INDUSTRY CLUSTERS, KNOWLEDGE SPILLOVERS AND THE PLANNING PROCESS: A COMPARATIVE STUDY OF CREATIVE INDUSTRY CLUSTERS IN SYDNEY
LAURA SCHMAHMANN
A thesis in fulfilment of the requirements for the degree of Master of Philosophy
Australian Graduate School of Urbanism Faculty of the Built Environment
March 2016
Originality Statement
I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, or substantial
proportions of material which have been accepted for the award of any other degree or diploma at UNSW or any other educational institution, except where due acknowledgement is made in
the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the intellectual content
of this thesis is the product of my own work, except to the extent that assistance from others in the project's design and conception or in style, presentation and linguistic expression is
acknowledged.’
Abstract
Knowledge spillovers are one of the primary drivers of industry clustering. Existing literature assumes that knowledge flows freely between firms within a cluster through non-market interactions and there is no direct compensation for the producer of the knowledge. However, there is limited empirical evidence of how these knowledge spillovers occur.
By comparing two different approaches to planning for employment in Sydney, this thesis seeks to understand the extent to which localised knowledge spillovers drive local industry clustering. Surry Hills contains a cluster of creative industries which evolved organically over the past few decades from a former clothing manufacturing cluster, whereas the Australian Technology Park (ATP) in Redfern is a State-owned and master-planned technology park established to facilitate start-up companies within high-tech industries.
Qualitative interviews with firm representatives based in each precinct were conducted to understand why each firm chose to locate in Surry Hills or the ATP and the geographic extent of their professional networks. Subsequently, creative workers within each firm were interviewed to understand the how knowledge is developed and shared within the cluster and what role the firm’s location plays.
The analysis concludes that, in the context of this research, true localised knowledge spillovers as defined within the literature are not driving the clustering of firms and the role of knowledge spillovers in driving localisation economies is overstated. Drivers of where a firm locates vary at different geographical scales. At the local scale, property market dynamics are a significant driver of firm location and clustering.
This thesis raises important questions about the role of planning in facilitating the development of industry clusters and the scale at which planning for employment occurs.
Acknowledgments
I would like to thank my supervisors Professor Bill Randolph and Dr Marcus Spiller for their support and encouragement over the past 18 months. I particularly want to thank Bill for challenging me (pushing me). I really enjoyed our discussions about the world of planning. Marcus, thank you for your insightful comments and observations which are always well-considered.
I would also like to thank the college of professionals that is SGS Economics and Planning for allowing me to take time off to study over the last 18 months and being actively interested in my research.
Additionally, thank you to UrbanGrowth NSW for supporting me through the UrbanGrowth NSW Top-up Scholarship. I hope that my research is insightful and relevant to its role in coordinating urban renewal across Sydney and NSW.
Finally, I must thank my friends and family for supporting me throughout the last 18 months, and occasionally acting interested in my research topic.
Professional editor, Tara Madden, provided copyediting and proofreading services, according to the guidelines laid out in the university-endorsed national ‘Guidelines for editing research theses’.
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Table of contents
01 INTRODUCTION 12
1.1 Introduction 131.2 Researchcontext 131.3 Planningforspillovers 141.4 Researchquestion 181.5 Researchmethods 181.6 Thesisstructure 20
02 LITERATURE REVIEW 22
2.1 Introduction 232.2 Resurgenceoftheinnercity 232.3 Agglomerationeconomies 272.4 Industryclustering(localisationeconomies) 302.5 Knowledgespillovers 332.6 Industryclustersandknowledgespillovers framework 442.7 Gapswithintheliterature 442.8 Conclusion 45
03 GROWTH OF THE CREATIVE INDUSTRIES IN SURRY HILLS AND THE ATP 46
3.1 Introduction 473.2 EmploymentclustersinSydney 473.3 PlanningforemploymentinSydney 503.4 SurryHills 503.5 AustralianTechnologyPark 593.6 Conclusion 66
04 METHODOLOGY 68
4.1 Introduction 694.2 Researchquestion 694.3 Casestudyapproach 694.4 Networkanalysis 704.5 Overviewofmethod 704.6 Ethicsapproval 794.7 Conclusion 79
05 FIRM LOCATION, NETWORKS AND KNOWLEDGE SHARING 80
5.1 Introduction 815.2 SurryHills 815.3 AustralianTechnologyPark 925.4 Conclusion 102
06 COMPARATIVE ANALYSIS OF CREATIVE CLUSTERS, KNOWLEDGE SPILLOVERS AND THE PLANNING PROCESS 104
6.1 Introduction 1056.2 Analysisofknowledgespillovers 1056.3 Otherdriversoffirmlocation 1106.4 Conclusion 114
07 CONCLUSION 116
7.1 Introduction 1177.2 Researchquestions 1177.3 Recommendations 1187.4 Areasforfurtherresearch 1197.5 Concludingremarks 119
REFERENCES 120
APPENDIX A: OVERVIEW OF METROPOLITAN PLANS FOR SYDNEY 1948-2014 127
APPENDIX B: DATA ANALYSIS 132
APPENDIX C: DETAIL ON DATA ANALYSIS, GEOGRAPHIES AND INDUSTRY CODES 160
APPENDIX D: INTERVIEW QUESTIONS: FIRM INTERVIEWS 164
APPENDIX E: INTERVIEW QUESTIONS: WORKER INTERVIEWS 165
APPENDIX: ETHICS APPROVAL 166
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List of figuresFigure1: GoalsanddirectionswithinAPlanforGrowingSydney 15
Figure2: GlobalEconomicCorridor 16
Figure3: GlobalSydney 17
Figure4: Overviewofmethod 19
Figure5: Employmentbyindustry(shareoftotal)inAustralia1900-2010 24
Figure6: Whatmightcausespecialisation? 27
Figure7: Effectivejobdensity,Sydney 28
Figure8: Creativeindustryclusters:mixofmixes 32
Figure9: Face-to-facecontact 35
Figure10: Thestructureanddynamicsoflocalbuzzandglobalpipelines 36
Figure11: SurryHillsandtheATPinthecontextoftheGlobalEconomicCorridor 48
Figure12: SurryHillsandtheATPinthecontextoftheinnercityofSydney 48
Figure13: PlaceofresidenceofworkersemployedinthecreativeindustriesacrossSydney 49
Figure14: PlaceofworkforworkersemployedinthecreativeindustriesacrossSydney 49
Figure15: SurryHillscontextmap 51
Figure16: SurryHillsdistrictstructureplan 53
Figure17: ClustersofcreativeindustriesandICT(2001) 55
Figure18: Objective7.3–Supportthedevelopmentofcreativeindustries 55
Figure19: PrecinctdirectionsforSurryHills 56
Figure20: IndustryclusterswithintheCityofSydney 57
Figure21: Gentrification 58
Figure22: ATPcontextmap 59
Figure23: MapofATPprecinct 60
Figure24: EveleighrailyardspriortodevelopmentofATP 61
Figure25: EvidenceofcommunitybacklashagainstATP 62
Figure26: OriginalmasterplanforATP 63
Figure27: ArtistsimpressionofoneofthenewbuildingsproposedfortheATP 65
Figure28: LocationsoffirmswithinSurryHills 76
Figure29: LocationsoffirmswithintheATP 77
Figure30: LocationofcreativeindustriesacrossSydney(1dot=100jobs) 87
Figure31: Atlassiancasestudy 100
Figure32: CountyofCumberlandfunctionalplan(1948) 127
Figure33: SydneyRegionOutlinePlan(1968) 127
Figure34: Sydneyintoitsthirdcentury(1988) 127
Figure35: Citiesforthe21stCentury(1995) 128
Figure36: ShapingourCities(1998) 129
Figure37: CityofCities:MetropolitanStrategyforSydneyto2031(2005) 130
Figure38: MetropolitanPlanforSydneyto2036(2010) 131
Figure39: APlanforGrowingSydney(2014) 132
Figure40: Totaljobs1991-2011–SurryHills 133
Figure41: Trendsinkeyindustries–SurryHills 134
Figure42: Trendsinkeyindustries–CityofSydney 134
Figure43: Trendsinkeyindustries–SydneyGMA 135
Figure44: Industriesofemployment(ANZSIC1digit)2011–SurryHills 136
Figure45: Industriesofemployment(ANZSIC1digit)2011withcreativeindustries–SurryHills
137
Figure46: Growth/declineinindustriesofemployment(ANZSIC1digit)between2006and2011inSurryHills(absolute)
137
Figure47: Growth/declineinindustriesofemployment(ANZSIC1digit)between2006and2011inSurryHills(proportionate)
141
Figure48: Occupationsofemployment(ANZSCO1digit)2011–SurryHills 144
Figure49: OriginofworkerstravellingtoSurryHills,2011 145
Figure50: Trendsinmodeshare–SurryHills 146
Figure51: Comparisonofmodeshare–SurryHills 147
Figure52: Totaljobs1991-2011–ATP 148
Figure53: TotaljobsATP2006-2014 149
Figure54: EmploymentbybuildingacrosstheATP 150
Figure55: Trendsinkeyindustries–ATP 150
Figure56: Trendsinkeyindustries–CityofSydney 150
Figure57: Trendsinkeyindustries–SydneyGMA 150
Figure58: Industriesofemployment(ANZSIC1digit)2011–ATP 151
Figure59: Industriesofemployment(ANZSIC1digit)2011–ATP 151
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Figure60: Growth/declineinindustriesofemployment(ANZSIC1digit)between2006and2011intheATP(absolute)
151
Figure61: Growth/declineinindustriesofemployment(ANZSIC1digit)between2006and2011inATP(proportionate)
151
Figure62: Occupationsofemployment(ANZSCO1digit)2011–ATP 154
Figure63: OriginofworkerstravellingtoATP,2011 157
Figure64: Trendsinmodeshare–ATP 158
Figure65: Comparisonofmodeshare–ATP 159
Figure66: ComparisonofboundariesforSurryHills1991-2011 160
Figure67: ComparisonofboundariesforATP1991-2011 161
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List of tables
Table1: Thefifthwave 23
Table2: Reviewofempiricalstudies 37
Table3: Researchquestions,methods,datasourcesandanalysis 71
Table4: Contextinterviews(SurryHills) 72
Table5: Contextinterviews(ATP) 72
Table6: FirmsinSurryHills 73
Table7: FirmswithintheATP 74
Table8: WorkersbasedinSurryHills 78
Table9: WorkersbasedwithintheATP 79
Table10: ReasonsforlocatinginSurryHills 82
Table11: ReasonsforlocatingwithintheATP 93
Table12: Summaryofanalysisofthemechanismsofknowledgespillovers 109
Table13: Top5reasonsforlocatinginSurryHillsandtheATP 110
Table14: ANZSIC4digitindustriesofemployment(≥1%totalemployment),1996,SurryHills 138
Table15: ANZSIC4digitindustriesofemployment(≥1%totalemployment),2011,SurryHills 140
Table16: ANZSCO4digitoccupationsofemployment(≥1%totalemployment),1996,SurryHills 142
Table17: ANZSCO4digitoccupationsofemployment(≥1%totalemployment),2011,SurryHills 143
Table18: ANZSIC4digitindustriesofemployment(≥1%totalemployment),1996,ATP 152
Table19: ANZSIC4digitindustriesofemployment(≥1%totalemployment),2011,ATP 153
Table20: ANZSCO4digitoccupationsofemployment(≥1%totalemployment),1996,ATP 155
Table21: ANZSCO4digitoccupationsofemployment(≥1%totalemployment),2011,ATP 156
Table22: Comparisonofindustrycategories 162
Table23: Creativeindustries(ANZSIC4digitcategories) 163
List of Abbreviations
ABS Australian Bureau of Statistics
ANZSCO Australian and New Zealand Standard Classification of Occupations
ANZSIC Australian and New Zealand Standard Industry Classification
ATP Australian Technology Park
ATPSL Australian Technology Park Sydney Limited
BTS Bureau of Transport Statistics
CBD Central Business District
CEO Chief Executive Officer
EJD effective job density
EOI expression of interest
GMA greater metropolitan area
IBC International Business Centre
ICT information and computer technology
JTW journey to work
KBUD knowledge-based urban development
LGA local government area
LKS localised knowledge spillovers
LQ location quotient
NIC National Innovation Centre
NICTA National ICT Australia
R&D research and development
SH Surry Hills
SHFA Sydney Harbour Foreshore Authority
SREP Sydney Regional Environmental Plan
TZ travel zone
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Introduction
While knowledge and creativity have always been relevant to
industries within the economy, they are now seen as a key driver of
growth.
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CHAPTER 1: INTRODUCTION
1.1 Introduction
Thisthesisconsidershowthespatialplanningprocessinourmajorcitiesdealswithemergingneweconomicdriversofmetropolitaneconomiesinthe21stCentury.Basedaroundindustriesinwhichknowledgeisaprimaryinput,theseNewEconomyindustriesareincreasinglylocatingincentralcityneighbourhoods,reversinglocationaltrendstowardsthesuburbanisationofkeyemploymentsectorsinpreviousdecades.ItisarguedthatakeydriveroftheNewEconomyisthespilloversofknowledgebetweenfirmswhichco-locateinthesenewinnercityclustersofindustries.However,theevidenceforsucheffectsisunclear,despitemanyindustriallocationpoliciesbeingbasedontheconcept.ThisthesisexplorestherolespillovereffectsareplayingintwocontemporaryexamplesofknowledgeeconomyclustersinSydneyandtherolespatialplanninghasplayedtogeneratethe outcome.
1.2 Research context
Overthepasttwodecades,citieshavebecomethefocalpointofanincreasinglyglobaleconomy.Sassen(2001),analysingNewYork,LondonandTokyo,hasdocumentedtheriseoftheglobalcityasakeylocationforspecialisedservicefirms.However,thistrendisnotconfinedtothesethreecities–itisawidespreadphenomenonandSydneyisoftentoutedasAustralia’sownglobalcity.
ItisarguedthatwehaveenteredaneweraofeconomicdevelopmentdescribedastheNewEconomywhichistechnologydrivenandknowledgebased(Hutton,2010).Thesuccessfulcitiesofthenext50yearsareexpectedtobethosewhicharehighlydynamicandfocusedonthedigital,knowledgeandcreativeindustries(Montgomery,2008).
Agrowingemphasisonthecreativeindustries,asasubsetoftheknowledgeindustries,hasbeenobservedwithintheliterature,withFlorida(2002)arguablythemostwell-knowncontributor.Thecreativeindustriesarebroadlydefinedas
“thoseindustrieswhichhavetheirorigininindividualcreativity,skillandtalentandwhichhaveapotentialforwealthandjobcreationthroughthegenerationandexploitationofintellectualproperty”(Bakhshi,Freeman,&Higgs,2012,p.6).
Thecreativeindustriescomprisedigitalandsoftwareindustriesaswellasmoretraditionaldesign-relatedindustriessuchasarchitecture,performanceandvisualarts(Bakhshietal.,2012).Whileknowledgeandcreativityhavealwaysbeenrelevanttoindustrieswithintheeconomy,theyarenowseenasakeydriverofgrowth.
Theevolutionoftheglobalised,knowledge-basedeconomyhasspatialimplications.Theinnercityisincreasinglybecomingthecentreoftheknowledgeeconomy,withamoveawayfromsuburbanbusinessparkstowardsvibrantinnercityemploymentdistricts,identifiedbyKatzandWagner(2014)asinnovationdistricts.Gentrification,thespatialprocesswherebythehighlyskilledlocatethemselvesresidentiallyinrelationtotheirjobs,commonlyconcentratedwithintheCentralBusinessDistrict(CBD),canexplaintheattractivenessoftheinnercitytothehighlyeducatedandskilledworkforce(Storper,2013). However,theresurgenceoftheinnercityhasalsobeendrivenbyanincreasingacknowledgementofthebenefitsofagglomerationeconomiesandtheclusteringofindustries.
Thenotionofagglomerationisnotnovel.Intheeconomicgeographyliteratureithasevolvedfroma19thCenturyconceptoflocalisationeconomiesbasedonthemetalmanufacturingindustry(Marshall,1920),toa21stCenturyconceptbroadlyconceivedastheNewEconomicGeography(Moretti,2012)ofglobalcitiescontainingdenseurbancoresandclustersofknowledgeindustries.
Moregenerally,agglomerationis“atermusedinspatialeconomicstodescribethebenefitswhichflowtofirmsfromlocatinginareaswhichhaveahigherdensityofeconomicactivity”(SGSEconomicsandPlanning,2012,p.7).Therearetwotypesofagglomerationeconomies:
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― urbanisation economies,whichinvolveeconomicinteractionsbetweenindustriesandarisefromalargenumberofdifferentindustrieslocatedincloseproximitytoeachother(TheWorldBank,2009,p.129)
― localisation economies,whichinvolveeconomicinteractionswithinanindustryandarisefromalargenumberoffirmswithinthesameindustryclusteringinthesamelocation(TheWorldBank,2009,p.129).
ThreekeyforcesofagglomerationwidelydocumentedwithintheliteraturearedrawnfromconceptsidentifiedbyMarshall(1920).Moretti(2012)summarisestheseas:
― Thick labour markets:themoreworkersandjobs,themorelikelythatpeoplewillfindajobthatbettermatchestheirskills.
― The presence of specialised service providers: proximitytoservices,suchasadvertisingandlegalsupport,isbeneficialforinnovativefirmsasitallowsthemtofocusoninnovationwithoutbeingpreoccupiedwithsecondaryfunctions.
― Knowledge spillovers:socialinteractionsamongknowledgeworkersgeneratelearningopportunitiesthroughtheflowanddiffusionofknowledgewhichenhancesinnovationandproductivity.
Localisationeconomiesareoftenreferredtoasindustryclusters.Anindustryclusteris“ageographicallyproximategroupofinterconnectedcompaniesandassociatedinstitutionsinaparticularfield,linkedbycommonalitiesandcomplementarities”(Porter,2000,p.254).Traditionally,industriesclusteredinlocationswherethephysicalconditionswereappropriateforthatparticularindustry.Now,industriesareconsideredtoclusterwherethereiscultureandactivitywithinthemetropolitancore.
Theliteratureidentifiesknowledgespilloversasthekeydriverofindustryclusteringandaredefinedastransfersofknowledgebetweenindividualsandfirms(Kellyetal.,2013,p.3).Knowledgespilloversareimplementedthroughnon-marketinteractionsandknowledgespillsoverbetweenfirmswithoutdirectcompensationfortheproduceroftheknowledge(Huber,2007,p.50).Theexchangeofknowledgeoccursasfirmstrade,asemployeesmovebetweenorganisationsorthroughinformallinks.Recently,theconceptofbuzzhasbeenintroducedwithintheliterature(Storper&Venables,2004)todescribethesocialenvironmentwhereknowledgespilloversoccur.Glaeser(2000)claimsthatcitiesprovidetheclearestexamplesofknowledgespillovers.However,theevidencesuggeststhatknowledgespilloversaremorecomplicatedthanthis,andthiswillbediscussedinmoredetailinChapter2.
Whilecontemporaryliteraturecitestheideaofknowledgespilloversasabenefitoftheclusteringofknowledgeindustries,thereisstilllimitedempiricalevidenceofthemechanismsofknowledgespillovers(Feldman,2000;Huber,2012).ThisthesissetsouttoexaminetheroleofspillovereffectsinSydney’screativeindustryclusters.
1.3 Planning for spillovers
Ifknowledgespilloversarethekeydriverofindustryclusteringitisimportanttounderstandhowtheywork.TheDepartmentofPlanningandEnvironmentistheNSWgovernmentagencyresponsibleforSydney’smetropolitanplanning¹.TheDepartment’smaingoalistofacilitatesustainablegrowthandemployment(NSWDepartmentofPlanningandEnvironment,2015).ItreleasesanewmetropolitanstrategyforSydneyapproximatelyeveryfiveyears.
ThesemetropolitanstrategiesmakeitclearthattheNSWGovernmentisfocusedondrivingindustryclusteringasakeyplanningtask.Metropolitanplanningdocumentsmakethisakeypriorityforstrategicplanningandhaveadoptedtheeconomicgeographylexicon,despitethelackofanunderstandingoftherelationshipbetweentheplanningprocess,industryclusteringandknowledgespillovers.Thus,Sydneypresentsanidealcasestudyinunderstandingthesedynamics.
ThemostrecentmetropolitanstrategyforSydney, A Plan for Growing Sydney,releasedbytheNSWDepartmentofPlanningandEnvironment(2014),containsastrongeconomicfocuswithamajorgoalbeing‘acompetitiveeconomywithworld-classservicesandtransport’(refertogoal1inFigure1).WhilethePlancontainsfourgoals,particularemphasisisplacedontheeconomicgoal,whichisapparentwhencomparingthenumberofdirectionsdedicatedtoachievingit:halftheemphasisisoneconomicissuesanddirections.
¹ThenewGreaterSydneyCommissionwillbeincreasinglyresponsibleforSydney’smetropolitanplanninginthefuture
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GOAL 1: A COMPETITIVE ECONOMY WITH WORLD-CLASS SERVICES AND TRANSPORT
Direction1.1: GrowamoreinternationallycompetitiveSydneyCBD
Direction1.2: GrowGreaterParramatta-Sydney’ssecondCBD
Direction1.3: EstablishanewPriorityGrowthArea-GreaterParramattatotheOlympicPeninsula
Direction1.4: TransformtheproductivityofWesternSydneythroughgrowthandinvestment
Direction1.5: EnhancecapacityatSydney’sgatewaysandfreightnetworks
Direction1.6: ExpandtheGlobalEconomicCorridor
Direction1.7: Growstrategiccentres-providingmorejobsclosertohome
Direction1.8: EnhancelinkagestoregionalNSW
Direction1.9: Supportpriorityeconomicsectors
Direction1.10: PlanforeducationandhealthservicestomeetSydney’sgrowingneeds
Direction1.11: Deliverinfrastructure
GOAL 2: A CITY OF HOUSING CHOICE, WITH HOMES THAT MEET OUR NEEDS AND LIFESTYLES
Direction2.1: AcceleratehousingsupplyacrossSydney
Direction2.2: AccelerateurbanrenewalacrossSydney-providinghomesclosertojobs
Direction2.3: Improvehousingchoicetosuitdifferenceneedsandlifestyles
Direction2.4: Delivertimelyandwellplannedgreenfieldprecinctsandhousing
GOAL 3: A GREAT PLACE TO LIVE WITH COMMUNITIES THAT ARE STRONG, HEALTHY AND WELL CONNECTED
Direction3.1: Revitaliseexistingsuburbs
Direction3.2: Createanetworkofinterlinked,multipurposeopenandgreenspacesacrossSydney
Direction3.3: Createhealthybuiltenvironments
Direction3.4: PromoteSydney’sheritage,artsandculture
GOAL 4: A SUSTAINABLE AND RESILIENT CITY THAT PROTECTS THE NATURAL ENVIRONMENT AND HAS A BALANCED APPROACH TO THE USE OF LAND AND RESOURCES
Direction4.1: Protectournaturalenvironmentandbiodiversity
Direction4.2: BuildSydney’sresiliencetonaturalhazards
Direction4.3: Managetheimpactsofdevelopmentontheenvironment
FIGURE 1: Goals and directions within A Plan for Growing Sydney
Source: (NSW Department of Planning and Environment, 2014, p. 1)
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FIGURE 2: Global Economic Corridor
Source: (NSW Department of Planning and Environment, 2014, p. 45)
ThisproposalappearstobebasedonanunderstandingthattheCorridor’seconomicdominanceisrelatedtothenotionofagglomerationeconomies.ThePlan(NSWDepartmentofPlanningandEnvironment,2014,p.46)suggeststhat“Businessesbenefitfromproximitytootherbusinessesandserviceswhentheyareclusteredinafew,largercentres”.
AccordingtothePlan(NSWDepartmentofPlanningandEnvironment,2014),itisexpectedthatbyextendingtheGlobalEconomicCorridor,additionalcentreswillbeabletohookintothebenefitsassociatedwiththisagglomerationanddriveemploymentandeconomicgrowth.However,itcanbearguedthatthisfailstoappreciatetheCorridor’shistoricalcontext–theCorridor’sidentificationrecognisesanexistingclusterofjobs,ratherthanapolicytocreateacluster.
Additionally,thePlanrecognisesthatthegrowthofpriorityindustries(including,amongothers,thecreativeindustries,digitaleconomyandprofessionalservices)requiresanunderstandingofthelanduseneedsoftheseindustries.Itisexpectedthatbenefitswillflowfrom“theemergenceofindustryclustersincost-effectivelocations”(NSWDepartmentofPlanningandEnvironment,2014,p.52).Similarly,theNSWGovernmentproposestoworkwithlocalgovernmenttoputinplaceenablingplanningcontrolswhichwillencourageandpromoteclustersthatfocusonhighereducationfacilities,healthinfrastructureandresearchinstitutions.However,APlanforGrowingSydneydoesnotdefinewhatanenablingplanningcontrolisorhowitmightpromoteclustering.ThissuggestsasignificantgapinhowtheNSWGovernmentunderstandswhatdrivesindustryclusteringinpractice.
GlobalSydneysitswithintheGlobalEconomicCorridor.ThePlanidentifiesitasatargetforincreasingSydney’sinternationalcompetitivenessasaglobalcity.GlobalSydneyhasbeendividedinto10precincts,includingSydneyCBDandNorthSydneyCBD,aswellasrenewalareassuchastheBaysPrecinct,CentraltoEveleighandsmalleractivitycentressuchasSurryHills(refertoFigure3).ThePlanintendsfortheseprecinctstoprovidecapacityforadditionalmixed-usedevelopmentincludingoffices,retail,tourism,arts,culture,servicesandhousing,whichwillsupporttheCBD.
ThefocusofstrategicplanningoneconomiccompetitivenessinSydneyisnotnew.AreviewofthemetropolitanstrategiesdevelopedforSydneyoverthepast65yearsdemonstratestheevolutionofapproachesofplanningforemploymentfromcentresofemploymenttoeconomicclustersandcorridors.ThisisdiscussedinfurtherdetailinChapter3(andAppendixA).
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FIGURE 3: Global Sydney
Source: (NSW Department of Planning and Environment, 2014, p. 27)
ItisnotjusttheNSWGovernmentthathasjumpedontheagglomerationbandwagon.LocalgovernmentsacrossSydneyincludingtheCityofSydney(2013)andParramattaCouncil(2011),industrygroupsandadvocatessuchastheCommitteeforSydney(2013)andtheprivatesectorincludingDeloitte(2015)andPricewaterhouseCoopers(2015)promoteandendorsethisapproach.Mostrecently,WesternSydneyUniversityreleasedadiscussionpaperthatpromotestheconceptofaninnovationcorridorforWesternSydney(McNeill,2015)modelledontheGlobalEconomicCorridor.
