How to face globalization (V). Urban manufacturing: “Made in the city”

made-in-nyPrevious post: How to face globalization (IV). Changes at work. The urban jiu-jitsu

Big corporations are much less innovative than they seem to a non-trained eye. Innovation often happens despite big corporations and sparks in new businesses fueled by ex-employees of companies that, combining top skills with a deep business knowledge, decide to part and implement their ideas on their own account. It is important that the city fosters these processes so these spin-offs can survive and succeed.

In her acclaimed book “The economy of cities”, Jane Jacobs cleverly explains the former process. Her understanding of the economic flows of a city implies that, only by means of innovation, cities can engine sustainable growth, since only innovation is able to create products and services to be exported and, consequently, finance decent life conditions for citizens, in the first place, and the capacity to develop new innovations, in second.

Where did industries go?

Talent, venture capital, knowledge and institutional support policies are essential in this process. However, new businesses, when their size increases, tend to abandon the city in what appears to be a mutual interest: they can get cheaper land to expand and better access to transport infrastructures, while cities avoid the disturbances of pollution, goods delivery and noise, and liberate urban land for higher revenue uses. Continue reading

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