Presentation by Åke E. Andersson and David Emanuel Andersson Advanced Brainstorm Carrefour (ABC): ‘Urban Empires - Cities as Global Rulers in the New Urban World’ Adam Mickiewicz University, Poznan, Poland (August, 2016)

1. TOWARDS A GENERAL
THEORY OF
INFRASTRUCTURE AND THE
ECONOMY
Åke E. Andersson, JIBS, Jonkoping, Sweden (ake.andersson@ju.se)
David Emanuel Andersson, ShanghaiTech University, Shanghai,
China

2. The games of the markets
and economic development
have always taken place on
an arena of the combined
material and non-material
infrastructure.

3. There are two fundamental attributes of
infrastructure:
1.It is a public good that many firms and
households can use at the same time.
2.It is much more durable than other capital.

4. Synergetics
The theory of synergetics as applied to chemical and physical processes
uses a subdivision of phenomena according to their typical time scales and
the scope of their effects. This subdivision is also advantageous when
applied to the infrastructure and its impact on market phenomena.
Haken (1978; 1983) offers a clear presentation of the theory of synergetics.
Sugakov (1998) presents the synergetic modeling strategy with a
subdivision of equations according to their relevant time scales and
collectivity of impacts.

5. Synergetics (1978-) Advanced synergetics (1983-)
Physics:
Laser
Super-conduction
Ferromagnetism
Physics:
 Laser
 Bénard effect
 Hydrodynamics
 Plasma physics
 Solid state physics
Chemistry:
Bénard effect
Chemistry:
 Belousov-Zhabotinsky processes
 Brusselator
 Oregenator
Biology:
Hyper-cycle (Eigen)
Biology:
 Biological clocks
 Coordinated muscle operation
 Morphogenesis/evolution
 Immune system
Computer science:
 Pattern recognition
 Self-organization/parallel computing
 Reliable systems

6. Scope of effects
Time scale (speed of change)
Fast Slow
Individual (private) Ordinary goods:
Short-term equilibrium
Spatial general equilibrium
Market entrepreneurship
Short term prices
Private capital goods
(machinery, buildings, human
capital):
Growth of capital
Market entrepreneurship
Interest rates
Long-term prices
Collective (public) Information/communication:
Networking
Product diffusion
Material and non-material
infrastructure:
Networks
Knowledge
Institutions
Political entrepreneurship

7. EQULIBRIUM TRADE
VALUE
C Connectivity of network

8. Kaufmann´s conjecture:
If the number of links exceeds
0.5 times the number of nodes
then there will be a bifurcation
into an almost total
connectivity of all nodes.

9. There are three fundamental periods of bifurcations or phase transitions
in the economic history of Europe:
1. The First Logistical Revolution from the 12th century;
2.The Second Logistical (or Commercial) Revolution in the 16th century;
3.The Third Logistical (or Industrial) Revolution) in the late 18th and 19th
centuries.

10. ESTABLISHMENT OF NEW TOWNS AND CITIES IN EUROPE 1100 - 1950
F IRST LOGISTICAL REVOLUTION SECOND THIRD

11. Urban
population
Four largest
towns
Amsterdam
SECOND LOGISTICAL REVOLUTION WITH FOCUS ON THE
NETHERLANDS

12. Like Smith, Heckscher claimed that industrial revolution was institutional:
1. The Enlightenment with a belief in science and democracy
2. The steady decline of the power of the central state and the
commercial cities,
3. The use of common law in Britain and the USA,
4. The freedom of internal and external trade and
5. The protection of private property rights
were the essential institutional infrastructure needed to provide the
necessary conditions for economic development and the efficient working o
the competitive economy.
Institutions, networks and knowledge were primary causes
New resources and new technology were secondary innovations

13. London 959 000 2 804 000 2.9
Manchester 90 000 338 000 3.8
Liverpool 80 000 444 000 5.6
Birmingham 74 000 296 000 4.0
Bristol 64 000 154 000 2.4
Sheffield 31 000 185 000 6.0
Leeds 53 000 207 000 3.9
Table Growth of population in English towns from 1800 to 1860
1800 1860 Relative growth
THIRD LOGISTICAL REVOLUTION WITH INITIAL
FOCUS ON BRITAIN AND LATER THE WHOLE
NORTH ATLANTIC COAST

14. The OECD-countries, and especially their advanced regions, are
in a process of transformation - away from the industrial system
into a globally extended post-industrial system of C-regions.
In these C-regions the production system is increasingly being
based upon the exploitation of the
1. New Communication Networks,
2. Cognitive skills of the populations,
3. Creativity in scientific research and R&D, increasing the
4. Complexity of the goods produced and marketed globally.
5. A new informal institutional Culture based on post-materialistic
values.
Thefourth logistical revolution

15. A creative society with new scientific knowledge infrastructure
1. At the end of the 19th century many scientists believed that the end of science had come. Nothing could have
been more wrong. The whole body of Post-Newtonian physics was slowly abandoned in favor of relativity theory
and quantum theory with later to lead to great technological and even greater political consequences.
2. From the 1930s new mathematical theories of importance for information and communication technology were
created by Alan Turing and John von Neumann.
3. The foundation of the emerging Nano-technology and the new material science technology as proposed by
Richard Feynman on December 29th 1959 at the annual meeting of the American Physical Society.
4. Crick and Watson revolutionized genetics leading to gene technology and other parts of biotechnology, which
have become a rapidly growing part of applied biology and medicine.

