Industrial & Labor Geography 2008 Discuss the role and impact of labour qualifications to   the competitiveness of cities ...
CompetitivenessMaking sense of the competitiveness:•    At one level is equated with the “performance” of an     economy.•...
Competitiveness of CitiesPlaces compete in the following basic kinds of markets:•    Product markets, through facilitating...
Competitiveness of Cities and Labor Market•    In addition to efficiency gains deriving from the goods     market, there a...
Competitiveness of Cities and Labor MarketWhy skills matters:•    Individuals – improved payment and increased probability...
Competitiveness of Cities (Education)•    The concentration of population and economic activity in     cities is matched b...
Competitiveness of Cities (Education)•    The demand for skills in the cities is wide – but the     ‘economic driver’ char...
Competitiveness of Cities (Knowledge)   In the knowledge economy, the competitiveness of firms depends on   their ability ...
Competitiveness of Cities (Firms)     A way to understand the relation between firms and cities     competitiveness we can...
Labor, Human Capital & Urban-Regional Growth     The traditional view of city growth suggests that a city is           dev...
Labor, Human Capital & Urban-Regional GrowthHuman capital is the central factor in urban growth.Clustering of human capita...
Measurement of competitiveness (?)     There are three sorts of measure closely related ton an     areas competitive posit...
Conclusion•    It is important that there must be investment in assets such     as knowledge entrepreneurship especially i...
Conclusion•    Understanding the dynamics and location of the economy is     dependent on the relation between firms, tale...
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Presentation Industrial & Labour Geography

  1. 1. Industrial & Labor Geography 2008 Discuss the role and impact of labour qualifications to the competitiveness of cities and the dynamics of urban geographies.Nikolaos SpyropoulosDepartement of Geography 17 september 2007 Dias 1
  2. 2. CompetitivenessMaking sense of the competitiveness:• At one level is equated with the “performance” of an economy.• At another level it implies that the city has to undercut its rivals, in other words, defending its market-share.• More generally we can say that competitiveness is the production of goods or services which meet the test of markets while expanding the income of its people over the long term.17 september 2007Dias 2
  3. 3. Competitiveness of CitiesPlaces compete in the following basic kinds of markets:• Product markets, through facilitating the competitive success of firms based or operating in the area.• Inward investment by businesses and other sources of employment.• Desirable residents who can bring in economically valuable recourses. Spending power Human capital• Recognition and favours from higher level of government, in terms of public projects, events or assistance.17 september 2007Dias 3
  4. 4. Competitiveness of Cities and Labor Market• In addition to efficiency gains deriving from the goods market, there are also gains from operating in a large labor market.• The larger the pool of workers that a firm can access the more likely it is to be able to find the exact skills that suits its needs.• More importantly, a large labor market will increase the incentives for workers to undertake training.17 september 2007Dias 4
  5. 5. Competitiveness of Cities and Labor MarketWhy skills matters:• Individuals – improved payment and increased probability of employment.• Employers – greater productivity, greater competitiveness, higher profits and improved share prices.• Society - social cohesion.• The City - productivity and growth.17 september 2007Dias 5
  6. 6. Competitiveness of Cities (Education)• The concentration of population and economic activity in cities is matched by the concentration of education and skills providers, and of individual and corporate learners.• Cities are the places where policies for learning have the greatest opportunity to achieve traction in terms of imparting knowledge on a significant scale and linking that knowledge to economic activity in ways which produce:1. competitive businesses.2. sustainable jobs.17 september 2007Dias 6
  7. 7. Competitiveness of Cities (Education)• The demand for skills in the cities is wide – but the ‘economic driver’ character of cities means that demand for critical new skills on which future competitiveness depends, arises first.• Given the inherent difficulties supplying emerging high technology skills, the efficiency of learning networks is of major economic significance.• The importance of formal labor qualifications understood as human capital is the basis of urban economic growth. Glaeser (2003).17 september 2007Dias 7
  8. 8. Competitiveness of Cities (Knowledge) In the knowledge economy, the competitiveness of firms depends on their ability to innovate, improve their productivity (process innovation, including new forms of organisation), product quality or produce new products (David and Foray, 2002). (The Spatial Division of Labour and Talent in City Regions: Location Dynamics of Business Services in Copenhagen, Høgni Hansen, Lars Winther) Relationalists Vs. Regionalists.Firm as the focus of knowledge The geographical proximityproduction. plays a vital role for the production of knowledge. Urban and regional competitiveness and growth. 17 september 2007 Dias 8
  9. 9. Competitiveness of Cities (Firms) A way to understand the relation between firms and cities competitiveness we can think that firms use the following three assets:• First is the company specific assets, technology, management, design, finance and reputation.• Second is the assets which follow from location in relation to the material inputs, space, labor and markets.• Third is assets involving proximity to various kinds of local resources such as customer availability, available skill and human capital.17 september 2007Dias 9
  10. 10. Labor, Human Capital & Urban-Regional Growth The traditional view of city growth suggests that a city is developing and therefore being competitive if:Is near to transportation Has natural resources.routes (a logistics pointof view). (Cost-related factors) The human capital theory argue that the key to regional growth lies in endowments of educated and productive people.17 september 2007Dias 10
  11. 11. Labor, Human Capital & Urban-Regional GrowthHuman capital is the central factor in urban growth.Clustering of human capital is the ultimate source of regionalagglomerations of firms (inward investment).Reap the advantages Take advantage ofof common labor pools. common networks17 september 2007Dias 11
  12. 12. Measurement of competitiveness (?) There are three sorts of measure closely related ton an areas competitive position in the market:• Export performance.• Growth.1. Effects of business.2. Success of the city to attract new business.3. Growth of employment.• Productivity.17 september 2007Dias 12
  13. 13. Conclusion• It is important that there must be investment in assets such as knowledge entrepreneurship especially in areas which are technologically advanced.• Innovation and learning are important sides of the competitive position of the city.• Geography matters and cities have once again become vital places of innovation and creativity making them important strongholds in the national and global economy. (The Spatial Division of Labour and Talent in City Regions: Location Dynamics of Business Services in Copenhagen, Høgni Hansen, Lars Winther)17 september 2007Dias 13
  14. 14. Conclusion• Understanding the dynamics and location of the economy is dependent on the relation between firms, talent and human capital• Qualified labor is a vital factor for localization of firms.• Human capital is an important factor for economic growth in city regions.17 september 2007Dias 14

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