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The city comprises of a wide variety of heterogeneous territorial units (e.g. districts or neighbourhoods). In many – especially larger – cities, social capital assets (like community bonds) are mirrored at the level of neighbourhoods which form the home for many sociocultural communities or distinct socio‐economic classes. We postulate in this study that the big city is essentially an ‘archipelago’ made up of ‘urban villages’. We analyse the residents' perceived attractiveness regarding their daily local neighbourhood by introducing the concept of ‘village love’ (or ‘neighbourhood love’), inspired by the recent literature on ‘city love’ (comprising ‘body’, ‘soul’ and ‘community’ constituents of urban life). Based on an extensive and detailed multi‐annual database for all neighbourhoods in Rotterdam, the present paper seeks to identify the background factors shaping ‘village love’ in the city, with particular attention to the citizens' subjective appreciation for and access to a great variety of (physical and immaterial) urban amenities shaping the place‐based satisfaction of residents. The theoretical framing of our research resembles the basics of traditional central place theory here transmitted to the urban space in which local proximity to amenities plays a key role. A wide array of relevant amenities impacting on the place‐specific well‐being feelings (‘village love’) of residents in various neighbourhoods in the city of Rotterdam is distinguished using inter alia‐rich multi‐annual survey data. This approach is empirically tested and verified by means of LISA statistics and advanced spatial econometric dependence models (‘urbanometrics’). The findings confirm the usefulness of a central place interpretation of ‘urban village love’ in the city. [ABSTRACT FROM AUTHOR]

After the 2008 financial crisis, institutional adaptability and economic diversification through smart specialization have been considered key forces for attaining an effective resilience trajectory of regional economies. Successful policy responses should not capture only limited, conjunctural and transitory measures, but should rather promote pro-active capabilities, able to cope with spatial perturbations and related drastic transformations, thus generating a more efficient regional development pattern. In this process, the economic and institutional factors, the conditions under which changes occur, as well as the actors of change play a pivotal role. The paper traces whether institutional arrangements have a decisive impact on the recovery of the European Union's lagging regions after the economic crisis and whether these could be instrumental in developing a smart specialization potential, which could make regions even more capable to enhance strong adaptive mechanisms. Using a mix of econometric methods (e.g. panel analysis, logistic regression) to emphasize both institutional and smart specialization aspects in the European Union core-periphery differentiation, the present study is based on a multidisciplinary approach. The results highlight that the existence of smart specialization capacity is associated with higher institutional adaptability; they also distinguish between relevant resilience characteristics of the European regions and formulate appropriate response policies for strengthening their specialization potential. [ABSTRACT FROM AUTHOR]

In recent years, slow travel modes (walking, cycling) have gained much interest in the context of urban air quality management. This article presents the findings from a novel air quality measurement experiment in the Netherlands, by regarding cyclists as carriers and transmitters of real-world information on fine-grained air quality conditions. Using individual sensors on bicycles—connected to a GPS positioning system—online local pollution information originating from cyclists' detailed spatial mobility patterns is obtained. Such air quality surface maps and cyclists' mobility maps are then used to identify whether there are significant differences between the actual route choice and the cyclists' shortest route choice, so as to identify the implications of poor air quality conditions for their mobility choices. Thus, the article seeks to present both a detailed pollution surface map and the complex space-time mobility patterns of cyclists in a region, on the basis of online quantitative data—at any point in time and space—from bicycle users in a given locality. In addition, the article estimates their response—in terms of route choice—to detailed air-quality information through the use of a novel geoscience-inspired analysis of space-time "big data." The empirical test of our quantitative modeling approach was carried out for the Greater Utrecht area in the Netherlands. Our findings confirm that spatial concentration of air pollutants have great consequences for bike users' route choice patterns, especially in the case of non-commuting trips. We also find that cyclists make longer trips on weekends and in the evenings, especially towards parks and natural amenities. [ABSTRACT FROM AUTHOR]

This paper seeks to map out the knowledge requirements and infrastructure needed for a comprehensive and quantitative analysis of the societal and geographical dimensions of effective policies regarding COVID-19 ('coronametrics' or 'pandemetrics'). After a sketch of limitations and challenges in corona research, a multi-layer mind map is designed in order to systematically scan the cognitive needs in the corona domain and to address both health policy and socioeconomic-medical information requirements in a geographic context, with a particular view to the use of actionable dashboards. A systematic decomposition of the corona knowledge system is pursued to acquire a coherent insight into gaps in corona knowledge, with particular emphasis on policy and research relevance. It turns out that the study of causality patterns in the complex spacetime evolution of COVID-19 is the Achilles' heel in the analysis of pandemetrics and calls for new effective and preventive research endeavors in support of actionable health policy. [ABSTRACT FROM AUTHOR]

This paper argues that science has not been very successful in preventing wars between nations, but may play a significant role in re-building a country or region after devastations from a military conflict. This is illustrated by the case of Ukraine. The specific potential contribution of regional science to the country's recovery process is highlighted (a 'phoenix perspective'). [ABSTRACT FROM AUTHOR]

We study interregional competition for mobile creative capital between regions A and B. Regional authorities (RAs) in both regions use tax policy to attract the creative capital possessing members of the creative class to their region. The resulting tax revenues help RAs finance other objectives such as the provision of one or more public goods. In this setting, we accomplish five tasks. First, we explain the significance of a parameter ζ that is related to the marginal product of creative capital. Second, we compute the Nash equilibrium tax rates when each RA chooses its tax rate to maximize tax revenue. Third, we discuss how a decline in ζ affects the Nash equilibrium tax rates. Fourth, we determine the two efficient tax rates. Finally, we discuss the implications of our analysis for a policy that raises revenue by taxing creative capital. [ABSTRACT FROM AUTHOR]

