In this challenging book, the authors demonstrate that economists tend to misunderstand capital. Frank Knight was an exception, as he argued that because all resources are more or less durable and have uncertain future uses they can consequently be classed as capital. Thus, capital rather than labor is the real source of creativity, innovation, and accumulation. But capital is also a phenomenon in time and in space. Offering a new and path-breaking theory, they show how durable capital with large spatial domains - infrastructural capital such as institutions, public knowledge, and networks - can help explain the long-term development of cities and nations. This is a crucial book for spatial and institutional economists and anyone working outside the neoclassical mainstream. Academics and students of economic history, urban and regional planning, and economic sociology will also find it an illuminating and accessible exploration of time, space and capital

With the publication of The Rise of the Creative Class by Richard Florida in 2002, the 'creative city' became the new hot topic among urban policy makers, planners and economists. Florida has developed one of three path-breaking theories about the relationship between creative individuals and urban environments. The economist Ake E. Andersson and the psychologist Dean Simonton are the other members of this 'creative troika'. In the Handbook of Creative Cities, Florida, Andersson and Simonton appear in the same volume for the first time. The expert contributors in this timely Handbook extend their insights with a varied set of theoretical and empirical tools. The diversity of the contributions reflect the multidisciplinary nature of creative city theorizing, which encompasses urban economics, economic geography, social psychology, urban sociology, and urban planning. The stated policy implications are equally diverse, ranging from libertarian to social democratic visions of our shared creative and urban future. Being truly international in its scope, this major Handbook will be particularly useful for policy makers that are involved in urban development, academics in urban economics, economic geography, urban sociology, social psychology, and urban planning, as well as graduate and advanced undergraduate students across the social sciences and in business.

In the post-industrial network economy, international gateway regions are becoming increasingly important. These gateway regions are the nodes (defined as a city or a city region) that act as saddle points between a region and the global economy. While gateway regions have existed ever since inter-regional trade was first practised, new non-trade networks, and the wider global economy, have made these regions more complex. The book includes discussions of infrastructure networks such as the internet and air transport, as well as networking activities such as long-distance scientific cooperation, financial networks and direct investments. The contributors have expertise in fields such as regional economics, economic geography, institutional economics and business administration. The book offers in-depth analysis of both existing and developing gateway regions in three sections: * North America * Asia-Pacific * Europe Economists and researchers with an interest in regions, the knowledge economy and institutions will find this book of great value. It will also be of interest to economic geographers, regional planners and development agencies.

This book provides a comprehensive analysis of housing theory and policy with a focus on metropolitan regions. The results are based on case studies of twelve European metropolitan regions, including expert panels organized in each. Using an approach from the field of industrial economics, the analysis is divided into the three related stages, "structure," "conduct" and "performance."

A study of the concepts, theories, models and social consequences of creativity. It contains articles written by well-known scientists and philosophers. It is not primarily a textbook, but can be used for both undergraduate as well as graduate seminars. It brings together the views of scientists from rather different disciplines on a very important topic - creativity.

