KBI spatial clustering in the HMA. Public policies regarding the promotion of science parks have also played a decisive role.
Highlights
The increasing value of skills and other agglomeration economies found in the central locations of metropolitan areas encourage employment growth in knowledge-based industries (KBI)
Other agglomeration economies found in metropolitan areas – such as telecommunications and transport infrastructures connected to global productive circuits and complementary labour markets – are key factors for KBI employment growth
This paper explores the Helsinki Metropolitan Area’s (HMA) spatial clustering of KBI at the sub-district level, and the role played by agglomeration economies in fostering this process
Summary
The increasing value of skills and other agglomeration economies (both specialization and diversity economies) found in the central locations of metropolitan areas encourage employment growth in knowledge-based industries (KBI). Glaeser, Kallal, Scheinkman, and Shleifer (1992) introduce the idea that knowledge spillovers can produce irreversible changes in production, and lend a dynamic character to externalities’ effects They differentiate between (1) Marshall–Arrow–Romer (MAR) externalities, which concern knowledge spillovers in an industry; (2) Porter’s (1990) externalities, where local competition fosters the pursuit and rapid adoption of innovation; and (3) Jacobs (1968) diversity externalities, where knowledge spillovers occur between firms in complementary industries by a cross-fertilization process. In HMA, this cooperation has been undertaken through intermediary agencies such as Tekes (Finnish Funding Agency for Technology and Innovation) and Helsinki Business Hub, while semi-public companies such as Technopolis develop and manage technology parks (Pelkonen, 2005)
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