The multivariate pluriformity and complexity of economic-geographic space (e.g., cities or countries) are reflected in their empirical multidimensional data structure with space–time characteristics. The need to reduce the multiple dimensions of an observation space is present in all social (and other) sciences seeking to identify basic patterns or key relations among critical indicators that characterize economic or social features of the phenomena concerned. For this purpose, multivariate statistics has developed an impressive toolbox, in which traditionally a prominent place is taken by the class of principal component analyses (PCA). This technique dates back to the beginning of the last century and is widely employed in empirical research aiming at reducing complexity in observation spaces toward manageable patterns of a smaller dimensionality. In the present study, we develop and present a new methodological contribution to in the PCA field, by shifting from conventional discrete static data to time-series data approximated by a continuous intertemporal curve reflecting the evolution of the socioeconomic data concerned. In this paper, the statistical foundation of this new approach, called multivariate functional principal component analysis (MFPCA), will be outlined and tested for a multivariate long-range data set on statistical indicators for several countries. The practical validity of the MFPCA method will be demonstrated by means of an application to the evolution of socioeconomic competitiveness (in this paper, we use the WEF definition of competitiveness, which is: "Competitiveness is the set of institutions, policies, and factors that determine the level of productivity of a country" WEF 2015) in different countries of the world, based on official World Economic Forum (WEF) data spanning the period 2008–2015. Our analysis brings to light interesting findings and differences compared to the initial, officially published WEF information. [ABSTRACT FROM AUTHOR]

A lacuna in the extant literature and our desire to contribute to the theoretical literature on how tax/subsidy policies can be used by regions to attract the creative class together provide the motivation for this paper. The paper's basic contribution is that it is the first to theoretically analyze competition between two regions (1 and 2) for mobile creative capital, the key attribute possessed by the creative class. Both regions produce a final good using creative and physical capital. In the first case, physical capital is immobile and only region 2 uses tax policy to attract the mobile creative capital. We compute the equilibrium returns to creative and physical capital, we specify a key condition for creative capital in the aggregate economy, and we show which of three tax policies gives region 2 the highest income. In the second case, creative and physical capital are mobile and both regions pursue tax policies to attract mobile creative capital. Once again, we compute the equilibrium returns to creative and physical capital and then describe the optimal taxes for the two regions given that they wish to maximize regional income. [ABSTRACT FROM AUTHOR]

For decades, gravitational analysis has been a key instrument in analyzing spatial flows. Time and again, it has prompted new and challenging research questions. This paper provides a concise overview of the foundation, the conceptualization and empirical relevance of gravitational principles in regional science and spatial economics. Attention is also given to general "social physics" interpretations of gravity in spatial interaction models and to the impact of intangible distance frictions. The main emphasis in the study is placed on the significance of spatial impedance functions and gravity potential analysis. In particular, the paper focuses on cross-border trade and has three main goals: (i) to address the robustness of distance friction parameters related to trade borders, employing, inter alia, quantitative results from meta-analyses on trade models in spatial economics; (ii) to present a promising methodology based on gravity potential and the related gravitational gradient models that include directional intensities of flows; (iii) to test the validity of the latter approach on the basis of a vector gradient analysis of export patterns of the Netherlands. The paper argues that—despite the space-reducing impact of the modern digital technologies—gravitational principles still have an uncontested relevance in an analysis of spatial flows in regional science. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) and regional development are mutually interwoven phenomena. This paper introduces an analytical framework to investigate the interaction mechanism between FDI and regional industrial structure. This framework posits first that FDI generally has a significant influence on the industrial structure in the region concerned, specifically through intervening mechanisms such as capital supply, active selection, passive competition, product linkage, imitation and demonstration and employee flows. Secondly, the industrial structure, in turn, also affects FDI flows through mechanisms including market demand, factor supply and policy or institutional factors. Finally, there are bi-directional interactions; using a spatial interaction framework, the present study applies and tests a simultaneous equation model and a spatial Durbin model to analyse empirical data from 15 urban regions in the Pearl River Delta mega-city region (PRD) in China spanning the period 2005–2018. The key findings from this multi-scalar analysis are: (i) there are substantial interactive effects between FDI and industrial structure, with the rationalisation and upgrading of the industrial structure significantly promoting FDI inflows into the PRD; (ii) FDI inflows, in turn, contribute to the reinforcement and upgrading of the industrial structure in the PRD; and (iii) the interactions between FDI and industrial structure exhibit significant spatial-economic growth effects. We also find that moderator factors, including independent R&D level, market size, marketisation level, labour cost, infrastructure and government expenditure, have discernible impacts on FDI inflows and the rationalisation and upscaling of the industrial-economic structure in the area concerned. Finally, we note that, in our study, significant spatial dependence effects among urban areas inside the PRD area are observed and modelled. The discussion of the empirical findings leads to the identification of several important policy implications and lessons for regional development strategies from an FDI perspective. [ABSTRACT FROM AUTHOR]

This paper provides an overview of regional science research in the Netherlands since the 1960s. It adopts a contextual thematic approach in identifying and interpreting regional science research topics, practices and methodologies, inspired by Toynbee's challenge and response concept. It argues that place‐based, cultural and historical conditions in the Netherlands have prompted a pragmatic and evidence‐based scientific approach, in which in particular an innovative quantitative orientation accompanied by a methodological heterogeneity has given Dutch regional science a high international profile. Over the past decades, numerous regional scientists in the country have contributed to this achievement, too many to be mentioned in this overview. This paper has its limitations and offers mainly thematic examples of original—often quantitative—research undertaken by various Dutch regional scientists, that make a difference compared to general approaches in Europe and world‐wide. From our concise review we conclude that – despite the small size of the country – the challenge and creative response model of Dutch regional science has been rather successful. [ABSTRACT FROM AUTHOR]

Purpose: Empirical studies regarding the impact of the real exchange rate (RER) on economic growth are extensively available. However, the literature as a whole appears to report varying results, while the causes of such differences have not been analyzed systematically. The present study aims to fill the gap in the literature. Design/methodology/approach: In this paper, the authors compile 543 empirical estimates from 51 studies of the exchange rate-growth nexus in order to meta-analyze its relationship. Meta-analysis allows the authors to quantitatively synthesize previous empirical studies and explain the variation in the results. This method also enables us to investigate the possibility of publication bias, as there is a tendency in research only to report results that are both statistically significant and show the expected signs. Findings: After addressing publication bias and heterogeneity in the estimates, the meta-regression results show that RER depreciation (or undervaluation) genuinely favors economic growth. On average, RER depreciation has a greater impact on economic growth in developing countries than the developed ones. The study's results imply that maintaining an undervalued RER could be favorable to spur economic growth, especially in developing countries. Originality/value: Initially predominant in the medical literature, meta-analysis has been on a rising edge in economics. This progress has produced many systematic quantitative review analyses with continuously improved statistical-econometric practices related to economic variables. However, to the authors' knowledge, no comprehensive meta-regression analysis of the relationship between exchange rate and economic growth has been conducted and published in any publicly accessible academic outlet. Therefore, this study aims to fill this gap in the literature. [ABSTRACT FROM AUTHOR]