Thisbookisbasedonpaperspresentedataninternationalworkshoporganisedin Jonkoping,Sweden,inJune2005tocelebratethe60thbirthdayofProfessorBorje .. Johansson-adearfriendandadmiredcolleagueofours. Thebookprovidesa limited sample of Borje Johansson's broad ranging research interests. In this volume, some of his friends and colleagues have contributed chapters on the themeof"Innovation,DynamicRegions,andRegionalDynamics". Thisisa?eld ofresearchinwhichBorjeJohanssonhasbeenagreatinspirationtousall,andto whichhehim-selfhascontributedwithcharacteristicenthusiasmandinsightaspart ofhisprodigiousoutput. TheworkshopandthecreationofthisbookweresponsoredbytheAlfaSavings BankFoundationinJonkoping,JonkopingInternationalBusinessSchool,andthe SchoolofPublicPolicy,GeorgeMasonUniversity,Fairfax,VA. Wethankthemfor theirgeneroussupport. TheauthorsandtheeditorsthankKerstinFerroukhiforall her efforts to organise the workshop and Ulla Forslund-Johansson and Uma Kelekarforworkingtirelesslytogetthepapersrefereedandrevised,toputtogether multipleeditsofthisbookandforpreparingitforthepublisher. Itwouldhavebeen impossibletoproducethisbookwithouttheirdedicatedwork. Sweden CharlieKarlsson Sweden AkeE. Andersson UK PaulCheshire USA RogerRStough v Contents 1 Innovation,DynamicRegionsandRegionalDynamics...1 ? CharlieKarlsson,AkeE. Andersson,PaulCheshire,andR. R. Stough 2 ThePureTheoryofSpatialMarkets...35 MartinBeckmann 3 Smith-RicardoSpecializationinthePresenceofTiringEffects...47 TonuPuu 4 DynamicsofInnovationFieldswithEndogenousHeterogeneity ofPeople ...59 MasahisaFujita 5 EconomicsofCreativity ...79 ? AkeE. Andersson 6 SimpleMemesandComplexCulturalDynamics ...97 DavidBattenandRogerBradbury 7 TheFashioningofDynamicCompetitiveAdvantageof EntrepreneurialCities:RoleofSocialandPolitical Entrepreneurship ...107 LataChatterjeeandT. R. Lakshmanan 8 TheSocialCapitalofRegionalDynamics:APolicyPerspective...121 HansWestlund 9 HiddenOrderinTraf?cFlowsUsingApproximateEntropy: AnIllustration...143 KingsleyHaynes,RajendraKulkarni,andRogerStough vii viii Contents 10 RegionalInput-OutputwithEndogenousInternalandExternal NetworkFlows...161 JohnR. RoyandGeoffreyJ. D. Hewings 11 RegionalUnemploymentandWelfareEffectsoftheEU TransportPolicies:RecentResultsfromanAppliedGeneral EquilibriumModel ...177 ArtemKorzhenevychandJohannesBrocker 12 InfrastructureProductivitywithaLongPersistentEffect...1 97 TsukaiMakotoandKobayashiKiyoshi 13 ScienceParksandLocalKnowledgeCreation:AConceptual ApproachandanEmpiricalAnalysisinTwoItalianRealities ...221 RobertaCapelloandAndreaMorrison 14 TheLowParticipationofUrbanMigrantEntrepreneurs: ReasonsandPerceptionsofWeakInstitutionalEmbeddedness...247 EnnoMasurelandPeterNijkamp 15 TheLocationofIndustryR&DandtheLocationofUniversity R&D:HowAreTheyRelated?...267 CharlieKarlssonandMartinAndersson 16 GrowingUrbanGDPorAttractingPeople?DifferentCauses, DifferentConsequences ...291 PaulCheshireandStefanoMagrini 17 Urban-RuralDevelopmentinSweden...317 JohanKlaessonandLarsPettersson 18 Patents,PatentCitationsandtheGeographyofKnowledge SpilloversinEurope...331 ManfredMFischer,ThomasScherngell,andEvaJansenberger 19 Co-authorshipNetworksinDevelopmentofSolarCellTechnology: InternationalandRegionalKnowledgeInteraction ...347 KatarinaLarsen 20 Off-shoringofWorkandLondon'sSustainabilityasan InternationalFinancialCentre ...373 IanGordon,ColinHaslam,PhilipMcCannandBrianScott-Quinn 21 TheGenesisandEvolutionoftheStockholmMusicCluster ...385 PontusBraunerhjelm Index ...409 Contributors ? AkeE. Andersson ? JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, Gjuterigatan5,55318Jonkoping,Sweden,Ake. Andersson@ihh. hj. se MartinAndersson ? JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, ...Gjuterigatan5,55318Jonkoping,Sweden,Martin. Andersson@ihh. hj. se DavidBatten The Temaplan Group and CSIRO, CSIRO Marine and Atmospheric Research, PrivateBag1,Aspendale,Victoria3195,Melbourne,Australia David. Batten@csiro. au MartinBeckmann EconomicsDepartment,BrownUniversity,64Waterman StreetProvidence,RI 02912,USA,Lauren_Gallo@brown. edu RogerBradbury TjurungaandtheAustralianNationalUniversity,9ScottStreet,Narrabundah,ACT 2604,Canberra,Australia PontusBraunerhjelm DepartmentofEconomics,TheRoyalInstituteofTechnology,DrottningKristinas Vag30,10044Stockholm,Sweden,pontusb@infra. kth. se JohannesBrocker Institute for Regional Research, University of Kiel, Olshausenstrasse 40, 24098 Kiel,Germany RobertaCapello DepartmentofManagement,EconomicsandIndustrialEngineering,Politecnico diMilano,ViaGiuseppeColombo40,20133Milano,Italy Roberta. Capello@polimi.

