Cities Compete for Firms, Shaping Urban Landscapes and Economies
This paper explores why firms cluster together in certain cities, looking at factors like positive spillovers and congestion effects. There is an optimal number of firms for each city, and firms choose where to locate based on factors like office rent and potential profits. London is currently more attractive to firms than Barcelona, but this can change with city development. The researchers also suggest that investing in infrastructure in Barcelona could make it more appealing to firms.