This paper addresses the intriguing issue of whether natural disasters do not only generate negative impacts on society, but, in the long run – under favourable and effective policy and behavioural responses – also positive outcomes. This challenging and novel resilience question is formulated here as the ' Blessing in Disguise ' hypothesis. There is quite some speculation in the literature on possible long-term and systemic effects of disasters, but there is little empirical evidence supported by solid quantitative analysis on expected positive outcomes. The challenging aim of the present study – to examine under what conditions natural hazards may lead to positive socio-economic outcomes in the long run ('Blessing in Disguise') – is empirically addressed from a resilience perspective. It integrates in one quantitative research framework (the 'Pentagon model'), a Stimulus-Response approach and a Capability-Theory inspired framing of territorial opportunities in coping with natural disasters, and uses a mix of statistical and econometric analyses, such as multiple linear regression analysis, cluster analysis, and a Stimulus-Response adjusted Difference-in-Difference model. Our findings, based on a global comparative study, show that a 'Blessing in Disguise' scenario is frequently a valid proposition that may manifest itself differently in different geographic, social-economic, political and institutional contexts. Although there is not a single pattern of development specific in all cases, it is clear that positive recovery trends can be observed both at the state level, and also at the regional level. The analysed data show regularly incremental changes after recent natural disasters (especially in the long term) at country level, but more thorough positive changes can be identified at the regional scale. In conclusion, the management of disasters requires proper response capacities and appears to create a window of opportunity for improved capabilities, but it is only a conditional possibility that may be transformed into a sustainable form of new development. • Global perspective on long-range effects of natural disasters worldwide. • Critical success conditions for the 'Blessing in Disguise' (BiD) hypothesis. • Disaster-opportunity framework for tracing systemic impacts of natural shocks. • Assessment of positive outcomes of natural disasters based on quantitative analysis. • Partial confirmation of BID hypothesis on natural disasters. [ABSTRACT FROM AUTHOR]

Multivariate statistics have gained a respectable place in quantitative research, especially in the economic geography, socio-economic development, urban and regional planning and spatio-temporal analysis. The main goal is to reduce multidimensional data to simple, but meaningful representative information. One of the powerful methods in multivariate statistics is Principal Component Analysis (PCA). The aim of this paper is to define a novel Spatio-Temporal Principal Component Analysis (STPCA). It is the first solution that sensibly combines at the same time variability of the values of the observed features, time of observation of the considered features and place of observation. It is therefore a solution for spatio-temporal data and a very valuable tool for practitioners wishing to obtain useful inferences from a PCA. The inclusion of the time and place of observation, in addition to the variability of the values of features, results in more detailed division of the examined objects into homogeneous clusters. Space and time, which interact with each other, are used on equal terms in the construction of the STPCA. The definition of these principal components is based on the product of two factors. The first factor is equal to the variance of the functional principal components, and the second factor is Geary's contiguity ratio C. The proposed new method of Spatio-Temporal Principal Components was used to show the mutual location of 16 Polish regions characterized by 12 socio-economic features observed in the years 2002–2018 in the system of the first two principal components and to identify homogeneous clusters of these regions in the system of all 15 constructed principal components. • The paper extends classical Principal Component Analysis (PCA) by taking into • consideration spatio-temporal socio-economic measurements of geographical space. • It converts spatial point data into continuous functions of regions orchestrating • developments over time, based on functional PCA. • It composes and employs an advanced statistical-mathematical methodology for dealing with spatio-temporal dependencies among multivariate data using Moran's I index. • It carries out a sensitivity analysis on an extensive range of alternative spatial weight systems, with an application to Polish regions. [ABSTRACT FROM AUTHOR]

Cross-border flows of people, capital, and information along with inbound tourism flows can act as an important vehicle that benefits the innovation system in tourism destination areas. This study addresses the unintended but far-reaching impact of international tourism by focusing on the influence of inbound tourism on regional innovation in China. Data from 30 Chinese provinces for the years 2003–2012 are used for the empirical analysis, employing a spatial panel data model. The results show that inbound tourism may be a new and powerful driving force for regional innovation, while the effect of inbound tourism on technological innovation appears to be weaker than that on social innovation. Our findings also show that a higher market percentage of domestic tourism may weaken the impact of inbound tourism. Furthermore, the impact of inbound tourism on innovation tends to be relatively stronger in the richer and more internationally oriented provinces of China. [ABSTRACT FROM AUTHOR]

Q analysis is a frequently used, multivariate exploratory technique in the social sciences which seeks to identify and analyse commonalities and differences in the respondents' rankings of a set of relevant individual qualitative statements. It has some intrinsic weaknesses which may be overcome by widening and deepening the underlying multivariate statistical approach. This new technique, termed a Generalized Q method, is able to handle an enlargement of the number of ranked combined statements based on a structured re-combination of the rankings of simple statements. This method will be presented in this paper. We employ a simple illustrative data set in our study. In comparing the traditional and the Generalized Q analysis, the same questionnaire data are used to apply and assess both methods, to compare the results, and to highlight the advantages of the Generalized Q method. We find that the latter technique is able to take account of many simple questionnaires with trustful responses, allows for an expansion of the number of respondents, facilitates the naming and interpretation of the extracted multivariate components, and is able to test the consistency of the responses. [ABSTRACT FROM AUTHOR]

This article introduces the papers for the special edition entitled “Modeling Regional Growth and Innovation.” It first provides an overview of the special edition and then presents short summaries of the papers. [ABSTRACT FROM AUTHOR]

