Urban Dynamics and the New Firm; the Position of Amsterdam in the Northern Rimcity

In the literature, cities are usually seen as incubators for new economic activities. In their well-known study on the economy of New York, Hoover and Vernon (1959) already indicated a concentration of innovations in parts of Manhattan. A focal point in their current of thought is the importance of ‘external economies’ to small firms and for developing new activities. Because of the many uncertainties these enterprises have to deal with, they settle in areas where “sudden needs could be easily met from sources outside the plant”.