WithasignificantpolicyfocusonfacilitatingindustryclusteringacrossSydney,theneedforabetterappreciationastowhatdrivesindustryclusteringisessential.Ifknowledgespilloversareconsideredakeyfactordrivingindustryclustering,thenunderstandingthisrelationshipwillfacilitatebetterrecognitionofwhetherthereisaroleforplanninginindustryclustering.Thisthesissetsouttodojustthat.
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1.4 Research question
Theprimaryfocusofthisthesisistoanswerthefollowingresearchquestion:
To what extent do localised knowledge spillovers drive local industry clustering?
Thefollowingsub-questionswillalsobeexploredthroughoutthisthesis:
i. Where do workers source their knowledge (informal networks, formal networks or both)?Thisquestionaimstounderstandthemechanismsofknowledgespilloverandwhetherlocationhasanybearingonthis.
ii. Where are connections formed and how do they evolve into a working relationship?Thetargetofthisquestionistounderstandwhetherconnectionsareformedwithinthegeographicboundaryoftheindustryclusterandhowtheseconnectionsevolveintoarelationshipwherevaluableknowledgeiscreatedandtransferred.
iii. Why do firms choose to locate in a local industry cluster? Thisquestionaimstoidentifywhetherfirmschoosetolocateinanindustryclusterduetotheperceivedbenefitsofknowledgespillovers.
iv. What role does planning play in promoting localised knowledge spillovers?Understandingtheroleofplanningwillascertainwhethercurrentpolicyapproachesandzoningmechanismsthatpromoteindustryclusteringalsodirectlyorindirectlypromotelocalisedknowledgespillovers.Thisquestionwillalsoaddresswhetherplanningispotentiallycurtailinglocalisedknowledgespilloversiftheyaremoreprevalentinaclusterwhichhasdevelopedorganicallyratherthanthroughplanning.
Inansweringthesequestions,thisthesiswillprovideabetterunderstandingoftherelationshipbetweenindustryclustering,knowledgespilloversandtheplanningprocess.
1.5 Research methods
Thisthesisstudiesthecreativeindustriesbecauseoftheirincreasingpresencewithintheeconomicgeographyliteratureandgovernmentpolicy.Itadoptsacasestudyapproach,comparingtwocreativeindustryclustersintheinnercityofSydney:SurryHillsandtheAustralianTechnologyPark(ATP)inRedfern.
SURRY HILLSSurryHillscontainsaclusterofcreativeindustrieswhichevolvedorganicallyoverthepastfewdecadesfromaformerclothingandlightmanufacturingcluster.Thereislimitedevidenceofstrategicplanninginitsgenesis,althoughboththestateandlocalgovernmentsinvolvedwouldliketocontinuetofacilitatethefunctionandgrowthofthecentre.Despitethis,thereislimitedrecognitionoftheareaasanemploymentcentrewithinstateorlocalgovernmentplanning,otherthanSurryHillsbeingaprecinctinGlobalSydneyasidentifiedearlier.
AUSTRALIAN TECHNOLOGY PARKTheATPsitsonthesiteofformerheavyindustriescentredonstaterailyards.TheredevelopmentofthisbrownfieldsitewasannouncedaspartoftheBuildingBetterCitiesProgramintheearly1990s.Thevisionwastoprovideanenvironmentforcollaborativeresearchandknowledgesharing.ThesitewasNSWGovernmentplannedandownedandhasremainedinNSWGovernmentownershipuntilrecentlywhenthestateagencyUrbanGrowthNSW,whocurrentlymanagestheATP,soldthesite.TheATPisalsopartofGlobalSydney,asitsitswithintheCentraltoEveleighprecinct,adjacenttoSurryHills.
ThethesisassumesthatSurryHillsandtheATParebonofideclustersandtheresearchquestionwillbeansweredinthiscontext.Thetwocasestudiesarecomparableduetotheir
proximitytoeachotheraswellaslandusehistory,havingbothevolvedfromformermanufacturinguses.Thekeycomparisonistheapproachtoplanninganddevelopmentandthelevelofgovernmentinterventioninthisprocess:SurryHillsformedlargelywithoutexplicitplanningwhiletheATPisafullyplannedentity(organicversusplanned).Contrastingthetwocasestudieswillalsoassistinunderstandingthekeydriversofindustryclustering,whichplanningprocessispotentiallymoresuccessfulandthereforeanylessonsforplanningforemploymentinthefuture.ThecontextandjustificationforthesecasestudiesisfurtherexploredinChapter3.
Asidefromtheapproachtoplanning,comparisonscanalsobemadebetweenthesetwocasestudiesintermsofthebuiltenvironment.SurryHillscanbecharacterisedashavingafinegrain,permeablebuiltenvironment,withaconcentrationofwarehousespacesassociatedwithitsformerlightmanufacturingpast.Thesewarehousespacesareeasilyadaptabletodesignstudios.ThescaleoftheATPismarkedlydifferentwithmuchlargerwarehousespacesthatwereonceusedtomanufacturerailwaycarriages.Thesewarehousesaremuchlessadaptabletomodernemploymentuses.
Thebuiltenvironmentalsoreflectsthehistoricalownershipstructure.ThefragmentedownershipofSurryHillshasresultinadiversebuiltenvironment,comparedtothesingleownershipoftheATP.Comparingthecharacteristicsofthebuiltenvironmentwillpotentiallyhaveimplicationsforindustryclusteringandknowledgespillovers.
OVERVIEW OF METHODAconsiderationofquantitativeandqualitativeresearchmethodshasbeenadoptedtoensurerobustandvalidresults.TheresearchmethodologyforthisresearchissummarisedwithinFigure4andisfurtherdetailedin Chapter4.
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FIGURE 4: Overview of method
Source: Author
Compara�ve analysis
Tracing knowledge spillovers
Context analysisLiterature review
Resurgence of the inner city
Agglomera�on economies
Industry clustering
Knowledge spillovers
State and local government strategic
plans
Historical documents
Interviews with firms (stated preference
survey)
Interviews with workers
Knowledge spillovers framework
Context interviews
Employment data from Census
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1.6 Thesis structure
Thisthesisisstructuredintosevenchaptersasdetailedbelow.
CHAPTER 2: LITERATURE REVIEWChapter2reviewstheexistingbodyofliteraturerelatingtotheresurgenceoftheinnercityandagglomerationeconomies.Itfocusesonexistingstudiesofknowledgespilloversandthevaryingperspectivesrelatingtothisconcept.Keycharacteristicsofindustryclustersareidentifiedalongwithaframeworkfortheanalysisofknowledgespillovers.
CHAPTER 3: GROWTH OF THE CREATIVE INDUSTRIES IN SURRY HILLS AND THE ATPThroughareviewofgovernmentpolicyandhistoricaldocuments,Chapter3providesthecontextforthetwocasestudies.Thisincludestheirevolutionfrommanufacturingcentreswithintheinnercitytocreativeindustryclusters.Chapter3alsosummarisestheanalysisofsecondaryquantitativedatathattracksthegrowthofthecreativeindustriesinbothSurryHillsandtheATPfrom1991to2011.
CHAPTER 4: METHODOLOGYChapter4furtherdetailsthemethodologicalapproachadoptedforthisthesisincludingbothquantitativeandqualitativemethods.Withafocusonqualitativeinterviews,thechapteridentifiesthetypesoffirmsandworkersinterviewedandtheobjectivesoftheinterviews.
CHAPTER 5: FIRM LOCATION, NETWORKS AND KNOWLEDGE SHARING Chapter5analysesthequalitativedatafromtheinterviewsconductedaspartofthisresearchwithafocusondriversoffirmlocation,networksoffirmsandworkers,definingknowledgeandprocessesofknowledgesharing.ComparisonsaredrawnbetweenSurryHillsandtheATP,andquestionsareraisedregardingthemaindriversoffirmlocation.
CHAPTER 6: COMPARATIVE ANALYSIS OF CREATIVE CLUSTERS, KNOWLEDGE SPILLOVERS AND THE PLANNING PROCESSChapter6containsananalysisofthemechanismsofknowledgespilloverwithinSurryHillsandtheATPdrawingontheresultsfromChapter5.Thechapteralsodiscussesotherdriversoffirmlocationthatarenotnecessarilycapturedwithintheexistingeconomicgeographyliterature,includingthepropertymarket.Finally,thischapterexplorestheroleofplanninginfacilitatinglocalemploymentclusters,includingcreatingnewclustersandmaintainingexistingclusters.
CHAPTER 7: CONCLUSIONTheanalysisconductedwithintheprecedingchaptersissummarisedinChapter7inresponsetothemainresearchquestionandeachofthesub-questionsproposedaspartofthisresearch.Thischapteridentifiesanumberofpolicyrecommendationshavebeenproposedandareasforfurtherresearch.
21
22
Literature review
The evolution of the economy has spatial implications, and
the inner city has increasingly become the focus of the
knowledge economy.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Thischapteranalysestheexistingbodyofliteraturerelatingtotheresurgenceoftheinnercity,providingasnapshotofhowaNewEconomyhasevolvedandsubsequentlyhowthiseconomicrestructuringisimpactingthespatialstructureofourglobalcities.Thisevolutionissupportedbyanalysisoftheliteratureonagglomerationeconomieswhichhasevolvedfroma19thCenturyconceptbasedonmanufacturing,toa21stCenturyconceptbasedontheknowledgeeconomy.
Theliteraturereviewthendelvesintolocalisationeconomiesasasubsetofagglomerationeconomies,particularlyknowledgeindustryclusters.Theattentionthenturnstoknowledgespilloversasaforce(andbenefit)ofclustering,whichistheprimaryfocusofthisthesis.Withinthebodyofliteratureonknowledgespillovers,somecontributionsseektorationalisethetheory,otherdiscussionsconsidertheconditionsthatfacilitateknowledgespilloversandanumberofempiricalstudiesseektotraceknowledgespilloversthroughvariousmethodsofanalysis.Substantialliteraturechallengestheconceptofknowledgespilloversduetothedifficultyintracingthemovementofknowledge.
Throughanalysisofthisliterature,thischapteridentifiessomeofthekeycharacteristicsofindustryclustersaswellasaframeworkfortheanalysisofknowledgespillovers.Thechapterconcludesbyidentifyinggapswithintheliterature,reinforcingthefocusofthisstudyandtheopportunitytocontributetotheexistingbodyofliterature.
2.2 Resurgence of the inner city
ECONOMIC RESTRUCTURING: RISE OF KNOWLEDGE ECONOMYThe1960smarkedthebeginningofalongperiodofindustrialdeclineandarestructuringoftheeconomy,oftenreferredtoaspost-industrialismorthepost-Fordismera.Thisperiodsawtheriseintheservicesandculturaleconomyaswellastheknowledge-basedeconomyofthecity.
Withdeindustrialisationcameaspatialtransitionandtheriseoftheglobalcity(Sassen,2001).Sassen(2001)identifiesthattheseglobalcitieswillfunctionas:
― highlyconcentratedcommandpointsintheorganisationoftheworldeconomy
― keylocationsforfinanceandforspecialisedservicefirms,whichhavereplacedmanufacturingastheleadingeconomicsector
PRODUCTION MODE ORGANISED BYWave1 EarlyCapitalism Craftandindustrial Merchants
Wave2 IndustrialRevolution Industrial Industrialists
Wave3 Fordism Massproduction Massproducers
Wave4 Post-Fordism Flexiblespecialisation Suppliersofservices
Wave5 NewEconomy Personalisedorbespokeconsumption Designer/Artists/MakersandArbitersofstyle
TABLE 1: The fifth wave
Source: (adapted from Jacobs (1969) by Montgomery, 2008, p. 168)
― sitesofproduction,includingtheproductionofinnovations,intheseleadingindustries
― marketsfortheproductsandinnovationsproduced.
Whilethenotionofaglobalcityremainsrelevant,morerecentliteraturehasfocusedontheNewEconomyofthesecitiesandknowledge-basedindustries.Montgomery(2008,p.368)expectsthat“thesuccessfulcitiesofthenext50yearswillbethosewhichachievehighlydynamiceconomiescentredonthenewdigitalindustries,theknowledgeeconomygenerallyandthecreativeindustries”.AccordingtoMontgomery(2008),theNewEconomyischaracterisedbypersonalorbespokeconsumptionandorganisedbydesigners/artists/makersandarbitersofstyle(refertoTable1),whichhighlightsthepresenceofthecreativeindustries.TheNewEconomyisincreasinglyrecognisingthevalueofhumancapitalandthe“culturaleconomyofthecity”(Hutton,2010,p.3)
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Knowledgehasalwaysbeenrelevanttoindustrieswithintheeconomy;however,itisnowseenasthefocusoftheeconomy:
“ourproductionhasamorecomplicatedknowledgestructure,andthe‘productionchain’ofknowledgeisnowlongerthanever.Anincreasingshareofourworkingpopulationisengagedintheproductionortheuseofknowledge,eitherasproducersofgoodsandservicesorasconsumers”(Lambooy,1997,p.295).
O'Connor,Stimson,andDaly(2001,p.36)highlightthatknowledgeisrecognisedasafactorofproductionalongsidelabourandcapital.
Australiahasalsoexperiencedarestructuringofitseconomysincethe1980s.Theremovalofmanufacturing-relatedprotectionistpoliciesmeantthatAustralianolongerhadacompetitiveadvantageinmanufacturing.Theeconomyhasincreasinglyshiftedfromarelianceonmanufacturingtowardsgreateremploymentwithintheservicesindustries(refertoFigure5).
ThenewAustralianeconomyischaracterisedby:
“deregulatedcapital,labour,andproductionsystems,dismantledtariffbarriersandliberalisedtrade,andisreflectedinashifttoaservice-dominatedeconomyutilisingknowledge-based,information-intensiveprocessesofproduction”(O’Connoretal.,2001,p.13).
Theevolutionoftheeconomyhasspatialimplications,andtheinnercityhasincreasinglybecomethefocusoftheknowledgeeconomy.
FIGURE 5: Employment by industry (share of total) in Australia 1900-2010
Source: (Connolly & Lewis, 2010)
%
80
70
60
50
40
30
20
10
0
%
80
70
60
50
40
30
20
10
01910 1930 1950 1970 1990 2010
Services
Agriculture
Manufacturing
Mining
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SPATIAL RESTRUCTURING: RESURGENCE OF THE INNER CITYTheeconomicrestructuringdescribedabovehasimportantimplicationsforthespatialstructureandimportanceofcities,particularlyinrelationtowherejobsarelocated.KatzandWagner(2014,p.1)highlightthatoverthepast50years,thespatialapproachtoemploymenthasbeendominatedbyplaceslikeSiliconValley(California):“suburbancorridorsofspatiallyisolatedcorporatecampuses,accessibleonlybycar,withlittleemphasisonthequalityoflifeoronintegratingwork,housing,andrecreation”.
SiliconValleyisarguablytheworld’smostfamousbusinesspark.ItshistorycanbetracedbacktothefoundationofHewlett-Packard(HP)in1937(Saxenian,1994,p.20).HewlettandPackardwereengineeringstudentsfromStanfordUniversity.Saxenian(1994,p.20)acknowledgesthat“Asmallclusterofpre-wartechnologyfirms…grewupalongsideHPtoprovideafoundationfortheregion’semergingelectronicsindustry”.TheelectronicsboomduringWWIIandtheclusterofindustrialactivityaroundStanfordUniversitygrewrapidlyduringthe1950s,fuelledinpartbycontinuedmilitaryspending(Saxenian,1994,p.24).ItisimportanttounderstandthatthesuccessofSiliconValleywasduetoarangeoffactorsincluding“Acombinationofuniversityresearch,militaryspending,andentrepreneurialrisk-takingstimulatedaself-reinforcingdynamicoflocalizedindustrialdevelopment”(Saxenian,1994,p.27).
SiliconValley’stransitionfromarelianceonmilitaryfundingtoventurecapitalandinvestmentalsomeantthatitgrewstronglydespiterapidchangestotechnology.Feldman(2000,p.373),inreferencetotheworkofhistoriansLeslieandKargon(1996),considersthatitwouldbedifficulttoduplicateitssuccess.Lambooy(1997,p.298)highlightsthatwhilemanycitieshaveattemptedtoreplicatethesuccessofSiliconValleyanddevelopscienceandtechparks,“wecannotforceapositiveoutcome”.
Lambooy(1997,p.298)considersthat“Largeurbanagglomerationshavebetterconditionsforcreatingthe
‘natural’(unplanned)clusters”.AccordingtoHallandCastells(1994),theagglomerationsofLondonandParisarestillthestrongestexamplesofsuccessfulcombinationsforscienceandcommercialapplicationswherethedevelopmentisbothspontaneousandplanned.Thisreinforcestheprominenceofglobalcities.
Morerecently,therehasbeenanincreasingmovementtowardstheinnercitywithworkersnotonlychasingknowledge-intensivejobs,butalsoabetterqualityoflifeassociatedwithreducedtraveltimeandincreasedamenity.Kellyetal.(2013)reinforcethispoint,emphasisingthattrafficcongestionandrisingfuelpriceshavepromptedaresurgenceofCBDsandinnersuburbsasplacestoliveandwork.Thefocusisnowshiftingfromresearchanddevelopmentcampusesinthesuburbstocentralcitylocations.
Hutton(2004)identifiesfivestagesofindustrialformationoverthepasttwodecades,withafocusontheconcentrationofgrowthintheinnercityparticularlythroughgentrificationofoldinnercityareas,aswellasanemergingfocusonthecreativeindustries:
― developmentofbusinessservicesub-centreslocatedinthemetropolitancorebutbeyondtheconfinesoftheCBD
― growthofartisanalproduction,associatedinpartwithcommunitiesofartistsandcraftsmeninolderinnercitydistrictsexperiencinggentrification
― expansionofcreativeanddesign-basedservicesaspartofthereconstructionofinnercityheritagedistricts
― riseandpartialcollapseofthedot-comsandothertechnologyintensivefirms
― emergenceofhybridcreativefirmswithadvancedtechnologytechniques.
Innercitygentrificationhasoccurredthroughbothplannedurbanrenewalandspontaneousgrowthofindustryclusters.Storper(2013,p.206)suggeststhatgentrificationisa“spatialprocessbywhichthehighlyskilledlocatethemselves
inrelationtotheiragglomeratingjobs,whicharealsooftenlocatedinthecoreofmetropolitancities,andtheytransformtheneighbourhoodsindoingso”.However,whiletheconcentrationofskilledworkersandindustriescreatesamarketforgentrification,thereremainsaquestionastowhatcomesfirstthelocationofjobsandopportunitytoearnincomeortheindividualsandhouseholdswhomakethedecisionsorchoices(Storper,2013).Itisdifficulttodeterminewhetheroneinitiatestheother,butfromtheliteratureitisclearthattheyreinforceeachothertodriveclusteringandagglomerationeconomies.Gentrificationisaparallelprocesswhichcanexplaintheattractivenessoftheinnercitytothehighlyeducatedandskilledworkforce.However,theextensivebodyofliteratureonthistopiclieslargelyoutsidethisthesis.
AsemphasisedbyHutton(2010,p.271),thereturntotheinnercitycorerunsagainstatideofdecentralisationofmanufacturing,retailandotherservices.ThispointisalsoreiteratedbySassen(2000,p.80)whostatesthat“Thegeographyofglobalizationcontainsbothadynamicofdispersalandofcentralization,aconditionthatisonlynowbeginningtoreceiverecognition”.Whilethespatialrestructuringofthecityhasnotbeenconfinedtothecoreofthecity,thishasbeenthefocusofafundamentalchangeinthemetropolis(Hutton,2010,p.1).ThishasbeendescribedbyEhrenhalt(2012)asthegreatinversionwithcitycentres“luringbackbusinessesandaffluentpopulations,whilethesuburbsarebecomingpoorerandtheirrateofgrowthhasslowed”(Florida,Matheson,Adler,&Brydges,2014,p.7).Venables(2006)similarlyobservesthattheeconomicgeographyofcitieshaschangedatallspatialscalesand“Afterdecadesofdeclinecitiesareundergoingarenaissanceasmoreknowledge-basedactivitiesseektobenefitfromclustering”(Venables,2006,p.80).
Drivingthismovementisanincreasingacknowledgementofthebenefitsofagglomerationeconomiesandtheclusteringofindustries.Moretti(2012)highlightsthatknowledgeandinnovationindustriesbringgoodjobsandhighsalariestothecommunitieswheretheycluster,andtheirimpacton
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thelocaleconomyismuchdeeperthantheirdirecteffect.Attractingahighpaidjobtoacitytriggersamultipliereffect,increasingemploymentandsalariesforthosewhoprovidelocalservices(Moretti,2012,p.13).Withthevalueofknowledgeincreasing,citieshavebecomemoreattractiveplacestoliveandwork(Glaeser,2011,p.38).Theliteraturesuggeststhatdespiteimprovementsininformationtechnology,thevalueofface-to-facecontacthasincreased.
ThistrendhasalsobeenobservedinAustraliancities.AfterWorldWarII,therewasamovementofjobsfromtheinnercitytotheoutersuburbsofAustralia’smajorcitieswherethepopulationwasincreasing(MajorCitiesUnit,2013),reflectingthefocusonmanufacturing.However,asmentionedpreviously,thisindustryofemploymenthasbeendecliningintermsoftheproportionoftotalemployment.Knowledge-intensiveindustrieshavebeendrivingjobandeconomicgrowthandthemovementofjobsbacktowardsthecentreofAustralia’smajorcities(Kellyetal.,2013;MajorCitiesUnit,2013),resultingintheresurgenceoftheinnercity.
Thefuturegrowthofcitieswillbeaccommodatedinanumberofways,likelyinvolvingacombinationofhigherdensitiesininnercitylocations,moremixedusedevelopment,theredevelopmentofformerindustriallandsanddevelopmentalongpublictransportcorridors(Hutton,2010;Montgomery,2008).Thereisnolongeranofficemonoculturewithinthecentreofthecity,althoughcommercialusesremainimportant.Moreprescriptivestrategicspatialplanningwillberequired(Montgomery,2008,p.371)thattakesaccountoftheneedsoftheknowledgeandcreativeeconomyandfacilitatestheirdevelopmentandfunction.
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2.3 Agglomeration economies
Thenotionofagglomerationhasevolvedfroma19thCenturyconceptoflocalisationeconomies,basedonthemetalmanufacturingindustryinSheffield(Marshall,1920),toa21stCenturyconceptfocusedonaNewEconomicGeography(Moretti,2012)ofglobalcitiescontainingdenseurbancoresandclustersofknowledgeindustries.Agglomerationis“atermusedinspatialeconomicstodescribethebenefitswhichflowtofirmsfromlocatinginareaswhichhaveahigherdensityofeconomicactivity”(SGSEconomicsandPlanning,2012,p.7).
Glaeser(2008,p.116)statesthat“agglomerationeconomiesaresaidtoexistwheneveranindividual’sproductivityriseswhenheorsheisneartootherindividuals”.Krugman(2000,p.55)suggeststhatagglomerationisdrivenbytheinteractionofthreekeyfactors:
― increasingreturnsattheplantlevelwhichmotivateindividualproducerstoconcentratetheirproduction
― transportcostswhichmakeitdesirabletolocatenearthelargermarket
― factormobilitywhichmeansthatwhenproducersmovetoalocationtheyincreasethesizeoftheassociatedmarket,makingthatlocationevenmoreattractive.
AccordingtoTheWorldBank(2009,p.129),agglomerationeconomies“dependnotjustonsize(abigcityorindustry)butalsoonurbaninteractions”.Whiletherearevaryingopinionswithinliteratureastohowagglomerationeconomiescanbecategorised,recentliteraturehasfocusedontwomainclassifications:urbanisationeconomiesandlocalisationeconomies(Feldman,2000;SGSEconomicsandPlanning,2012;TheWorldBank,2009).
Urbanisationeconomies“comefromthescaleeffectsthatareexternaltoindustriesbutinternaltogeographicunitssuchascities”(Feldman,2000,p.384).Urbanisationeconomiesinvolveeconomicinteractionsbetweenindustriesandarisefromalargenumberofdifferentindustrieslocatedclosetoeachother(TheWorldBank,2009,p.129).
Localisationeconomies“areknowledgespilloversexternaltofirms,yetinternaltoanindustrywithinacity”(Feldman,2000,p.383).Localisationeconomiesinvolveeconomicinteractionswithinanindustryandarisefromalargenumberoffirmswithinthesameindustryclusterinthesamelocation(TheWorldBank,2009,p.129).Thesefirmsarelinkedbythetechnologytheyuse,themarketstheyservice,theproductsorservicestheyprovideandthelabourandskillstheyrequire(TheWorldBank,2009,pp.130-131).SGSEconomicsandPlanning(2012)suggeststhattheconceptoflocalisationeconomiesresonatescloselywiththeconceptofindustryclustering,discussedfurtherinsection2.4.
Storper(2010b)believesthereisalimitedunderstandingofwhyagglomerationsevolveandtheycouldbeaccidental.Figure6demonstratesthatspecialisationandagglomerationsmaybedrivenbyhumancapital,accidentsorinstitutions.
FIGURE 6: What might cause specialisation?
Source: (Storper, 2010b, p. 2033)
Human capital:Immigra�on, selec�on of labour, reten�on,
skilling, pooling
Accidents:Regional innovators in right place at right �me: capture new ac�vi�es: first movers
win, others lose
Ins�tu�ons: favourable to capture and reten�on of ac�vi�es
specialisa�on: clustering,
reinforcement, weakening
Growth and performance
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FIGURE 7: Effective job density, Sydney
Source: (SGS Economics and Planning, 2014)
Agglomerationcanbemeasuredintermsofjobdensity.AccordingtoRawnsleyandSzafraniec(2010,p.4),jobdensityitselfdoesnoteffectivelydemonstratethephenomenaofagglomeration.Effectivejobdensity(EJD)hasbeendevelopedasausefulmeasureofagglomerationbecauseitincludesnotonlytheproximitycomponentofagglomerationbutalsotraveltime(MajorCitiesUnit,2013;SGSEconomicsandPlanning,2012).EJDtakesintoconsiderationactualtraveltimebyusingatraveltimematrixwhichdetailshowlongittakestotravelfromoneareainacitytoallotherareasbycarandpublictransport(Rawnsley&Szafraniec,2010).AreaswithahighEJDareconsideredtobethemostproductivelocationswiththemostagglomerationbenefits.Figure7illustratesSydney’sEJDhighlightingthatthecentralCBDexperiencesthehighestEJDandagglomerationbenefits.Othercentrestowardsthesouth(SydneyAirport)andnorthwest(MacquariePark)alsohaveahighEJD.Theselocationscontainahighconcentrationofjobsandarehighlyaccessible.