Creativity has in recent years received much attention from the research community, in relation to both technological innovation and knowledge spillovers. In the same vein, the concept of a creative class and of a creative city has gained a rising popularity. The present study aims to investigate the impacts of the urban “ambiance” on the spatial dispersion of heterogeneous types of creative people over different urban agglomerations. To that end, creative people are classified according to their profession or job class into Bohemians, creative core, and creative professionals. This article, then, seeks to relate the presence of each of these groups to the cultural ambiance of a given locality beside other moderator variables. Next, an econometric model is constructed and applied to explain the spatial distribution of creative professions in the Netherlands. Our study first maps out the spatial spread of these three creative classes in the Netherlands. Next, the shares of these creative classes are related to cultural, ecological, ethnic, and geographic characteristics of Dutch municipalities. Our results show that Bohemians and people belonging to the creative core exhibit a specific spatial pattern: they appear to be overrepresented in municipalities with a relative overconcentration of culture, nature, and ethnic diversity and with a short distance to job places. [ABSTRACT FROM AUTHOR]

There is evidence from the literature that firms enjoy higher productivity levels, when the workforce employed is culturally more diverse. It is an open question whether this gain is utilized to shift the supply curve and set lower prices in order to achieve a higher demand and possibly higher revenues. This knowledge gap is not addressed in the existing literature and forms the departure of our research. We introduce a reduced-form model, inspired by the study of Melitz and Ottaviano on heterogeneous firms, and add labor productivity by using the approach of Ottaviano and Peri on cultural diversity. In our empirical study, we employ German data, while the field of research is conducted for single plants, and industry-specific effects are taken into account. Our analysis shows significant positive effects of the cultural diversity of the high-skilled workforce on the market size of single establishments. We conclude that emerging productivity gains are not just paid as dividend or factor rewards but are also used to set lower prices in order to achieve higher demand. [ABSTRACT FROM AUTHOR]

This symposium focuses on understanding key territorial-level innovation trends and processes by country, region and technology. It questions various widely accepted assumptions, offers fresh perspectives, both conceptually and methodologically, and challenges a paradigm shift in the field of innovation and spatial dynamics. It consists of three articles analysing at different scales (urban, regional and national) the territorial dynamics of innovation and their determinants. The innovation process, with local symbiosis and spatial spillovers at its core, is analysed within the conceptual framework of national and regional innovation systems and regional economic development. Based on a discussion of spatial spillovers and the way they shape the evolutionary and symbiotic relationships between local agents and actors, including university, industry and local development agencies, the symposium highlights the relevance of this framework for a better understanding of the transformation of local economic development processes. It investigates the differences in the geography of innovation regarding different institutional settings, different systems of innovation, and different national innovation strategies. While addressing mainly the EU, the US, and emerging countries such as China and India, the contributions also highlight the critical role of current innovation policies from a general perspective. In so doing, the symposium recognizes a contrarian perspective that argues that contemporary information and communication technologies (ICTs) provide a way to leapfrog the dominant role of proximity in innovation processes, creating a complimentary rather than a substitution effect for more remote and peripheral places. That said, this symposium focuses primarily on an urban network view of the innovation process and proximal effects in this context. [ABSTRACT FROM AUTHOR]

Tourism is not neutral with respect to local quality of life. With the transformation of traditional city roles and the boom of urban tourism in China, the interaction between tourism and local livability is increasingly important for sustainable development plans of urban areas. Our paper aims to address the complex interdependence of the emerging tourist industry and local livability in Chinese cities. Based on a conceptual model and a subsequent empirical statistical analysis of 35 large and medium-sized Chinese cities for the years 2003–2012, our study finds that urban livability and its related factors benefit tourism development, and that, in turn, tourism has a reverse impact on livability in urban areas; their performance appears to vary in different sub-regions and for different factors of livability; the geographic interdependence between livability and tourism development is also remarkable. Potential threats from excessive tourism development on urban livability, in particular in the Chinese Eastern and Central large and medium-sized cities, can be inferred from our empirical analysis. These conclusions may lead to important lessons to policy makers, while various suggestions based on our findings are provided as well. [ABSTRACT FROM AUTHOR]

Following up on a two decades-long debate on Smart Cities, this article provides quantitative evidence regarding the impact on urban economic outcomes of the adoption of Smart City strategies in planning and managing modern cities. In order to achieve this aim, a meta-analysis of quantitative and modeling studies is presented as a systematic synthesis tool, based on a keyword search on Google Scholar, Web of Science, and Scopus data bases. Our meta-analytical modeling results demonstrate significant geographical heterogeneity in the assessed impacts, and suggest that a relevant role is played by whether urban smartness is interpreted and pursued in a holistic or digital-only orientation. Suggestions for further research are provided as well. [ABSTRACT FROM AUTHOR]

This paper focuses on the relationship between (i) house prices and (ii) local green public goods. The main objective of the paper is to analyse a specific house-pricing mechanism which reflects the utility of being Green Offline, i.e. having access to green areas, versus the utility derived from the ability to be Green Online. The focus will be on data from European Union countries, and in particular Germany. Our results show that on an aggregate level for the EU there appears to be a clear indication for an irrational house-pricing mechanism, ignoring the negative trade-off effect from Green Online and Green Offline public investments (goods and assets). Meanwhile, on an individual level, for the case of Germany, more detailed bounded rationality effects of fashion-driven supply on house pricing are observed, positively related to Green Online values but negatively related to high Green Offline preferences. In conclusion, we find that house prices throughout Europe do not reflect a rational social change in green preferences, but tend to irrationally overprice Green Online values, which may create instability on the local housing market in the long run. [ABSTRACT FROM AUTHOR]

Our planet is gradually moving towards an urbanized world. Modern urban agglomerations tend to turn nowadays into advanced information hubs supporting a smart management of dynamic urban systems. The currently popular notion of ‘smart cities’ aims to provide a new perspective for sustainable and high-performance strategies of city stakeholders in our ‘ urban century ’. In this context, digital information technology provides a new tool for efficient and effective management and planning of urban space, inter alia in the field of transportation, environment, public facilities or advanced service provision to citizens. This paper aims to offer, first, a concise overview of the emerging opportunities of information and communication technology (ICT) for smart urban policy; digital technology in particular, appears to provide novel pathways for modern planning strategies in smart cities. Against this background, the paper sketches out the complex force field of global urbanisation phenomena and highlights the data and information needs for strategic planning of cities (using inter alia as a framework the so-called ‘ urban piazza ’ strategy framework). Secondly, various new decision support tools that are currently emerging and that offer a new promising scope for handling complex urban management issues (for instance, on accessibility, congestion, safety or sustainability) are briefly presented. And finally, the potential of such digital data systems for urban management and policy is concisely illustrated by means of some recent applications in the area of smartphone data systems. The paper concludes with a discussion of the challenges ahead for urban policy, inter alia by paying attention to institutional and governance aspects of ‘ big digital data ’ management in urban systems. [ABSTRACT FROM AUTHOR]

