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Design in the Local Economy: Location Factors and Externalities of Design

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Knowledge, Technology & Policy

Abstract

This article deals with the relation between design and local economy. The study explains the mechanisms, which lead innovative and knowledge intensive activities to concentrate in metropolises and major cities. In addition, there is a tendency that within cities, these activities concentrate to certain locations. Intensive and easy communication with deep social dimension connected to it creates positive externalities and spillover effects of knowledge. This is fruitful not only for the design business itself but also to a large extent to other innovative activities. The location of design industry is illustrated by empirical data in the Helsinki Metropolitan Area, Finland. Design has a great significance for brand and value creation processes of many important, global businesses, like mobile phone industry or machinery, in addition to design industries itself. Via this, link design firms together with research and education institutions are an important part of the global industrial clusters.

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Notes

  1. Cities of Helsinki, Espoo, Kauniainen and Vantaa. Population 1 million in 2007.

  2. Design professionals are defined as class 24523 “Industrial designers and design artists” according to occupation classification 2001 (Statistics Finland).

  3. HMA with 83% of the region’s jobs is the core of the Uusimaa region

  4. The figure is based on unpublished statistics produced for Laakso and Kilpeläinen (2007) from the HMA business register 2005.

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Authors and Affiliations

  1. Kaupunkitutkimus TA Oy, Urban Research TA Ltd, Helsinki, Finland

    Seppo Laakso & Eeva Kostiainen

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  1. Seppo Laakso
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  2. Eeva Kostiainen
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Correspondence to Seppo Laakso.

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Laakso, S., Kostiainen, E. Design in the Local Economy: Location Factors and Externalities of Design. Know Techn Pol 22, 227–239 (2009). https://doi.org/10.1007/s12130-009-9091-y

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