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FORCES OR BENEFITS OF AGGLOMERATION ECONOMIESMoretti(2012)providesaclearexplanationoftheforcesorbenefitsofagglomerationeconomies,drawingontheideasidentifiedbyMarshall(1920):
― Thick labour markets:themoreworkersandjobs,themorelikelythatpeoplewillfindajobthatbettermatchestheirskills.Itiseasiertomatchdemandandsupplyinathicklabourmarket(Moretti,2012).Marshall(1920,p.271)originallystatedthat“Employersareapttoresorttoanyplacewheretheyarelikelytofindagoodchoiceofworkerswiththespecialskillwhichtheyrequire;whilemenseekingemploymentnaturallygotoplaceswheretherearemanyemployerswhoneedsuchaskillastheirsandwherethereforeitislikelytofindagoodmarket”.Therefore,thisisabenefitforbothworkersandforfirms.
― The presence of specialised service providers: proximitytoservicessuchasadvertisingandlegalsupportisbeneficialforinnovativefirmsasitallowsthemtofocusoninnovationwithoutbeingpreoccupiedwithsecondaryfunctions.Asaresult,thesefirmsbecomemoreproductive(Moretti,2012).Marshall(1920,p.271)originallyhighlightedthat“subsidiarytradesgrowupintheneighbourhood,supplyingitwithimplementsandmaterialsorganizingitstraffic,andinmanywaysconducingtotheeconomyofitsmaterial”.
― Knowledge spillovers:socialinteractionsamongknowledgeworkersgeneratelearningopportunitiesthroughtheflowanddiffusionofknowledgewhichenhancesinnovationandproductivity(Moretti,2012).Marshall(1920)referredtothisashereditaryskillandstatedthat“Themysteriesofthetradebecomenomysteries;butareasitwereintheairandchildrenlearnmanyofthemunconsciously”(Marshall,1920,p.271).Moretti(2012,p.124)considersknowledgespilloverstobethemostimportantforceofagglomeration.
Storper(2013)describestheseforcesasmatching,sharingandlearning.Theseforcesdriveclusteringbutarealsoconsideredtobeoutcomesofclusteringandthereforeareoftenreferredtoasbenefits.Whilethesethreeforcesorbenefitsremainconsistentacrossthebodyofliteratureonagglomerationtheory,itisnotclearastowhetherallthreearerequiredforagglomerationeconomiestobeobservedoreventoessentiallyfunction.
CITY SIZE AND DIVERSITYTheWorldBank(2009,p.134)suggeststhereareopportunitycostsassociatedwithlivingincities.Theseincludealackofspace(associatedwithpeoplelivingclosetooneanother),highrents,crimeandcongestion.However,withreducedtransportcostsandalargeworkingpopulation,citiescontinuetoattractalargenumberofindustriesandbusinesses.Thisisidentifiedasa“self-reinforcingprocessofagglomeration”(TheWorldBank,2009,p.134)wheretheexpandinglocalmarketfurtherraisesindustryproductivity.Withincities,“thespatialconcentrationofpeoplereducesthecostofproducingknowledgebecauseinformationtransmission,competition,spying,imitation,learning,innovation,andthecommercializationofnewideasareeasier”(TheWorldBank,2009,p.135).
Largecities,duetotheirsizeandmixofindustries,providefirmsandworkerswithgreaterprotectionagainstrisks.Thereisgreatereconomicefficiencyinlargercitiesduetoareductionintransactioncostsassociatedwithproximityanddensityandbettermatchingbetweenworkerskillsandjobrequirements(Quigley,1998).Smallerspecialisedcities,ontheotherhand,exposeworkersandfirmstogreaterindustry-specificshocks(TheWorldBank,2009,p.134).Somesmallerspecialisedcities(suchasDetroit)areconsideredtoberecoveringwell(Katz&Bradley,2013),howeverthisisoftenassociatedwithastrongeconomicdevelopmentpolicyagendaandpoliticalsupport,particularlyatthelocalgovernmentlevel.
DurantonandPuga(2001,p.1463)highlightthatwherediversifiedandspecialisedcitiescoexist,thediversifiedcitiesactasanurseryforfirmsbyfacilitatingexperimentation,andthespecialisedcitiesprovideanenvironmentwherefirmscantakefulladvantageoflowerproductioncostsduetolocalisationeconomies.Thissupportstheideathatforneworyoungfirms,urbandiversityisimportant(Duranton&Puga,2001;TheWorldBank,2009).Standardisedormaturefirmsbenefitlessfromurbandiversityandflexibilityandinsteadpreferaspecialisedenvironment–forexample,anindustryclusterwherefirmsusingsimilartechnologiescanshareinformation(TheWorldBank,2009,p.139).Nevertheless,diversityisimportant(Duranton&Puga,2001;Quigley,1998):
“A‘balanced’urbansystemmaythusnotbeonewhereallcitiesareequallyspecializedorequallydiversifiedbutonewherebothdiversifiedandspecializedcitiescoexist.Insuchasystem,somecitiesspecializeinchurningnewideasandnewproducts(whichrequiresadiversifiedbase),whereasothercitiesspecializeinmorestandardizedproduction(which,inturn,isbettercarriedoutinamorespecializedenvironment).Formanufacturingandservices,unlikeforagriculture,‘sowing’and‘reaping’cantakeplaceindifferentlocations”(Duranton&Puga,2001,p.1471).
Thisraisestwoimportantquestions.Firstly,candiversifiedcitiescontainlocalisationeconomiesaswellasurbanisationeconomies?Secondly,docitiesneedtobediversifiedinordertobeconsideredglobalorcantheybespecialised?Whilenotnecessarilyafocusofthisthesis,anappreciationofthesedynamicswithinSydneywillbedevelopedthroughthisresearch.
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2.4 Industry clustering (localisation economies)
Anindustryclusteris“ageographicallyproximategroupofinterconnectedcompaniesandassociatedinstitutionsinaparticularfield,linkedbycommonalitiesandcomplementarities”(Porter,2000,p.254).AshighlightedbyMartinandSunley(2003,p.10),thefirmsinaclustermustbelinkedinsomeway.HugginsandIzushi(2011,p.11)suggestthattheconceptofindustryclusterscapturestheimportantnotionoflinkagesbetweenfirmsandspilloversoftechnology,skillsandinformationwhichcutacrossfirmsandindustries.
Variouscausesdrivethelocalisationofindustries.Historically,theprincipalcauseswerephysicalconditionssuchasclimate(forindustriessuchasviticulture),availabilityofresources(formining)oraccessbylandorwater(forimportingandexporting)(Marshall,1920,p.268).Venables(2006,p.65)emphasisesthatproductivityisthemaindriverofindustryclustering:“proximityisgoodforproductivity;denseconfigurationsofeconomicactivityworkbetterthansparseorfragmentedones”.Storper(2010b,p.2029)suggeststhatthelocationofparticularactivitieswithinacityandbetweencitiesislikelytobeinfluencedbylandcosts:
“theremaywellbeacorrelationbetweenlandcostsandwhereanactivitylocateswithinametropolitanregion(expensiveinthecentre,cheaperinthe‘periphery’).Thereisalsoacorrelationbetweenlabourandlandcostsandwhichtypesofactivitiesgotowhichtypesofcities,whichmirrorsinternationalspecialisationpatterns,ataverygenerallevelbetweenhigh-wage/capital-intensiveplacesandlow-wage/labourintensiveplaces”.
Thishighlightsthepotentialinfluenceofthepropertymarketwhichisnotwidelydiscussedwithintheliterature.Thisislikelyassociatedwithalackofcleardirectionwithintheliteratureregardingthescaleatwhichaclustershouldbedefined.Thisraisesanumberofquestions:
“Atwhatlevelofindustrialaggregationshouldaclusterbedefined,andwhatrangeofrelatedorassociatedindustriesandactivitiesshouldbeincluded?Howstrongdothelinkagesbetweenfirmshavetobe?Howeconomicallyspecializeddoesalocalconcentrationoffirmshavetobetoconstituteacluster?...Inaddition,atwhatspatialscale,andoverwhatgeographicalrange,doclusteringprocesses(inter-firmlinkages,knowledgespillovers,rivalry,businessandsocialnetworks,andsoon)operate?Whatspatialdensityofsuchfirmsandtheirinteractionsdefinesacluster?”(Martin&Sunley,2003,p.10).
Clusteringcanbeobservedatanationalscale–forexampletheclusteringoffinancialservicesinNewYorkcomparedtoothercitiesacrosstheUnitedStates–andatalocalscale–forexamplethemediaclusterinLowerManhattan,inNewYork(Martin&Sunley,2003).Empiricalstudies,asdetailedbelow,havebeenconductedatvariousgeographicalscales,applyingthesametheoreticalconcepts.However:
“thereisnothinginherentintheconceptitself,andwithintheliteratureitself,toindicatethespatialrangeorlimitsofclustering,orwhetherandinwhatwaysdifferentclusteringprocessesoperateatdifferentgeographicalscales”(Martin&Sunley,2003,p.12).
Marshall(1920)believesthatfirmsarelikelytoremaininaspecificlocationforanextendedperiodoftimebecauseoftheadvantageswhichareassociatedwithremaininginacluster,particularlyknowledgespillovers.ThispointisalsoreiteratedbyTheWorldBank(2009,p.133),highlightingthat“asaneconomybecomesmoreknowledgebased,knowledgespillovers,whichrequireproximity,becomemoreimportant”.Spatialclusteringissaidtobemorepronouncedinhigh-skillandhigh-technologyindustriescomparedtolightindustriesbecausetheseindustriesaremorelikelytobenefitfromknowledgespillovers(TheWorldBank,2009,p.133).Alternatively,Saxenian(1994,p.161)suggeststhatinternal
organisationalstructure,ratherthantechnologyorfirmsize,isparticularlyimportanttothesuccessofaclusterandindustrialsystem.
TheexaminationofindustryclusteringatamicroscalecanbetracedbacktoWise’s(1949)examinationoftheevolutionandlocalisationofthejewelleryandgunquartersinBirmingham.Pacione(1985)arguesthatWise(1949)isseenasaforerunnerofmodernmicroinvestigationsintoindustriallinkages.However,hisstudywasmuchmorefocusedonthespatialjuxtapositionofthegunandjewelleryquartersratherthanspecificlinksbetweentheindustries.
KNOWLEDGE INDUSTRY CLUSTERSThefocusofmorerecentliteraturehasbeenthespatialconcentrationofknowledgeandhigh-techindustries,includingcreativeindustryclustersandinnovationdistricts.Landry(2008,p.xli)believesclusteringischangingwiththeriseoftechnologythespatialgeographyofcreativity.ThissupportsHutton’s(2004)conceptofaNewEconomyofcreative,knowledge-basedandtechnology-intensiveindustriesclusteringintheinnercity.Asdiscussedpreviously,industrieshavetraditionallyclusteredinlocationswherethephysicalconditionswereappropriateforthatparticularindustry.Now,industriestendtoclusterwherethereiscultureandactivitywithinthemetropolitancore.
KatzandWagner(2014)refertothesenew-ageclustersasinnovationdistricts,“geographicareaswhereleading-edgeanchorinstitutionsandcompaniesclusterandconnectwithstart-ups,businessincubators,andaccelerators”(Katz&Wagner,2014,p.1).Innovationdistrictsarephysicallycompactmixeduseprecinctswithresidential,commercialandretailusesthatcanbeaccessedbypublictransport.Theyaremarkedlydifferentfromthesuburbanbusinessparkdevelopmentsthatpreviouslydominatedthelandscapeofinnovation.Businessparkdevelopmentsaregenerallyonlyaccessiblebycarwithlittleemphasisonthequalityoflifeorsocialenvironmentduetotheseparationofuses(Katz&Wagner,2014,p.1).
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Innovationdistrictsrespondtoanincreasingdesireforabetterqualityoflifewhichisassociatedwithproximitytorestaurants,retail,culturalandeducationinstitutions,andotherurbanamenities,particularlyforyoungprofessionalswithoutchildren.TheseDINKS(doubleincomenokids)andSINKS(singleincomenokids)wanttoliveinthe“amenityrichenclaves”(Katz&Wagner,2014,p.1)characterisedbyavibrantstreetlife,historicneighbourhoods,andpublictransit”(Katz&Bradley,2013,p.120).AccordingtoKatzandBradley(2013,p.120):
“Between2000and2009,theshareofcollege-educatedtwenty-fivetothirty-four-year-oldslivingwithinthreemilesofthecentralbusinessdistrictinthenation’sfifty-onlargestmetropolitanareasincreasedby26percent,doublethegrowthrateofcollegeeducationyoungadultsintherestofthemetropolitanarea”.
KatzandWagner(2014)havedevelopedtheideaofaninnovationecosystemwhichreachesitspotentialwhentheeconomic,physicalandnetworkingassetsarefullydeveloped:
― Economic assetsarethefirms,institutionsandorganisationsthatdrive,cultivateorsupportaninnovation-richenvironment.
― Physical assetsarethepublicandprivately-ownedspaces–buildings,openspaces,streetsandotherinfrastructure–designedandorganisedtostimulatenewandhigherlevelsofconnectivity,collaborationandinnovation.
― Networking assetsaretherelationshipsbetweenactors–suchasbetweenindividuals,firms,andinstitutions–thathavethepotentialtogenerate,sharpen,and/oracceleratetheadvancementofideas.
Thissuggestsaninnovationdistrictevolvesovertimebutwilleventuallyreachitsinnovationpeakoncefullydeveloped.Theideaofnetworkingassetsdrawsupontheconceptofknowledgespilloverswhichhasbeenidentifiedasoneof
thebenefitsofagglomerationeconomiesandthebasisoflocalisationeconomies.
Yigitcanlar(2010,p.1771)classifiestheseprecinctsasknowledge-basedurbandevelopment(KBUD)orknowledgecommunityprecincts,where“knowledge-basedactivitiesclusterinspecificurbanlocalities,suchasvibrantandcreativemetropolitanareas”.ThelayersofasuccessfulKBUDareconsideredbyYigitcanlar,O’Connor,andWesterman(2008)toinclude:
― knowledge base:includingeducationalinstitutionsandresearchanddevelopment(R&D)activities
― industrial structure:affectstheprogressanddevelopmentofaknowledgecity
― quality of life, place and urban amenities:givestheKBUDthenecessaryelementsthatattractknowledgeworkerstoprovideastrongknowledgebase
― urban diversity and cultural mix:useasinstrumentsinencouragingcreativity
― accessibility:encouragesandfacilitatesthetransferandmovementofknowledge,people,goodsandservices
― social equity and inclusion:minimisessocialdisparityandnegativetensions
― scale of a city:largerknowledgecitiestendtoofferagreaterknowledgepool,greaterdiversityandchoiceforknowledgeworkersandbusinesses.
Theriseofinnovationdistricts(orKBUD)hasimplicationsforurbanplanning.AccordingtoKatzandBradley(2013,p.129),thereisaneedfor“afundamentalrethinkingoftraditionallanduseandzoningconventions”withamovementawayfromzoningregulations.Zoningregulationswereoriginallyintroducedtoprotectsunlightaccessandeventuallyledtothesegregationoflanduses,isolatinghousing,office,commercialandmanufacturingactivitiesfromoneanother(Katz&Bradley,2013,p.129)topreventeachlanduseimpactingonthefunctionofeachother.Innovationdistrictsrequire“variancesfromtherigid,antiquatedrulesthatstilldefinetheurbanandsuburbanlandscape”(Katz&Bradley,
2013,p.129).However,thisisnotjustataskforurbanplanning.Economicdevelopmentpoliciesarealsoimportant:
“Beyondzoningandlanduse,innovationdistrictsrequireintegrativethinkingandaction,seeingandmakingconnectionsbetweeneconomicdynamicsandurbanexperiences(forexample,transportation,housing,economicactivity,education,andrecreation),whichareinextricablylinkedinrealitybutseparatedinpractice”(Katz&Bradley,2013,p.130).
Thereremainsalackofanunderstandingoftherolefor(orimpactof)planninginrelationtoindustryclusterswithintheliterature.
CREATIVE INDUSTRY CLUSTERSThecreativeindustriesrepresentasubsetoftheknowledgeindustriesandareincreasinglybeingstudiedwithintheliterature.Florida(2002,2005,2006,2012)isconsideredtobethebest-knowncontributortotheliteratureonthecreativeindustries.Hisworkhasfocusedonthecreativeworkforceratherthanclustersthemselves.However,itremainsrelevantinunderstandingthedynamicsthatdriveclustering.
Jensen(2011)studiedcreativeindustryclustersacrossSydney,specificallyclustersofvisualentertainmentindustrieswithinthelowernorthshoreandSurryHillsandMoorePark,andfoundthevariousfactorsaffectingthepropensityoftheseindustriestoclusterarenotnecessarilylinkedtotheforcesdrivingindustryclusteringdiscussedabove,including:
― infrastructureandtransportavailability ― shiftsintechnologyandgreateruseoftheinternetforcommunications
― creativeambienceofthelocality ― price-sensitivitytolandvalues.
WoodandDovey(2015,p.52),inastudyofurbanmorphologiesofcreativeclustering,acknowledgethatthe“creativeindustriesdonotlocaterandomlywithin
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citiesandaresensitiveto‘characteristicsofplace’attheneighbourhoodscale”.Thisiswidelyrecognisedwithintheliterature,particularlybyFlorida(2002,2005,2006,2012).WoodandDovey(2015,p.52)havesubsequentlyfocusedontheunderstandingthecreativeindustriesatthemicro-spatialscale,wherethe“densityanddiversityofface-to-faceinteractionsareseenascentral”.ByanalysingFitzroyinMelbourneandSurryHillsinSydney,thestudyaimedtounderstandhowandwhycreativeclustersmightbelinkedtoparticularurbanmorphologies,whichprovidesanalternativeunderstandingtothetraditionaleconomicviewofclustering.However,anumberoftheconceptsassociatedwithlocalisationeconomiesareassumedwithinthestudy,includingknowledgespilloversassociatedwithadhocencountersinpublicspace(Wood&Dovey,2015,p.53).
Thebuiltenvironmentisconsideredtobeimportanttothecreativeindustriesincludingaspectssuchaspedestrian-friendlystreetscapes,walkability,havingthefeelofanurbanvillageandbohemiancharacter,aswellastheavailabilityofflexiblepost-industrialwarehousebuildingsthatarehighlyvaluedforcreativeproduction(Wood&Dovey,2015,p.54).Walkabilityisthoughttodriveface-to-faceencounters.Amixofuses(particularlyhospitality,saidtoprovidetheglue),aswellasamixofpeople,isconsideredimportantwithincreativeindustryclusters.
WoodandDovey(2015,p.66)suggestthatcreativeclusteringreliesonconnectionsandspilloversbetweenmorphological,functionalandsocio-economicdiversities. AsillustratedinFigure8:
“thesocio-economicmixincorporatesamixofsocialclasses,culturalvalues,rentalvaluesandprofitability;thefunctionalmixincorporatesamixofproduction,exchange,consumption,residentialandrecreationaluses;themorphologicalmixincorporatesamixoflot-sizes,buildingageandinterfaces.Thearrowsinthisdiagramaretheprimaryconnectionsbetweendifferentformsofmix”(Wood&Dovey,2015,pp.67-68).
FIGURE 8: Creative industry clusters: mix of mixes
Source: (Wood & Dovey, 2015, p. 67)
SOCIO-ECONOMIC MIX
MIX OF BOHEMIAN, GENTRIFIERS, WELFARE
MIXED RENT (AFFORDABILITY)
MIX OF START-UPS & ESTABLISHED
MIX OF BUILDING AGE
MIX OF LOT SIZE & FLOORPLATE
MIX OF INTERFACE TYPES
FUNCTIONAL MIX
MORPHOLOGICAL MIX
MIX OF PRODUCTION EXCHANGE
RECREATIONHOME/WORK
Thestudyclaimsanumberoffactorsdrivetheclusteringofthecreativeindustries,includingthepropertymarket,whilemaintainingthatknowledgespilloversandproximityaredrivers.WoodandDovey(2015)identifyareasforfutureresearchinrelationtocreativeindustryclusters:understandingthewaysinwhicheconomicfactorssuchasrents,locationaldecision-makingprocessesandinnovationspilloversinteractwiththemixofmixes;andcomparingthemorphologicalattributesofplannedcreativeclusterstobecomparedwithattributesforclustersthathavegrownmoreorganicallysuchasSurryHillsandFitzroy.Thishighlightstheopportunityforthisthesistofillthesegaps.
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2.5 Knowledge spillovers
Thediscussionabovehasfocusedonthegeographyoftheeconomyandhowithasevolved.Thefocusofthisliteraturereviewnowturnstohowthisworksinpracticewithaparticularfocusontheprocessofexchangingknowledgeandunderstandingthetheorybehindthisandhowithappensinpractice.Thissectionwillreviewcurrentliteratureinthisarea.
THEORYKnowledgespilloversareidentifiedwithintheliteratureasthekeybasisoflocalisationeconomies.Theconceptisdiscussedwidelywithinthebodiesofliteratureonagglomerationeconomiesandindustryclustering.TheGrattanInstitutedefinesknowledgespilloversas“transfersofknowledgebetweenindividualsandbetweenfirms”(Kellyetal.,2013,p.3).Knowledgespilloversmayoccurasfirmstrade,asemployeesmovebetweenorganisationsorthroughinformallinks.Branstetter(1998,p.521)describesaknowledgespilloverasoccurringwhenfirmAisabletoderiveeconomicbenefitfromR&DactivityundertakenbyfirmBwithoutsharinginthecostfirmBincurredinundertakingitsR&D.
Huber(2007)referstoknowledgespilloversaslocalisedknowledgespillovers(LKS).LKSareknowledgeexternalitiesboundedinspaceandknowledgeflowsfreelybetweenco-locatedfirms(Huber,2007,p.50).TheuniqueaspectofLKSisthattheyare“implementedthroughnon-marketinteractions”;thatis,“knowledgespillsoverwithoutdirectcompensationfortheproduceroftheknowledge”(Huber,2007,p.50).ThetheorybehindLKSissummarisedbyHuber(2007,p.51):
“AnecessaryconditionforLKStoexististhatnewlygeneratedknowledgeisprovedtoflowmoreeasilyamongagentslocatedwithinthesameareaincomparisontomoredistantones.Accordingtothisview,inprinciplenewknowledgeisaccessibletoallmemberswithinalocalcommunityoforganisations.KnowledgespillsoverfromR&D-conductingfirmsorresearchinstitutionstootheractorswithinageographicregion.Therefore,sothestorygoes,geographicclustersoffirmsoffermoreinnovationopportunitiesthanscatteredlocations”.
Moretti(2012,p.99)suggeststhat“sharingknowledgeandskillthroughformalandinformalinteractiongeneratessignificantknowledgespillovers”andthatthesespilloversareadriverofeconomicgrowth.Knowledgespilloversaremorebeneficialfortheyoungorlesseducatedworkerswhoarelocatedinhighlyeducatedcities(Glaeser,2011;Moretti,2012).Thewell-educatedworkersarenotfullycompensatedforthesocialbenefitsthattheireducationgenerates(Moretti,2012,p.101).Essentially,knowledgespilloversarehumancapitalexternalitiesbecausethebenefitsandcostsassociatedwiththetransferofthisknowledgefromonepersontoanotherarenotcaptured.
Inadditiontothis,knowledgespilloversaresuggestedtobemorelikelytooccurbetween“firmswithdifferentbutrelatedtechnologicalcapabilities,suchasoverlappingassets,similartacitknowledgeandcomplementaryorganizationalroutines…incomparisonwithfirmsthatuseunrelatedtechnologies”(Potter&Watts,2014,p.608).However,thisviewisnotconsistentwithintheliterature;Jacobs(1969),forexample,hasanalternateperspectivewhichisfurtherdiscussedbelow.
Glaeser,Kallal,Scheinkman,andShleifer(1992)classifyknowledgespilloversintothreemodels:
― The first modelisMarshall-Arrow-Romer (MAR),namedafterthethreeeconomistswhocontributedtowardsthisconcept(AlfredMarshall,KennethArrow,andPaulRomer).Itisconcernedwithknowledgespilloversbetweenfirmswithinanindustry.Thismodelisbasedontheconceptthattherearetechnologicalexternalitieswithinindustryclustersbecauseinnovationsandimprovementsthatoccurinonefirmleadstoanincreaseintheproductivityofotherfirmswithintheclusterwithoutfullcompensation(Glaeseretal.,1992,p.1127).
― The second modelisbasedontheworkofPorter(1985,1998,2000)whoarguesthatknowledgespilloversinspecialised,geographicallyconcentratedindustriesstimulategrowth.Porter(1998)believesthereremainsanelementofcompetitioninrelationtoclusters,andlocalcompetitionfostersinnovation.The“coexistenceofcompetitionandcooperationrestsontheassumptionthateitherknowledgespilloversdonottakeplaceacrosscompetitors,orthatthecostsofknowledgespilloversacrosscompetitorsareoutweighedbythebenefitsfromotherformsofknowledgespillover”(Huggins&Izushi,2011,p.14).Glaeser(2000,pp.83-84)supportsthisidea,highlightingthatknowledgespilloversareacriticalfeatureofacompetitiveeconomy:
“Knowledgespilloverssolvedthetechnicalproblemineconomictheoryofreconcilingincreasingreturns(whicharegenerallyneededtogenerateendogenousgrowth)withcompetitivemarkets.Thisworksuggeststhatiftheglobaleconomyisendogenouslygrowing(whichishardtodeny)andifwebelieveintrulycompetitivemarkets(whichismorecontroversial),thenitalmostfollowsthatintellectualspilloversareacriticalfeatureoftheeconomiclandscape”.
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― The thirdmodelidentifiedbyGlaeseretal.(1992)isbasedontheoriesdevelopedbyJacobs(1969).Usingtheexampleofthedevelopmentofthebrasserie,Jacobs(1969)“believesthatthemostimportantknowledgetransferscomefromoutsidethecoreindustry.Asaresult,varietyanddiversityofgeographicallyproximateindustriesratherthangeographicalspecializationpromoteinnovationandgrowth”(Glaeseretal.,1992,p.1128).Feldman(1999,p.15)suggeststhatwiththisconceptsearchcostsmayreduceandopportunitiesofserendipitouseventsincrease.Thisconceptdrawsontherealitythatindustryclusterswillcontainmorethanoneindustrytype.Whetheritisaspecialisedserviceproviderorasupportindustry,thisraisesthequestionastowhethertheseindustriesalsocontributetoknowledgespillovers.