We investigate econometrically whether cultural diversity at the workplace boosts innovation. Our longitudinal linked employer-employee data combines two innovation surveys, with Dutch administrative, tax and regional data. We analyse the determinants of a firm's product and process innovations with respect to the firm's internal resources, employee composition and regional agglomeration externalities. We reconfirm the findings of several other recent studies showing a positive partial correlation between innovation and cultural diversity in pooled cross-sectional data; in some cases even when accounting for reverse causation. However, no statistically significant traces of benefit for innovation from cultural diversity remain after introducing firm fixed effects. [ABSTRACT FROM AUTHOR]

The aim of this study is to synthesize the current literature on infrastructure and growth by determining sources of variation in empirical results by means of a meta-analysis. We use an ordered probit model for investigating changes in the probability of finding negative, positive, and insignificant impacts. The total data base consists of 912 observations from 42 studies conducted between 1995 and 2014. The meta-analytical results show that study characteristics do matter for the magnitude and sign of the variables concerned. We find that studies which employ data from the US are more likely to register a negative impact of public infrastructure on regional growth. We also find that type of infrastructure, research methodology, time span, type of infrastructure measure, and geographical scale affect the outcomes of the primary studies. Studies that take into account interregional, interstate and interprovincial relations have a higher chance of finding negative effects, which gives an idea about the spillover effects of these investments. In contrast, some characteristics like output measure and selection of a particular sector appear to have no effect on obtaining positive, negative or insignificant outcomes. The findings of this study offer new insights to policy makers on the variation in empirical results regarding the relationship between public investment infrastructure and regional growth. [ABSTRACT FROM AUTHOR]

Migrants are often the carriers of new skills and original abilities. This study focuses on the importance of 'new urban entrepreneurship' - in particular, ethnic or migrant business firms - as a major driver of creative and urban dynamics and economic vitality in urban agglomerations. The paper offers a general account of both backgrounds and socio-economic implications of migrant entrepreneurship in large agglomerations and highlights the socio-economic heterogeneity in motivation and performance among different groups of migrant entrepreneurs. This demographic- cultural diversity prompts intriguing questions about differences in business performance among distinct groups of migrant entrepreneurs, even in the same ethnic group. In the paper, a recently developed and amended version of data envelopment analysis (DEA), viz. super-efficiency, is presented and applied to a group of Moroccan entrepreneurs in four large cities in the Netherlands. The main research aim is (i) to identify the best-performing firms (so-called 'entrepreneurial heroes') from a broad management and business perspective, while (ii) the background of our findings are more thoroughly analysed. The paper ends with some general concluding remarks on urban business strategies. [ABSTRACT FROM AUTHOR]

Cultural diversity is a complex and multi-faceted concept. Commonly used quantitative measures of the spatial distribution of culturally defined groups—such as segregation, isolation or concentration indexes—have been designed to capture just one feature of this distribution. The strengths and weaknesses of such measures under varying demographic, geographic and behavioral conditions can only be comprehensively assessed empirically. This has been rarely done in the case of multigroup cultural diversity. This paper aims to fill this gap and to provide evidence on the empirical properties of various segregation indexes by means of Monte Carlo replications of agent-based modelling simulations under widely varying assumptions. Schelling’s classical segregation model is used as the theoretical engine to generate patterns of spatial clustering. The data inputs include the initial population, the assumed geography, the number and shares of various cultural groups, and their preferences with respect to co-location. Our Monte Carlo replications of agent-based modelling data generating process produces output maps that enable us to assess the sensitivity of the various measures of segregation to parameter assumptions by means of response surface analysis. We find that, as our simulated city becomes more diverse, stable residential location equilibria require the preference for co-location with one’s own group to be not much more than the group share of the smallest demographic minority. When equilibria exist, the values of the various segregation measures are strongly dependent on the composition of the population across cultural groups, the assumed preferences and the assumed geography. Index values are generally non-decreasing in increasing preference for within-group co-location. More diverse populations yield—for given preferences and geography—a greater degree of spatial clustering. The sensitivity of segregation measures to underlying conditions suggests that meaningful analysis of the impact of segregation requires spatial panel data modelling. [ABSTRACT FROM AUTHOR]

We study the duopolistic interaction between two monopolists located in two different countries who sell an imperfect substitute good in two markets. The traded good is transported between the two nations on ships using solid wood packing materials (SWPMs) and hence the presence of one or more invasive species is a problem. We use a game model to analyze this interaction in three steps. First, we study the benchmark case of autarky or no trade between the two nations. Second, we introduce transport costs and then study the effect of free trade on the profits of the two monopolists. Finally, we suppose that invasive species are present in the SWPMs. This fact requires compliance with an environmental protocol. We model this compliance by increasing the transport costs associated with trade and then demonstrate that a version of the so called Porter hypothesis holds. In other words, we show that compliance with a cost increasing environmental protocol can give rise to higher profits for the two monopolists under consideration. [ABSTRACT FROM AUTHOR]

This paper aims to adopt a critical stance on the relevance and interpretation of the recently emerging concepts of resilience and vulnerability in transportation studies. It makes a clear distinction between engineering and ecological interpretations of these concepts and offers a systematic typology of various studies in this field. A core element in the study is the linkage between the aforementioned concepts and connectivity/accessibility in transport networks. The methodological findings in the study are put in perspective by addressing also such concepts as robustness, reliability and friability of transport systems. [ABSTRACT FROM AUTHOR]

