diverse centers richer

Origin of Productivity Remains in the City

companies are most productive where they encounter a wide variety of economic activities. Also, the economic stability in times of crisis increases with the manifold of business and occupational groups.
This variety is considerably larger in cities than in smaller towns or rural regions. In the countryside, there often develop regional centers for specific needs -- such as centers based on agricultural resources or traditional culture. But these "polycentric structures," as Professor Deutsch calls them, differ substantially from urban centers, where all these different branches are geographically intermingled. Higher productivity is discernable in regions where the labour location density (defined as the number of work places per household) is high -- here, too, cities surpass rural areas. Professor Edwin Deutsch believes that progressive urbanization is a good thing; to create a successful and creative environment, a variety of people from a variety of different fields have to come together and communicate -- and this works best in urban regions.
Housing Development Leads to Social Diversification
One of the results of the research project especially attracts the awareness of the scientific community: in addition to diversified economic structures, a diverse range of living conditions proves to have positive effects. In Austria, social housing is widespread. "A good mix of rent, home ownership and social housing leads to a mix of social classes and groups, it boosts social cohesion -- and this is good for the economy," professor Deutsch explains. Regions with a higher ratio of social housing are the economically more productive ones.


Posted by neville mars / 8.3 years ago / 2908 hits