Advances in Spatial and Network Economics Managing Editor Editorial Board David F. Batten Me E. Andersson Martin J. Beckmann Jacques Thisse Robert E. Kuenne Takashi Takayama Titles in the Series Martin J. Beckmann and Tonu Puu Spatial Structures Aisling J. Reynolds-Feighan The Effects of Deregulation on U.S. Air Networks o A. E. Andersson· D. F. Batten K. Kobayashi· K. Yoshikawa (Eds.) The Cosmo-Creative Society Logistical Networks in a Dynamic Economy With Contributions by Me E. Andersson, C. Anderstig, D. F. Batten, H. Haken E. Hideshima, B. Harsman, B. Johansson, M. Kashiwadani, K. Kobayashi, S. Mun, N. Okada, M. Okumura, D. G. Saari, K. Sasaki, G. J. W. Smith, S. Sunao, K. Yoshikawa, W. B. Zhang Springer-Verlag Berlin Heidelberg New York London Paris Tokyo Hong Kong Barcelona Budapest Prof. Dr. Ake E. Andersson Institute for Futures Studies, Hagagatan 23B, 3tr., S-I13 85 Stockholm, Sweden Prof. Dr. David F. Batten Royal Institute of Technology, Department of Regional Planning, S-I00 44 Stockholm, Sweden Prof. Dr. Kiyoshi Kobayashi Tottori University, Department of Social Systems Engineering, Tottori 680, Japan Prof. Dr. Kazuhiro Yoshikawa Kyoto University, School of Civil Engineering, Kyoto 606, Japan With 67 Figures ISBN -13978-3-642-78462-0 e-ISBN-13:978-3-642-78460-6 DDI.1 0: 10 07/978-3-642-78460-6 This work issubject to copyright. All riglns are reserved. whether the whole or pan orthe material is concerned. specifically the rights of translation. reprinting. reuse ofiltustrations. recitation. broad· casting. reproduction on microfilms or in other ways. and storage in data banks. Duplication ofthis publ ication or parts thereof is only permilted under the provisions ofthe German Copyright Lawof September9, 1965, in itsversionorJune24.1985,and acopyright fee must always bepaid, Yiolations fall under the prosecution act of the German Copyright Law. C Springer·Yerlag Berlin· Heidelberg 1993 Soncoler reprint of the hankol'er 15te dition 1993 The use of registered names. trademarks. etc. in this publication does not imply. even in the absence ora specific statement. that such namesare exempt from the relevant protective laws and regulati· ons and therefore free for general use. 4217130·5432lQ· Printed on acid·free paper FOREWORD Today, telecommunication systems are expanding and evolving at a remarkable rate, with the aid of fiber optics, satellites and comput erized switchboard systems. Airline systems are providing faster and more efficient networks for world-wide human transportation. Com puters are now generally accessible to virtually all industries and many households. But perhaps the most important factor is that education systems are expanding the knowledge base for city populations, thus resulting in increased efficiency in the use of computers, telecommuni cations and rapid transportation systems. The revolutionary age of logistical networks is upon lIS. Logistical networks are those systems which facilitate the movement of knowl edge, commodities, money, and people in association with thE; produc tion or consumption of goods and services. Logistical networks form a set of important infrastructure which serve as hard and soft means to sustain all kinds of movement, transactions and diffusion within and between global networks of cities. Major structural changes in the re gional and urban economy, culture and institutions are triggered by slow but steady changes in global logistical systems. The propensity towards the synchronized global integration of a nation's economy and society will bring about a major world-wide redistribution of production and of knowledge and information stocks, with the relative decline of the Pan-Atlantic sphere in favor of the Pan Pacific sphere. In this new era, metropolitan areas in Japan - namely, the Tokyo Bay Area and the Osaka Bay Area, etc. - are expected to play a key role as new symbiotic centers for different cultures of the Orient and the Occident. They are simply endowed with comparative advantages in terms of access to the Asian and Pan-Pacific countries, and their multitude of traditional cultures and relationships. The growth of creativity through cultural and artistic activities, scientific research, industrial development, administrative functions, and international communications, constitutes one of the most indis pensable preconditions for a qualitative expansion of the metropolitan areas. The term 'cosmo-creative society', which is one of the central keywords in this book, refers to a creative world society playing a pioneering role