This article introduces cultural gravity as a concept that serves to better disentangle the direction and magnitude of the effects from migration, which is controversial in recent literature. The aim is to test for cultural gravity effects on both the geographic concentration and human capital productivity of immigrants in the EU15 countries. Operationally, we proceed to construct an empirical cultural gravity measure and test it with the use of a composite cross-sectional database, comprising, inter alia, the World Value Survey and Eurostat Census data. After an initial exploration of relevant cultural data by means of multivariate statistical analysis, we present an extended formulation of a gravity model approached through logistic regression methods and a three-stage least-squares estimation. Our results clearly demonstrate the existence of a cultural gravity effect among immigrants. Finally, an interesting finding is that cultural gravity also plays a significant role in the context of the Culture-Based Development ( CBD) growth model. [ABSTRACT FROM AUTHOR]

This study aims to conceptualise the organisational framing of tourism management in touristified cities, focusing on the assessment of participatory processes of tourism planning. A grounded theory approach is used to analyse and discuss the role of the newly created consultive Tourism Council of Barcelona. An analysis of in-depth interviews undertaken with representatives of local stakeholders led to Common Pool Resources and policy cycle theories as conceptual framework to support a precise characterisation of tourism-related conflicts in Barcelona. The results reveal difficulties to obtain consensual strategic views for tourism development, although working groups contribute to cooperation between stakeholders. [ABSTRACT FROM AUTHOR]

This paper aims to offer a quantitative contribution to energy-environment policy in Japan in the aftermath of the Fukushima nuclear power accident. Since then, nuclear power energy supply has almost entirely been banned, and consequently, an intensive search for alternative forms of energy supply (ranging from fossil fuels to renewable forms of energy, such as solar or thermal power) has started. There is no clear-cut direction for energy policy, as each option involves costs and CO consequences; Japan has even withdrawn from the Kyoto protocol. A balanced energy-environment policy is difficult to achieve in the short term, and therefore, there is an urgent need for a comprehensive efficiency and performance analysis of the Japanese energy sector. A popular standard tool to judge the efficiency or performance of a decision-making unit (DMU) is a data envelopment analysis (DEA). The existence of multiple efficiency-improvement solutions has prompted much criticism in recent years. In the meantime, much progress has been made in extending this approach in several directions. An example is the euclidean distance minimisation (EDM) method, based on a generalised distance function, which serves to improve a DMU's performance by tracing the most appropriate movement towards the efficiency frontier. The EDM model is able to calculate an optimal input reduction value and an optimal output increase value in order to reach an efficiency score of 1.0, even though in reality this may be hard to achieve for low-efficiency DMUs. In contrast, high-efficiency DMUs might find it easier to reach an efficiency score of 1.0, or in the case of a super-efficiency DEA, a score of above 1.0. This paper aims to present a newly developed adjusted DEA model, emerging from a blend of the EDM and the target-oriented (TO) approach based on a super-efficiency model, for generating an appropriate efficiency-improving projection model. The TO approach specifies a target-efficiency score (TES) for inefficient DMUs. This approach can compute an input reduction value and an output increase value in order to achieve a higher TES. The abovementioned TO-EDM model will be applied to an efficiency analysis of the energy-environment interface for 10 regions in Japan. The focus will be on one input cost criterion (viz. expenditures) and two output performance criteria (viz. electricity generation and CO emission). Based on an extensive database, a comparative performance analysis of the 10 Japan regions under consideration will be pursued. [ABSTRACT FROM AUTHOR]

An avalanche of empirical studies has addressed the validity of the rank-size rule (or Zipf's law) in a multicity context in many countries. Under which conditions (eg, sample size, spatial scale) this 'law' holds remains as yet largely underinvestigated, while spatial network constellations also deserve more attention. Against this background, we investigate the relationship between network connectivity and the rank-size rule (or Z ip f's law) in an urban economic network constellation. In particular, we address the following methodological issues: (i) the (aggregate) behavioural foundation underlying the rank-size rule (Zipf's law) in the light of spatial-economic network theories (eg, entropy maximization, spatial interaction theory); (ii) the nature of the analytical relationship between social-spatial network analysis and the rank-size rule (Zipf's law). We argue that the ranksize rule is compatible w ith conventional economic foundations of spatial network models. We test the sensitivity of rank-size rules for changes in scale, functional forms, time periods, and connectivity structures. Our application uses an extensive spatiotemporal panel database on the evolution of the urban population in Germany. We test the relevance of the rank-size rule (Zipf's law), and--in parallel--the related 'socioeconomic' connectivity in these urban networks. In particular, we will show th at Zipf's law (ie, with the rank-size coefficient equal to 1) is only valid under particular conditions of the sample size. [ABSTRACT FROM AUTHOR]

The present study aims to demonstrate the importance of digital data for investigating space-time dynamics of aggregated human activity in urban systems. Such dynamics can be monitored and modelled using data from mobile phone operators regarding mobile telephone usage. Using such an extensive dataset from the city of Amsterdam, this paper introduces space-time explanatory models of aggregated human activity patterns. Various modelling experiments and results are presented, which demonstrate that mobile telephone data are a good proxy of the space-time dynamics of aggregated human activity in the city. [ABSTRACT FROM AUTHOR]

This paper highlights the importance of migrant entrepreneurs as change agents for economic vitality (‘health angels’) in cities in the developed world. The focus will in particular be on transition strategies of second-generation migrant entrepreneurs, as their ‘break-out’ growth and risk strategies may lead to a convergence of migrant entrepreneurship with mainstream entrepreneurship. The present study will address both the driving forces of this ‘new entrepreneurship’ and the socio-economic implications for modern cities. To test the above proposition, a unique extensive micro-database is used for a diversified set of migrant entrepreneurs in the four largest cities in the Netherlands. Detailed information on their risk and growth strategies was obtained from personal interviews with these entrepreneurs. The research first offers statistical findings from this data-set, and subsequently it uses a multidimensional classification tool from artificial intelligence, namely self-organizing maps, to identify and present patterns of manifest differences and similarities in the migrant entrepreneurs’ behaviour and attitudes. Finally, a causal econometric model is designed and estimated to assess the importance of various behavioural variables and control factors for the business performance of the entrepreneurs concerned. [ABSTRACT FROM PUBLISHER]

This paper aims to offer a review of spatial dynamics in a rapidly urbanizing world. After a description of modern urbanization trends three issues are addressed in particular, viz. cities and wealth, urban quality of life, and demographic aspects of cities. The paper is concluded with various policy lessons. [ABSTRACT FROM PUBLISHER]

An introduction is presented in which the editor discusses various reports within the issue on topics including volatility of Chinese economic activities, globalization and industrial performance in China, and regional disparities and productivity in China.