Huber(2007),however,onlyreferstotwodifferenttypesofknowledgespilloversthefirstandthirdmodels,excludingthesecondmodel,whichmaysuggestthatcompetitionisabarriertoknowledgespillover.
Glaeser(2000,p.84)claimsthatcitiespresenttheclearestexamplesofknowledgespillovers.Knowledgespilloversmayoccurthroughbothformalandinformalinteractionsbetweenworkers,however“theexactchannelofinteractionwherebyincreasedlevelsofeducationflowsthroughtoincreaseproductivityacrossanindustrysectorispoorlyunderstood”(SGSEconomicsandPlanning,2012,p.18).ThisissueisalsoraisedbyDahlandPedersen(2004)whohighlightthatitisimportanttodevelopanunderstandingofhowknowledgeisactuallytransferredbetweenindividualsandfirmsinthesamegeographicalareaorindustrycluster.Thishighlightsapotentialgapwithintheexistingbodyofliterature.However,Huber(2007)hasidentifiedfourpotentialmechanismsofknowledgespillovers:
― Knowledgeflowsvia mobility of the labour force:whenlabourmovesbetweenfirmsorresearchinstitutions,theytransferpersonalknow-howandknowledgeaboutthepreviousfirmorresearchinstitution.Inaddition,itislikelythatpersonalnetworksbetweenformeremployeeswillsubsequentlyremainactive(Huber,2007,p.89).
― Knowledgeflowsvia entrepreneurship and spin-offs: whenindividualssetupnewenterprises,theyexploittheknowledgeandpersonalcontactstheydevelopedintheirpreviousposition.Inthiscontext,venturecapitalistsareconsideredtoprovidenotonlyfinancialsupportbutalsoaccesstoawideinformalandformalnetwork(Castilla,2003;Zook,2004bothcitedinHuber,2007,p.89).
― Knowledgeflowsvia relationships with customers and suppliers:customersorclients,andsuppliersmayhaveinsightsintorivalfirmsorresearchinstitutionswhichtheycommunicatetoothers,howeverthequalityofthisknowledgemightnotbehighasthecustomer,clientorsupplierisindirectlyinvolvedintheknowledgeactivities(Huber,2007,pp.89-90).
― Knowledgeflowsvianetworksofpersonalrelationships.Thisoverarchingconceptconsidersthatnetworksofpersonalacquaintancesfacilitateknowledgeflows,witharangeofdifferentsub-mechanismsandprinciples(Huber,2007,p.90)includinginformationtradingandsocialobligations.
Itisimportanttoconsidertheroleofgeographicalproximity,aslocalisedknowledgespilloversexisttotheextentthatthemechanismsofknowledgespillovers(describedabove)showalocaliseddimension(Huber,2007,p.91).Thisisanimportantdistinctionandhighlightstheimportanceofdefiningtheregionoflocalisationappropriately.
Relatedtothis,Giuliani(2005,p.269)suggeststheliteraturerarelyconsiderstheprocessofabsorbingextra-clusterknowledgeandtheinterplaybetweenintraandextra-clusterknowledgesystems.Giuliani(2005)definesintra-clusterknowledgeastheflowsofknowledgelinkingfirmswithinthecluster,whereasextra-clusterknowledgeisexternalknowledgefromoutsidetheclusterwhichisabsorbedintothecluster.Theconceptfurthercomplicatestheissuesofdefiningageographicboundaryforclustersintermsofidentifyingwhatisconsideredtobeinternalandexternaltothecluster.
CONDITIONS WHICH FACILITATE KNOWLEDGE SPILLOVERSAnumberofconsistentthemesrunthroughtheliteraturerelatingtothetheoryofknowledgespillovers,particularlyaroundtheenvironmentandconditionsthatfacilitateknowledgespilloversincluding:
― facetofacecontact ― geographicalproximity ― socialenvironmentandbuzz ― thenetworkperspective.
FACE TO FACE CONTACTDespitedevelopmentsininformationtechnology,face-to-facecontactremainscentraltotheconceptofknowledgespilloversandindustryclustering,astacitknowledgeisunabletobecodifiedandrequiresface-to-facecontactforknowledgetobeexchanged(Feldman,1999;Gertler,2003;Huber,2012;Storper&Venables,2004).Figure9detailstheadvantagesofface-to-facecontactinfacilitatingknowledgespillovers.
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FIGURE 9: Face-to-face contact
Source: (Storper & Venables, 2004, p. 354)
Function AdvantageofF2F Context
Communicationtechnology HighfrequencyRapidfeedbackVisualandbodylanguagecues
Non-codifiableinformationR&DTeaching
Trustandincentivesinrelationships DetectionoflyingCo-presenceacommitmentoftime
Meetings
Screeningandsocializing LossofanonymityJudgingandbeingjudgedAcquisitionofshredvalues
ProfessionalgroupsBeing‘intheloop’
Rushandmotivation Performanceasdisplay Presentations
Gertler(2003)emphasisestwokeyissuesassociatedwithface-to-facecontact:awarenessorconsciousnessofknowledgeandcommunicationdifficultiessuchaslanguagebarriers.Theissueofawarenessposesdifficultieswhentracingknowledgespilloversasresearchsubjectsareoftenunawareofwhentheyexchangeknowledgeandthereforeareunabletoexplainhowspilloversoccur.
GEOGRAPHICAL PROXIMITYGlaeser(2011,p.36)believes“innovatorsclusterinplaceslikeSiliconValleybecauseideascrosscorridorsandstreetsmoreeasilythancontinentsandseas”,suggestingthatgeographicproximityisimportant.ThispointisalsoreinforcedbyDahlandPedersen(2004,p.1674)whostatethat“knowledgeandinformationflowmoreeasilybetweenactorslocatedinaclusterthanoverlongdistances”.Geographicalproximityisconsideredtopromotecooperationbetweenlocalplayers(BenLetaifa&Rabeau,2013)andenableahigherfrequencyofexchangeofideasthatmaynotoccurthroughtelecommunications(Venables,2006).
Inseekingtounderstandwhysomeclustersfail,BenLetaifaandRabeau(2013)hypothesisethatgeographicproximitymayhaveanegativeimpactoncollaboration.Thestudyfoundthatgeographicproximityneedstobecomplementedwithsocialproximitytogenerateinnovation,highlightingtheimportanceofthesocialenvironmentandculture.
SOCIAL ENVIRONMENT AND BUZZ Thebodyofliteraturerelatingtoknowledgespillovershasmorerecentlyemphasisedtheroleofthesocialenvironmentinfacilitatingknowledgespillovers.AshighlightedbySearleandPritchard(2005,p.150)“EveninSiliconValley…thereis‘moregoingon’thanjustMarshallianlocaleconomies”.AsappropriatelysummarisedbyKatzandWagner(2014,p.13)“whileproximity…contributestothedevelopmentofdensenetworks,acollaborativecultureappearstoplayamoresignificantrole”.Gertler(2003,p.78)suggeststhat“tacitknowledgecanonlybesharedeffectivelybetweentwoormorepeoplewhentheyalsoshareacommonsocialcontext:sharedvalues,language,andculture”.
StorperandVenables(2004)coinedthetermbuzztodescribethesocialenvironmentwhereknowledgespilloversoccur.DrawingontheworkofStorperandVenables(2004),Bathelt,Malmberg,andMaskell(2004,p.38)considerthatlocalbuzz:
“consistsofspecificinformationandcontinuousupdatesofthisinformation,intendedandunanticipatedlearningprocessesinorganizedandaccidentalmeetings,theapplicationofthesameinterpretativeschemesandmutualunderstandingofnewknowledgeandtechnologies,aswellassharedculturaltraditionsandhabitswithinaparticulartechnologyfield,whichstimulatetheestablishmentofconventionsandotherinstitutionalarrangements”.
Citieswithbuzzcomprisearangeofindustriessuchascreativeandcultural,financeandbusiness,scienceandtechnology(andresearch)andpowerandinfluence(Storper&Venables,2004),implyingthatbuzzcitiesarediversecitiesratherthanspecialisedcities.
Batheltetal.(2004)identifydifferentmodesofcommunicationwithinabuzzcity(refertoFigure10).Gossipisidentifiedasatypeoflocalinformationflowhoweverthenegativeconnotationsassociatedwiththistermsuggestthatthistypeofinformationflowisnotnecessarilyvaluable,particularlytotheproductivityoffirmsandworkers.Batheltetal.(2004)considerlocalisedknowledgespilloverstobeestablishedandfunctionalduetolocalbuzzwhichisspontaneousandfluid,andaremoreconcernedwithestablishingglobalpipelinesforknowledgespillovers.
Huber(2007,p.93)recommendscautionshouldbetakenwhenobservinglocalbuzz,aslocalinspirationdrawnfromlocalbuzzdoesnotnecessarilyindicateaspilloverofvaluableknowledgeproducedbyotherfirms.
Ascontemporaryconcepts,thesocialenvironmentandlocalbuzzwerenotidentifiedbyMarshall(1920),likelyduetotheevolutionoftheeconomyandthetypeofknowledgebeingexchanged.
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THE NETWORK PERSPECTIVENetworkshavebecomeimportantforknowledgespilloversandare“increasinglyvaluableandprolificwithininnovation-driveneconomicclusters”(Katz&Wagner,2014,p.13).Saxenian(1996)emphasisesthatunderstandingregionaleconomiesasnetworksofrelationshipsallowsustobettercompareregionalclustersandunderstandhowrelationshipshavehistoricallyevolved.
Themajorityofthethemesdiscussedaboverelatetothesocialcontext.Whilesocialcontexthasbecomeafocusoftheliteratureonknowledgespillovers,asidefromafewstudies(Jensen,2011;Wood&Dovey,2015),theurbancontexthasnotbeenamajorconsiderationindevelopinganunderstandingofhowknowledgespilloversoccurandwhyitvariesbetweenclustersandlocations.
EMPIRICAL STUDIESBranstetter(1998)recommendsthatthesetheoriesshouldbetestedusingempiricalevidence.Anumberofempiricalstudiesofknowledgespillovershavebeenreviewedaspartofthisthesis(refertoTable2).Thesestudieshavebeenconductedatvariousgeographicscalesandusingquantitativeandqualitativemethods.Theresultsofthesestudiesvaryindicatinganinconsistentunderstandingoftheconceptofknowledgespillovers.Further,anumberofcontributorschallengetheconcept,asdiscussedbelow.
FIGURE 10: The structure and dynamic of local buzz and global pipelines
Source: (Bathelt et al., 2004)
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TABLE 2: Review of empirical studies
STUDY LOCATION/SCALE FOCUS/METHOD/DATA RESULTS COMMENTSJaffe,Trajtenberg,andHenderson(1993)
USAStatescale
― Comparesthegeographiclocationofpatentcitationswiththeoriginatingpatenttounderstandtheflowofknowledge.
― Patentdata(for1975and1980)whichcontainsgeographicinformationaboutinventorsandcitationsofrelevantresearch.
― Intheearlyyearsafterapatentisapproved,citationsarethreetofourtimesmorelikelytocomefromthesamestateastheoriginatingpatenthighlightingalocalisationeffect,howevergeographiclocalisationfadesovertime.
― Studyacknowledgesthatusingpatentdatadoesnottakeaccountofspilloversthatoccurwithoutgeneratingacitation.
― Studydoesnotlookatmethodsofknowledgetransfer.
― Adoptionofstatescaleisdifferentfrommostotherstudies.
Saxenian (1994,1996)
SiliconValley(California)andRoute128(Massachusetts)Regionscale
― ComparesorganisationalstructurestounderstandwhySiliconValleywasmoreresilientfollowinganeconomicdownturninthe1980s,comparedtoRoute128,despitesimilarindustryconcentrations.
― Over100qualitativeinterviews.
― Route128characterisedbyinternallyfocusedcorporations.
― SiliconValleyisanetwork-basedsystemwithdensesocialnetworksandopenlabourmarketswhichencouragedcollaboration,experimentationandinformalcommunication.
― HighturnoverofstaffinSiliconValley. ― Thenetworksystemlikelyfosterslocalisedknowledgespilloversandseenasmoreresilientintiesofmarketuncertainty.
― Turnoverofstaffconsideredamechanismofknowledgespillover.
― Notclearifanylinksbetweenthesuccessofclusterandknowledgespillovers.
AudretschandFeldman(1996)
USAStatescale
― Studyutilisessurveydatatounderstandtheunderlyingpropensityforindustrialactivitytoclusterspatially.
― Industriesinwhichknowledgespilloversaremoreprevalenthaveagreaterpropensitytoclusterthanindustrieswhereknowledgeexternalitiesarelessimportant.
― Ifknowledgespilloversarethekeyreasonforclustering,dofirmsstillbenefitfromclusteringifknowledgespilloversarenotobserved?
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STUDY LOCATION/SCALE FOCUS/METHOD/DATA RESULTS COMMENTSDahland Pedersen(2004)
NorthernDenmarkRegionalscale
― Surveyedengineersinaregionalclusterofwirelesscommunicationfirms.
― Informalcontactsareanimportantchannelofknowledgediffusion.However,thereisaneedtobetterunderstandthevalueofthisknowledgecomparedtoothersourcesofinformationandhowknowledgeisactuallyexchanged.
― Studyhighlightsalackofunderstandingofthemechanismsofknowledgespillover.
McCannandSimonen
FinlandRegionalscale
― Studyteststheextenttowhichthevarietyandnatureofface-to-facecontactaffectstheinnovationperformanceofthefirm
― Useddatafromsurveysoninnovationandperformance.
― Afirm’sinnovationperformanceisdirectlyrelatedtoface-to-facecontactandknowledgeexchangewithotherfirmsandorganisations.
― Innovationwaspositivelyassociatedwithalargerproportionofnewlabouracquiredfromoutsideofthesub-region,andnegativelyassociatedwithbothpopulationdensityandtheproportionofnewlabouracquiredlocally.
― Aftercontrollingforlabourmobility,theevidencefordirectuniversity-industryknowledgespilloverswaslimited.
― Studysuggeststhatlabourmobilityisthekeydriverofknowledgespillover.
― Highlightstheimportanceofgeographicscaleandthedefinitionofanindustryclustertodetermineinternalandexternalsourcesoflabourandknowledge.
Swat(2006) ATPLocalscale
― StudyoftacitknowledgeexchangebetweenfirmswithintheATPbasedoninterviewswithmanagersoffirmsbasedintheATP.
― Studyfindsalackofexchangebetweenfirmsandverylittle,ifany,evidenceofcollaboration.
― Reasonsprovidedincludedresearchnotbeingaligned,firmswerenotawareofopportunities,thefirmdidnothavearesearchfocusortherewasnotenoughtime.
― Resultsalsoattributedtoalackoftrustbetweenfirmsandalackofcriticalmass.
― Studydoesnotlookatrelationshipbetweenknowledgespilloversandindustryclustering.
― Oneoffewstudiesatalocalscale.
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STUDY LOCATION/SCALE FOCUS/METHOD/DATA RESULTS COMMENTSSonnandStorper(2008)
UnitedstatesMetropolitanlevel
― Analysespatentcitationsfrom1975to1997tounderstandflowsofknowledge.
― ThemethodadoptedandprocessofgroupingcitationsvariedtothatofJaffeetal.(1993).
― Aftercontrollingfortheexistingdistributionofknowledge-productionactivities,thestudyfindsthattheproportionoflocalcitationshasincreasedovertimecontrarytothefindingsofJaffeetal.(1993).
― Thefindingsreinforcethenotionthatincontemporaryknowledgeproductionandinnovation,theroleforgeographicalproximityisincreasing.
― Studyacknowledgesthelimitationsofcitations,buttheauthorsstillbelievethattheyareusefulindicatorsofinteractionswhichleadtoinventionandinnovation.
― Mechanismsofknowledgetransferarenotconsideredwithinthestudy.
― Further research on the extent and causesofincreasingproximityeffectsisneeded.
Østergaard(2009) Aalborg,DenmarkRegionalscale
― Studyexaminestheextentofinformalcontactsbetweenengineersinfirmsandlocaluniversityresearchersinawirelesscommunicationcluster.
― Engineersdonotautomaticallyhaveinformalcontactswithinthecluster.
― Socialnetworksareexclusiveandcreatedovertimebyindividuals,particularlyviaprojects.Theselong-termrelationshipsweremorelikelytoprovideopportunitiesforknowledgesharing.
― Inter-industryrelationshipsaremorelikelythanindustry-universityrelationships,consistentwiththeJacobs(1969)model.
― Industry-universityrelationshipsareonlylikelyiftheengineerhadastrongexistingaffiliationwiththeuniversity.
― Respondentswereanonymoussolimitedopportunitytousesocialnetworkanalysis.
― Therewasnotimedimensiontodemonstratehownetworksevolveovertime.
― Thereispotentialforfuturestudiestoaddresstheselimitationsandalsodevelopanunderstandingofconnectionsoutsideofthecluster(extra-clusterknowledge).
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STUDY LOCATION/SCALE FOCUS/METHOD/DATA RESULTS COMMENTSGreenand Hughes(2009)
NorthernSydney’sglobaltechnologycorridorRegionalscale
― Exploresthelocationaldrivers,activitiesandlinkagesofbusinessesandresearchandeducationalinstitutionsintheinformationandcommunicationstechnologiesandbio-medicalsectors.
― Conductedasurveyoffirms.
― Thehighestprioritydrivinglocationisaccesstoclients/customers.
― Internalknowledgetransferwasthepredominantsourceofknowledgeforfirms,ratherthanexternalsources.
― Thecorridorisanexampleofanascentclusterandwasconsideredbytheauthorstolackthehigherlevelandmorecomplexinteractionsamongfirmsandresearchandeducationinstitutionsthatarethehallmarkofinnovativeclusteractivityinternationally.
― FindingsreiteratetheoutcomesofastudybyFreestone(1996,p.27)whichfoundthatlimitedevidenceinNorthRydeofanysortoftechnologicalorpersonnellinksbetweencompanies.
― SearleandPritchard(2005)highlightsthatjointtenanciesinbusinessparksoftensuggestsharedinterestsandthepotentialforknowledgespillovers,yetinrealitythisisoftennotthecase.
Searle(2010) SydneyandMelbourneRegionalscale
― Aimedtounderstandthedegreetowhichsoftwarefirmsarespatiallyembeddedandtheroleofknowledgeproductionandexchangeinthis.
― Conductedphoneinterviewswithastratifiedrandomsampleof50softwarefirms.
― Proximitytothefirmowner’shomeandcheaperrentaredriversoffirmlocationwhichdoesnotsupporttheexistenceoflocalembeddedness.
― Observedopportunitiesfortheexchangeoftacitknowledgethroughcustomers,collaborationandnewandex-employeesisfundamentaltotheindustry’sembeddednessatthemetropolitanscaleandatthelocalscale.
― Thestudyfindsthaturbanisationeconomiesappeartohaveamoresignificantembeddingeffect,comparedtolocalisationeconomies,thatis,urbanisationeconomiesaredrivingclustering,moresothaninter-firmclusterlinks.
― Studyisnotfocusedonknowledgespilloversperse.
― Authordidnotapproachthestudyfromageographicalperspectivebutratheranindustryperspective.
― Theextenttowhichtheknowledgespilloversobservedinthisstudyarelocalisedisnotclear.
― FindingsrelatecloselytoanearlierstudybySearleandDeValence(2005)ofthemediaindustry.
― Authorsuggeststhatqualityoflifeandplaceconsiderationsshouldbeincorporatedintofuturestudies.
Potterand Watts(2011)
Sheffield(UK)Regionalscale
― Authorssurveyedrespondentsinametalmanufacturingclustertofindoutwhethertheirmanufacturingplanthadreceivedknowledgefromanylocalorganisationwithinthepastthreeyears.
― Allsurveyedmanufacturingplantshadformedlocallinkswithinatleastoneotherorganisationwithinthelocalmanufacturingindustryand32%ofmanufacturingplantshadreceivedalocalknowledgespilloverinthepastthreeyears
― Thestudyfoundthatknowledgespilloversactuallydecreasedeconomicperformanceandhadprovidednostatisticallysignificantbenefitforthemanufacturingplants.
― Traditionalmanufacturingiscurrentlyindecline.However,whenMarshall(1920)studiedthisindustrycluster,manufacturingwasasignificantindustryofgrowth.Thishighlightsthatknowledgespilloversmayonlybebeneficialtoanindustrywhenitisexperiencingrapidgrowth.
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STUDY LOCATION/SCALE FOCUS/METHOD/DATA RESULTS COMMENTSHuber(2012) Cambridge(UK)
Regionalscale ― AstudyofR&DworkersinanITcluster,whowereinterviewedtounderstandwhethertheyseeknowledgespilloversasabenefitfortheirworkintheircurrentcompany.
― Two-thirdsoftheR&DworkersinITcompaniesdonotseeknowledgespilloversasabenefit.
― Workersseenoneedtointeractwithothercompaniesandfoundinternalsourcesmoreuseful.
― ComparedtoSiliconValley,thelabourmarketinCambridgeislessdynamicbecauseR&Dworkersdochangejobsfrequently.
― Authorconcludesthattheroleofknowledgenetworksandtechnologicalspilloversininnovativeclustersisoverrated.
― Studyacknowledgesthatsubtleknowledgeflowsmighttakeplacewithoutintervieweesknowing,reinforcingtheissueofconsciousness.
― Studyidentifiesthreeareasforfurtherresearch:
― whetherclustersaremoreimportantforseniormanagersthandevelopersforsourcingtechnicalknowledge
― whetherthereisavariationinnationalorregionalculture
― changingroleofagglomerationeconomiesthroughoutthehistoryofacluster.
― Questionremainsastohowtoidentifyknowledgeflows.
― Huber(2012,p.123)notesthatinnovationpoliciesshouldbecautiousinassumingthatspatialclusteringquasi-automaticallyleadstoknowledgespillovershighlightinganimplicationforplannersinrelationtoplanningforemployment.
― Studyhighlightspotentialforcharacteristicsofworkerstoinfluencetheirlikelihoodofinteractingwithotherworkers.ForexampleworkersinITmayrelyontheinternetforknowledgewhereasworkersinthecreativeindustriesmightdesiretoworkinamoresocialenvironment.Thereisanopportunitytoexplorethisfurtherthroughthisresearch.
BakhtiariandBreunig(2015)
AustraliaNationalscale
― EconometricmodellingofR&Ddata ― R&DdatabasedonasurveyofbusinesseswhichhaveappliedfortheR&DtaxconcessionprogramthroughtheAustralianTaxOffice.
― Studyconcludesthatfirmsareinfluencedbypeerandclientfirmsincloseproximitythroughknowledgespillovers.
― TheauthorsassumethatinteractionsbetweenR&Dworkersarethemainchannelforknowledgespillovers.However,thereisnocleardetailwithinthestudyonhowspilloversoccur,butratherthestudyjustassumesthattheydo.Thishighlightsthat,inthiscase,quantitativemodellingisnotnecessarilyausefulsourceofempiricalevidence.
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CHALLENGING THE CONCEPT OF KNOWLEDGE SPILLOVERSWhiletheideaofknowledgespillovershasbeencitedwidelywithincontemporaryliteratureasabenefitoftheclusteringofknowledgeindustries,anumberofquestionsremainunanswered.MartinandSunley(2003,p.17)note“anincreasingtendencytoexplainclusterformationanddevelopmentintermsoflocalknowledgeand‘collectivelearning’”and“theassumedlinkbetweenlocalizationandtacitorinformal,uncodifiedknowledgeisnowalmostacceptedaxiomatically”.Thekeyreasonforthisisthatknowledgespilloversareessentiallyinvisible(Krugman,1991,p.53)andcanseldombetracedthroughtransactions(TheWorldBank,2009,p.134).Feldman(2000,p.389)emphasisesthat“westillhavealimitedunderstandingofthewayinwhichknowledgespilloversoccurandbenefitinnovativeactivity”,asdemonstratedabove,andweremainfarfromunderstandingthisconcept(Storper,2010a).
Huber(2012,p.110)claimsthatthetraditionalmethodsusedtocalculateoridentifyknowledgespillovers(suchaspatentcitationsandco-authorship)are“crudeproxies”forwhataremuchmorecomplexanddiverserelationshipsandprocesses.Hebelievespreviousstudiesintoknowledgespillovershavefailedtouncovertheprocessesoflearningandknowledgespillovers;thatis,themechanismsofknowledgetransfer(Huber,2007,2012).Thisisissueiscitedwidelyacrosstheliterature.
Storper(2010a,p.322)statesthat“inaninnovation-drivenconceptionofeconomicgeography,itisessentialtobeabletoexplainlearning”.Thisemphasisestheneedtobetterunderstandhowknowledgespilloverstakeplaceandisreiteratedbyanumberofotherauthors.Huber(2007,p.49)suggeststhattheconceptoflocalisedknowledgespillovershashighpolicyrelevanceforfirmsbecause“itiscrucialhow,whereandtowhatextent(proprietary)knowledgeistransferredamongfirmsandresearchinstitutions;industrialandregionalpoliciesareoftenbasedontheassumptionthatspatialclusteringofindustriesinvolvestheadvantageofknowledgespillovers”.
SiliconValleyiscontinuallyreferencedastherolemodelforknowledgespillovers(Glaeser,2011;Katz&Wagner,2014;Moretti,2012).However,denseCBDmodelswouldlikelybemoretransferrabletomanyEuropeanandAsiancities(BasultoinFlorida,2012,p.324).DahlandPedersen(2004)suggestSiliconValleymaybeananomalyandtheextentofinformalactivityoccurringwithintheclusterisunusual.ThisissueisfurtherhighlightedbySearleandPritchard(2005,p.148)whoquestiontherelevanceofSiliconValleyin“understandingthespatialdynamicsofITT(informationtechnology)inotherplaces”.Feldman(2000,p.389)acknowledgesaneedtoincorporatethebodyof
knowledgeinthisareathatwascompletedoutsidetheUSAto“gainanappreciationofhowtheeffectsoflocationvaryacrossnationalbordersandtherolethattheinstitutionsandsystemsofinnovationplay”.AsemphasisedbyHuber(2012,p.122)“institutionalandculturaldifferencesindifferentregionscanaffectknowledgeinteractionsandspillovers”;howeverthisneedstobeexploredfurther.Thishighlightstheneedtobetterunderstandtheurbancontextinfluencingknowledgespilloversaswellashowknowledgespilloverstakeplace.
Importantly,Huber(2007,p.94)suggeststhatknowledgespilloverscannotberegardedaslocalisedas“alawofnature,butultimatelyonehastoregarditasanempiricalquestionwhethersuchstatementsaretrueforthespecificcontextunderinvestigation”.Thissuggeststheimportanceofexploringlocalisedknowledgespilloversthroughempiricalresearch,ratherthanacceptingitoccursasabasecaseinanycontext,priortoimplementingpolicythatpromotesindustryclustering.
