The Nature and Structure of Cities The Nature of Cities Scott and Storper Luděk Sýkora The Nature and Structure of Cities 2 Cities: External Trade and Local Interaction Scott and Storper (2014) Nature of Cities ● the economic functions of cities are deeply molded by external trade ● trade enables cities to specialize and sell their outputs in exchange for the specialized outputs of other places ● the economic viability of cities and the growth of long-distance trade are therefore complementary and mutually reinforcing phenomena ● all cities, from ancient times onward, have functioned as systems of dense local interactions imbricated in complex long-distance movements of people, goods and information ● intra-urban transactions are usually quite different from long-distance transactions in that they tend to be marked by high costs per unit of distance and dense tacit information content (hence the frequent need for face-toface contact), and these kinds of interpersonal transactions are one of the mainstays of urban agglomeration ● local face-to-face interaction and long-distance business travel grow as complements to one another The Nature and Structure of Cities 3 Agglomeration Scott and Storper (2014) Nature of Cities ● agglomeration can be generally understood as a mechanism of sharing, matching and learning ● sharing refers to dense local interlinkages within production systems as well as to indivisibilities that make it necessary to supply some kinds of urban services as public goods ● matching refers to the process of pairing people and jobs, a process that is greatly facilitated where large local pools of firms and workers exist ● learning refers to the dense formal and informal information flows (which tend to stimulate innovation) that are made possible by agglomeration and that in turn reinforce agglomeration ● these properties of agglomeration give rise to powerful synergies The Nature and Structure of Cities 4 The Urban Land Nexus Scott and Storper (2014) Nature of Cities ● an interacting set of land uses: the essential fabric of intra-urban space ● behavior of firms seeking locations for production and households seeking living space ● forms of behavior are typically structured by market mechanisms generating land prices that arbitrate uses and that sustain distinctive patterns of spatial allocation ● owners and users of land (firms and households) demand selected kinds of proximity to one another while simultaneously seeking to avoid locations where they might experience negative spillovers and other damaging effects on their activities The Nature and Structure of Cities 5 The Urban Land Nexus Scott and Storper (2014) Nature of Cities ● firms and households represent the foundational elements of two broad divisions of the urban land nexus ● the production space of the city where work and employment are concentrated ● the social space of the city as manifest in residential neighborhoods, typically differentiated by variables such as income, race and class ● a third space can be detected, namely, the circulation space of the city, which is represented by the infrastructures and arterial connections that facilitate intraurban flows of people, goods and information The Nature and Structure of Cities 6 Urban Governance Scott and Storper (2014) Nature of Cities ● the essential nature of urban land is that it is simultaneously private and public, individual and collective ● shape and form express the intertwined dynamics of the individual actions of firms and households and collective action on the part of diverse institutions of control and governance ● non-market agencies of collective action typically emerge to keep the urban land nexus in some sort of functioning workable order The Nature and Structure of Cities 7 Generative power of cities ● Cities are centres of production, consumption and trade: their role in regional, national and international division of labour ● Development is conditioned by interactions within urban aglomeration: synergies are derived from sharing, matching and learning ● Interaction and spatial organisation ● firms and households: production, social and circulation space ● private / individual and public / colective interest ● land use: property market and territorial planning strategic planning territorial planning competitiveness quality of life Allen Scott a Michael Storper, The Nature of Cities UCLA University of California in Los Angeles, London School of Economics