SUMMARY Data envelopment analysis (DEA) has become an established approach for analyzing and comparing efficiency results of corporate organizations or economic agents. It has also found wide application in comparative studies on airport efficiency. The standard DEA approach to comparative airport efficiency analysis has two feeble elements, viz. a methodological weakness and a substantive weakness. The methodological weakness originates from the choice of uniform efficiency improvement assessment, whereas the substantive weakness in airport efficiency analysis concerns the insufficient attention for short-term and long-term adjustment possibilities in the production inputs determining airport efficiency. The present paper aims to address both flaws by doing the following: (i) designing a data-instigated distance friction minimization (DFM) model as a generalization of the standard Banker-Charnes-Cooper model with a view to the development of a more appropriate efficiency improvement projection model in the Banker-Charnes-Cooper version of DEA and (ii) including as factor inputs also lumpy or rigid factors that are characterized by short-term indivisibility or inertia (and hence not suitable for short-run flexible adjustment in new efficiency stages), as is the case for runways of airports. This so-called fixed factor case will be included in the DFM submodel of the DEA. This extended DEA-with a DFM and a fixed factor component-will be applied to a comparative performance analysis of several major airports in Europe. Finally, our comparative study on airport efficiency analysis will be extended by incorporating also the added value of the presence of shopping facilities at airports for their relative economic performance. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Purpose – Migration waves have a significant impact on cultural diversity. But in various sections of the economy the authors observe large numbers of unregistered workers. The purpose of this paper is to map out the socio-economic situation of unregistered migrant workers and aims to identify the drivers of their labour market position in terms of job opportunities and salary. The specific focus of this study will be on undocumented immigrant workers involved in the domestic work (or household) sector in the Netherlands. Design/methodology/approach – This paper offers empirical evidence on two levels: the individual level (migrant domestic workers), and the household level (from an employer perspective). Findings – The paper finds that years of work experience and social network participation – in particular, family relationships and a combination of friends with employer relationships – increases the chances of finding a higher paid irregular job. From a household perspective, there appears to be a positive relationship between both the age of the employer and the size of the household on the one hand and the hours of domestic work needed per week on the other hand. Clearly, demographic change towards an ageing population will increase the demand for undocumented domestic workers. Practical implications – Reliable data on undocumented immigrants living and working in developed economies are rare. This also holds true for the Netherlands. For labour unions, this is a neglected category of workers and hence it is important to investigate their job conditions. Originality/value – The Netherlands is becoming an ageing society and this is a factor that increases the demand for irregular domestic work. This paper explores the role of ageing and labour market participation on household demand for irregular domestic work. Furthermore, the paper analyses the impact of social capital dimensions on access to a better-paid illegal job for undocumented migrant domestic workers in the Netherlands. [ABSTRACT FROM AUTHOR]

Purpose – Theoretical and empirical research on the impact of immigrants for local development is rather inconclusive regarding the direction of said impact. The purpose of this paper is to identify relationships between human capital and cultural capital, in the context of local labour market productivity. Design/methodology/approach – As the key constituents of human capital, identified in the literature, are both the locally generated through investment in education and the inflowing through immigration human capital, the paper examines those jointly in a close-to-reality-model. To this end, the paper operationalizes and infers data on the “melting pot” of EU15, NUTS2 level. The sources of the data are the Eurostat Regional Database and the World Value Survey, which have served to construct both a cross-section for the year 2001. These data sets allows us to examine the different groups of migrating and local human capital, their interaction and joint impact on local productivity through three stage least square estimations of the simultaneous equations CBD model. Findings – The evidence suggests that benefits from immigrants differ, not only due to their human capital, but also due to their culturally biased different bargaining power on the labour market. Originality/value – The main advantage of the suggested model of productivity is that, in addition to accounting for the filigree composition of human capital, it also takes into consideration the cultural capital present in a locality. In this manner, the authors are able to examine the interaction between the quality of the incoming human capital and the cultural encounter context (generating the cultural “milieu” effect) of the modern diverse city. [ABSTRACT FROM AUTHOR]

The current literature often values intangible goods like cultural heritage by applying stated preference methods. In recent years, however, the increasing availability of large databases on real estate transactions and listed prices has opened up new research possibilities and has reduced various existing barriers to applications of conventional (spatial) hedonic analysis to the real estate market. The present paper provides one of the first applications using a spatial autoregressive model to investigate the impact of cultural heritage-in particular, listed buildings and historic-cultural sites (or historic landmarks)-on the value of real estate in cities. In addition, this paper suggests a novel way of specifying the spatial weight matrix-only prices of sold houses influence current price-in identifying the spatial dependency effects between sold properties. The empirical application in the present study concerns the Dutch urban area of Zaanstad, a historic area for which over a long period of more than 20 years detailed information on individual dwellings, and their market prices are available in a GIS context. In this paper, the effect of cultural heritage is analysed in three complementary ways. First, we measure the effect of a listed building on its market price in the relevant area concerned. Secondly, we investigate the value that listed heritage has on nearby property. And finally, we estimate the effect of historic-cultural sites on real estate prices. We find that, to purchase a listed building, buyers are willing to pay an additional 26.9 %, while surrounding houses are worth an extra 0.28 % for each additional listed building within a 50-m radius. Houses sold within a conservation area appear to gain a premium of 26.4 % which confirms the existence of a 'historic ensemble' effect. [ABSTRACT FROM AUTHOR]

