The agglomeration effect has been pointed out as a theoretical ground of industrial cluster policy and urban planning, which has been examined in many previous studies. But the importance of geographical proximity might be changed due to the prevalence of information and communications technology (ICT). On the other hand, a new concept of the city, including the Smart City Vision, was recently proposed and takes the environmental problem into consideration. In order to solve this problem and maintain the economic activity concurrently, it is important to re-evaluate the agglomeration effect for urban planning. In addition, making the best use of the agglomeration benefits is required for city reconstruction planning in light of the Great East Japan Earthquake.
In this project, we will analyze the mechanism of the agglomeration effect such as inter-firm transition and knowledge spillover, how the importance of distance has changed over time, and the differences between industry or technology classes. We will then analyze the transmission channels of the agglomeration effect and construct models which make it possible to evaluate the spread of earthquake damage and the effect of government support. Moreover, we will analyze the collaboration network between inventors in order to examine knowledge spillover in detail and evaluate the role of public research institutions.
May 22, 2012 - March 31, 2014
Major Research Results
RIETI Discussion Papers