in the logistical revolution occurring across global net works. It is a keyword which symbolizes the emergence of a new type of city. Scientific and practical resources should therefore be channeled towards creating symbiotic preconditions for the qualitative develop ment of the metropolitan areas. v This volume contains a collection of papers present.ed at the Inter national Forum on Logistical Dynamics and Its Regional Consequences in Osaka and the International Colloquium on Creativity and Logisti cal Dynamics. The Forum was held in Osaka, Japan from July 17 to 18 and the Colloquium took place in Kyoto from July 20-21 1990. The papers addressed the above-mentioned themes from the viewpoint of various interdisciplinary perspectives. The aim of the Forum was to assemble leading international scientists, administrative officials and Japanese industrial leaders in order to propose a set of scientific per spectives to facilitate an understanding of the fundamental dynamics underlying logistical revolu tions and to apply this framework as a basis for determining key policy implications for the revitalization of the Os aka Bay Area. The Colloquium was organized to provide an arena for an intensive discussion of the scientific issues taken up in the Forum. The conferences were initiated by an international research group including, among others, myself and Professor Ake E. Andersson, Di rector of the Institute for Futures Studies, Sweden, both of whom played a key role in promoting the conferences. I acknowledge my advisors, Professor Eiji Kometani and Professor Minoru Beika, whose unfailing encouragement and advice enabled me to organize both con ferences successfully. Practical arrangements were undertaken by an Organizing Committee consisting of staff-members from the Prefec tural governments of Osaka, Hyogo and Wakayama, the Municipal governments of Osaka and Kobe, The Osaka Science &. Technology Center, The Osaka Industrial Association, The Osaka Chamber of Commerce &. Industry, The Kansai Airport Research Institute, The Kansai Economic Federation, The Center for Industrial Innovation of Kansai, The Kansai Institute of Information Society and The Kobe Chamber of Commerce &. Industry. That both conferences were suc cessful Was a tribute to the efficiency of the organizing committees and secretariats. Further I would like to express my appreciation to my friends, Professor David F. Batten, Professor Borje Johansson, Pro fessor Kiyoshi Kobayashi, Professor Norio Okada, Dr. Seishin Sunao, and Dr. Bo Wijkmark. Without their collaboration, the conferences would not successfully end. I would also like to acknowledge the assis tance provided by the Swedish Council for Building Research during the production of this book. Last but not least, I would like to thank Hirokazu Tatanu and Jen nifer Wundersitz, who made invaluable contributions to the editorial process. Kazuhiro Yoshikawa Kyoto 1993 VI CONTENTS 1. Logistical Dynamics, Creativity and Infrastructure 1 by A. E. Andersson, D. F. Batten, K. Kobayashi a.nd K. Yoshikawa PART I. COSMO-CREATIVITY IN THE KNOWLEDGE SOCIETY 2. Economic Structure of the 21st Cent.ury 17 by A. E. Andersson 3. The Creative Person 31 by G.J.W. Smith 4. Synergetics as a Theory of Creativity and Its Planning 45 by H. Haken 5. High Technology Worker Mobility 53 by C. Anderstig and B. Harsman PART II. LOGISTICAL NETWORK AND CHAOTIC DYNAMICS 6. Some Consequences of 'Recurrence and Expansion': What Ca.n We Learn about Logistical Networks from Chaos? 67 by D. G. Saari 7. The Complexity of Economic Decisions -Anticipatory Human Behavior 81 by W.-B. Zhang 8. Incomplete Information and Logistical Network Equilibria 95 by K. Koba.yashi PART III. NETWORK DYNAMICS WITH COSMO-CREATIVITY 9. Entrepreneurship in the New Technological Regime 121 by N. Okada 10. Network Cities versus Central Place Cities: Building a Cosmo-Creative Constellation 137 by D. F. Batten 11. Economic Evolution and Urban Infrastructure Dynamics 151 by B. Johansson VII PART IV. INFRASTRUCTURE FOR THE COSMO-CREATIVE SOCIETY 12. Information Technology and Urban Spatial Structure 177 by K. Sasaki 13. Impacts of Developments in Telecommunication Systems on Travel Demand and the Location of Office Firms 197 by S. Mun 14. Spatial Equilibria of Knowledge Production with 'Meeting-Facilities' 219 by K. Kobayashi, S. Sunao and K. Yoshikawa 15. Dynamic Change of Urban Housing Stock, Construction and Demolition 245 by M. Kashiwadani 16. Optimal Regional Investment Control Using Hallmark Events 263 by M. Okumura, K. Yoshikawa and