We build on Grossman and Helpman (1991), Rivera- Batiz and Romer (1991), Acemoglu (2009, pp. 678-80), and Batabyal and Nijkamp (2013b) and analyze the interactions between positive and negative externalities in innovation and trade for economic growth in a region when this region is part of an aggregate economy consisting of two regions. In both regions, consumers have constant relative risk aversion preferences; there is human capital use, and there are three kinds of manufacturing activities involving the production of blueprints for inputs or machines, the inputs or machines themselves, and a single final good for consumption. We study two cases. In the first case, although no growth occurs in the human capital stock, innovative activities give rise to positive externalities or knowledge spillovers in two ways. In this setting, we, study whether and under what circumstances opening a region to trade results in an increase in this region's equilibrium growth rate. In the second case, although growth occurs in the human capital stock, innovation experiences negative externalities. In this scenario, we show that opening a region to trade leads to more innovation but to no change in its long-run growth rate. Los autores se basan en el trabajo de Grossman y Helpman (1991), Rivera-Batiz y Romer (1991), Acemoglu (2009, pp 678-80), y Batabyal y Nijkamp (2013B), para analizar las interacciones entre las externalidades positivas y negativas en la innovación y comercio para el crecimiento económico en una región, en los casos en los que dicha región es parte de una economía global que consiste en dos regiones. En estas dos regiones hipotéticas a) los consumidores tienen aversión constante al riesgo relativo (CRRA); b) se hace uso del capital humano; y, c) se llevan a cabo tres tipos de actividades manufactureras: la elaboración de planes o plantillas de producción, la producción de insumos y maquinaria, y la producción de un único bien de consumo final. El presente estudio analiza dos casos. En el primer caso, aunque no hay crecimiento en el stock de capital humano, las actividades de innovación generan externalidades positivas o derrames (spillovers) de conocimiento de dos tipos. En este contexto, se estudia si, y bajo qué circunstancias la apertura de una región al comercio resulta en un aumento en la tasa de crecimiento de equilibrio de la región. En el segundo caso, hay crecimiento en el stock de capital humano, pero la innovación experimenta externalidades negativas. En este escenario, se muestra que la apertura al comercio de una región conduce a una mayor innovación pero sin ningún cambio en la tasa de crecimiento a largo plazo. 本文在Grossman and Helpman (1991)、Rivera-Batiz and Romer (1991)、 Acemoglu (2009,，pp. 678-80)和Batabyal and Nijkamp (2013b)等研究基础上，分析了当某一区域与另一区域构成经济聚合体时，该区域经济增长中创新与贸易的外部正负效应的相互影响。在两区域中，消费者均具有不变的相对风险规避(CRRA)参数设定，然后考虑人力资本利用和三种类别的制造活动的预期产量，即投入或机器、原料或机器本身、可消费的单一制成品。我们分析了两种不同的场景。在第一种场景中，尽管人力资本存量并未增长，创新活动也通过正外部性或知识溢出两种方式得到了增长。在该设定下，我们研究了区域是否或者在何种情况下开放贸易会提高地区的均衡增长率。在第二种场景中，尽管人力资本存量增长而创新部分却经历着负外部效应的影响。研究显示，一个地区贸易开放将导致更多创新活动的发生，但并未影响到长期的增长率。 [ABSTRACT FROM AUTHOR]

ABSTRACT This paper studies the impact of physical distance and different relational proximity types on the formation of the Internet infrastructure. Although there is some anecdotal evidence on the 'end of geography' effect of the Internet, the relationship between physical space and the Internet has not been yet scrutinized. Our paper builds upon recent studies in economic geography and relational proximities, and aims to study whether physical distance survives in virtual geography even after controlling for relational proximities. In order to do so, a unique and extensive database with geo-coded IP links and spatial interaction models with panel data specifications in combination with network analysis are utilized. Our results indicate that physical distance, but also different relational proximities, have a significant impact on the structure of the Internet infrastructure, highlighting the spatiality of the Internet. [ABSTRACT FROM AUTHOR]

ABSTRACT The business performance of firms in the creative high-tech sector shows much variation. This paper examines whether the geographical location of such business firms influences the performance of these firms. The overarching analysis framework of this paper emerges from the recently developed Strategic Performance Management (SPM) concept for individual firms, which in the present study is extended with spatial meso-attributes related to the location of these firms. SPM aims to improve the firms' competitive performance through the application of strict internal management principles. Our study thus adopts a micro-business perspective on the organizational determinants of a firm's economic performance and its links with distinct spatial entrepreneurship conditions and general economic moderator variables. The present study focuses on both large and small and medium-sized (SME) firms, mainly operating in the creative high-tech sector in the Netherlands. The research methodology uses stepwise the following analytical tools: multivariate analysis of an extensive micro- and meso-data set on the internal performance of firms and regional covariates; Data Envelopment Analysis (DEA) and its recent extension to super-efficient DEA for mapping out in a comparative way the achievements of both regions and firms; a GIS-oriented statistical analysis to identify geographically discriminating factors in the firms' performance; and the design and estimation of a Structural Equations Model (SEM) for assessing the performance of the firms concerned (using what is called the ' flying disc' model). Our results show significant differences in the performance of large vis-à-vis SME firms that have adopted SPM, while their geographical position in the country, in general, also plays a significant role. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses various reports within the issue on topics including business performance in the creative high-tech sector, growth in economically less privileged regions, and entrepreneurship and creativity.

Modern cities in the open European space-economy are powerhouses of creative ideas, smart technologies, sustainable developments and socio-economic wealth. They play a pivotal role in the future of an urbanized Europe, but they are also confronted with grand challenges, notably far-reaching demographic transformations, environmental decay and climatological change, unequal social participation and ever-rising mobility trends. The challenges for urban environments may be turned into new opportunities, in particular, in such domains as advanced infrastructure and logistic systems, environmental and climate-neutral facilities, creative and knowledge-intensive strategies for socio-economic prosperity and well-being. Cities—and in particular metropolitan areas—may thus act as spearheads of sustainable economic growth for European countries. These observations call for appropriate long-range policy strategies for metropolitan areas—and networks of cities—in the highly diversified European space-economy. Such policy actions would need to be supported by solid, multidisciplinary and evidence-based research on the challenges and opportunities of urban environments in Europe. The main contribution of this paper lies in the systematic strategic approach to transform urban megatrends and challenges into research and policy concerns for Europe. The analytical framework employed to highlight and better understand such research and policy response in Europe from a typological perspective is built around four interconnected pillars (cornerstones) that form the focal points for identifying strategic future images that may be instrumental in mapping out the research and policy challenges for the “New Urban Europe”. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses reports within the issue on topics including policy implications in general urbanization, economic performance of European cities and city-regions, and archipelago economies for large agglomerations.