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Agglomeration, New Industrial Spaces

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McGill University
GEOG 216
Geraldine Akman

Agglomeration, New Industrial Spaces Basic Industrial Location Factors - Inputs: partic factory/firm wants to be loc near inputs of production processes - Depends on transaction costs, if inputs relatively standardized, transportation cheap - If tech not changing fast, maybe possible to be loc farther away - Labour: generally, want to be near labour market - Doesn’t move around as easily as other factors - S/times power of labour imp (unionized?) - Market: generally, partic factories, firms want to be loc near market for their product - Market can be final consumer market - Can be near downstream firm - Also depends on transaction costs, whether they need to be physically close to ppl they are supplying, how much info needs be exchanged b/w buyer + seller - Transportation: firms want to be near transportation that pulls inputs and labour close - National transportation routes, manmade transportation infrastruc - Agglomeration: - Upstream, downstream, ancillary  Upstream: supply your firm, downstream: buy your output, ancillary: provide services to your firm or other firms in your industry - Certain infrastructure, institutions, culture/traditions make advantageous loc - Path dependency vs. greenfield site  Path dependency: agglomeration tends to be self-fulfilling prophecy, attract ppl who deepen the advantage of being loc there, reinforces necess culture  Greenfield sites: new places, implies tabula rasa, place that doesn’t have pre-existing culture + institutions, relatively less saturated by capital, less structures - Place/brand monopolies  Firms tend to congregate in places that have certain reputation Industrial Location: Knowledge/Information Industries - University: knowledge producers, produce cutting-edge research + workers who are trained to be creative, often find knowl/info industries loc near major universities - Airport: becomes most imp transportation infrastruc - This part of production process = creating ideas - Work done by highly skilled, edu ppl doing complicated transactions that often involve flying - Cultural/recreational amenities - Quality of life: highest paid workers in this economy  loc is assoc w/their quality of life - Occur in major metrop areas w/good sports team, symp orchestra, museums, etc. - Density: face to face becomes very important - Creativity not internalized in individual firms  in the network - Creativity fr/unplanned interactions w/ea/other - Social ties ppl have in dense, urban areas knits vertically disintegrated, horizontally integrated industries together - Richard Florida “creative class” 3 T’s - Key to getting high-tech, creative indus is to attract right kind of workers (creative class)  Targeting young, male high-tech workers, need cool, hip, neighborhoods - 3 T’s: talent, technology, tolerance Route 128 vs. Silicon Valley th Route 128 (Fordist) Silicon Valley (Post-Fordist) - 19 century tech center - Area = orchards until 1940 - Pioneered technologies (radios, refrigerators, - Relationship w/Stanford polaroid cameras) - 1950s: production of semi-conductors (computer - 1940: Route 148 already an estab
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