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Thesecharacteristicshelptodefineaclusterandhavebeenusedtoshapetheresearchquestionsandmethodologyadoptedinthisresearch.
Inordertounderstandifandhowlocalisedknowledgespilloversoccur,theframeworkdevelopedbyHuber(2007)isconsideredappropriateforthisstudy.Theframeworkincludesfourpotentialmechanismsofknowledgespillover:
― knowledgeflowsviamobilityofthelabourforce ― knowledgeflowsviaentrepreneurshipandspin-offs ― knowledgeflowsviarelationshipswithcustomersandsuppliers
― knowledgeflowsvianetworksofpersonalrelationships.
Thisframeworkfocusesononespecificelementwithinanindustrycluster,theflowofknowledge,whichisexpectedtobeinfluencedbythesevenconditionsidentifiedabove.
2.7 Gaps within the literature
Thereviewhashighlightedgapswithintheexistingbodyofliteratureparticularlyaroundtheconceptofknowledgespillovers.Ingeneral,thereremainsalimitedunderstandingofhowknowledgeisexchangedwithinindustryclusters.Theopinionswithintheliteraturearemixedandadditionalresearchremainsimportant.TherecentfocuswithintheempiricalstudiesofknowledgespillovershasbeenITindustryclustersratherthantheemerging(andbroader)creativeindustryclustersandthisrepresentsagapforfurtherexploration.
Existingstudiesgenerallyfocusontracingknowledgespilloverswithinanindustryclusterasameansofunderstandingiftheyoccur(Audretsch&Feldman,1996;Bakhtiari&Breunig,2015;Dahl&Pedersen,2004;Huber,2012;Jaffeetal.,1993;McCann&Simonen,2005;Østergaard,2009;Potter&Watts,2011;Saxenian,1994,1996;Sonn&Storper,2008).However,limitedstudiesfocusontheextenttowhichknowledgespilloversdriveindustryclusteringandwhetherthereareotherdrivers.Contributionstothebodyofliteratureonagglomerationeconomiesandindustryclustersgenerallycomefromeconomists.Therearelimitedcontributionstothebodyofliteraturefromanurbanplanningperspectivewhichhighlightsanareaforresearchdevelopmentintermsofhowthesetwofieldsinteract.SearleandPritchard(2008)identifytheneedfor
2.6 Industry clusters and knowledge spillovers framework
Thisliteraturereviewidentifiesanumberofconditionsorfactorsthatinfluenceknowledgespillovers,particularlywithinindustryclusters.Thefollowingsevenconditionshavebeensynthesisedfromthisliteratureinordertoprovideaframeworkforunderstandingthevariouscharacteristicsofanindustrycluster:
― firm level dynamicsincludinginternalprocesseswithinafirmanddynamicsbetweenfirms
― competition versus collaborationandhowthisfacilitatesorprohibitsknowledgespillovers
― labour market dynamicsparticularlythelevelofturnoverandwhetherworkersmovebetweenfirmswithintheclusterorto/fromotherclusterswithinthecity
― types of industrieslocatedwithinaclusterandtheinfluenceontheknowledgespillovers,forexampleworkerswithinthecreativeindustriesmightbemoreactiveandsocialcomparedwithITworkers
― relationshipsbetweenthespecialised industries, service providers and support workers and how these relationshipsfacilitateknowledgespillovers
― the social environmentandnetworksincludingbuzzandthelevelofsocialinteractionbetweenfirmsandworkers
― planning and governanceintermsofcontroloverlandusesandthedevelopmentofclusters.
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researchthatinvestigateswhatspatialplanningcandotopromoteknowledgeindustries,andacknowledgethatitisimportanttofirstlyunderstandmoreaboutclusterspriortoansweringthisquestion.TheextenttowhichlocalisationeconomieshaveevolvedinSydneytoreinforceplace-basedadvantagesisidentifiedasanareaoffurtherresearchbySearleandPritchard(2008),highlightingthepotentialroleofthepropertymarket.Approachingthisstudyfromaplanningperspectivemayrevealmoreaboutwhatdrivesfirmsandindustriestoclusterandwhetherthereareadditionalbenefitsorforcesdrivingclustering(suchasthepropertymarketandeconomicdevelopmentpolicies)alongsidethethreebenefitsidentifiedbyMarshall(1920).
ThereisalsoasignificantgapwithintheexistingbodyofliteratureintermsofAustraliancontributions.WhileanumberofrecentstudiesfocusedontheAustralianexperience(Bakhtiari&Breunig,2015;Jensen,2011;Searle,2010;Searle&DeValence,2005;Searle&Pritchard,2005,2008;SGSEconomicsandPlanning,2012;Yigitcanlar,2010;Yigitcanlar&Dur,2013;Yigitcanlar,O’Connor,etal.,2008;Yigitcanlar,Velibeyoglu,&Baum,2008),thisonlyrepresentsasmallproportionofthewiderbodyofliterature.Morespecifically,thesestudiescontainlimitedanalysisofknowledgespillovers,ifany,andtherecontinuestobealackofanunderstandingofhoworifknowledgeistransferredwithinindustryclustersinAustralia.
2.8 Conclusion
Theresurgenceoftheinnercityoverthepasttwodecadeshasbeendrivenbyeconomicrestructuring,withthedeclineofmanufacturingandgrowthoftheservicesector,particularlyknowledgejobs.Thiseconomicrestructuringhasimplicationsforspatialstructureofthecity,includingbothresidentialandemploymentlanduses.Knowledgejobsareprimarilyclusteredwithintheinnercityoflargeglobalcities(chieflywithinthedevelopedworld)andAustraliaisnotexemptfromthistrend.Theresurgenceoftheinnercityhasbeendrivenbyworkersnotonlychasingknowledge-intensivejobs,butalsoabetterqualityoflifeassociatedwithreducedtraveltimeandincreasedamenity.Inrelationtothis,theliteratureobservesamovementawayfromisolatedsuburbancorporatebusinessparkstowardsmorevibrantinnercityinnovationdistrictsthatcontainamixofresidential,employmentandrecreationaluses.Whethertheseinnovationdistrictsevolveorganically(unplanned),oraredrivenbyeconomicdevelopmentpolicy(planned)remainsunclearwithintheliterature.
Theconceptofjobclusteringisnotnew.Theliteratureonagglomerationeconomieshasevolvedfroma19thCenturyconceptbasedonmanufacturingindustriestoa21stCenturyconceptbasedontheknowledgeeconomy.ThisraisesthequestionastowhethertheforcesandbenefitsofagglomerationeconomiesidentifiedbyMarshall(1920)arestillrelevant,particularlyconsideringthegrowthoftechnologyandtheincreasedabilitytoaccessworkers,suppliers,clientsandinformationglobally.Thebodyofliteraturesomewhatautomaticallyconcludesthatknowledgespilloversdriveindustryclusteringbecauseclusteringisincreasinglybeingobserveddespitetherapiddevelopmentoftechnology.Itisgenerallyacceptedthatitiseasiertocommunicateandshareknowledgeinperson,particularlytacitknowledgethatcannotbeeasilycodified.However,anumberofgapsrelatingtotheconceptofknowledgespilloversareyettobeaddressedwithintheliterature.
Arangeofquantitativeandqualitativestudiesseektotraceknowledgespillovers,particularlywithinprominentindustryclusterssuchasSiliconValley.Tracingpatentcitationsisconsideredtobeacrudeproxyforknowledgespillovers,particularlywhenconsideringthegrowingcreativeindustrieswithinwhichknowledgeisnotalwayspatentedorevenpatentable.Socialproximityisincreasinglydiscussedwithinrecentliteratureasafacilitatorofknowledgespilloverandthisraisesquestionsastotheimportanceofgeographicproximity.Theliteratureremainsinconclusiveastowhetherknowledgespilloversoccuranditsvaluetoknowledgeworkers.Further,littleempiricalresearchrelatestothemechanismsofknowledgetransfer.
Therolethatknowledgespilloversplayindrivingindustryclusteringthereforeremainsunclear.Thereisaneedtofurtherquestiontheforcesoflocalisationeconomies,particularlyinlightoftheincreasingpushbymetropolitan(andstate)governmentstopromotetheclusteringofknowledgejobsinparticularlocationsacrosstheircities.Whetherornotlanduseplanningcansupportthecreationofinnovationorcreativeindustryclustersremainsakeyquestion.Giventhepredominantfocusonthemarketdeliveringinplanningpolicy,thenhowpropertymarketsworkinthisregardisalsoofsignificance.Anunderstandingoftheroleofthepropertymarketwillbeimportantduetotheassociatedlinksbetweenthegentrificationofformerindustrialareaswithintheinnercityandthegrowthofinnovationdistricts,withafocusonthecreativeindustries.Theseissueswillbeexploredintheremainderofthisthesis.
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Growth of the creative industries in Surry Hills and the ATP
Innovation and knowledge jobs have become a focus for strategic plans over the past
decade.
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CHAPTER 3: GROWTH OF THE CREATIVE INDUSTRIES IN SURRY HILLS AND THE ATP
3.1 Introduction
Thischapterprovidesthecontextforthetwocasestudieswhicharethefocusofthisthesis.AnoverviewofplanningforemploymentacrossSydneyoverthepast65yearsprovidesthebroaderpolicycontext.Itdocumentstheevolutionofthetwocasestudiesfrommanufacturingcentreswithintheinnercitytocreativeindustryclusters.ThischaptersummarisesthekeytrendsobservedthroughananalysisofquantitativedatafromtheAustralianBureauofStatistics(ABS)andtheBureauofTransportStatistics(BTS),whichtracksthegrowthofthecreativeindustriesinSurryHillsandtheATPfrom1991to2011.Thischapterprovidesjustificationfortheuseofthesetwocasestudieswithinthisthesis.
3.2 Employment clusters in Sydney
Sydneyisconsideredtobeanationallyandglobalsignificantcitythatcontainsbothurbanisationandlocalisationeconomies(Searle&Pritchard,2005).EmploymentisconcentratedaroundcentralSydneywithstrongaccessibilitytoasignificantproportionofthepopulation,andthisreflectsurbanisationeconomies.However,localisationeconomiesarealsopresent,particularlywithinindustrieswhichrequirelocalsupplylinksandlocalcustomers(Searle&Pritchard,2005,p.164).
SydneycontainsanumberofindustryclustersthatfosterinnovationincludingSurryHillsandtheATPinEveleigh.ThesetwoprecinctsarelocatedclosetoeachotherwithintheGlobalEconomicCorridor(refertoFigure11)andrepresenttwodifferentapproachestoplanningforemployment:unplannedandtheplanned.
TheprecinctsarebothlocatedclosetotheCBD,thecreativeandtechnologyclusterinUltimo,aswellassignificantindustrialandrecreationassets,SydneyAirportandthreemajoruniversitiesinSydney(refertoFigure12).
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FIGURE 11: Surry Hills and the ATP in the context of the Global Economic Corridor
FIGURE 12: Surry Hills and the ATP in the context of the inner city of Sydney
Source: Author Source: Author
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FIGURE 13: Place of residence of workers employed in the creative industries across Sydney
FIGURE 14: Place of work for workers employed in the creative industries across Sydney
Source: Author using data from Australian Bureau of Statistics (2011) Source: Author using data from Australian Bureau of Statistics (2011)
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CreativeworkersaremorelikelytoliveintheeasternhalfofSydneyparticularlyaroundtheinnercityincludingtheinnerwest,easternsuburbsandlowernorthshore(refertoFigure13).
ThisconcentrationofcreativeworkersreinforcestheconcentrationofemploymentwithintheGlobalEconomicCorridoringeneral,aswellastheconcentrationofthecreativeindustrieswithinthisareaofSydney(refertoFigure14).Thisreflectsthenotionthatthelocationaldecisionsofknowledgeworkers(includingcreativeworkers)arebasedonwheretheywork(Storper,2013).Inthiscase,theseworkersagglomerateintheinner-cityofSydney.
ThesemapshighlightthatthegrowthofthecreativeindustriesinSurryHillsandtheATPmayreflectawidertrendacrossSydney.Acomparativeanalysisofthesetwolocations,whichevolvedthroughdifferentways,willhaveimplicationsforunderstandingotheremploymentlocationsinSydney.
ThesemapshighlightthatthegrowthofthecreativeindustriesinSurryHillsandtheATPmayreflectawidertrendacrossSydney.Acomparativeanalysisofthesetwolocations,whichevolvedthroughdifferentways,willhaveimplicationsforunderstandingotheremploymentlocationsinSydney.
3.3 Planning for employment in Sydney
TheevolutionofplanningforemploymentisevidentinSydney’smetropolitanstrategiesoverthepast65years(refertoAppendixAformoredetail).Since1948,strategicplanningforemploymenthasevolvedfromafocusoncentrestoafocusonclusters,whileretainingsomeelementofacentrespolicy.ThefocusforSydney’semploymentisGlobalSydneyandtheGlobalEconomicCorridorwhichhascontinuedtoexpandandmovewestwards(asdiscussedinChapter1).Innovationandknowledgejobshavebecomeafocusforstrategicplansoverthepastdecade.However,thisfocushasdiminishedsincethespecialisedcentrescategorywasremovedandthecentrehierarchymorebroadlywasreduced.Thereseemstobelackofanunderstandingabouttheroleofplanninginpromotingindustryclustering,particularlywhatitcanorshouldachieveandhow.
3.4 Surry Hills
SurryHillsisamixeduseemploymentandresidentialprecinctlocatedwithintheCityofSydneylocalgovernmentarea(LGA).TheprecinctislocatedadjacenttoCentralStationandtheCBDandisprimarilyzonedB4MixedUseandR1GeneralResidential(refertoFigure15).Themixedusezonedoesnothaveapercentagerequirementforemployment;thatis,nominimumamountofemploymentuseisrequiredindevelopmentswithinthemixedusezone.Therefore,developmentgenerallyreflectsmarketpreferences(Thomas2015).
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FIGURE 15: Surry Hills context map
Source: Author
RISE OF INDUSTRIAL AND DECLINE OF RESIDENTIALSurryHillshasexperiencedsignificantchangeoverthepast20years.Duringthe1930s,thevalueoflandinSurryHillswasgovernedbythepricesobtainableforindustrialratherthanresidentialuses(Keating,1991).SydneyCityCouncilbeganaddressingthehousingshortageinthelate1930sassociatedwiththelackofdevelopmentduringWorldWarI(Keating,1991)bydeclaringlargeprecinctswithinSurryHillsasresidentialdistricts.Thisprohibitedthebuildingofnewfactoriesorconversionofresidentialusestoindustrialorcommercialuses.AccordingtoKeating(1991,p.94),atthattime“Giventhehighpriceofnon-residentiallanditwasnaïvetohopethathouseswouldeverreplacetheshopsandfactoriesthatwerealreadythere”.ThishighlightsthatthepropertymarkethadastrongpresenceinguidinglandusesinSurryHillsatthattime.
AfterWorldWarII,aninfluxofEuropeanmigrantsbreathedlifeintothearea(Keating,1991),bymaintainingandupgradingoftheirhomesandestablishinglocalshopsandrestaurantsthatreflectedtheirculture.Thiswasaccompaniedbyasimultaneousmovementofmiddle-incomehouseholdsouttowardsthesuburbschasingthe‘AustraliaDream’(Burnley,1972;Kendig,1979).Thispost-warsuburbanisationlikely“ledtoadeepeningoftheinner-cityrentgap,thuscreatingtheconditionsforsubsequentreinvestment,i.e.gentrification”(Ley,1996,p.42).Thiswasacommonlyobservedtrendduringthe1960sand1970swithinlargecitiesinCanadaandAustralia.
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THE ROLE OF GENTRIFICATIONKeating(1991)notesthatitislikelythatgentrificationbeganduringthelate1960sandearly1970s.TheresidentsmovingintoSurryHillswerelookingforacosmopolitanalternativetothesuburbanlifewhichwasoncesoughtafter.
Gibson(2006,p.192)suggeststhat“thecreativeclassinSydneyisthegroupmostresponsibleforinner-citygentrification”.Grassrootscreativeproducersincludingvisualartists,musiciansandwriters,arethefirsttoinhabittheinnercity(Gibson,2006).Thesegroupsrequirerelativelycheaprentforbothhousingandstudiospacebutarealsoattractedtodiversityandtheedgyinnercity(Gibson,2006).Duringthe1980s,grassrootscreativeproducersgeneratedareputationforSurryHills,evidencedthroughtheestablishmentoftheBrettWhitelyStudio,RayHughesGalleryandBelvoirStreetTheatreduringthisperiod(d'Arcy&Zamberlan,2014).Thisattractedstudents,gentrifiers,residentialdevelopersandotherbetter-paidworkerswithinthecreativeeconomy(mediaandadvertisingexecutives)“whodesiredthelifestyle,bohemianandculturalactivitiesthatearliercreativeclass‘colonisers’established”(Gibson,2006,p.192).Theartistsareconsideredtheadvancingorcolonisingarmofthemiddleclass(Ley,1996,p.191).Withthenewpopulationcamereinvestmentinbothresidentialandcommercialdevelopment,withupmarketeateriesandshopsandtheconversionofoldfactoriesintotheatres,studiospacesandcompanyoffices(Keating,1991,p.105).
ThisperiodofgentrificationwasaccompaniedbyamovementtowardscomprehensivestrategicplanningbytheSydneyCityCouncilwiththereleaseofitsfirststrategicplanin1971.ThePlanwasupdatedeverythreeyearsuntil1983.UndertheseStrategicPlans,SurryHillscomprisedtwomainprecincts:theWestSurryHillsprecinctandtheSurryHillsresidentialvillageprecinct(CounciloftheCityofSydney,1971).Duringtheearly1970s,theWestSurryHillsprecinctsupportedtheCBDwithindustrialusesandcommercialofficedevelopmentandCouncilsupportedthecontinuationofthisrole.
The1974StrategicPlanmakesitclearthatCouncilwasconcernedabouttheimpactofemploymentonresidentialdevelopmentandremainedfocusedonchangestosupportresidentialusesincludingstreetscapeupgradestoimproveamenityforresidents.Councilacknowledgedthecontributionoflowervalueusestothefunctionofthecityandindicateditsintenttoprotectandencouragetheseusesincludingtheragtrade,newspaperpublishingandprintingworks,computercentresandothersmallerindustriesbecauseofcloselinkstotheCBD(CounciloftheCityofSydney,1974).
TheroleofSurryHillsasaresidentialandemploymentprecinctwasreiteratedinthe1980StrategicPlan.ThewesternsectionofSurryHillswas“predominantlyasupportareaforthemajorcommercialandretailactivitiesoftheCentralBusinessDistrict”(CounciloftheCityofSydney,1980,p.219).Itincludedlightindustry,printing,warehousing,publishingandtheclothingtrade.Therewerealsosubstantialpocketsofterracehousing,andalargecomponentofhighrisepublichousinginthesouthernsectionofWestSurryHills.Theeasternsectionwasaworkingclassresidentialneighbourhood.However,the1980Planreportedthattheescalationofresidentialpropertyvaluesduringthe1970sledtoasubstantialchangeinthepopulation,withlow-incometenantsandmigrantsdisplaced,andresidentialprecinctsrehabilitated(CounciloftheCityofSydney,1980,p.219),reflectingthegentrificationprocess.
ThePlanidentifiedanumberoffuturedirectionsforSurryHillswhichsoughttoconsolidatecommercialandlightindustrialactivitiesonthewestofSurryHillsclosetotheCBDandCentralStation,andprotectresidentialusesagainstincompatibledevelopment.
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ThesefuturedirectionsarereflectedinthestructureplanfortheSurryHillsdistrict(refertoFigure16).Itisclearfromthisplanthatresidentialwasproposedtobedominantlanduseandthisisalsoreflectedthroughtheplan’slanguagewhichsuggeststhatindustriallandusesareintrusiveandshouldbemanaged.Thisperspectivefailstorecognisetheimpactthatresidentialusesmayhavehadorcontinuetohaveonindustrialandcommercialdevelopment.ThisisreiteratedbyHu(2012,p.353)whobelievesthateconomicplanningwasnotanembeddedthemewithinthe1971-1977Plans:“Someeconomictraitscanbeidentifiedinafewpolicyitems;however,theoverallthematicintentionsareotherwise”.Thissomewhatremainstrueforthe1980Plan.
The1988and1991strategiesfocusedontheCBDandGlobalSydneyandnotthewiderprecinctsofvillageswithintheCityofSydney,andthereforedidnotcontaindetailedactionsforSurryHills.
Gentrificationisrecognisedasaparallelprocesswhichrelatestotheresidentialpropertymarket.However,thelocalbuzzinSurryHillshaslikelybeendrivenbythereinvestmentinbothresidentialandcommercialdevelopment.Gentrificationcouldhaveasignificantimpactoncommercialusesinthefutureiftheyarepricedoutbyresidentialdevelopmentandthiswillbediscussedbelow.
FIGURE 16: Surry Hills district structure plan
Source: (Council of the City of Sydney, 1980, p. 221)
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GROWTH OF THE CREATIVE INDUSTRIESThedataanalysiscontainedinAppendixBprovidesasnapshotofemploymentwithinSurryHillsoverthepasttwodecades(1991to2011).ThecreativeindustriesappeartohaveestablishedwithinSurryHillspriortothiswhichsuggeststhattheindustries’growthwaslikelyoccurringparallelorpriortogentrification.In1996,therewasevidenceoftheformerragtradeclusteraswellastheemergingcreativeindustries,highlightingaperiodoftransitionfromemploymentinmanufacturingtocreativeindustries.
In2011,SurryHillscontainedaclusterofcreativeindustries,withlimitedevidenceofitsformermanufacturingpast,butwithadiversemixoftheseindustriesincludingarchitecture,advertising,designandperformingarts.Thegrowthincreativeindustriesandprofessionalswasaccompaniedbyagrowthinthesupportindustriesincludingcafes,restaurantsandbarswhichcouldbecontributingtoalocalbuzzenvironment.TheseindustrieshavegrownsteadilydespitefluctuationsinthetotalnumberofjobslocatedinSurryHills.
AccordingtoCensusdata,themajorityofworkersbasedinSurryHillstraveltoworkviapublictransport,probablyreflectingitsproximitytoCentralStation.Surprisingly,theaveragecommutelengthforworkersbasedinSurryHillsisgreaterthantheaverageforacrossSydney.Despitethis,thereissomeevidencethatcreativeworkerstendtolivewithintheinnercity,particularlywithintheinnerwestandeasternsuburbs,reflectingtheconceptoftheresurgenceoftheinnercity(Hutton,2004;Storper,2013).
MODERN CREATIVE INDUSTRY CLUSTERSurryHillsisnowrecognisedasalocationofacreativeindustrycluster.ItwasmostlikelyfirstacknowledgedwithinSustainableSydney2030(CityofSydney,2008b).TheStrategyanditssupportingdocumentsreflectontheroleofvillagecentresacrosstheCityofSydney,includingSurryHills,asdiversenodesofeconomicactivitywhichplaya
significantrolewithintheregionalandglobaleconomy(CityofSydney,2008a,p.183).AnalysisbySGSEconomicsandPlanning(2007)illustratesclustersofcreativeindustriesandinformationandcommunicationtechnology(ICT)throughlocationquotient(LQ)analysishighlightingasignificantconcentrationofcreativeindustrieswithinSurryHills(refertoFigure17).
Theincreasingfocusonthecreativeindustriesisevidentthroughoutthestrategy.Akeyobjectivefocusesonsupportingthedevelopmentofthecreativeindustries(refertoFigure18).Objective7.3within Sustainable Sydney2030highlightsthatin2008therewasonlyrecentrecognitionofthestrengthofcreativeindustrieswithintheCityofSydneyandthereisaneedtofacilitatethedevelopmentofcompetitiveclustersofcreativeindustries.
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FIGURE 17: Clusters of creative industries and ICT (2001) FIGURE 18: Objective 7.3 – Support the development of creative industries
Source: (SGS Economics and Planning, 2007, p. 63)
Source: (Adapted from City of Sydney, 2008b, p. 109))
CITY NOW
Onlyrecentrecognitionofstrengthofcreativeindustries.Lackofappropriatespaceforcreativeindustries.
CITY IN 2030
ACitywhichfostersagloballycompetitiveclusterofcreativeindustries.ACitywhichunderstandsplansandprovidesspaceforcreativeindustries.
ACTION7.3.1 Identifythelocationandinfrastructureneedsofvariouscreativesandinnovativeindustries.
ACTION7.3.2 Developcreativeindustryandculturalprecinctstrategies.
ACTION7.3.3 EstablishaCreativeSpacesRegistertoprovideaccesstostudiospacesintheCity.
ACTION7.3.4 EstablishaCreativeIndustryForum.
ACTION7.3.5 Developapilotprogramthatencouragesstart-upculturalandcreativeenterprises.
ACTION7.3.6 Establishactivepartnershipswithbestpracticeadaptivereuseheritagespaces.
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ThesupportingdocumentsuggeststhatcreativeandculturalprecinctsacrosstheCityofSydneyhavetendedto“groworganically”basedonthemixofbusinessesandactivitiesandthecharacterofthelocalresidentialpopulation(CityofSydney,2008a,p.227).CityofSydney(2008a,p.227)believestheseprecinctscannotbeover-plannedandthatcouncilsandothergovernmentagenciescanprovidesupportthrough“goodplanning,networksandbranding,butnotbyover-investingand/ortryingtoup-zonerundownareas”.
Fromaneconomicdevelopmentperspective,theCityofSydney“hasn’treallydonemuchinSurryHills.Ithasjusthappened”(O’Brien2015).However,fromalanduseplanningperspective,whiletheCouncilmayhavelimitedinvolvement,itislikelythatthemaindriverforthecreativeindustryclusterhasbeen“thecharacterandheritagequalitiesofSurryHills”(Thomas2015).Councilhasminimisedredevelopmentopportunitiesbyholdingbackheightandfloorspaceratios,aswellasthroughheritagecontrols(Thomas2015).IthasinvestedinlocalinfrastructuresuchastheSurryHillsLibrary,parks,streetsandfootpaths“tocreateanamenityandimproveaccessibility,sothelookandfeeloftheplaceissomethingthat’sattractive”(Thomas2015).Thiscreatesapleasantplacetoliveandwork.ThesenotionsarereflectedintheprecinctdirectionsforSurryHillsunder Sustainable Sydney2030(CityofSydney,2008b)(refertoFigure19)whichfocusonpreservingorenhancingthebuiltenvironmenttocontinuetoattractcreativebusinesses.Thishighlightsapotentialroleofthepropertymarketinattractingcreativefirmsandthereforeindustryclustering.
