Firms in Russian Urban Hubs Enjoy 17-21% Higher Productivity, Boosting Regional Economies
The study looked at why manufacturing companies in Russian cities work more efficiently when they are close to other businesses. They found that plants in urban areas have 17-21% higher productivity because they benefit from being near other companies in different industries. This is especially true for towns with populations between 100,000 and 250,000. Being in a region with a lot of trade also boosts productivity. Simply being in a city with similar businesses doesn't make a big difference, but being in a region with many companies in the same industry does. The study shows that being part of a bigger economic network helps companies in urban areas work better.