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The Role of Economic Clusters in Improving Urban Planning Support The role of economic clusters in improving urban planning support Zhenshan YANG ITC dissertation number 170 ITC, P.O. Box 6, 7500 AA Enschede, The Netherlands ISBN 978-90-6164-289-3 Cover designed by Benno Masselink Printed by ITC Printing Department Copyright © 2010 by Zhenshan YANG The role of economic clusters in improving urban planning support Economische clusters en een betere ondersteuning van de stedelijke planning (met een samenvatting in het Nederlands) Proefschrift ter verkrijging van de graad van doctor aan de Universiteit Utrecht op gezag van de rector magnificus, prof.dr. J.C. Stoof, ingevolge het besluit van het college voor promoties in het openbaar te verdedigen op dinsdag 13 april 2010 des ochtends te 10.30 uur door Zhenshan Yang geboren op 17 maart 1979 te Xinjiang, China Promotors: Prof. dr. H.F.L. Ottens Prof. dr. J. Cai Co-promotor: Dr. R. Sliuzas This thesis was (partly) accomplished with financial support from the Faculty of Geo-Information Science and Earth Observation (ITC) of Twente University and the Faculty of Geosciences of Utrecht University Acknowledgements The research was financially supported by an ITC PhD research grant and partly from Utrecht University. I would like to express my gratitude to both universities to realise my research interest and this doctoral pursuit. To realise this dream, I was fortunate to meet my mentors: Prof. Dr. Henk Ottens, Prof. Dr. Jianming Cai and Associate Prof. Dr. Richard Sliuzas. I met them at different stages of my life. They encouraged and helped me to raise my horizon, consolidate my determination and establish my career ladder. I am much obligated to my promoter, Prof. Henk Ottens. He restructured and sharpened my idea and promoted me step by step from a little boy in academia to a professional person in urban planning. He made me know some differences between Chinese and Western cultures in research. He taught me to understand and finally enjoy the tough process of PhD study. He always accompanied with me, accumulating the credits of the success to the PhD work. Without him, my PhD could not be completed that smoothly. I am indebted to my co-promoter, Prof. Jianming Cai. He is also my supervisor of my MSc study when I was in the Institute of Geographical Sciences and Natural Resources Research at Chinese Academy Sciences (IGSNRR, CAS). At that time, I was involved in many research and consulting projects on various aspects of urban development. Thanks to these opportunities, I invented the idea of the current PhD research, taking clusters as a point to break through the thorny problem of integrated spatial and economic development. In this sense, he is the illuminator for my academic life, providing me a road, belief and dream. Special thanks are given to my supervisor, Dr. Richard Sliuzas. He was closely to me at the most of time during the past years: up-down stairs and one minute walk. Whenever and whatever I had problem, what I need was just a walk and a knock. His kindness and openness always made me feel relax, close and joy. It was so lucky that I had such a daily supervisor. I would extend my gratitude to those supporting me in my PhD study. I am grateful to Prof. Martin Hale and Dr. Paul van Dijk for their establishing this PhD arrangement and their continuous support. I thank the staffs in PGM department at ITC: Martin Van Maarseveen, Anne van der Veen, Luc Boerboom, Mark Brussel, Emile Dopheide, Johannes Flacke, Yola Georgiadou, Monika Kuffer, Chris Paresi and Javier Martinez for their help on research and the nice academic atmosphere. I am also grateful to the ladies in the library, whose i hard and efficient work was an accelerator of the PhD study. I owe a lot to Marga Koelen, Carla Gerritsen and Petry Maas-Prijs. Millions of thanks are given to Loes Colenbrander and Petra Weber. They were always staying with me when I needed help on logistic issues. These ‘trifles’ were extremely important. Without them, I cannot image how I can pass through my PhD life. I would acknowledge here those who had commented and contributed to this PhD work: Prof. Pieter Hooimeijer, Prof. Victor Sit., and Dr. Stan Geertman. In particularly I am grateful to Prof. Jinshen Liang at Beijing Normal University and Prof. Xiaolu Gao for their sharing of crucial data. I also acknowledge the Administration Committee of Zhongguancun Park and the CBD Administration Committee in Beijing, for their support during the fieldwork. I highly appreciate the friendship and ‘home-like’ atmosphere in ITC, which gave me great pleasure and energy. Particularly whenever I feel sad or joyful, friends were always there. Thank you, ITC Chinese community and my love friends: Fangfang Cheng, Xia Li, Pu Hao, Tina, Li