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Do Cities Still Matter

Do Cities Still Matter?
The Regional Geographical Imperative of Technological Progress In A Global Inter-Networked Market.

The logic of the argument of why cities will still matter relates to the relationship between cities and global corporations. Both entities need technical change, but for different reasons. Their relationship with each other, mediated by their common need for technical change, is described in a series of graphics in the book.

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The new inter-networked global market has become more risky for global corporations, which creates greater uncertainty in their decision-making.

 

The implementation of Information Computer Technologies (ICT) across all global corporations means that the old decision-making environment on how to make money has changed.

 

The most interesting question to ask in terms of understanding the relationship between cities and global corporations is: Given the new global uncertainties, how will global corporations respond?

 

The implementation of ICT as a factor of production contains elements of internal contradiction. Economists call these types of contradictions "dialectics." Understanding the dialectics of ICT helps to understand how cities and global corporations are related in their common need for technical change

 

Global corporations will need the dynamic environment of cities to replace the knowledge that corporations used to gain through internal institutional learning.

 

Cities need technical change for different reasons than the global corporations. The explanation of why cities need technical change, and the theory that predicts the pathway of regional technical change is called Structural Evolutionary Regional Economic Theory (SERET). Understanding their different needs allows for a better understanding of the conflicts of interest between cities and global corporations

 

There are not very many "hard" policy levers that elected leaders can pull to facilitate regional technical change. There is one very important policy tool that city leaders need to explain and predict technical change that is missing. Each metropolitan region needs an analytical tool called an input-output model that describes the economic structure of the city. The U. S. Government collects the data necessary for creating these models, but does not currently use the data. This missing tool is a serious policy gap in national economic well-being because the economic future of the country, in the new e-economy, is now more closely tied to the ability of cities to generate technical change.

 

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