16. The fundamental rule is that these findings in pure and applied
mathematics quickly nowadays become publically accessible and yet have
delays of many decades before making a technological and economic
impact in terms of innovations and major private capital growth and
eventually determining equilibria in the markets.
The world of science is now dominated by major metropolitan
regions in Europe, USA and East Asia.

17. Rank 1996-1998 2002-2004 2008-2010
City region SCI papers City region SCI papers City region SCI papers
1 London 69,303 Tokyo-Yokohama 81,798 Beijing 100,835
2 Tokyo-Yokohama 67,628 London 73,403 London 96,856
3 San Francisco Bay
Area
50,212 San Francisco Bay
Area
56,916 Tokyo-
Yokohama
94,043
4 Paris 49,438 Osaka-Kobe 54,300 Paris 77,007
5 Osaka-Kobe 48,272 Paris 53,005 San Francisco
Bay Area
75,669
6 Moscow 45,579 New York 51,047 New York 70,323
7 Boston 42,454 Boston 49,265 Boston 69,250
8 New York 41,566 Los Angeles 44,401 Seoul 67,292
9 Randstad
(Amsterdam)
37,654 Randstad
(Amsterdam)
44,094 Randstad
(Amsterdam)
65,527
10 Los Angeles 37,437 Beijing 42,007 Osaka-Kobe 60,615
11 Philadelphia 29,376 Moscow 41,001 Los Angeles 58,176
12 Berlin 24,514 Seoul 33,083 Shanghai 50,597

18. COUNTRY CITYREGION REGIONAL
PRODUCT 2020
GROWTH RATE
2005-2020
CHINA BEIJING 259 6.6%
UK LONDON 708 3.0%
JAPAN TOKYO 1602 2.0%
FRANCE PARIS 611 1.9%
USA SAN
FRANCISCO
346 2.4%
USA NEW YORK 1561 2.2%
USA BOSTON 413 2.4%
KOREA SEOUL 349 3.2%
NETHERLAND
S
AMSTERDAM
ROTTERDAM
120 2.5%
JAPAN OSAKA 430 1.6%
USA LOS ANGELES 886 2.2%
CHINA SHANGHAI 360 6.5%

19. INDIVIDUAL
(PRIVATE)
ORDINARY MARKET GOODS
1. General Equilibrium models from
Walras, Cassel, Wald, Arrow-Debreu
to Sonnenschein/Mantel, and Smale
2. General Spatial Equilibrium model of
location and trade in two-dimensional
space or on network ( Beckmann/Puu;
Nagurney)
PRIVATE CAPITAL GOODS:
MACHINERY,
BUILDINGS,
HUMAN CAPITAL
1. Von Neumann theory of capital growth and
interest.
2. Programming models of location of capital
From Weber/Launhardt models to
integer programming of facility location
COLLECTIVE
(PUBLIC)
INFORMATION/COMMUNICATION
Models of exchange mechanisms and of
diffusion and interaction of ideas
(Hurwicz, Saari, Mansfield,
INFRASTRUCTURE:
NETWORKS, KNOWLEDGE,
INSTITUTIONS
(Theories formulated e.g. by Pirenne, Braudel,
Heckscher, Schumpeter, North, Montesquieu,

20. Assume a dynamic system of N ordinary differential equations that can be divided into
two groups of equations.
The first group consists of m fast equations; the second group consists of (m + 1 ,…,
N) slow equations.
Tikhonov’s theorem states that the system
d𝑥𝑖/dt= 𝑓𝑖 (x,g); i = 1,…,m (fast equations); General equlibrium equations
ε d𝑔𝑗/dt=𝑓𝑗(x,g) ≈ 0; j = m + 1,…,N (slow equations); Infrastructure equations
has a solution if the following conditions are satisfied:
1. The values of x are isolated roots.
2. The solutions of x constitute a stable stationary point of 𝑓𝑗=0 for any x, and the
initial conditions are in the attraction domain of this point.
For each position of the slow subsystem, the fast subsystem has plenty of time to
stabilize. Such an approximation is called “adiabatic” (Sugakov, 1998; Haken, 1983).
SOLVABILITY OF A DIFFERENTIAL EQUATION SYSTEM WITH FAST (GET) AND
SLOW (INFRASTRUCTURE) EQUATIONS