We talked about Michael Porter's cluster theory on a course of economic geography in University of Helsinki. One of the most interesting topics in Porter's article from 2000 is "clusters and new business formation". A group of students researched that phenomenon in Helsinki Metropolitan Area.
As Porter claims, research group found out that "new businesses are formed in existing clusters rather than in isolated locations". Up to 52 % of new business formation were explained by the number of existing businesses in postal code area. They analyzed also new business formation in the HMA at 250 meter cell level. Existing businesses as well as existing workplaces were statistically significant indicators also at that scale. Physical infrastructure is just one factor input in Porter's diamond approach. In their regression analysis, students pointed out that only 18 % of new business formation could be explained with different accessibility measures. Analysis was carried out at cell level. When analyzed certain industries, the explanation power raised up to 39 % in transportation and storage section, where travel time to the center of the metropolitan area with car was the only significant variable. Travel time to the center and to the airport with public transportation were significant in both knowledge based business services as well as in wholesale and retail industries. Travel time to new cargo port was not significant in any of the three examined industries. When variables considering both accessibility and existing businesses were combined, the research group got adjusted R2 values over 50 % also at 250 meter cell level. From their analyses, it is evident that new businesses cluster in existing clusters where there are already other firms and good physical infrastructure. The original course report in Finnish can be read from the homepage of our project.
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In my analyses of the present state, it usually some how pop out also some estimations of the future. With predictive analytics, we show one scenario of the future in the Helsinki Metropolitan Area (HMA). This map will show emerging or growing clusters of innovation as well as the demand of the professionals, i.e. areas that could attract more professionals if there were new houing in the area. Growing innovation clusters could benefit from commercial zoning or actions from business service and other officials. I (still) hope there will soon be a paper to refer to.
This blog post discusses about the results of an review I wrote in Finnish Journal of Urban Studies. Earlier blog post's insights into segregation and the change in segregation, are now added with the introducing of well to do high rise areas. As low density areas tend to success in relative measurementd, I was interested in statistically significant combination of urban density and socioecomic status, High density areas with high status cluster mainly in Southern and Western Helsinki (picture 1). Also some new areas like Arabianranta and Viikki differentiate from the average Spatiality of improved dense areas seems cluster in the same areas where the status was already high (Picture 1). However, there are some areas in addition to above mentioned (Picture 2). These areas locate especially in Eastern inner city and inner suburbs. Picture 1. High density areas with high relative economic (red clusters). Picture 2. The change of relative economic status in high density areas. Positive change indicated as red.
In recent study published soon, we tested whether clusters of innovation locate in proximity of human capital, i.e. skilled, educated and tolerant workforce. We found out that this holds true in the Helsinki Metropolitan Area. However, as a grace note we were able to show evidence of agglomeration externalities in the HMA.
We concluded that "urban density is an essential, and often underrated, circumstance for innovative growth. Considering planning and the mixed land use paradigm, the results show evidently that innovations emerge the best in dense and mixed urban structure." "The geographical characteristics are that clusters of innovation and human capital as well as clusters with potential growth form a larger spatial entity (an innovation “horseshoe”). Finding is in line with “Smart Café City” concept (Fu 2007), where human capital externalities are highly localized in the most central areas of the metropolitan areas." |
Photo by Rob Hurson
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July 2018
AuthorJuho Kiuru, geographer living in Helsinki, Finland. |