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The Impact of Migration and Innovations on the Life Cycles and Size Distribution of Cities

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  • Dani Broitman
  • Itzhak Benenson
  • Daniel Czamanski

Abstract

We present a comprehensive agent-based model of a closed system of cities. The model includes two types of agents—employees and firms. Firms compete for workers and make decisions concerning what to produce and whether to adopt innovations. Individual employees make migration decisions. Some migrants become intrapreneurs when their employers adopt production process innovations that they propose. Some migrants become entrepreneurs when the product innovations that they propose are implemented by their employers in new subsidiary firms. These firms tend to be technological leaders. The decisions of individuals and of firms generate innovation–migration dynamics that generate a variety of city sizes. A city that is home to firms that are currently relatively attractive to migrating innovators experience moderate or fast growth. Because of particular decision patterns by individuals and firms, this growth may decline and stop, and the city may stagnate and loose workers as its relative attractiveness decreases. Cities that remain unattractive for long periods can stop growing and shrink. We model explicitly the extent to which cities attract immigrants and innovators and demonstrate that the size distribution of cities is defined by the ability of its resident firms to adopt the innovations and to let the product innovators establish technologically advanced enterprises. These decisions result in high market value of the most productive firms, of the entire industrial system the city where the firm is located, and of the entire urban system.

Suggested Citation

  • Dani Broitman & Itzhak Benenson & Daniel Czamanski, 2020. "The Impact of Migration and Innovations on the Life Cycles and Size Distribution of Cities," International Regional Science Review, , vol. 43(5), pages 531-549, September.
    • Handle: RePEc:sae:inrsre:v:43:y:2020:i:5:p:531-549
    DOI: 10.1177/0160017620914061
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    References listed on IDEAS

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    1. Philip Cooke & Bjørn Asheim & Ron Boschma & Ron Martin & Dafna Schwartz & Franz Tödtling (ed.), 2011. "Handbook of Regional Innovation and Growth," Books, Edward Elgar Publishing, number 13482.
    2. Marte C. W. Solheim & Rune Dahl Fitjar, 2018. "Foreign Workers Are Associated with Innovation, But Why? International Networks as a Mechanism," International Regional Science Review, , vol. 41(3), pages 311-334, May.
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    Cited by:

    1. Erez Buda & Dani Broitman & Daniel Czamanski, 2021. "Urban Structure in Troubled Times: The Evolution of Principal and Secondary Core/Periphery Gaps through the Prism of Residential Land Values," Sustainability, MDPI, vol. 13(10), pages 1-12, May.
    2. Erez Buda & Dani Broitman & Daniel Czamanski, 2023. "Land value dynamics and the spatial evolution of cities following COVID 19 using big data analytics," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 429-445, April.
    3. Dominik Sikorski & Paweł Brezdeń, 2021. "Contemporary Processes of Concentration and Specialization of Industrial Activity in Post-Socialist States as Illustrated by the Case of Wrocław and Its Suburbs (Poland)," Land, MDPI, vol. 10(11), pages 1-21, October.
    4. Peiyuan Zhang & Jiaming Li & Wenzhong Zhang, 2022. "Characteristics of High-Technology Industry Migration within Metropolitan Areas—A Case Study of Beijing Metropolitan Area," Sustainability, MDPI, vol. 14(19), pages 1-19, October.

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