FIGURE 19: Precinct directions for Surry Hills
Source: (Adapted from City of Sydney, 2008a, p. 64)
SURRY HILLS
Thisprecincthasdevelopedasalivelymixed-useandcreativebusinessprecinct.Thegrainandfeelareattractivetostart-upandsmalltomediumenterprises.
Development aims ― Preservethefinegrainandintimatescalebyprohibitingsiteamalgamationsandmaintainingexistingheightcontrols.
― PreservebuiltformexceptfordesignatedredevelopmentsitessuchasCentennialPlaza. ― ConsidercalmingWentworthStreettoprovideamoreeffectivecentretobetterlinktheareatoOxfordStreet.Thiscouldinvolvewideningthefootpathandothermeasurestofacilitatepedestrianlife,withElizabethStreetdesignatedforthroughvehicles.
Asidefromthebuiltenvironment,anumberofotherpotentialfactorsledtothegrowthofcreativeindustriesinSurryHills.Commercialrealestateagentsinterviewedaspartofthisthesissuggestthattechnologycompanies(Brown2015)ormarketinganddesignfirmswereoriginallyattractedtoSurryHills(Gunning2015).Asdiscussedaboveitwasmostlikelythelowcosthousingandstudioorwarehousespacethatattractedtheoriginalgrassrootscreativeproducerstothearea(Gibson,2006),andotherindustriesfollowed.
Morerecently,theCityofSydney(2012)FloorspaceandEmploymentSurveyidentifiedthecreativeindustriesasthelargestindustryofemploymentintheSurryHillsvillagearea,comprising20percentofbusinesses(417businesses),and24percentoftotalemployment(5,364jobs).TheCityofSydneyEconomicDevelopmentStrategyrecognisesSurryHillsasacreativeindustryhubwiththelargestconcentrationofcreativeindustrieswithintheLGA(refertoFigure20),alongsideanumberofotherindustryclustersincludingdigitalindustriesintheATP.ThishighlightsthatbothSurryHillsandATParerecognisedasbonafideclusterswithingovernmentpolicy.
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FIGURE 20: Industry clusters within the City of Sydney
Source: (City of Sydney, 2013, p. 16)
IntermsofNSWgovernmentstrategicplanning,SurryHillswasidentifiedasafringeemploymentareawithinthe1995metropolitanstrategy,Cities for the 21st Century(NSWDepartmentofPlanning,1995,p.92).Withinthe2010metropolitanstrategy,Metropolitan Plan for Sydney to 2036,aportionofSurryHillswasidentifiedwithintheCityEastprecinct.TheroleoftheCityEastprecinctincluded“providingbusinesssupportservicestotheCBDindiversecommercialpremisesandcreativeindustries”(NSWDepartmentofPlanning,2010,p.31),aswellasprovidingahighqualityresidentialenvironmentandbeingakeyareafortourismandentertainment.
AshighlightedinChapter1,the2014metropolitanstrategy,APlanforGrowingSydney,recognisedSurryHillsasitsownprecinctwithinGlobalSydney.SurryHillswasprimarilyrecognisedasaresidentialvillage,withitsemploymentrolesomewhatunderstatedatthestatelevel,butrecognisedconsistentlybytheCityofSydneyatalocallevel.
TheconcentrationofthecreativeindustriesinSurryHillshasbeensubjecttomediaattention.RecentarticlesintheSydneyMorningHeraldsuggestthatknowledgespilloversarespontaneouslyoccurringthroughchanceencountersinrestaurantsandcafesinSurryHills(Gittins,2014;Wade,2014a,2014b,2014c)primarilyduetotheconcentrationofknowledgeandcreativeindustrieswithintheprecinct.LordMayorofSydney,CloverMoore,isquotedassayingthattheknowledgejobshavenotgrowninSurryHillsbyaccidentandthatintheCityofSydney’sexperience“ittakescarefulplanningandinvestment”(Wade,2014a).However,thecontextdescribedabovesuggeststhatthisisnotnecessarilythecase.
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FUTUREDuetoitsmixedusezoning,thefutureofSurryHillsasacreativeindustryclusterissubjecttothepropertymarketandthereareavarietyofopinionsastowhetheritwillretainemploymentorturnovertoresidential.OnecommercialrealestateagentinterviewedforthisresearchbelievesthatthecreativesnowinSurryHillsarealreadypayingsignificantlyhighrentspersquaremetreandarelikelytoremainwithintheareabecauseofthebenefitsoftheamenity(Gunning2015)andhenceperceiveittobevalueformoney.
However,anothercommercialrealestateagentbelievedthattherisingrentlevelshasseenbusinesseslookingtoAlexandria,whichisgoingtobethenewSurryHills(Brown2015).Thereissaidtobelimitedvacantfloorspacewithinthecommercialmarketandanumberofwarehousebuildingsareturningovertoresidential(Brown2015).
SurryHills’cycleofgentrificationisreflectedinFigure21,andillustratesanincreasingnumberofwarehousesbeingconvertedtoresidentialuses.Tallon(2013,p.249)highlightsthatthe“de-industrialisationofformermanufacturingcentresleftbehindastockofredundantindustrialspaces,whichwereidealfortheneedsofcreativeindustriesuntildisplacedbytheeffectsofgentrification”.However,whetherSurryHillswillbesubjecttothisshiftisnotentirelyclear:itmaybethat“overthenext10yearsSurryHillswilllosethatinnovation...Whetheritwillbecompletedgoneisanotherthing”(Thomas2015).Thisraisessomeimportantquestionsabouttheroleofplanninginmaintainingclustersandwhetherthereisaneedtointerveneinthemarket.
SUMMARYSurryHillshasevolvedfromanindustrialquartertoacreativeclusterlargelywithouttheplannersnoticinguntilaftertheeventgiventhatnodetailedstrategicplanswerepreparedforSurryHillsbetween1980and2008.Fromtheanalysisabove,itappearsthatattractingemploymenthasneverbeenamajorissuewithpolicyfocusedonencouragingresidentialdevelopment.CityofSydneyhashistoricallycitedcommercialandindustrialusesasencroachingonresidential,inferringthatemploymentuseswerenotfavourable.ThisremainssomewhatthecaseinthesensethatSurryHills’roleasanemploymentprecinctisunderratedwithinNSWGovernmentstrategicplanningdocuments.Thefocusseemstobeonenhancingtheresidentialaspectsofthevillagesuchascultureandthearts.Thisfailstorecognisethecontributionoflocalworkers,despitethedetailedaimstosupportthecreativeindustrieswithinSustainableSydney2030.However,SurryHillsisrecognisedasacreativeindustryclusterandrecentmediaarticlessuggestthatknowledgespilloversarepresentwithinthecluster.
ReflectingonthecommentsmadeduringtheinquiryintotheplanningcontrolsforSurryHillsduringthe1930s,itisironicthatitwasbelievedtobenaïvetohopethatresidentialuseswouldreplaceemploymentuses,particularlysinceitislikelythatthiswillbeamajorissuemovingforwardforthesurvivalofthecreativeclusterinSurryHills.
FIGURE 21: Gentrification
Source: (Perry, 2014)
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FIGURE 21: Gentrification FIGURE 22: ATP context map
Source: Author
3.5 Australian Technology Park
TheATPinEveleighandisdescribedasoneofthenation’spre-eminenttechnologyandbusinessprecincts(AustralianTechnologyPark,2014a).TheATPislocatedadjacenttotherailwaycorridor,directlysouthwestofRedfernStation.Thesite(refertoFigure22)iszonedB7BusinessParkwhichpermitsofficeandlightindustrialusesandprohibitsresidential.
WithintheATPthereareanumberofbuildingswhichhousearangeofcommercialtenantsincludingtheLocomotiveWorkshop,InternationalBusinessCentreandtheNationalInnovationCentre(refertoFigure23).Therearealsoanumberoffirm-specificbuildingssuchasMediaCity(containingChannel7,PacificMagazinesandGlobalTelevisionstudios),theNICTA(NationalICTAustralia)buildingandtheBiomedicalbuilding(containingtheUniversityofSydneyFacultyofAgriculture).
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FIGURE 23: Map of ATP precinct
Source: (Australian Technology Park, 2015a)
CONCEPT AND VISIONIn1989,DrTomForganwasengagedbytheUniversityofSydneytoidentifyausefortheNSWGovernmentownedraillandatEveleighastherailusehadcometoanend(Forgan2015)(refertoFigure24).
Technologyparkswereinvogueatthetime(Forgan2015),andduringthe1990s“itseemedeverylocalgovernmentinNSWhadasitesetasideandzonedforIT-relateddevelopment”(Dunbar2015).TechnologyparkswerenotjustfashionableinAustralia,itwasaworldwidephenomenon(Hall&Castells,1994).
Theproposaltocreatea“world-classtechnologyprecinct”(AustralianTechnologyParkSydneyLimited,2014,p.10)wasalsoputtotwootheruniversitiesandwaseventuallyestablishedasaninitiativeoftheUniversityofNewSouthWales,theUniversityofSydneyandtheUniversityofTechnology(Sydney).TheconceptwassupportedbytheNSWGovernment,whichfacilitatedthetransferofthesiteforthepurposeoftheATP.
AsignificantsourceoffundingwastheAustralianGovernment’sBuildingBetterCitiesprogram.Eveleighwasidentifiedasoneof26areastrategiestobeendorsedundertheBuildingBetterCitiesprogramin1991withfundingsupportingredevelopmentformediumdensityhousingandopenspaceanddevelopmentofanAdvancedTechnologyPark(laternamedtheAustralianTechnologyPark)toencourageemploymentinknowledge-basedindustriesandscientificresearch(DepartmentofTransportandRegionalDevelopment,1996).
ThepurposeoftheATPwas(andstillis)“toprovideanenvironmentforcollaborativeresearch,knowledgesharinganddevelopmentwherecompaniescanforgealliancesandaccesssupportforcommercialisation”(AustralianTechnologyParkSydneyLimited,2014,p.10).
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FIGURE 24: Eveleigh rail yards prior to development of ATP
Source: (Australian Technology Park, 2015a)
GOVERNMENT OWNERSHIP AND MANAGEMENTTheATPopenedinJune1996(AustralianTechnologyPark,2015b).InitiallyForganmanagedtheATPonbehalfofthethreeuniversities.Heranoutofmoneypriortothecompletionoftheoriginalvisionandwasunabletosecureadditionalfunds,andin2000theNSWGovernmenttookoverthemanagementofthesite(Forgan2015).
TheSydneyHarbourForeshoreAuthority(SHFA)washandedthesite,eventhoughthesitewasawayfromtheforeshore,asitwasseenasanauthoritythatcoulddeliver(Dunbar2015).
Overthelast15years,managementhasshiftedbetweenvariousstateauthoritiesincludingtheRedfern-WaterlooAuthority(2005),theSydneyMetropolitanDevelopmentAuthority(2012)andmostrecentlyUrbanGrowthNSW(2013)(AustralianTechnologyParkSydneyLimited,2014).Formally,thesiteisownedandmanagedbytheAustralianTechnologyParkSydneyLimited(ATPSL)whichisanotforprofitcompanywholly-ownedbyUrbanGrowthNSW(AustralianTechnologyParkSydneyLimited,2014,p.8).ATPSLhasaconstitutionthatidentifiesthesortsoftenantsthatshouldbeaccommodatedwithintheATP,includingthoseengagedinresearch,technology,development,innovationandcommunity(Read2015).
TheATPcontainsanincubatorforinnovativesmallfirmsincludingsoftwareandtelecommunicationscompanies(Searle&Pritchard,2005,p.163),ATPInnovations,whichislocatedwithintheNationalInnovationCentre(refertoFigure23).ATPInnovationswascreatedinitscurrentformin2000.Asof2015,therewerearound70start-upcompanieswithintheincubatorwhichare“co-located”withinthebuilding(Hawthorn2015).ThisreflectssomewhattheoriginalvisionfortheATP(Read2015).SearleandPritchard(2005,p.163)suggestthatduetotheconcentrationoftheseindustrieswithintheATP,thereisasmallinformationtechnologyandtelecommunicationscluster“basedonlocalisationeconomies”.
Amongthoseinterviewedforthisproject,itislargelyconsideredthattheATPhasnotliveduptoitsexpectationsorForgan’svision(Read2015;Dunbar2015;Forgan2015).DuncanRead(2015),GeneralManageroftheATPSL,believes:
“ithasalwaysbeenabitofanuncomfortablefitinstategovernmentastowhoshouldownandmanageabusinessPark,becauseitisquiteaprivatesectorfocusedbusiness…government’sroleprobablymovedawayalittlebitfromthefocusontechnologyandinnovationmoretowardscreatingtheenvironment”.
Theremayhavealsobeenissuesassociatedwithprescriptivelandusecontrols,developmentcontextincludingthesurroundingenvironmentandcommunityacceptanceoftheproject(Dunbar2015).Thismayemphasisetheattractionofthemixed-usenatureofothersuccessfulITorcreativeclusters.
ThecommunityreactiontotheATPwasalsocitedbyForganasanissuethatmayhavepreventedtheATPinreachingitspotential.Forganwasattheforefrontofcommunitybacklash(refertoFigure25).
Forganbelievesthat“itcouldhavebeen,noquestion,aworld-classproject”andhasnotachieveditsoriginalvisionbecausethereisnobodydrivingit(Forgan2015).Thisisreflectedbythefracturedhistoryofsuccessivemanagementagenciesforthesite.
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FIGURE 25: Evidence of community backlash against ATP
Source: Forgan (date unknown), provided to Author by Australian Technology Park Sydney Limited
PLANNINGThefirstpolicydocumentthatrecognisedtheATPasgovernmentpolicywasthe1995metropolitanstrategyCitiesforthe21stCentury.ThestrategyreferencedtheredevelopmentofthesurpluslandownedbytheStateRailAuthorityknownastheEveleighRailyardsandadjoininglandoftheDepartmentofHousingforredevelopmentforarangeofbusinessuses,housingandopenspaceincludinganAdvancedTechnologyPark(NSWDepartmentofPlanning,1995,p.78).ThisstrategywaslikelyinsupportofthefundingprovidedbytheBuildingBetterCitiesprogram.TheATPwasexpectedtoutiliselinksbetweennearbyuniversitiesandindustries(NSWDepartmentofPlanning,1995,p.78).
Searle(1996),withinareportfortheDepartmentofUrbanAffairsandPlanning,recommendedthatastrategicplanfortheindustrialareasurroundingtheATPbedevelopedtoensurethattheareaassistedinsupportingthefunctionoftheATP.Whetherornotthisoccurredisunknown.
Thedevelopmentwassubjecttoamasterplanningprocess.ThefirstmasterplanfortheATPwasapprovedin1994(refertoFigure26),andhasbeenupdatedanumberoftimesundertherequirementsof Sydney Regional Environmental Plan No 26 – City West,mostrecentlyin2005.
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FIGURE 26: Original master plan for ATP
Source: Forgan (date unknown), provided to Author by Australian Technology Park Sydney Limited
ThevisionfortheATPidentifiedwithinthemorerecent2005masterplan(NettletonTribe,2005)was:
“toestablishaninternationallyrecognised,worldclasstechnologyandbusinesscentreaimedatbuildingglobalcompetitivenessinkeygrowthsectorsoftheeconomybyfacilitating:
― greaterlinksinthevaluechainbetweentheintellectualandresearchresourcesavailableinSydney'suniversitiesandclustersoffirmsinstrategicindustriesthroughappliedresearchandproductdevelopment;
― theincubationofnewideasinanenvironmentthatfostersresearchanddevelopment;
― theestablishmentofindustriesontheSitethatcarryoutscientificresearchandscientificdevelopmentasanintegralaspectofthatindustry;
― adaptivereuseandinterpretationoftheoriginalrailwayusebuildingsandelementswhichareofheritagesignificanceandshowthehistoricalusesoftechnology;
― theestablishmentofusesontheSitewhichwillhaveapositiveimpactonthehistoric,social,economic,naturalorbuiltenvironmentsofthesurroundinglocality;
― constructionofhighqualityinnovativebuildingsandprovideleadershipintheprovisionofecologicallysustainableurbandevelopmentandstimulatingurbanform;and
― aninspiring,invitingandsafepublicdomainappropriatetoaworldclasstechnologypark”.
Thisvisionhighlightsthefocusofgovernmentpolicyonclustersofindustriesandfirms,particularlyresearchanddevelopmentwithstronglinkstouniversitiesanddrivinginnovation.However,itisaparticularlybroadvisionwhichmayhavebeendifficulttoachieve.
Fromastrategicplanningperspective,theATPhasreceivedrelativelylittleattentionwithintherecentmetropolitanstrategieswiththefocusturningtothebroaderCentraltoEveleighprecinct.TheCityofSydneyisnotresponsiblefortheATP,however,theCityofSydneyEconomicDevelopmentStrategyrecognisestheATPasaclusterofdigitalindustries(refertoFigure18)reflectingthefocusoftheprecinctontechnology-relatedcreativeindustries.
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GROWTH OF THE CREATIVE INDUSTRIESAnalysisofhistoricalCensusdata(refertoAppendixB)revealedevidenceofaformermanufacturingindustryclusterinEveleighduringthe1990swithanumberofjobsidentifiedwithinvariousspecialisedmanufacturingindustriesofemployment.Therewasawidershiftinemploymentduringthisperiodwithgrowingemploymentincomputinganddesignindustriesobservedin1996priortotheopeningoftheATP.
In2011,theATPclusterofcreativeindustrieswasprimarilyinformationmediaandtelecommunicationindustriesassociatedwithMediaCity,whichopenedin2008,andthefocusontechnologyfirms.UnlikeSurryHills,theATPcontainsasmallproportionofjobswithinfoodandaccommodationservicesandthisindustryofemploymenthasnotgrownoverthepasttwodecades.
TheaveragecommutingdistancefortheATPin2011wasonlyslightlyhigherthanthatofSurryHills,whilepublictransportusewaslowerandprivatetransportusesignificantlyhigher.ThismaybeduetotheavailabilityofcarparkingwithintheATP(albeitatacost)andsurroundingtheATP.PrivatetransportusewaslowerthantheSydneyaverage.WiththeaveragecommutingdistanceforSurryHillsandtheATPbeinggreaterthantheSydneyaverage,thissuggeststhatthereislimitedevidencethatworkersliveincloseproximitytowheretheywork.Despitethis,theanalysisearlierinthischapterillustratesthatthecreativeworkersgenerallylivewithintheinnercityofSydney,whichismoreaccessibletotheemploymentcentresinGlobalSydneycomparedtootherareasofSydney.
FUTURETheATPisnotfullydeveloped,andthereisanaimforthistooccurwithinthenext10years.Accordingtothe2014annualreport,theATPcontainsaround4,500jobsandthetargetismorethan9,000jobs(AustralianTechnologyParkSydneyLimited,2014).TheATPSL(2014),claimshighandstabletenantoccupancylevelsatbetween97and100percent.Tenantsincludecompaniesofallsizesworkingwithinarangeofindustriessuchasinformationtechnology,research,development,government,mediaandeducation(AustralianTechnologyParkSydneyLimited,2014).
AsmentionedinChapter1,APlanforGrowingSydneyintroducestheCentraltoEveleighprecinctaspartofGlobalSydneywhichincludestheATP.UrbanGrowthNSWisresponsibleforthetransformationofthisprecinctwhichisexpectedtoplayaroleinaccommodatingtheexpansionofSydneyCBDofficespace(NSWDepartmentofPlanningandEnvironment,2014).Thisprecinctisalong-termprospect(20to30years)andisexpectedtoaccommodatemediumandhighdensityoffice,education,retail,hospitalityandresidentialdevelopment.Alongsidethis,UrbanGrowthNSWannouncedinDecember2014thatitwasseekingexpressionsofinterest(EOI)forthesaleoftheATP(AustralianTechnologyPark,2014b;McKenny,2014).
AccordingtotheGeneralManageroftheATPSL:
“Government’snowthinkingthatitsjob’sdoneintermsofcreatingthecriticalmassanditmightnotbethebestpersontocontinuetodeliverandmanagethePark,becausetheprivatesectorcanbringinnewfundsandnewbuildingsandattractnewtenantstocompletetheTechnologyPark”(Read2015).
ThroughouttheEOIprocess,therewasspeculationthatGoogleandtheCommonwealthBankofAustraliawereinterestedinthesite(Ruehl,2015a,2015b).Inlate2015,largeAustraliansoftwarecompanyAtlassianwasgainingsignificantmediatractioninresponsetoitsbidtopurchasethesite(Fitzsimmons,2015a,2015b,2015c,2015d;Mao,2015;Needham,2015),rejuvenatinginterestintheATPtoremainatechnologypark.On12November2015,itwasannouncedthatMirvacwasthesuccessfulpartyandthattheCommonwealthBankofAustraliawouldbetheanchortenant(Cummins,2015;Ruehl,2015c;UrbanGrowthNSW,2015).TheEnvironmentalImpactStatementfortheredevelopmentofthesitewaslodgedbyMirvacinDecember2015andproposesthedevelopmentofthreenewbuildings(refertoFigure27),107,000squaremetresintotal,formixedcommercial,retailandcommunitypurposes(JBAUrbanPlanningConsultants,2015).
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FIGURE 27: Artists impression of one of the new buildings proposed for the ATP
Source: (JBA Urban Planning Consultants, 2015)
SUMMARYTheATPisaplannedtechnologyhubwhichwasdesignedtofacilitateknowledgespillovers.Thesiteisprotectedforbusinessparkemploymentusesthroughitszoning,withthefocusontechnologyandinnovationcontainedintheATPSLconstitutionratherthanthezoning.Hence,thereareanumberoflayersofcontrolintermsofbothgovernanceandlandusecontrols.
ManagementhasshiftedmultipletimesanditappearsthattheoriginalvisionbehindtheATPmayhavedilutedwhenpropertydevelopmentarmsoftheNSWGovernmentwerebroughtintomanagetheATP.IthasnowalsobeeneffectivelysubsumedintotheCentraltoEveleighprecinct.TheATPalsofailedtosecurecatalystinfrastructureandthecriticalmassthatmighthaveboostedthepotentialfortheoriginalvisiontobeachieved.
ThefutureoftheATPisunclearfollowingthesale,yettherecouldbeopportunitiesforthetechnologyfocustobeenhancedifalargesoftwarecompanywassecuredasananchor tenant.
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3.6 Conclusion
Thechapterrevealsadichotomyofapproachestoestablishingindustryclustersfromaplanningperspective.Thefirstapproachisunplanned,organicallydrivenbythemarket–SurryHills.Thesecondapproachisplanned,developedthroughclearpolicydirections–theATP.ThecontrastingapproacheshighlightthepotentialroleofplanningintheevolutionofcreativeindustryclustersandotherpotentialdriversalongsidetheeconomicforcesidentifiedwithintheliteraturebyMarshall(1920).
TheclusterofcreativeindustrieswithinSurryHillsevolveddespitethehistoricalpolicyfocusonresidentialdevelopment.Thelackofplanningraisesimportantquestionsregardingthefutureofclusterwithlimitedplanningmechanismstoprotectthecreativeindustriesfrompotentiallyturningovertoresidentialuses.AnunderstandingoftheeconomicbenefitsforfirmsassociatedwithbeinglocatedinSurryHills(potentiallyincludingknowledgespillovers)willbekeytounderstandingthelikelyfutureofSurryHillsandwhethertheclusterhasthepotentialtowithstandturningovertoresidentialdevelopment.
TheclusteroftechnologyfirmswithintheATPrepresentsasomewhatmanufacturedapproachtoclusteringinvolvingsignificantinvolvementfromgovernmentand,aswellastheuniversitysector,andvariousmasterplansandpolicylevers.TheprotectionofATPagainsttheinfluxofresidentialdevelopmentthroughitsbusinessparkzoningandtheconstitutionoftheATPSLhasretainedtheemploymentfocus.However,theATPrepresentsasomewhatoutdatedconceptofa(sub)urbanbusiness/technologypark.ThebusinessparkzoninghaspotentiallyrestricteditsabilitytoevolveintoamoremodernurbaninnovationdistrictasidentifiedbyKatzandBradley(2013),highlightingapotentialdebatebetweentheneedforplanningtoremovebarrierstogrowthversussupportingthegrowthofemploymentinthefaceofapropertymarketdrivenbyresidentiallanduses.
Anotherareaofcomparisonbetweenthesecasestudieswillbethespecificindustryconcentratedwithineachclusterandthischapterprovidesthebasisforfurtherreflectionduringthisthesis.Whiletheseprecinctscontainwhatisdefinedwithinthisthesisascreativeindustries,thefinegrainindustriesthatwerepresentineachcasestudyatthelastCensusin2011weresomewhatdifferent.SurryHillscontainedaclusterofadvertising,architectureanddesignindustries,whereastheATPcontainedaclusterofmediaandcomputer-relateddesignindustries.
ItwasexpectedthatthecreativeworkerswouldliveclosetoSurryHillsandtheATP,butinrealitycreativeworkerscommutefromalloverSydney.However,thereisageneralconcentrationintheeasternhalfofSydneyclosetothejobsclusteredintheinnercityofSydney.
SurryHillsandtheATPareappropriatecasestudiesforcomparisonwithinthisthesisbecauseofthelocationalsimilarities,beinglocatedwithintheGlobalEconomicCorridorandtheCityofSydneyLGA.Theprecinctsbothevolvedfromformerindustrialprecincts,generallyoverthesameperiod,andprovidesimilarhistoricalcontextsforcomparison.WhiletheATPwasdevelopedwiththevisiontocreateanenvironmentwhereknowledgespilloversoccur,thistypeofactivityhasalsobeendescribedwithinthemediaasoccurringwithinSurryHills.Thenatureofplanning(orlackof)presentsanopportunitytocomparehowplanningcanimpactonthedynamicswithinthesetwoindustryclusters,whilealsotakingintoconsiderationothervariables.
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Methodology
The methodological approach adopted for this thesis is
primarily qualitative, with interviews with firms and
workers the main source of empirical evidence.
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CHAPTER 4: METHODOLOGY
4.1 Introduction
Thischapteroutlinesthemethodologicalapproachadoptedforthisthesis.DrawingontheanalysisofthetwocasestudiesdiscussedinChapter3,itprovidesthejustificationforadoptingacasestudyapproachandthespecificcasestudieschosen.
4.2 Research question
AsdiscussedinChapter1,thefollowingresearchquestionwillbethefocusforthisresearch:
To what extent do localised knowledge spillovers drive local industry clustering?
Thefollowingsub-questionswillalsobeaddressedbythisresearch:i. Wheredoworkerssourcetheirknowledge(informal
networks,formalnetworksorboth)?ii. Whereareconnectionsformedandhowdotheyevolve
intoaworkingrelationship?iii. Whydofirmschoosetolocateinalocalindustrycluster?iv. Whatroledoesplanningplayinpromotinglocalised
knowledgespillovers?