E. Hideshima PART V. PLANNING AND POLICY PERSPECTIVES 17. Creative Renaissance of the Osaka Bay Area - Towards a Cosmo-Creative Region in the 21st Century 281 by K. Yoshikawa List of Contributors 295 VIII CHAPTER 1 Logistical Dynamics, Creativity and Infrastruct ure Ake E. Andersson, David F. Batten, Kiyoshi Kobayashi and Kazuhiro Yoshikawa 1.1 INTRODUCTION Few would doubt that we are presently in the midst of an era of funda mental change. The powerful motor driving this latest revolutionary transformation of the post-industrial economies is generally thought to be technological. But such an explanation seems too narrow. The rev olutionary age in which we now find ourselves is also a cosmo-creative one. Cosmo-creative activities, such as global research and develop ment programs, are expanding as a result of the ongoing transition towards a knowledge-intensive society and some fundamental changes to the world's logistical networks. Logistical networks are basic to all forms of movement and human interaction. Essentially, they are those systems in geographical space which facilitate the movement of commodities, people and money in association with the production or consumption of goods and services. Such networks also facilitate knowledge accumulation and diffusion. Furthermore, they foster face-to-face contacts which are essential for creative exchanges. The overall outcome is that we are entering an era in which creativity - both individual and collective - is gradually emerging as a vital component of dynamic comparative advantage on a global scale. Logistical networks are observable and permanent (highly durable) systems of infrastructure which sustain all types of motion and interac tion between global networks of cities. There is hardware and software. The hardware is made up of physical networks which promote inter action - such as conference buildings, computers, transportation and 1 telecommunication systems. The software corresponds to those net works which embellish human infrastructure - such as education, the arts and science. Many of these softer networks are intangible to all except those intimately involved. 1.2 THE FOUR LOGISTICAL REVOLUTIONS It is instructive to explore the catalytic role of logistical networks with the help of qualitative dynamics. What emerges are some historical and social preconditions which have partly shaped the development of each and every metropolis during the last millennium, as well as some new preconditions which will affect their future development in to morrow's international economy. The well-recorded sequence of events which have transformed the world economy since the Carolingian era can most likely be explained by the changing structure of what we have broadly defined as logistical systems. In other words, the princi pal changes of population, production, trade, culture and institutions are triggered by slow but steady changes in the world's logistical net works. In recent years, sudden and unexpected discontinuities have be come central issues in political and planning debates about the future of metropolises. As discussed in the contribution to this volume by An dersson, it turns out to be useful to look back into history for evidence of such behaviour in the evolution of cities as a global family. One illu minating example is the path-breaking analysis by the mathematician, Alistair Mees (1975). He took the hypothesis of Henri Pirenne (1925) as the starting point for an analysis of sudden changes in the special ization pattern of a set of trading regions. Pirenne's hypothesis stated that the central cause of the revival of European cities and towns in the late middle ages was the emergence of free trade and consequent improvements to the transportation systems. Andersson has since broadened the Pirenne-Mees analysis to a more general one, claiming that the sequence of fundamental changes in the world economy over the last millennium can be explained by the changing structure of logistical systems. In other words, the great structural changes of production, location, trade, culture and institu tions have been triggered by slow but steady changes to the associated logistical networks. The development of cities and their inter-regional economic relations in the world from the years 1000 A.D. until 2000 A.D. may be perceived in terms of four logistical revolutions, namely the following: (1) Emerging in Italy during the 11th century and ending in North ern Europe during the 16th century, 2
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