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Urban Oppurtunities for Growth a Description of Swedish Urban Areas and Their Opportunities for Growth

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Urban Oppurtunities for Growth a Description of Swedish Urban Areas and Their Opportunities for Growth Report 2011:08 Urban oppurtunities for growth A description of Swedish urban areas and their opportunities for growth The purpose of this report is to devise an analytical structure to be able to study and analyse urban areas, the intraregional diffe- rences between urban and rural areas, and different types of urban areas. Reg. No. 2011/053 Swedish Agency for Growth Policy Analysis Studentplan 3, SE-831 40 Östersund, Sweden Telephone: +46 (0)10 447 44 00 Fax: +46 (0)10 447 44 01 E-mail [email protected] www.growthanalysis.se For further information, please contact Gustav Hansson Telephone +46(0)10 447 44 40 E-mail [email protected] URBAN OPPORTUNITIES FOR GROWTH Foreword The Swedish Agency for Growth Policy Analysis (Growth Analysis) has been commissioned by the Swedish Government to develop an understanding of different kinds of urban areas and their opportunities for growth. The purpose of this report is to devise a structure in order to be able to study and analyse urban areas, which will make it possible to study intraregional differences between urban and rural areas and between different urban areas. The report also creates an enhanced understanding of different urban areas and thereby also an understanding of different urban areas’ prerequisites for growth. The study is part of Growth Analysis’ assignment to describe and analyse the development of Sweden’s regions’. On the theme of urban areas, Growth Analysis has among other things published a research review of urban areas and growth (Growth Analysis, 2010a), an overview of the thrust, scope and organisation of urban policy, and a report on sustainable urban development (Growth Analysis, 2011d). The present report was written by Gustav Hansson (project manager), Erik Fransson and Marcus Jernström. The authors would like to thank Kristina Zampoukos (Mid Sweden University), Mikael Stenkula (IFN) and seminar participants at the European Regional Science Association Congress in Barcelona in 2011 for their valuable comments. The report was originally written in Swedish and then translated to English. The title of the report in Swedish is “Städer och deras tillväxtförutsättningar”. Östersund, Sweden, December 2011 Dan Hjalmarsson 3 URBAN OPPORTUNITIES FOR GROWTH Table of Contents Summary .............................................................................................................................. 7 Sammanfattning .................................................................................................................. 9 1 Introduction ............................................................................................................... 10 2 Regional growth ....................................................................................................... 12 2.1 Interdependencies between urban and rural areas ......................................................... 12 2.2 Urban areas as engines of growth ................................................................................... 13 2.3 Industry’s localisation and focus ...................................................................................... 14 2.4 Summarising conclusions ................................................................................................ 16 3 Defining urban areas – Can it be done? ................................................................. 18 3.1 What constitutes a town or city? ...................................................................................... 18 3.2 A definition of localities, urban areas and their networks ................................................. 22 3.2.1 How are urban areas defined? ............................................................................. 22 3.2.2 Micro-level: Localities ........................................................................................... 24 3.2.3 Meso-level: Urban areas ...................................................................................... 26 3.2.4 Macro-level: Networks .......................................................................................... 28 4 Urban areas and their opportunities for growth and development ..................... 37 4.1 Population ....................................................................................................................... 37 4.1.1 Localities .............................................................................................................. 37 4.1.2 Urban areas ......................................................................................................... 38 4.2 Economy ......................................................................................................................... 48 4.2.1 Labour productivity and income per capita ........................................................... 48 4.2.2 Daytime and night-time population ....................................................................... 52 4.2.3 Structure of trade and industry ............................................................................. 56 4.3 Human capital ................................................................................................................. 61 4.3.1 Formal education ................................................................................................. 61 4.3.2 University towns ................................................................................................... 62 4.3.3 The mobility of the labour force and urban areas’ attractiveness ......................... 64 4.4 Mobility ............................................................................................................................ 66 4.4.1 The importance of mobility for growth .................................................................. 66 4.4.2 Indicators of mobility ............................................................................................ 67 4.4.3 Accessibility between urban areas ....................................................................... 67 4.4.4 Global mobility ..................................................................................................... 75 4.4.5 Airport accessibility .............................................................................................. 76 4.4.6 Virtual mobility ...................................................................................................... 78 4.5 A classification of urban areas ........................................................................................ 80 4.5.1 The different roles and functions of urban areas .................................................. 80 4.5.2 A description of different urban areas .................................................................. 80 4.5.3 A comparison of different types of urban areas .................................................... 83 5 Summarising conclusions ....................................................................................... 89 References ......................................................................................................................... 91 Appendix ............................................................................................................................ 95 5 URBAN OPPORTUNITIES FOR GROWTH Summary Urban development has come to be an increasingly important element in growth policy. For example, the European Commission’s Cohesion Policy clearly recognizes urban areas as growth engines and has called for an urban policy agenda. Urban areas, however, can have vastly different characteristics, opportunities and needs. So-called “one-size-fits-all” policies are in many cases not appropriate. Consequently, there is a growing demand for “place-based” policies and therefore a better understanding of different kinds of urban areas. Previous research has often focused on metropolises and megacities and paid little attention to small and medium-sized urban areas. Sweden, like many other countries, has few megacities but many small and medium-sized towns and cities. With respect to land area, Sweden is the third largest county in the EU but has the second lowest population density. Many urban areas in Sweden can therefore be characterized as “isolated” because they are a long way from neighbouring urban areas. It is therefore very important to get a deeper understanding of urban areas in Sweden and their functions as engines of growth. The Swedish Agency for Growth Analysis has been commissioned by the Swedish Government to analyse how different types of urban areas can contribute to national growth. The present report, Urban opportunities for growth - a description of Swedish urban areas and their opportunities for growth, has three objectives: first, construct a definition of urban areas; second, measure the characteristics of different urban areas; and third, gain an understanding of the opportunities for growth in different kinds of urban areas. The report consists of three main parts. The first part consists of a brief literature review and discusses the interrelationships between cities and rural areas, as well as the role of urban areas’ as regional and national growth engines. Urban areas can be described as centres of commerce, culture and learning, which in effect give agglomeration economies. This also has the consequence that certain industry sectors only develop, or develop better, in towns or cities. An important message from this part of the report is also that it is not only big cities
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