The Economics of Experiences, the Arts and Entertainment serves as a welcome and unique introduction to various economic aspects of the production and consumption of art and entertainment products. The book begins with analyses and discussion of neoclassical production and utility functions, with a focus on art and entertainment as instances of experience goods or services. The authors then go on to present alternative Austrian and institutional approaches which focus on the role of creative entrepreneurs in the market process. Aesthetic and psychological theories are also discussed with a focus on their impact on producers' and consumers' decisions, as well as historical examples of creative centres, such as Renaissance Florence and Post World War II New York. One important conclusion reached in the book is that there is no economically meaningful way to distinguish art from entertainment, if such a distinction is to be based on the inherent qualities of products. Instead, an analysis of the activities of interest groups, politicians and other gatekeepers to the world of the arts serves to illuminate how a designation as art serves to abolish market prices and suppress competition, in contrast to the much less distorted market for entertainment products. David and Ake E. Andersson's path-breaking book will appeal to scholars and researchers at all levels of academe involved in economics, public sector economics and those with a special interest in art and/or entertainment. Public and private sector managers, planners and administrators in various art and entertainment industries will also find much to engage them within this book.

The aim of this volume is to encourage comparative explorations of the links between economic regionalism and government behaviour. At present, the relation between government and the economy is in a state of flux. In the old "developed" world, supranational organizations such as the EU and the WTO, are exerting more influence over economic life. Simultaneously, regional governments have emerged to provide public services to local populations. In some European countries, economic decision making is no longer in the power of the nation state, but has been transfered to international and local organizations.
The papers in this volume have been contributed by a broad range of policy makers, journalists, and academics. Theories of the public sector are reviewed, restructured and extended, in order to cover the new spatial and dynamic situation. The volume provides historical and institutional perspectives on the public sector, and presents empirical case studies of the public sectors in Sweden, USA, Belgium, Malaysia, England and Singapore.

This title was first published in 2003. This book focuses on the role of tangible and intangible networks that affect spatial interdependencies in economic and social life. It addresses the question - is the effect of distance disappearing? In examining this question the book considers the types of interaction that bring about globalisation of markets as well as social life in general and the distortion of distance patterns and changes in spatial interdependencies. The contributions elaborate theory and methods by examining hierarchical fields of internal and external influence on regional change; sources of productivity growth in a network of industries, endogenous growth and development policies. The book concludes with an assessment of plan evaluation methodologies for a changing and globalizing world characterized by new economic networks and networking arrangements.

With the publication of The Rise of the Creative Class by Richard Florida in 2002, the 'creative city' became the new hot topic among urban policy makers, planners and economists. Florida has developed one of three path-breaking theories about the relationship between creative individuals and urban environments. The economist Ake E. Andersson and the psychologist Dean Simonton are the other members of this 'creative troika'. In the Handbook of Creative Cities, Florida, Andersson and Simonton appear in the same volume for the first time. The expert contributors in this timely Handbook extend their insights with a varied set of theoretical and empirical tools. The diversity of the contributions reflect the multidisciplinary nature of creative city theorizing, which encompasses urban economics, economic geography, social psychology, urban sociology, and urban planning. The stated policy implications are equally diverse, ranging from libertarian to social democratic visions of our shared creative and urban future. Being truly international in its scope, this major Handbook will be particularly useful for policy makers that are involved in urban development, academics in urban economics, economic geography, urban sociology, social psychology, and urban planning, as well as graduate and advanced undergraduate students across the social sciences and in business.

