Industrial Location and Innovative Cities: the case of Mexico

Industrial Location and Innovative Cities: the case of Mexico

14th International Forum on Urban Competitiveness
Industrial Location and
Innovative Cities:
the case of Mexico
Jaime Sobrino
El Colegio de México
Querétaro
August 24, 2015
Contents
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Theoretical discussion about
innovative cities (five minutes)
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Empirical reflection: a comparative
analysis (twelve minutes)
¢
Final remarks (three minutes)
Innovative Cities
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Why innovative cities?
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l
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What does it mean?
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Innovation is one of the key driving forces of economic
growth in contemporary economies and among urban
systems
Industrial location is geographically concentrated
Innovation: new commodities, new technologies, new
sources of supply, and new types of organization
developed by the firm (Schumpeter, 1942)
Innovative city: a place that enables those elements
external to firms that made significant contributions to
specific innovations developed within it (Simmie, 2001)
How to analyze them
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Markets, competitive advantages, and trade
Arrangements among external agents to firms
Innovation factors
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¢
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Agglomeration economies
Knowledge network
Cultural framework
Economic environment
Organizational elements
Government intervention
The case of Mexico: twelve cities
Population in 2010
25
Optimal
size?
15
10
4.4 4.0
5
Source: 2010 Population census
Salamanca
Monclova
Orizaba
Oaxaca
Tuxtla
Hermosillo
Merida
Queretaro
Juarez
Monterrey
Mexico City
0
1.3 1.1 0.9 0.7 0.6
0.5 0.4 0.3 0.2
Guadalajara
Miliion people
20
Rank-size Rule = 1.72
20.1
High
primacy
Internal migration, 2005-2010
25
Laboral
migration
80
69
20
40
33
20
15
1
6
-1
5
0
-3
-15
10
-20
-33
-41
5
-55
Source: 2010 Population census
-40
-60
Salamanca
Monclova
Orizaba
-80
Oaxaca
Hermosillo
Merida
Queretaro
Ciudad Juarez
Monterrey
Guadalajara
Mexico City
0
Tuxtla Gutierrez
Million people
37
Migrants per 10,000 people
60
Quality of
life
Violence
Not to city
size
Manufacturing employment in 2013
800
731
Rank-size Rule = 1.82
600
500
388
400
308
300
223
200
Source: 2014 economic censuses
14
39
13
Monclova
Salamanca
Queretaro
Juarez
Monterrey
Guadalajara
0
16
Orizaba
47 16
Oaxaca
46
Tuxtla
100
Hermosillo
123
Mexico City
But
Highest
geographical
concentration
Merida
Thousand people
700
Linked to
City-size
Productivity and innovation
4500
Negative
Relationship
70
4000
60
HSE linked to
city size
3500
50
2500
40
2000
30
1500
20
1000
10
500
Productivity
Source: 2014 economic censuses
High skill employment
Salamanca
Monclova
Orizaba
Oaxaca
Tuxtla
Hermosillo
Merida
Queretaro
Juarez
Monterrey
Guadalajara
0
Mexico City
0
Share of HSE
Million pesos
3000
Productivity to
geographical
position
Poverty:
The other face of the coin
60
Poverty linked to
18
city size (-)
16
14
40
12
30
10
8
20
6
Employment share
Poverty intensity
50
20
geographical
Position
manufacturing
Employment (-)
4
10
2
Poverty intensity
Salamanca
Monclova
Orizaba
Oaxaca
Tuxtla
Hermosillo
Merida
Queretaro
Juarez
Monterrey
Guadalajara
0
Mexico City
0
Manufacturing employment
Source: Consejo Nacional de Evaluación de la Política de Desarrollo Social (CONEVAL)
Final Remarks
Two approaches to innovative cities
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From Schumpeterian point of view (Krugman):
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Cities that offer opportunities for innovation
within companies
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Agents to procure external conditions:
infrastructure; research and development
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Ability of firms to innovate: i) product market;
ii) exports; iii) human capital; iv) commodity
chains
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Effect: Productivity → Efficiency
Final Remarks
Two approaches to innovative cities
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Beyond Schumpeter
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Cities who design and develop
innovative processes for the
performance of their duties
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Intervention of different actors in the
functioning of urban markets: i)
housing; ii) transport; iii) public services
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Effect: quality of life → equity
Taking these approaches together
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Efficiency (city as a place where
innovation is generated)
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Equity (city as a product from
innovation)
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They are in correspondence with the
ecology, to move towards a sustainable
urban development
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Sustainability not as a target, but as a
dynamic process
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