Thekeytermswithintheresearchquestioncanbedefinedasfollows:
― Industrycluster:“ageographicallyproximategroupofinterconnectedcompaniesandassociatedinstitutionsinaparticularfield,linkedbycommonalitiesandcomplementarities”(Porter,2000,p.254).ThefocusofthisthesisislocalindustryclustersinSydneyasidentifiedwithinstrategicplanningdocuments.
― Knowledge:“subtle,contextual,specific,andissharedbetweenpersons.Ifallweneededwasinformationwewouldneverleavehome;wecouldtelecommutetowork”(Katz&Bradley,2013,p.118).Thisstudy,however,isconcernedwithknowledgethatiseconomicallyvaluabletotheworkerorfirm.Thatis,knowledgethatrelatestoproductsorserviceswhichthefirmorworkerscurrentlydevelop/provideand/orfuturemarketopportunitiesforthefirmandknowledgethatalsocontributestoanincreaseintheproductivityorearningcapacityofthefirm.
― Localisedknowledgespillovers:knowledgeexternalitiesboundedinspace.Knowledgespilloversareimplementedthroughnon-marketinteractions,thatis,withoutdirectcompensationfortheproduceroftheknowledge(Huber,2007,p.50).Inthecontextofthisresearch,thespatialboundariesinquestioncoverrelativelycompactprecinctsorsuburbssuchastheATPandSurryHills,asdistinctfromregionalspatialunits,suchastheinnercityofSydneyortheGlobalEconomicCorridor.
4.3 Case study approach
Yin(2014,p.4)highlightsthatacasestudyapproachisoftenusedtocontributetoknowledgeonindividuals,groups,organisations,social,politicalandrelatedphenomena.“Thedistinctiveneedforcasestudyresearcharisesoutofthedesiretounderstandcomplexsocialphenomena”(Yin,2014,p.4).Understandingknowledgespilloverswouldarguablybeconsideredacomplexsocialphenomenon,particularlyduetothedifficultyassociatedwithtracingtheexchangeofknowledge.
Thetwocasestudieshavebeenchosenbasedontheirrespectivehistory,currentemploymentfocusandthelevelofinvolvementofgovernmentinplanninganddevelopmentoftheemploymentarea.ThecontextandjustificationforthesecasestudieswasexploredinChapter3andasummaryisprovidedbelow.
SURRY HILLSSurryHillscontainsaclusterofcreativeindustrieswhichevolvedorganicallyoverthepastfewdecadesfromaformerclothingmanufacturingcluster.Thereislimitedevidenceofstrategicplanningand Sustainable Sydney 2030 acknowledgedthatithadevolvedorganically.TheCityofSydneywouldliketocontinuetofacilitatethefunctionandgrowthofthecentre.Despitethis,thereislimitedrecognitionoftheareaasanemploymentcentrewithinstateorlocalgovernmentplanning.
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AUSTRALIAN TECHNOLOGY PARKTheATPsitsonthesiteoftheformerstaterailyards.TheredevelopmentofthisbrownfieldsitewasannouncedaspartoftheBuildingBetterCitiesProgramintheearly1990s.Thevisionwastoprovideanenvironmentforcollaborativeresearchandknowledgesharing.ThesitewasNSWGovernmentplannedandownedandremainsinstategovernmentownership,howeverUrbanGrowthNSWwhocurrentlymanagestheATPhasrecentlysoldthesite.
4.4 Network analysis
Networkanalysis,includingactor-networktheory,couldbeappliedwithinstudiesthataimtotraceknowledgespillovers.Actor-networktheoryisbasedontheconceptthat“entitiestaketheirformandacquiretheirattributesasaresultoftheirrelationswithotherentities”(Law&Hassard,1999,p.3).Huber(2007,p.11)suggeststhat“nearlyallempiricalresearchonnetworksinregionalstudiesandeconomicgeographydoesnotapplyappropriatemethodsofnetworkanalysisthathavetheabilitytoanalysetherelationalstructureofnetworks”.Socialnetworksandinformalpersonalrelationshipsarelikelytobekeyelementsthatfacilitateknowledgespillovers,suggestingsocialnetworkanalysiscouldbeanappropriateapproachtotracingknowledgespillovers.However,astudybyHuber(2007,p.134)intosocialnetworksandknowledgespilloversfoundthat“Sincenostructuredrelationsbetweentheactorsexist,suchprocessesdonotseemtobetraceablebymeansofsocialnetworkanalysis.Possiblyonlydeepqualitativeinterviewsarecapableofcastinglightonphenomenaofsuchsort”.Thissuggeststhatqualitativeinterviewscouldbeamoreadequateapproachtotracingknowledgespilloversthansocialnetwork.Qualitativeinterviewshavebeenadoptedastheprimaryresearchmethodforthisthesis.
4.5 Overview of method
Themethodologyadoptedforthisstudyprimarilyinvolvesqualitativeresearchsupportedbyquantitativeanalysis.ThemethodsareoutlinedinrelationtoeachresearchquestioninTable3.
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TABLE 3: Research questions, methods, data sources and analysis
RESEARCH QUESTION RESEARCH METHODS, DATA SOURCES & ANALYSIS
To what extent do localisedknowledgespilloverspromotelocalindustryclusters?
Variousmethods(discussedbelow)tounderstandwhetherknowledgespilloversaredrivingfirmlocationandthereforeclusteringand/orwhetherthereareotherdriversthataremoreprominentorstronger.
i. Wheredoworkerssourcetheirknowledge(informalnetworks,formalnetworksorboth)?
Throughthequalitativeinterviews,workerswereaskedvariousquestionsthatrelatedtosourcingknowledge,includingbothinformalandformalnetworksaswellasinternalandexternaltothefirm.
ii. Where are connectionsformedandhowdotheyevolveintoaworkingrelationship?
Qualitativeinterviewswithbothfirmsandworkersinvolvedarangeofquestionstounderstandtheextentofprofessionalnetworks,particularlywhereconnectionsareformed,andifandhowknowledgeissharedbetweentheseconnections.Theintervieweeswereaskedaboutlocationtounderstandthespatialrelationshipbetweenthenetworkandthefirmlocation.
iii. Whydofirmschoosetolocateinalocalindustrycluster?
QualitativeinterviewswithfirmsinwhichintervieweeswereaskedwhythefirmchosetolocatewithinSurryHillsorattheATP.Thiswassupportedbythestatedpreferencesurveywhichrequiredfirmstorankthetop10reasonsforlocatinginSurryHillsortheATPtoidentifykeyfactorsdrivingtodrivingfirmlocationandclustering.
iv. Whatroledoesplanningplayinpromotinglocalisedknowledgespillovers?
Analysisoftheurbanplanningcontextthroughahistoricaldocumentandpolicyreview(detailedinChapter3)providedanunderstandingoftheroleofplanninginthedevelopmentofthecluster.TheroleofplanninginpromotingknowledgespilloverswasexploredthroughacomparativeanalysisofSurryHillsandtheATPtounderstandwhetherthereisarelationshipbetweenplanningandknowledgespillovers.
Themethodsarediscussedinmoredetailbelow.
CONTEXT ANALYSISResearchingtheurbanplanningcontextprovidesanunderstandingoftheroleofplanningintheevolutionofeachcasestudyarea.Alongsidethereviewofhistoricaldocumentsandlocalandstategovernmentstrategicpolicies,detailedinChapter3,contextinterviewswerealsoundertaken.
CONTEXT INTERVIEWSInterviewswereconductedwitharangeofexpertsthatcouldprovidecontextforthetwocasestudiesincludinghistoricalcontextaswellasanunderstandingofhoweachofthecasestudiesfunctionsatpresent.
Intermsof Surry Hills(refertoTable4),interviewswiththeExecutiveManagerofStrategicPlanningandUrbanDesignandtheManagerofEconomicStrategy,bothfromtheCityofSydney,providedfurthercontexttotheroleofCityofSydneyfromalanduseplanningandeconomicdevelopmentperspective.
TwoprominentcommercialrealestateagentswhohavebeenbasedinSurryHillsforthepast15yearswereinterviewed.Theagentsprovidedcommentonhowtheareahasevolvedoverthisperiod,andprovidedanunderstandingofcurrentandpotentiallyfuturecommercialmarketdynamicsinSurryHillsandacrossSydneymorebroadly.
ThehistoricalvisionandevolutionoftheATPoverthepasttwodecadeswasinformedbyinterviewswithvariouspeopleresponsibleformanagingtheATP,bothpastandpresentincluding:
― TomForgan:thefounderoftheATP ― DrBillDunbar:aformerpublicservantwhowasinvolvedincoordinatingvariouseconomicdevelopmentprojectswithintheDepartmentofPremierandCabinetduringthelate1990sandearly2000sincludingtheATP
― DuncanRead:thecurrentGeneralManageroftheATPSL.
Theseinterviewsweresupplementedbytwootherinterviews(refertoTable5).HamishHawthorn,thecurrentCEOofATPInnovations(theincubatorwithintheATP),wasinterviewedtodevelopanunderstandingofitsrolewithintheATPandnetworkswithintheATP.BrentHarman,theGlobalHeadofRealEstate&ExperienceatAtlassianwasinterviewedtoprovidecontextaroundwhyAtlassianwasinterestedinpurchasingtheATP.
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INTERVIEWEE POSITIONORGANISATION
INSIGHTS REFERENCE
AndrewThomas ExecutiveManager,StrategicPlanning&UrbanDesignCityofSydney
AndrewhasbeenworkingattheCityofSydneysince2004.HeprovidedinsightintothehistoricalandcurrentapproachestostrategicandstatutoryplanninginSurryHillsandacrosstheCityofSydney.
Thomas2015
FrancescaO'Brien Manager-EconomicStrategyCityofSydney
FrancescaprovidedanoverviewofeconomicdevelopmentpoliciesandmechanismswhichtheCityofSydneyhasadoptedandhowthesecouldorwouldapplytoSurryHills.
O’Brien2015
DavidBrown RealEstateAgentDBProperty
DavidsetuphiscommercialrealestateagencyinSurryHillsin1998andprovidedanoverviewofthecommercialmarketinSurryHillsandhowithasevolvedoverthepast15years,aswellasfutureprospects.
Brown2015
MalcolmGunning RealEstateAgentGunningCommercial
MalcolmsetupanofficeofhiscommercialrealestateagencyinSurryHillsin2000andprovidedanoverviewofthecommercialmarketinSurryHillsandhowithasevolvedoverthepast15years,aswellasfutureprospects.MalcolmisalsotheheadoftheRealEstateInstituteofNSW.
Gunning2015
INTERVIEWEE POSITIONORGANISATION
INSIGHTS REFERENCE
REFERENCE
DuncanRead GeneralManager,AustralianTechnologyParkSydneyLimited
DuncanhasbeentheGeneralManageroftheATPSLfortwoyearsandprovidedinsightintothehistoryaswellascurrentplanningandmanagementoftheATP.
Read2015
BillDunbar ChiefExecutiveOfficerSGSEconomicsandPlanning
BillwasemployedwithintheInfrastructureCoordinationUnitoftheNSWDepartmentofPremierandCabinetduringthelate1990sandearly2000s.HeprovidedcommentaryonthedevelopmentoftheATPandgovernmentthinkingandprocessbehindit.
Dunbar2015
TomForgan TomForganwasthevisionarybehindtheATPandthereforewasabletodiscusshowtheideabegan,thedevelopmentprocessandgovernancearrangements.
Forgan2015
HamishHawthorn ChiefExecutiveOfficerATPInnovations
HamishhasbeentheCEOofATPInnovationsforthelast10yearsandprovidedanoverviewoftheroleofATPInnovationsasanincubatorandnetworkinteractionsbetweenworkerswithintheNationalInnovationCentreattheATP.
Hawthorn2015
BrentHarman GlobalHeadofRealEstate&ExperienceAtlassian
BrenthasbeenatAtlassianforthepasttwoyearsandisresponsiblefortherealestatestrategyandstaffexperience.HeprovidedanunderstandingofAtlassian’svisionfortheATPaswellasmorebroadlyhowAtlassiandecideswheretolocateitsoperationsinSydneyandglobally.
Harman2015
TABLE 4: Context interviews (Surry Hills)
TABLE 5: Context interviews (ATP)
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DATA ANALYSISTheanalysisoftheplanningcontextwassupportedbyanalysisofsecondarydatawhichtrackedhoweachofthecasestudyareashasevolvedoverthepasttwodecadesintermsofemploymentandconcentrationofthecreativeindustries.
DataanalysiswasconductedusingtheBTSJourneytoWork(JTW)datawhichisderivedfromCensusdataeveryfiveyears.TheBTSJTWdatasetincludesdataonemploymentbyindustryandoccupation,originofworktripsandmethodoftraveltowork.BTSJTWdatawasavailableforthepreviousfiveCensusyears(1991,1996,2001,2006and2011).
AnLQisaratiousedtodeterminetheconcentrationordominanceofaparticularindustrywithinageographicalarea.BillingsandJohnson(2012,p.642)suggeststhatscholarshaveadoptedarangeofmetricstoidentifythepresenceofclusters,howeveranLQremainsthemetricofchoice.Forthepurposeofthisstudy,thecalculationusedwas:
LQforcasestudyarea=
Proportionoftotalemploymentwithinthecasestudyarea
Proportionoftotalemploymentwithinthebenchmarkarea
Thespatialaggregatelevelusedcanimpactontheresults(Billings&Johnson,2012),andcareshouldbetakenintheinterpretationofresults.TheCityofSydneyLGAandGreaterSydneyMetropolitanArea(SydneyGMA)wereusedasbenchmarksfortheLQanalysis.WhileaNSWbenchmarkmayhavebeenmoreappropriate,thepurposeoftheanalysiswastounderstandthepresenceofclusterswithinthecasestudyareascomparedtoacrossSydney.
TheoverarchingfindingsofthedataanalysiswereprovidedinChapter3andthedetailedanalysisiscontainedinAppendixB.Detailonthedefinitionofgeographiesandindustries,includinghowthecreativeindustriesweredefined,arecontainedinAppendixC.
TRACING KNOWLEDGE SPILLOVERSQualitativeinterviewswereconductedtotraceknowledgespilloversandunderstandiftheydriveindustryclustering,
QUALITATIVE INTERVIEWS – FIRM PERSPECTIVEInterviewswereconductedwithChiefExecutiveOfficers(CEOs),Directors,FoundersorOwnersofbusinesseswithineachclusterwhowerealsoresponsibleforchoosingthelocationofthebusinessandcouldprovideinsightsintotheperspectiveofthebusiness.Thefirmswereselectedbasedonindustrytypetoensuretheyfitwithinthedefinitionofcreativeindustriesandwererepresentativeofthecluster.
FirmrepresentativesweregenerallycontactedwhereinformationontheCEO,Directors,FoundersorOwnerswasreadilyavailableonline.Eachfirmrepresentativewascontactedviaemail(whichincludedapersonalisedletteraddressedtotheinterviewee)andinvitedtoparticipate.Furtheremailsandphonecallswereusedtofollowupwhererequired.Insomeinstances,afirmwascontactedbecausetheyweresuggestedbyanotherfirmrepresentativewhowasinterviewed.
Initially,fivefirmswithineachcasestudyweretargeted.However,thesenumberswereincreasedtoboostthenumberofworkerinterviewsandensurethatawell-roundedperspectivewascaptured.InSurryHills11firmrepresentativeswereinterviewed(refertoTable6)andwithintheATPsevenfirmrepresentativeswereinterviewed(refertoTable7).Thefirmshavebeencategorisedbasedonhowtheintervieweedescribedthefunctionandoperationofthefirmandthesizeofthefirmintermsofnumberofemployees.Foursizecategorieshavebeenadopted:
― Start-up:wherethefirmidentifiesasbeinginthestart-upphase(generallywithoneortwoemployees).
― Small:lessthan20employees. ― Medium:20to50employees. ― Large:morethan50employees.
FIRM CATEGORISATION
SIZE JOB TITLE OF INTERVIEWEE
1 Software Start-up ProductandImplementationManager
2 Architectureandplanning
Large Director
3 Digitalagency Small ManagingDirector
4 Digitalagency Small ManagingDirectorand Founder
5 Architecture Medium ManagingDirector
6 Landscapearchitecture
Start-up Director
7 Architecture Large ManagingDirector
8 Planningandurbandesign
Small CEO
9 Architecture Large StudioDirector
10 Digitalagency Large Owner
11 PlanningandEconomics
Medium Principal
TABLE 6: Firms in Surry Hills
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FIRM CATEGORISATION
SIZE JOB TITLE OF INTERVIEWEE
1 Software Small CEO
2 Hardware Small Co-Founder
3 ICTresearchinstitution
Large ChiefOperatingOfficer
4 Lifesciences Start-up ManagingDirector
5 Lifesciences Small CEO
6 Designandmultimedia
Small ManagingDirector
7 Hardware Start-up Co-Founder
TABLE 7: Firms within the ATP
Throughoutthisthesis,theseintervieweesarereferredtoasthefirmrepresentatives.Theinterviewreferencesareintendedtoprovideenoughdetailontheroleofeachfirmrepresentativeandtypeoffirminordertoderiveanyconclusionsregardingthefirm,itssizeandknowledgespillovers.Thereferencescontainthefollowinginformation:
(position,firm(sizeoffirm),location,year)
Forexample:(ManagingDirector,architecturefirm(medium),SH,2015)
Note:SH=SurryHillsandATP=AustralianTechnologyPark
TheinterviewsfocusedonunderstandingwhythefirmhaschosentolocateinSurryHillsortheATP,aswellashowstaffarerecruited,theextentofthefirm’sprofessionalnetwork(includingclients,collaboratorsandsuppliers)andtheknowledgeofthefirmandhowthisisdevelopedandshared.Theintervieweeswerealsoaskedtheiropiniononknowledgespilloversfromtheirexperienceasaknowledgeworker.Theseweresemi-structuredinterviewsandthequestionsarecontainedinAppendixD.
InordertoestablishwhythefirmhaschosentolocateinSurryHillsortheATP,eachintervieweewasaskedanopenendedquestionandthenrequestedtofillinastatedpreferencessurvey(overleaf).Thesurveyrequiredthemtorank(from1to10)thetop10reasonsforlocatinginSurryHillsortheATP.Thismethodwasadoptedsothatanyreasonswhichwerenotlistedwithinthesurveywouldbeidentifiedupfronttoavoidtheintervieweesbeinginfluencedbythesurvey.
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Statedpreferencessurvey:reasonforlocatinginSurryHills/ATPPleaserankyourtop10reasonsforlocatinginSurryHills/ATPfrom1to10
LABOUR MARKET
1 Locationofexistingemployees
2 Hiringstaff/recruitment(attractinglabour)
FORMAL BUSINESS LINK
3 Existinglocalcustomers/clients
4 Accesstopotentialcustomers/clients
5 Potentialtocollaboratewithresearchinstitutions
6 Potentialtocollaboratewithotherfirms
7 Accesstolocalsuppliers/serviceproviders
KNOWLEDGE
8 Learningthroughpersonalnetworks
9 Events(conferences,workshops)whichareheldinSurryHills/ATP
LOCATION
10 CloseproximitytoCBD
11 TheSurryHills/ATP“brand”
12 Availabilityofcafes,restaurantsandbars
13 Accesstootherservices(e.g.postoffice,medicalcentres,banks)
14 Accesstoresidentialaccommodation
15 Conducivetostart-upbusinesses
PROPERTY MARKET
16 Availabilityofofficespace
17 Suitabilityofofficespaceavailable
18 Cheaperrentscomparedtootherlocations
19 Opportunitytoexpand/consolidate/contract
TRANSPORT AND INFRASTRUCTURE
20 Easyaccesstoworkbycar
21 Accesstoparking
22 Availabilityofpublictransport
23 Bicycleaccessorfacilities
OTHER
24
25
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ThestatedpreferencessurveywasdevelopedbasedonasimilarsurveyusedwithinastudyoftechnologyfirmsinNorthernSydney(Green&Hughes,2009),withanumberofthefactorsalteredorremovedastheywerenotapplicabletothisstudyorthefirmsbeinginterviewed.Newfactorswerealsoincludedbasedonoutcomesoftheliteraturereview.
Apilotofthestatedpreferencessurveywasundertakenbyfivecolleagueswhowererecentlyinvolvedintheprocessofreassessingthelocationofafirm.Followingfeedbackfromthepilot,afewminoralterationsweremadetothesurveypriortodistributiontointerviewees.
Locations within Surry HillsThelocationofeachofthefirmswhichparticipatedinthisstudyisillustratedinFigure28,includingdetailonthetypeoffirm,thesizeofthefirm,theyearinwhichthefirmmovedtoitscurrentlocationandtheyearinwhichthefirmmovedtoSurryHills(whichinsomecaseswasthesameyearthefirmmovedintoitscurrentlocation).Thisdoesnotconsidertheyearinwhichthefirmwasestablished,whichinmostcaseswasnotinSurryHills.
Theintervieweeswerespreadacrosstheprecinct,butsomewhatofanorthsouthdividecanbeseenwithaconcentrationofarchitecturefirmsinthenorth.Someofthefirmswerelocatedwithinthesamebuilding.Thesewereconvertedwarehousebuildingswhichweresubdividedintonumerouscreativesuitesforfirmsofvarioussizes.AnumberoffirmsrecentlymovedofficewithinSurryHillsandthefirmrepresentativeswereabletocommentonnotonlythedecisionmakingprocessinvolvedinmovingtoSurryHillsinitially,butalsothedecisionmakingprocessofrelocatingofficesandwhetheralternativelocationsexternaltotheSurryHillsprecinctwereconsidered.
FIGURE 28: Locations of firms within Surry Hills
Source: Author
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FIGURE 29: Locations of firms within the ATP
Source: Author
Locations within the ATPThefirmswhichparticipatedinthisstudywithintheATPwerelocatedwithinfourofthebuildingswithintheATP:theLocomotiveWorkshops,theInternationalBusinessCentre(IBC),theNationalInnovationCentre(NIC)andtheNICTAbuilding.Figure29similarlydetailsthetypesoffirms,thesizeofeachfirmandtheyearinwhichthefirmwasestablishedormovedtotheATP.MediaCitywasnottargetedasitisseensomewhatseparatetotherestoftheATP.Governmentdepartmentswereavoidedasthelocationchoiceoftheseagenciesisnotconsideredtoreflectamarketprocessbutrathertheavailabilityofgovernmentownedlandorfloorspace.NICTA,however,wasinterviewedasitisrepresentationofaresearchinstitutionandthereforehasthepotentialtohavestronglinkstothefirmswithintheATP.
TheNICbuildingcontainsATPInnovations,whichasdetailedinChapter3isanincubator.However,onefirmbasedintheNICbuildingisnotpartoftheprogram.ReferencestofirmswithinNICbuildingthroughoutthisthesisincludeallthreefirms,whereasreferencestofirmswhicharepartoftheATPInnovationsprogramonlyincludesthetwostart-upfirms.
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QUALITATIVE INTERVIEWS – WORKER PERSPECTIVEFollowingtheinterview,eachfirmrepresentativewasaskedtonominatethreeemployeeswhowouldbewillingtoparticipateinaninterview.Whilethemajorityoffirmrepresentativeswereabletodoso,insomecasesthefirmrepresentativedeclined,wereunabletofindstafforhadnoorfewemployees.Asmentionedabove,thenumberoffirminterviewswasincreasedtoboostthenumberofknowledgeworkerinterviewswherenoemployeeswereavailable.
Thefocusoftheseinterviewswastounderstand:
― howknowledgeisdevelopedandsharedwithinthecluster
― jobmovements(wheretheyworkedpreviously) ― howsocialinteractionisinitiatedandhowitevolvesintoaworkingrelationship
― exampleswheretheyhaveconsideredtohavereceived/developedeconomicallyvaluableknowledgewithsomeoneexternaltothefirm.
Again,theseweresemi-structuredinterviewsandthequestionsarecontainedinAppendixE.
Thetargetwas15interviewswithineachcasestudy.Thiswasbasedonwhatwasconsideredtobemanageableforthescaleofthisstudy,whilealsoprovidingenoughevidencetodrawconclusionsrelatingtoknowledgespilloversandfirmlocationwithinthecontextofthetwocasestudyareas.
InSurryHills,18workerswereinterviewedfromsevendifferentfirms(refertoTable8).
TABLE 8: Workers based in Surry Hills
FIRM CATEGORISATION SIZE JOB TITLE OF INTERVIEWEE1 Architectureandplanning Large SeniorUrbanDesigner
2 Architectureandplanning Large AssociateDirector(Planning)
3 Architectureandplanning Large Associate(InteriorDesign)
4 Digitalagency Small CreativeDirector
5 Digitalagency Small AccountDirector
6 Architecture Large TeamLeaderofInteriorDesign
7 Architecture Large GraduateArchitect
8 Architecture Large SeniorAssociate
9 Planningandurbandesign Small SeniorPlanner
10 Architecture Large Associate
11 Architecture Large StudioDirector
12 Architecture Large AssociateDirector
13 Digitalagency Large DesignDirector
14 Digitalagency Large GeneralManager
15 Digitalagency Large GroupBusinessDirector
16 Planningandeconomics Medium Consultant(GIS)
17 Planningandeconomics Medium SeniorConsultant(Planner)
18 Planningandeconomics Medium Associate(Economist)
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TABLE 9: Workers based within the ATP
FIRM CATEGORISATION SIZE JOB TITLE OF INTERVIEWEE1 Software Small BusinessArchitect
2 Software Small SeniorBusinessArchitect
3 Hardware Small EngineeringManager
4 Hardware Small ChiefOperatingOfficer
5 Hardware Small HeadofIT
6 ICTresearchinstitution Large ResearchEngineer
7 ICTresearchinstitution Large PrincipalUserExperienceDesigner
8 Designandmultimedia Small SeniorDigitalDesigner
Duetoalackoffirmsavailabletobeinterviewedandthesizeofthefirms,eightworkerinterviewswereconductedfortheATP.Despitethis,theseinterviewswereconsideredtoprovideawell-roundedperspectiveinconjunctionwiththeperspectiveofthefirm.Theseeightworkerswerefromfourdifferentfirms(refertoTable9).
Throughoutthisthesis,theseintervieweesarereferredtoascreativeworkers.Referencestotheinterviewsreflecttheformatofthefirminterviewsdetailedabove.ComparativeanalysisThetwocasestudieswerecomparedthroughacomparativeanalysisoftheresults.TheframeworkadoptedisbasedonthemechanismsofknowledgespilloversidentifiedbyHuber(2007):
― knowledgeflowsviamobilityofthelabourforce ― knowledgeflowsviaentrepreneurshipandspin-offs ― knowledgeflowsviarelationshipswithcustomersandsuppliers
― knowledgeflowsvianetworksofpersonalrelationships.