Chun, Zijin, Bianmeng, Feiteng, Ouyang, Yuxiang, Guangyi, Tianxin, Changbo, Zhong Lei, Zhouliang, Dongpo, Xiaogang, Zhaoxi, Zhangxiang, Qiuju, Xiao Jing, Pu Shi, Jianghao, Guofeng, Wenxiu, Yanjiu, Tiejun, Wenbo, Zhao Ting and Zeng Yu. I also appreciate the friendship with my office fellows: Filliz, Sukhad and Ben. Wish you all joyful and success! At the last, I would thank to my parents for your supporting and appreciation, which are beyond words, distances and time. Time flies. The end comes before I know it. When I freely enjoy, taste and appreciate my PhD life, a new life starts yet. The time of doing the PhD in the Netherlands is an asset in my life: teach me, train me and open me. Thank you for all again, my mentors and friends! ii Table of Contents Chapter 1 Economic clusters: concept and instrument for improving urban planning support ......................................... 1 1.1 Planning support: approaches and systems ............................. 1 1.2 Economic clusters: potential roles in supportingurban planning .. 7 1.2.1 Economic clusters: an exploratory scientific concept ..... 7 1.2.2 Economic clusters: a policy tool .................................... 10 1.2.3 Economic clusters in urban planning practice .............. 13 1.3 Research framework ........................................................... 15 1.3.1 Objective and Research Questions ............................ 15 1.3.2 Outline of the thesis ................................................ 16 Chapter 2 Economic clusters: linking economic and spatial policies ................................................................................. 17 2.1 The evolution of cluster concepts .......................................... 17 2.1.1 Define economic clusters: dimensions and levels ......... 17 2.1.2 Evolution of the cluster concept ................................ 18 2.1.3 The roles of cluster concepts in policy making ............. 21 2.2 Urban and regional spatial-economic dynamics ....................... 25 2.3 Mechanisms of economic cluster development ........................ 30 2.3.1 Neoclassical economics............................................ 31 2.3.2 Evolutionary economics ........................................... 32 2.3.3 A framework of explaining economic cluster development .......................................................... 34 2.5 New perspectives for economic and spatial policies ................. 35 2.5.2 Perspectives for economic policy ............................... 36 2.5.3 Perspectives for urban planning ................................ 37 2.6 An Empirical Model ............................................................. 42 Chapter 3 Beijing: economic spatial development and cluster initiatives ............................................................................. 45 3.1 Beijing overview................................................................. 45 3.2 Institutional context ........................................................... 48 3.2.1 Pre-reform ............................................................ 48 3.2.2 Transformation forces ............................................. 52 3.3 Urban economic and spatial dynamics ................................... 55 3.3.1 Economic dynamics ................................................ 55 3.3.2 Spatial dynamics .................................................... 62 3.3.3 Challenges of urban economic and spatial developments ........................................................ 69 3.4 Economic and urban planning policies ................................... 73 3.4.1 New characteristics of economic and urban planning .... 73 3.4.2 Current economic plan ............................................ 75 iii 3.4.3 Current urban planning ........................................... 75 3.5 Clusters initiatives and presences ......................................... 78 3.5.1 Cluster initiatives and urban development .................. 78 3.5.2 Connections and differences of cluster initiatives in economic and spatial plans ................................... 80 3.5.3 Presence of economic parks ..................................... 81 3.6 Summary .......................................................................... 83 Chapter 4 Identifying functional clusters for city development ......................................................................... 85 4.1 From urban strategy to functional clusters ............................. 85 4.1.1 Functional relationship in cluster analysis ................... 85 4.1.2 Functional relationships and cluster representation ...... 86 4.2 Methodology ...................................................................... 90 4.2.1 Data description ..................................................... 90 4.2.2 General method of principle component analysis ........
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