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留学生作业代写 Economical power of culture

留学生作业代写 Economical power of culture

Urbanization Economies

As we mentioned above, the benefits of localization economies is the advantages that results from co-location. Contrary, ‘urbanization economies’ denotes the positive externalities enjoyed by firms that are located in a ‘city’, rather than a particular place (one cluster). These economies depends upon a range of place-specific and ideographic factors that are invariable urban. Even though such urbanization has higher cost due to urban congestion such as high wages, land prices, restricted regulation, the benefits of urbanization can compensate for the expenses (Lorenzen, 2008, p.158).

The compensation is from a city’s diversity of industry: the co-location of firms producing vary products and having dissimilar knowledge bases arises from the collaboration of diversities that do not work together in value chains or alliances. This movement in a city encourages innovative collaboration within firms, which bring on new forms of business. During the innovation, spillovers between unrelated knowledge bases are being assets of other firms (Shefer, 1998, p. 187). Shefer suggests that high-tech knowledge of one firm would be codified while cooperation is being processed. This documented information of know-how of the industry could be a potential cost of the owner. However, this will create new products, new markets, and new pioneering competition. This new business model is attractiveness for the capital investment that will boom and enlarged the industries economies. Due to the evolution of business models, there would be abandoned facilities of declining industries that may constitute cheap sites for emerging business.

Furthermore, another advantageous factor of urbanization phenomenon is a diversity of labour. In cities, there are diverge labour markets within a multitude of clusters. High skilled workers along with continuous educational organization flow into cities. The intelligence in clusters boosts innovation in incumbent firms as well as entrepreneurship. Immigration of the brain reforms the economic boundary (Storper, 2004, p. 7).

As we discussed above, the main point regarding urbanization is the diversity and progress of ideas and skills. Universities and other expert higher-level educational and research institutions are mostly urban. The wealthy and globally connected universities not only produce deepening skills and ideas, but also offer new knowledge; information and ideas go into the local industry and labour market (Lorenzen, 2008, p.160) (Storper, 2004, p. 8). In cities there are also public and semi-public institutions. The institutions generate similar aid as the institutions in a cluster do (in localization economies). However, compared with that of localization ecologies, there exist huge public infrastructures in the urbanization economies such as airports and a harbor. These infrastructures are not found in the localization features because it is not profitable and regulations are not supported.

The internal synergy inside creative clusters

In the geographical agglomeration of creative industries, the creative cities have the both benefit of localization economies and urbanization economies. In the creative cities, several clusters convene and share the benefit from both urban dynamic and from each other through temporary or long-term knowledge co-ordination. This ‘face-to-face’ co-operational contact creates ‘buzz’ (Storper, 2004, p. 14). The term ‘buzz’ refers the invisible economic power that makes the improvement of cultural product and brings effectiveness of creative production. This interconnected and intangible source is emphasized especially in modern economy system. Contrast to the conventional economics, the crucial notion regarding enterprises is ‘productivity, rather than the scale or dimension of the enterprises (Porter, 1998, p. 6).


In this regard, Storper analyzes this face-to-face contact ‘buzz’ in terms of cause, function, effects, and outcomes. The summery of the research is below:

The first function of the F2F (face to face) activity is communication and transmitting. Through this stage, communicating will be efficient especially tacit knowledge.

The second one is receiving and observing. F2F will lead correct respond under uncertainty when a message is intended.

The third effect is coordination. Each person will increase the ability to trust and union where messages and their contents are vague.

Through this process, they will select the most excellent partners. First-mover advantages in innovation and learning

This induces the effectiveness of poroductivity, creativity, inventiveness, and energy

The first two outline the general advantages of F2F communication. Unlike other forms of communication, it allows individuals make clear the exchanges of their communication. This F2F contact has an imperative role in this area due to the fact that there are various firms and business that get together in such place. As Christopherson explained, creative industries engross ‘a much wider range of economic activities’ (Christopherson, 2004, p. 17). For instance lots of specialists are demanded to make one movie. The process of filming has to be done under the cooperation of each expert’s ideas and knowledge. Therefore, buzz is essential to the transmission of complex and tacit knowledge (Storper, 2002, p. 14).