Hans von Holst Royal Institute of Technology, WHO Collaborating Center, Sweden Ake Nygren Karolinska Institute, WHO Collaborating Center, Sweden Ake E. Andersson Institute for Futures Studies, Sweden n a recent study initiated by Harvard University, World Bank and I World Health Organization it was concluded that road injuries will be ranked from number 9 today to number 3 within the next two to three decades if authorities all over the world do not pay more attention to this significant problem. Injuries in traffic do not only concern the patient himself but also the relatives from an emotional point of view and the society from a socio economic point. Both emerging markets and industrial countries have significant experi ence of the events following a traffic accident. Much effort has been directed towards transportation of the victim from the scene of the accident to intensive care unit in the hospital. Simultaneously, the awareness of our knowledge about how these injuries should be prevented is striking. The focus of this second book of transportation, traffic safety and health is to further present some of the latest aspects in the area of mobility and its rela tion to planning of an optimal traffic safety with respect to our present knowl edge in the field. The volume contains a collection of contributions presented of scientists, clinicians and administrators at The Second International Conference on Transportation, Traffic Safety and Health, held in Brussels, Belgium, 1996."

Ake Nygren Karolinska Institute, Sweden would like to welcome you on behalf of Karolinska Institute, I one of the organizers and initiators of this series of confer- ences on traffic safety. The conference we are opening today is the fourth in the series. Karolinska Institute is the largest medical university in Sweden. It is dedicated to improving health through research, educa- tion and dissemination of information and ideas. The series on traffic safety is one of the ways in which we are disseminating information and ideas on an international front. Karolinska Institute is 190 years old. The Medico Chirurgiska Institute was originally established in 1811 by royal decree after wars and cholera epidemics. In 1822, it became known by the name "Carolinska" . Amongst many other international endeavors, Karolinska Institute is perhaps best known for the nomination and appointments of Nobel Prize winners in medicine and physiology. Under the terms of Alfred Nobel's will, the prize winners are nominated and chosen by the Nobel Assembly of Karolinska Institute. During the hundred years that the prize has been in existence, several researchers from Karolinska Institute have become laureates. These are Hugo Theorell in 1955; Ragnar Granit in 1967; Ulf von Euler in 1970; and Sune Bergstrom and Bengt Samuelsson in 1982. In 1987, the medicine prize was awarded to Tonegawa from v Japan and in 1994 the literature prize was awarded to Oe Kenzaburo.

Rodney E. Slater Secretary of Transportation, U. S. Department of Transportation know many of you have traveled great distances to be here. I To me, that shows not only your dedication to the cause, but demonstrates how very important transportation safety is becoming throughout the world. So I am very thankful to the main organizers of this third annual conference -- all of whom are from Sweden: Dr. Hans von Holst of the Royal Institute of Technology; Dr. Ake Nygren of the Karolinska Institute; Dr. Ake E. Andersson of the Institute for Futures Studies; and finally, Dr. Arne Witt16v and Lars Anell from AB Volvo. And let me give a special welcome to our friends from Africa. I will be visiting a number of African nations in January. And while my main mission is to promote trade and investment with the United States, we will be talking about safety, too. Airline safety, for example, is a big concern, as Africa grows and prospers and the demand for air travel expands. We discussed it during recent meetings of the International Civil Aviation Organization in Montreal several weeks ago. And we will do so again during my trip. plan to talk about how my department can help the Also, we many nations of Africa improve highway safety. Africa relies heavily on road transportation. But highway fatalities are very high. And the economic costs are very steep, especially for Africa's fragile, emerging v market economies.

