[[wiki-architecture]] · [[Urban Planning and City Architecture]] · [[ARCHITECTURE]] · [[000]] # Localization and Urbanization Economies Localization and Urbanization Economies are two types of external economies of scale, or agglomeration economies. External economies of scale result from an increase in the productivity of an entire industry, region, or economy due to factors outside of an individual company. There are three sources of external economies of scale: input sharing, labor market pooling, and knowledge spillovers (Marshall, 1920). Localization economies occur when an increase in the size of an industry in a city leads to an increase in productivity of a particular activity. Alfred Marshall (1920) introduced the idea that the localization of industry can increase productivity in his book Principles of Economics. The highly concentrated high tech industry in Silicon Valley exemplifies industrial localization. Although the cost of labor and land in Silicon Valley is very high, high tech firms continue to locate there because of the added benefit they receive from their proximity to a high-skilled labor pool. The size of the high tech industry, creates positive externalities for each firm located in Silicon Valley. Urbanization economies arise when the size of the city leads to an increase in productivity. Los Angeles exemplifies urbanization economies in that it has no single dominant industry, yet continues to grow. Firms which locate in Los Angeles benefit from the common resources and large labor pool found in the city. Common resources such as roads, buildings and power supply benefit firms in cities regardless of their industry. Also, firms have better access to labor by locating in cities. The urban environment creates positive externalities that benefit several different industries. Jane Jacobs is often credited with the idea that urban diversity and a city’s size leads to agglomeration economies. However, Marshall’s (1920) discussion of urban diversity predates her work. == References == - [[Professional Practice/Codes & Standards/National Building Code of India/Part 06 - Structural Design/Section 1 - Loads Forces and Effects]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 06 - Structural Design/Section 2 - Soils and Foundations]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 06 - Structural Design/Section 5A - Plain and Reinforced Concrete]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 06 - Structural Design/Section 8 - Glass and Glazing]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 08 - Building Services/Section 1 - Lighting and Ventilation]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 08 - Building Services/Section 5B - Escalators and Moving Walks]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 09 - Plumbing Services/Section 2 - Drainage and Sanitation]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 10 - Landscape and Signs/Section 1 - Landscape Planning]] - [[Professional Practice/Codes & Standards/National Building Code of India/Part 10 - Landscape and Signs/Section 2 - Signs and Display]] - [[Building Construction/Construction & Materials/Building Material/Concrete and Cement]]