With regard to this cooperation, various individuals work through the commitment relationship. At first the each workers or teams works in a vague situation however as they bond together, they develop trust. To put it another way, inside one creative industry, a range of participants are engaged to complete one project. At the beginning, one section is working in a vague situation since the section does not have the knowledge on other’s area. As they cooperate together, the trust in collaboration covers the vague situation and brings confidence and union.

The forth function of buzz is that it allows individuals to enter into certain communicational processes in the first place: the recognition of partners and their socialization with those partners. They spend time meeting with people who would satisfy a range of criteria. Some of these set by formal screening system (e.g. audition or education). This screening and selecting process makes the industries evolved itself.

Among the five effects of the buzz, the last one has a different notion from other four factors. The last outcome could be the mixture of other four outcomes. However, whereas the first four factors are the outcomes due to the interactive intention of the buzz, the last one is being psychologically produced (Storper, 2004, p. 17). It is often explained with Scitovsky’s theory, that is, the object of desire creates a cycle of rising and then diminishing pleasure, and renewal comes through additional consumption of use (Scitovsky, 1976, p.29). In short, the subjective desire of human being is a strong motivator, and this desire is at once imitative and educational in some social contexts: competitive. Face-to-Face contact makes the strongest, most personified signals of such desire. In other words, buzz is a strong motivation in a sense that is psychological and bio-physical: ‘it leads to the formation of desires and to the mobilization of effort to realize them’ (Storper, 2004, p. 17).

Local Innovation (Why Cluster)

Mature industries such as steel, furniture, and vessel industry locate in non-urban areas because the industries rely upon product variety, flexibility and incremental innovation. They also benefit from localization economies. Comparatively, other industries reckon on both localization and urbanization economies. These industries are demanding new knowledge such as information and communication, needing to access education institutions, new workers, and easy access to industries locating in global cities.

Creative industries belong to this category. Moreover, due to the fact the industries have innovating patters oscillating among variety and radical components. This pioneering dynamic is the main explanation for why creative industries cluster in a particular place.

Product Innovation.

There are a lot of possible competitions which lead product innovation: some are being innovated in order to reduce the price of the products; others innovated in order to improve the quality of the products. Regarding productive innovation in the creative industries, the competition is not price based, but instead based on ability to create consumer experiences (Pine and Gilmore, 1999, p. 185). It is parallel to Lawrence’s idea that cultural products are valued for their meaning (Lawrence, 2002, p. 431). In order to offer customer value, cultural products has to include elements of aesthetics, design and narrative content (Lawrence, 2000, p8). However, the three elements are vague and various in the context of customers’ taste. Moreover, product cycle is relatively shorter than classic products and nobody knows the quality or quantity of demand for cultural products (Caves, 2002, p.146). Although the cleverest methods from marketing and producing forecast, productions and publishers still release many unsuccessful products in the market (De vany, 2004, p. 65).

However, in this unstable trend, product innovation is being processed. (why p8)

Local music policies in Manchester and Sheffield

1. Local music industries in the U.K.

2. The scheme of Manchester music industries

3. The music policy in Sheffield

Music Industry In The U.K.

6 8500

7 9500

8 10500

9 11500

10 12500

Cities have always played a privileged role as cores of cultural as well as economic activity (Scott 1997 P323). They have an evident capacity both to bring about high levels of economic innovation and growth, and to generate culture in the form of art, music, styles and attitudes. This tendency of the convergence between the cultural and economic development has been occurring tensely as time goes by. This inclination is also one of the distinctive characteristics of cotemporary urbanization development in general.


Price Waterhouse Coopers 2003