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Why Denser Cities Are Smarter and More Productive
From
The Atlantic Cities – It's clear that density plays an important role in economic growth. Density brings people and firms closer together which makes it easier to share and exchange information, invent new technologies, and launch new firms.
But the question remains: How exactly — in what ways and through which channels — does density make our cities more productive?
Journal of Regional Science – Productivity and the Density of Human Capital Detailed statistical models are used to gauge more precisely the effects of density and human capital, separately and together, on productivity of more than 350 metro areas.
1. Doubling density increases productivity by an average of two to four percent.
2. Density plays a bigger role in cities where levels of skill and human capital are higher. Metro areas with below average levels of human capital realize no productivity gains from density, the study finds, while doubling density in metros with above average human capital gain productivity benefits that are roughly twice the average.
3. The effects of density to be even more substantial in industries with high levels of knowledge and creativity. The authors find clear evidence that both the effects of density per se and the density of skilled people are highest in knowledge-based and creative industries. This is particularly true in the information, arts and entertainment, professional services, and finance industries where “the exchange of information and sharing of ideas are important parts of the production process.
See more and subscribe to NextBigFuture at 2012-12-12 14:02:43 Source: http://nextbigfuture.com/2012/12/why-denser-cities-are-smarter-and-more.html
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