Thisbookisbasedonpaperspresentedataninternationalworkshoporganisedin Jonkoping,Sweden,inJune2005tocelebratethe60thbirthdayofProfessorBorje .. Johansson-adearfriendandadmiredcolleagueofours. Thebookprovidesa limited sample of Borje Johansson's broad ranging research interests. In this volume, some of his friends and colleagues have contributed chapters on the themeof"Innovation,DynamicRegions,andRegionalDynamics". Thisisa?eld ofresearchinwhichBorjeJohanssonhasbeenagreatinspirationtousall,andto whichhehim-selfhascontributedwithcharacteristicenthusiasmandinsightaspart ofhisprodigiousoutput. TheworkshopandthecreationofthisbookweresponsoredbytheAlfaSavings BankFoundationinJonkoping,JonkopingInternationalBusinessSchool,andthe SchoolofPublicPolicy,GeorgeMasonUniversity,Fairfax,VA. Wethankthemfor theirgeneroussupport. TheauthorsandtheeditorsthankKerstinFerroukhiforall her efforts to organise the workshop and Ulla Forslund-Johansson and Uma Kelekarforworkingtirelesslytogetthepapersrefereedandrevised,toputtogether multipleeditsofthisbookandforpreparingitforthepublisher. Itwouldhavebeen impossibletoproducethisbookwithouttheirdedicatedwork. Sweden CharlieKarlsson Sweden AkeE. Andersson UK PaulCheshire USA RogerRStough v Contents 1 Innovation,DynamicRegionsandRegionalDynamics...1 ? CharlieKarlsson,AkeE. Andersson,PaulCheshire,andR. R. Stough 2 ThePureTheoryofSpatialMarkets...35 MartinBeckmann 3 Smith-RicardoSpecializationinthePresenceofTiringEffects...47 TonuPuu 4 DynamicsofInnovationFieldswithEndogenousHeterogeneity ofPeople ...59 MasahisaFujita 5 EconomicsofCreativity ...79 ? AkeE. Andersson 6 SimpleMemesandComplexCulturalDynamics ...97 DavidBattenandRogerBradbury 7 TheFashioningofDynamicCompetitiveAdvantageof EntrepreneurialCities:RoleofSocialandPolitical Entrepreneurship ...107 LataChatterjeeandT. R. Lakshmanan 8 TheSocialCapitalofRegionalDynamics:APolicyPerspective...121 HansWestlund 9 HiddenOrderinTraf?cFlowsUsingApproximateEntropy: AnIllustration...143 KingsleyHaynes,RajendraKulkarni,andRogerStough vii viii Contents 10 RegionalInput-OutputwithEndogenousInternalandExternal NetworkFlows...161 JohnR. RoyandGeoffreyJ. D. Hewings 11 RegionalUnemploymentandWelfareEffectsoftheEU TransportPolicies:RecentResultsfromanAppliedGeneral EquilibriumModel ...177 ArtemKorzhenevychandJohannesBrocker 12 InfrastructureProductivitywithaLongPersistentEffect...1 97 TsukaiMakotoandKobayashiKiyoshi 13 ScienceParksandLocalKnowledgeCreation:AConceptual ApproachandanEmpiricalAnalysisinTwoItalianRealities ...221 RobertaCapelloandAndreaMorrison 14 TheLowParticipationofUrbanMigrantEntrepreneurs: ReasonsandPerceptionsofWeakInstitutionalEmbeddedness...247 EnnoMasurelandPeterNijkamp 15 TheLocationofIndustryR&DandtheLocationofUniversity R&D:HowAreTheyRelated?...267 CharlieKarlssonandMartinAndersson 16 GrowingUrbanGDPorAttractingPeople?DifferentCauses, DifferentConsequences ...291 PaulCheshireandStefanoMagrini 17 Urban-RuralDevelopmentinSweden...317 JohanKlaessonandLarsPettersson 18 Patents,PatentCitationsandtheGeographyofKnowledge SpilloversinEurope...331 ManfredMFischer,ThomasScherngell,andEvaJansenberger 19 Co-authorshipNetworksinDevelopmentofSolarCellTechnology: InternationalandRegionalKnowledgeInteraction ...347 KatarinaLarsen 20 Off-shoringofWorkandLondon'sSustainabilityasan InternationalFinancialCentre ...373 IanGordon,ColinHaslam,PhilipMcCannandBrianScott-Quinn 21 TheGenesisandEvolutionoftheStockholmMusicCluster ...385 PontusBraunerhjelm Index ...409 Contributors ? AkeE. Andersson ? JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, Gjuterigatan5,55318Jonkoping,Sweden,Ake. Andersson@ihh. hj. se MartinAndersson ? JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, ...Gjuterigatan5,55318Jonkoping,Sweden,Martin. Andersson@ihh. hj. se DavidBatten The Temaplan Group and CSIRO, CSIRO Marine and Atmospheric Research, PrivateBag1,Aspendale,Victoria3195,Melbourne,Australia David. Batten@csiro. au MartinBeckmann EconomicsDepartment,BrownUniversity,64Waterman StreetProvidence,RI 02912,USA,Lauren_Gallo@brown. edu RogerBradbury TjurungaandtheAustralianNationalUniversity,9ScottStreet,Narrabundah,ACT 2604,Canberra,Australia PontusBraunerhjelm DepartmentofEconomics,TheRoyalInstituteofTechnology,DrottningKristinas Vag30,10044Stockholm,Sweden,pontusb@infra. kth. se JohannesBrocker Institute for Regional Research, University of Kiel, Olshausenstrasse 40, 24098 Kiel,Germany RobertaCapello DepartmentofManagement,EconomicsandIndustrialEngineering,Politecnico diMilano,ViaGiuseppeColombo40,20133Milano,Italy Roberta. Capello@polimi.

This volume contains a selection of papers presented at an international symposium on research and development, industrial change and economic policy organized and hosted by the University of Karlstad, Viinnland, Sweden. Situated about halfway between Stockholm and Oslo, Karlstad stands on the River Klara, which reaches north into the mountains of Norway. Founded by King Charles IX of Sweden, whose statue stands in the city centre beside the river, the city celebrated its 400th anniversary in 1984. For many decades the wealth of Karlstad has been based on traditional industries such as iron, timber and paper, and throughout the province of Viinnland there are a considerable number of industrial communities which grew up around mines, ironworks, sawmills and papermills. Even the cultural structure of these communities is heavily marked by the industrial environment in which they developed. However, for over a decade now a major structural reorientation has been taking place and the old industrial structures have been disappearing. For various reasons the importance of large scale, manufacturing companies has declined and as a result of intense development work with new ideas, new entrepreneurs and new technology, we have seen the rapid rise of small companies. In this context, recent research has shown that universities playing an increasingly central role in regional development. Thus the continued development of the University of Karlstad is of significant regional and national interest. Although fairly small in an international perspective (approximately 4000 students) the university is expanding rapidly.

Today, telecommunication systems are expanding and evolving at a remarkable rate, with the aid of fiber optics, satellites and comput erized switchboard systems. Airline systems are providing faster and more efficient networks for world-wide human transportation. Com puters are now generally accessible to virtually all industries and many households. But perhaps the most important factor is that education systems are expanding the knowledge base for city populations, thus resulting in increased efficiency in the use of computers, telecommuni cations and rapid transportation systems. The revolutionary age of logistical networks is upon lIS. Logistical networks are those systems which facilitate the movement of knowl edge, commodities, money, and people in association with thE; produc tion or consumption of goods and services. Logistical networks form a set of important infrastructure which serve as hard and soft means to sustain all kinds of movement, transactions and diffusion within and between global networks of cities. Major structural changes in the re gional and urban economy, culture and institutions are triggered by slow but steady changes in global logistical systems."

A sample of Professor Tonu Puus contributions to economic theory, ranging from seminal results on investment criteria under imperfect capital markets, via rules for optimal resource extraction when the grade of the ore is heterogeneous, to modern nonlinear dynamics as applied to well-known economic fields such as business cycle analysis and oligopoly theory. Puus thinking on cultural economics and his views on the methodology of economic science shine through every paper in this volume."

This is a volume on the concepts, theories, models and social consequences of creativity. It contains articles by well-known cognitive scientists, economists, mathematicians, philosophers and psychologists.

This book provides a comprehensive analysis of housing theory and policy with a focus on metropolitan regions. The results are based on case studies of twelve European metropolitan regions, including expert panels organized in each. Using an approach from the field of industrial economics, the analysis is divided into the three related stages, "structure," "conduct" and "performance."