Thisframeworkdrewthefindingsfromeachcasestudytogetheranddevelopedanunderstandingofhowknowledgeflowsrelatetothegeographicalareaandiftheyweredrivingfirmlocation.Thediscussionwaslinkedbacktoliteratureandcurrentpolicydebatesrelatingtoknowledgespilloversandindustryclustering,particularlywithinthecontextofSydney.
4.6 Ethics approval
EthicsapprovalwasgrantedbytheUNSWBuiltEnvironmentHumanResearchEthicsAdvisoryPanelatitsmeetingon20May2015(approvalnumber155052).TherelevantapprovaldocumentsandprojectinformationstatementwhichwasdistributedtoresearchparticipantsarecontainedinAppendixF.
4.7 Conclusion
Themethodologicalapproachadoptedforthisthesisisprimarilyqualitative,withinterviewswithfirmsandworkersthemainsourceofempiricalevidence.Thisapproachisconsideredappropriateduetothelackofquantitativedataavailableandtheopportunitieswhichqualitativeinterviewsprovidedforanin-depthinquiryintoknowledgespillovers.ThetotalnumberofinterviewsconductedaspartofthisstudywasconsideredtobeadequateandprovidesarobustevidencebaseforthepurposeofanalysingmechanismsofknowledgespilloverswithinthecontextofSurryHillsandtheATP.
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Firm location, networks and knowledge sharing
The creative community that has organically developed in
Surry Hills does not necessarily foster knowledge exchange
but drives the motivation and innovation of creative workers.
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CHAPTER 5: FIRM LOCATION, NETWORKS AND KNOWLEDGE SHARING
5.1 Introduction
Thischapterisdividedintotwomainsections:Section5.2isfocusedonSurryHillsandSection5.3isfocusedontheATP.Aconsistentframeworkforanalysisisappliedtoeachcasestudycoveringfactorsdrivingfirmlocation,networksoffirmsandworkers,anunderstandingofknowledgeandprocessesofknowledgesharing.
AnalysisofthefactorsdrivingfirmstolocatewithinSurryHillsandtheATPisprovidedfromtheperspectiveofthefirmbasedoninterviewsconductedwithfirmrepresentativesandastatedpreferencesurvey.TheanalysisacknowledgesthatwhatisconsciouslydeterminedtohaveinfluencedfirmstolocateinSurryHillsortheATPmaynotreflectwhathashappenedinreality,highlightingtheimportanceoffurtherunderstandingnetworksandknowledgesharingprocesses.
Thenetworksoffirmsandworkersincludesclients,suppliers,otherprofessionalsandthelabourmarket.Thefocusoftheanalysisisthegeographicextentofthenetwork.Itisimportanttounderstandthegeographicdimensionofnetworksbecausenetworksareconsideredtofacilitateknowledgespilloversandtheextenttowhichtheseareconcentratedcouldhighlighttosomedegreewhetherknowledgespilloverscouldbeconsideredtobedrivingindustryclustering.
Inordertounderstandprocessesofknowledgesharing(andeventuallytraceknowledgespillovers)knowledgeisdefinedinthecontextofbothcasestudyareas.Thebroadunderstandingofwhatconstitutesknowledgeisdrawnoninthesubsequentanalysisofknowledgesharingprocesses,particularlykeythemeswhichweredrawnfromtheinterviewsincluding:
― internalknowledgesharing(withinthefirm) ― externalknowledgesharing(informalversusformal) ― knowledgesharingwithinsharedenvironments ― creativecommunity ― incentivestoshare,competitionandtrust ― theroleofgeography.
ComparisonsaredrawnbetweenthecasestudiesandquestionsraisedregardingthemaindriversoffirmlocationandtheroleofknowledgespilloverswhichwillbefurtherexploredinChapter6.
5.2 Surry Hills
ThissectionanalysesthefactorsdrivingfirmstolocateinSurryHills,basedontheresultsofthestatedpreferencesurveyandinterviews.Itdiscussesthegeographicextentofthenetworkofclients,suppliers,professionalsandlabour.Knowledgeisdefinedandarangeofthemesrelatingtoknowledgesharingdiscussedbasedonthequalitativeinterviewsconductedaspartofthisstudy.
FACTORS DRIVING FIRMS TO LOCATE IN SURRY HILLSThestatedpreferencesurveyidentifiedtwokeyreasonsdrivingfirmstolocateinSurryHills(refertoTable11).ProximitytotheCBDwasconsideredtobethetopreasonforlocatingwithinSurryHillsduetotheproximitytoclients,withthemajorityoffirmsidentifyingthatkeyclientsaregenerallylocatedintheCBDandthereforeaccessibilitytotheCBDisimportantforproductivityandefficiency.Thesuitabilityofofficespaceavailablewasthesecondreason.Thisreflectedthedesiresofcreativefirmstobelocatedinconvertedwarehousespacesthatcanbecustomisedtosuitthefirmratherthanmorecorporateofficetowerswhichwerenotconsidereddesirableorappropriate.ThesetworeasonsreflectelementsoftheSurryHillscommercialpropertymarket(furtherdiscussedbelow).
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RANK REASON SCORE1 CloseproximitytoCBD 82
2 Suitabilityofofficespaceavailable 70
3 Availabilityofcafes,restaurantsandbars 53
4 TheSurryHills/ATP“brand” 47
5 Availabilityofpublictransport 45
6 Hiringstaff/recruitment(attractinglabour) 41
7 Availabilityofofficespace 38
8 Cheaperrentscomparedtootherlocations 33
9 Accesstopotentialcustomers/clients 29
10 Locationofexistingemployees 26
11 Potentialtocollaboratewithotherfirms 24
12 Conducivetostart-upbusinesses 22
13 Existinglocalcustomers/clients 22
14 Opportunitytoexpand/consolidate/contract 21
15 Easyaccesstoworkbycar 12
16 Accesstoresidentialaccommodation 11
17 Bicycleaccessorfacilities 10
18 Learningthroughpersonalnetworks 7
19 Events(conferences,workshops)whichareheldinSurryHills/ATP 4
20 Potentialtocollaboratewithresearchinstitutions 3
21 Accesstolocalsuppliers/serviceproviders 2
22 Accesstootherservices(e.g.postoffice,medicalcentres,banks) 2
23 Accesstoparking 1
TABLE 10: Reasons for locating in Surry Hills PROPERTY MARKETAsmentionedabove,proximitytotheCBDwasthetopreasonforlocatinginSurryHillsamongthefirmsinterviewedaspartofthisstudy.AlongsideproximitytotheCBD,otherelementsconsideredimportantincludedamenitiessuchastheavailabilityofcafes,restaurantsandbars.Accessibilitymoregenerally,particularlytheavailabilityofpublictransport,rankedhighlybecauseitisnotonlyeasyforworkerstocommutetoSurryHillsbutalsoeasilytraveltomeetingswithclientsintheCBDandalsoacrossSydney(Associate,planningandeconomicsfirm(medium),SH,2015).
Theavailabilityofsuitableofficespacewasamajorconsiderationbecausecreativefirms,particularlyarchitecturefirms,arelookingforofficespacewhichisopenandcanbetailoredtofittheirstyle.Alargearchitecturefirm,whichhadrecentlymovedtoSurryHills,hadoutgrownitspreviousofficeinnearbyDarlinghurstandwaslookingforalargeroffice.Thebuildingspecificallywasdrivingthelocationofthefirm:
“Ithinkit’smorethatthisbuildingchoseus,ratherthanwechoseSurryHillsbutwewerelookingforintermsofalocation,SurryHillsmet”.
(StudioDirector,architecturefirm(large),SH,2015)
Thegeneralavailabilityofservicedco-workingspaceswithinSurryHillscomparedtootherlocationswasasignificantdriverforoneparticularfirmtolocateinSurryHills.TheplanningandurbandesignfirmrepresentativenotedthatthemajorityofthesebuildingswerelocatedinSurryHills,andthereforethefirmendedupinSurryHillsasaresultofthelocationofsupplywithinthemarket.
LABOUR MARKETTherearetwomainconsiderationsforfirmsinrelationtothelabourmarketandlocation.Firstly,existingemployeesandwhethertheyareabletoeasilyaccessitfromtheirplaceofresidence.Secondly,theabilitytoattractlabourandwhetherbeinglocatedinSurryHillsimprovesorreducesthisability.
ThelocationofexistingemployeeswasrankedtenthasareasonforlocatinginSurryHills(refertoTable11).Whileitwasnotthetopconsiderationforfirms,somefirmsdidtakeitintoconsideration.OnefirmrepresentativehighlightedthatagoodproportionofstafflivedwithinafivekilometreradiusofSurryHills,andtherewasasignificantbiastofindinganofficewithintheinnercity.AfirmthatrecentlymovedofficeswithinSurryHillshadconsideredotherlocations.Someoftheconcernsinrelationtootherlocationsincludedalackofamenitiesforstaffandafearthatstaffwouldresignordislikeworkinginthatparticularlocation.Thisdoesnotnecessarilyrelatetothelocationofexistingemployeesandtheirabilitytotraveltowork,butdoestaketheperspectiveoftheworkerintoaccount.However,thisdidnotseemtobeamajorconsiderationforoneparticularfirm,withafirmrepresentativenotingthat:
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“Noneofuswanttoworkinthecity,ourstaffdon’twanttoworkinthecity.SurryHillsisverycentralforallourstaffandtheyseemreallyhappyherebutthat’snotwhy(thefirm)movedhere”.
(ManagingDirector,architecturefirm(medium),SH,2015)
Otherfirmrepresentativesacknowledgedthatproximitytotheplaceofresidenceofdirectorsremainsanimportantconsiderationinconsideringmovinginthefutureastheyallliveclosetotheofficeandvaluetheabilitytowalktowork(Director,architectureandplanningfirm(large),SH,2015).ThisechoesthefindingswithinastudyofindustryclusteringinSydneybySearle(2010).
Theabilitytoattractlabourwasamajorconsiderationforastart-uplandscapearchitecturefirmwhichwasabletohireitsfirststaffmemberwithinsixweeksofmovingtoSurryHills.Whiletheabilitytoattractlabourrankedrelativelywellinthestatedpreferencesurvey(higherthanlocationofexistingemployees),therewaslimiteddiscussionofthisbyfirmswhenaskedtheopen-endedquestionofwhythefirmchosetolocateinSurryHillspriortobeingpresentedwiththestatedpreferencesurvey.LocationalandpropertymarketaspectsofSurryHillsandthebrand(discussedbelow)weremuchgreaterconsiderationsforfirmsasemphasisedbythesurveyresults.
SURRY HILLS BRANDThenotionofaSurryHillsbrandwasincludedwithinthestatedpreferencesurveyandwhiledetailofwhatthisbrandmightentailwasnotprovidedtointerviewees,agenerallyconsistentappreciationandunderstandingofthebrandwasdescribedbythemajorityofthefirmrepresentativeswhowereinterviewed.SurryHillsisconsideredtoreflectacoolvibewhichis“Creative,driven,open-minded”(ProductandImplementationManager,softwarefirm(start-up),SH,2015).Itisavibethatfirmswanttoeitherbeassociatedwithorbeapartof.
Mostsignificantly,thearchitecturefirmrepresentativesbelievedthatbeinglocatedinSurryHillssendsamessagetoclientsthattheirarchitecturefirmtakesdesignseriously.ThisisconsideredtobereflectedwithinthequalityofthebuiltenvironmentwithinSurryHillsaswellastheinternalfitoutofafirm’sofficespace.Thiswasemphasisedbythefirmrepresentativefromoneparticulararchitecturefirm:
“WealsochosetolocateinSurryHillsbecause…It’sareallygoodurbanenvironmentandIthinkthat’simportantforArchitects,notjusttoprojectthemselvesasbeingwelllocated,butsoyoufeelhappywhenyouwalkoutthedoor”.
(ManagingDirector,architecturefirm(medium),SH,2015)
Thequalityoftheurbanenvironmentisimportantfromforcreativeinspiration.Forothercreativefirms,thebrandofSurryHillsisalsoimportantforclients.AfirmrepresentativefromonedigitalagencyhighlightedtheexpectationthatdigitalagencieswillbelocatedinSurryHills(ManagingDirector,digitalagency(small),SH,2015).
Forastart-uplandscapearchitecturefirmamajordriverwastohavetheSurryHillsbrandonbusinesscardsandletterheadsbecauseitsuggeststhatthefirmisprofessionalandseriousaboutitswork(Director,landscapearchitecturefirm(start-up),SH,2015).ThefirmwasalsoconsciouslymakingthemovetoSurryHillstoridthepotentialstigmaofbeingtooeasygoingwhichwasassociatedwithbeinglocatedinNorthManly.
WhilebeinglocatedwithinSurryHillsmaybeexpectedfromarchitecturefirmsanddigitalagencies,itcanalsobeapointofdifferentiationforsomefirmssuchasaplanningandeconomicsfirmwhosedirectcompetitorsarealllocatedwithintheCBD(Principal,planningandeconomicsfirm(medium),SH,2015).
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FORMAL BUSINESS LINKSFactorswhichwerecategorisedasformalbusinesslinksrankedrelativelylowincludinglearningthroughpersonalnetworks,potentialtocollaborateandaccesstolocalsuppliers.AlthoughthesefactorsmaynotbedrivingfirmstolocateinSurryHills,firmrepresentativeshighlightedthatmovingfurtherfromtheCBDisperceivedtopotentiallyhaveasignificantimpact,withsomesuggestingthattheywouldnotconsiderlocatingalongthenorthshoreincentressuchasNorthSydney,StLeonardsorChatswood:
“IsupposeovertimepersonalnetworkshavebecomeimportantbutIwouldsaythatit’sprobablynotasimportantindrivingourofficechoice.Havingsaidthat,wewouldn’tmovetoChatswood”.
(Director,architectureandplanningfirm(large),SH,2015)
OnefirmrepresentativenotedthattheirfirmmovedfromtheATPtoSurryHillsin2007duetothebrandofSurryHillsandthetypeofofficespaceavailable,buttherewasalsoanassumptionthattherewouldbemoreopportunitiestobumpintosomeonefromasimilartypeoffirmintheATP(Principal,planningandeconomicsfirm(medium),SH,2015).Asacknowledgedbytheinterviewee,thisdoesnotnecessarilymeantherehavebeenalotofopportunitiestocollaborate.
TIMING AND FIRM SIZEThereasonsthatdrivefirmstolocateinSurryHillsdifferedbasedonwhenthedecisionwasmadeaswellasthesizeofthefirm.FirmrepresentativesfromfirmsthatmovedtoSurryHillspriorto2008highlightedthatrentsweremuchcheaperinSurryHillscomparedtootherlocationsandthatwasasignificantconsideration.Asmentionedpreviously,anumberofthesefirmshavemovedlocationswithinSurryHillsoverthepastfewyearsandintheprocessre-evaluatedwhetherSurryHillsremainedadesirablelocationforthefirm,despitetheincreasingrents.ThesefirmrepresentativesgenerallybelievedthatthereareanumberofbenefitsassociatedwithremaininginSurryHills,particularlythebrandthathasdevelopedandtheamenityonoffer,andarewillingtopaythehighrentstoremaininSurryHills.
ArchitecturefirmshavegenerallybeenlocatedinSurryHillsforthelongestperiodoftime.TheexceptionwasalargearchitecturefirmwhichrecentlymovedtoSurryHillsfromDarlinghurst.AllthearchitecturefirmrepresentativesinterviewedhighlightedthattherewasnotonlyasignificantclientbaseintheCBD,buttherewasalsoasignificantclientbaseintheeasternsuburbsofSydney,particularlyforresidentialdevelopment.ThisappearstohavebeenanhistoricaldriverforarchitecturefirmstolocateinSurryHillsbecauseproximitytotheeasternsuburbswasconsideredimportant.
ThefirmsthathavelocatedinSurryHillsforalongerperiodarelargerthanthenewerfirmsandhavecontinuedtogrowsincemovingtoSurryHills,suggestingthatthesefirmsmaynowhavegreatercapacitytopaythehighrents.Ontheotherhand,firmswhichhaverecentlylocatedinSurryHillsaregenerallyinpursuitofthebrandwhichhasbeenestablishedandopportunitiesthisbrandrepresentsforthebusiness,includingopportunitiestocollaborate,attractlabourandclientsandtheamenitythathasevolved.
NETWORKS OF FIRMS AND WORKERS LOCATED IN SURRY HILLS AnunderstandingofthespatialelementsofthenetworksforcreativeindustriesisdrawnfromfirmrepresentativesandcreativeworkersinterviewedinSurryHillsandincludesthenetworkofclients,networkofsuppliers,generalprofessionalnetworkandthelabourmarket.ThediscussionraisesquestionsastothespatialextentofthenetworkinrelationtoSurryHills.
CLIENTSAsmentionedpreviously,thefirmrepresentativesidentifiedthatclientsweregenerallylocatedwithintheCBD.ThisislikelyduetothesignificantconcentrationoffirmsgenerallywithintheCBD,particularlylargecorporationsordevelopersandNSWGovernmentagenciesservedbythecreativeindustries.AnumberoffirmshaveclientslocatedacrossSydney,Australiaandinternationally.ItwasveryrareforafirmtohaveaclientbasedinSurryHillsandwheretheclientwasbasedinSurryHillsiswasnotconsideredtobeasignificantorongoingclient:
“It’sprettyrarethatwehaveclientsorthataroundhere.”
(Associate(InteriorDesign),architectureandplanningfirm(large),SH,2015)
Basedontheinterviewsconductedaspartofthisstudy,forthecreativefirmsbasedinSurryHills,thespatialextentoftheclientnetworkexpandsbeyondSurryHills.
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SUPPLIERSInrelationtosuppliers,threekeytrendswereobservedthroughtheinterviews.Firstly,anumberoffirmshavesupplierslocatedwithinSurryHills,andwherethesuppliersfallwithinthecreativeindustries,itismorelikelythattheywillbelocatedinSurryHills.Akeyexampleofthisisthecomparisonbetweenlandscapearchitecturefirmsandengineeringfirmswhicharebothsupplierstoarchitects.ThereareanumberofarchitecturefirmswhoengagelandscapearchitecturefirmswhicharebasedinSurryHills,althoughthisisnotthecasewithengineeringfirmsastheywerereportedbyintervieweestogenerallybeconcentratedwithinNorthSydneyorStLeonards.
Secondly,thereisasignificantconcentrationofinteriorsuppliersincludingfabric,furniture,lightingandleathersupplierswhichcouldbeconsideredtobespecialisedserviceprovidersforinteriordesignfirms(abenefitassociatedwithlocalisationeconomies).TwoInteriorDesignerswereinterviewedandbothhighlightedthatthepresenceofsupplierswasconvenientastheywereabletoeasilytotaketheirclientstotheshowrooms(Associate(InteriorDesign),architectureandplanningfirm(large),SH,2015).However,sincethesesupplierswerenotinterviewedaspartofthisstudyitisnotclearwhatisdrivingthesesupplierstolocatewithinSurryHills.ItislikelythattheirpresenceinSurryHillsisduetotheragtradeandfurnituremanufacturingwhichonceflourishedinSurryHills.Assuch,thesesupplyindustriesmaywellrepresentareasonwhysomeofthenewercreativeindustrieslocatedinSurryHillsinmorerecentyears.
Finally,firmrepresentativesoftennotedthatsupplierswerenotselectedbasedonlocation.FirmrepresentativesoftenstatedthattheyengagedsuppliersinSurryHillsjustbecausethatisjustwheretheyhappentobe(Owner,digitalagency(large),SH,2015).WhileitwasconvenienttoengagesuppliersbasedinSurryHills,anestablishedrelationshipandexperienceworkingtogetheronprojectswerekeydeterminingfactorsforengagingsuppliersorcollaboratorsratherthangeographicalproximity:
“Wewon’tcollaboratejustbasedongeography.We’llcollaboratewithwhoisbestforthejobandiftheyhappentobelocatedatEnfield²thensobeit”.
(AssociateDirector(Planning),architectureandplanningfirm(large),SH,2015)
ThispointwassimilarlyreiteratedbyfirmrepresentativeswhodidnotusesuppliersbasedinSurryHillsandstatedthatengagingsuppliersorcollaboratingwithfirmswhowerenotbasedinSurryHillswasnotanissuebecause:
“Youpickthefirm,youdon’tpickthelocation.”
(ManagingDirector,architecturefirm(medium),SH,2015)
Whileitisnotclearwhethersuppliersareco-locatinginSurryHillsinresponsetotheconcentrationofcreativeindustries,therelationshipsdonotappeartobeformedfrombeingbasedinSurryHills.ItisconvenienttoengagewithsuppliersbasedinSurryHills,howeveritisnotaconsistentthemeacrossallfirmsandprojectexperiencewasseenasmorevaluable.
PROFESSIONAL NETWORKTheprofessionalnetworkoffirmsandworkersincludesclientsandsuppliers,discussedabove,aswellasprofessionalassociations,ex-colleaguesandpeoplewhoattendedthesameuniversity.Basedontheinterviews,itwasapparentthattheprofessionalnetworkoffirmsandcreativeworkerswasnotconfinedtoSurryHills.
Thenetworkwasnotgeographicallycontained,butratherindustrybased.IntervieweesoftenstatedthattheindustrywhichtheyworkwithinwassmallinSydney,notnecessarilyphysicallyorspatiallybutratherintermsofinterconnectedness.
TheprofessionalassociationsorbodiesthatfirmsorworkerswereassociatedwithwerecommonlybasedintheCBDorinthecaseoftheAustralianInstituteofArchitectsinPottsPoint.AsaresultformaleventsareoftenheldintheCBDorPottsPoint.
Connectionsareoftendevelopedfrompreviousworkplaces.Ex-colleagueswereseenasasignificantpartoftheprofessionalnetworkofthemajorityofinterviewees.However,ex-colleagueswerenotnecessarilyconcentratedinSurryHills.Thisisfurtherdiscussedbelowinrelationtothelabourmarket.
²AsuburblocatedinsuburbanSydney
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TheintervieweeswereaskedtoindicatetheproportionoftheirprofessionalnetworkwhichisbasedinSurryHills.Majorityofintervieweesstated30percentorless,withanumberofpeopleindicatingfivepercentorless.Wheretheinterviewee’sprofessionalnetworkwasgenerallyrestrictedtothefirminwhichtheyareemployed,thiswasoftenbecausetheywereinamorejuniorpositionandmostlikelyhadlimitedexposuretotheindustrycomparedtoothermoreseniorcolleagues.MajorityofintervieweesindicatedthattheirprofessionalnetworkwasspreadacrossSydneyandevenAustralia.WhiletheprofessionalnetworkisnotlimitedtoSurryHills,thisdoesnotdiscountthevalueoflocalrelationshipswhichwasnotmeasuredaspartofthisresearch.
LABOUR MARKETItwasimportanttounderstandwhetherlabourflowsbetweenfirmswithinSurryHillsasthiscouldbeapotentialmechanismofknowledgespillover.Basedontheinterviews,thelabourmarketwasindustrybasedratherthangeographicallycontainedandthereforelabourwasobservedtoflowbetweenfirmswithinthesameindustrywhichisnotnecessarilyconfinedtoSurryHills.
Allworkerswhowereinterviewedwereaskedwheretheyworkedpreviously(typeoffirmandlocation).OnlyoneworkerwhowasinterviewedhadpreviouslyworkedinanotherfirmbasedinSurryHills.However,therewasnosignificantlinkbetweenthesetwofirmsandtheywererecruitedtoworkfortheircurrentemployerthroughanex-colleaguefromapreviousemployerbasedinWoolloomooloo³.AlltheotherintervieweeswerepreviouslyemployedinanumberofdifferentlocationsincludingtheCBD,Pyrmont/Ultimo,Darlinghurst,NorthSydneyandinotherAustraliancitiesoroverseas.Basedontheworkersinterviewedaspartofthisstudy,thereislimitedevidenceofatightlyconnectedlabourmarketwithinSurryHills.
WorkersgenerallyseemtoflowthroughfirmswithinthespecificindustryinwhichtheyareemployedandthisnetworkcanbespreadacrossSydney,althoughitisgenerallyfocusedaroundtheinnercitywhichislikelyassociatedwiththeconcentrationoffirmsinthisarea.
Relatedly,themajorityofcreativeworkersinterviewedcitedthatlocationwasnotamajorfactorinthedecisiontoworkfortheircurrentemployer.Insayingthat,anumberofworkershighlightedthattheywouldnotworkinNorthSydney:
“IfIlookatplacesIwouldwork,Iwasn’tgoingtogotoplaceslikeNorthSydney,asfarawayasthatfromtheCity…Ireallydidn’twanttogoanyfurtherthanSurryHillsintermsofdistancefromtheCity.”
(StudioDirector,architecturefirm(large),SurryHills2015)
Thiswasgenerallybecauseitisimportantfortheirjobtobelocatedclosetowheretheylive.Whensomeintervieweeswereaskedfurtherquestionsaboutwhatdecisioncamefirst,placeofresidenceorwork,intervieweesoftenstatedthattheywouldnotmovehouseduetoworklocationbutwouldchoosetheirplaceofworkbasedonaccessfromhome.Someintervieweesmadethedecisionsomewhatsimultaneously.
Anotherconsiderationisspin-offfirms.ItwassuggestedthatprofessionalswholefttheirpreviousfirmtostartuptheirownbusinessesgenerallychosetostartthenewbusinessathomeratherthaninanofficeinSurryHills.Therefore,thereisalackofevidencethatthisisoccurring.
Mostofthefirmrepresentativesbelievedthattheyhadlowstaffturnoverorthatitwasnotsignificantlyhighfortheirindustry.Themajoritysaidstaffwererecruitedtoexpandthebusinessfirstandforemost,aswellasreplacestaff.Anumberoffirmrepresentativesidentifiedthefirmasbeinginthegrowthstage.Firmsthathaverecentlymovedofficegenerallyindicatedthatthiswasduetooutgrowingthepreviousofficespace,alsoindicatinggrowth.
Theamountoftimeinwhichtheworkershadbeenemployedattheircurrentfirmvariedfromlessthanayearupto15yearswiththemajorityofpeoplewithinthreetofiveyears.Whileitislikelythatentry-levelprofessionalswillmovejobsmoreregularlythanmoreseniorstaff,anumberofyoungprofessionalswereinterviewedwhohadbeenemployedintheircurrentfirmforthreeormoreyears.
LabourisalsoflowingintoandoutSurryHillsascreativeworkersmovejobsandfirmsmovelocation.CreativeworkersarenotnecessarilymovingbetweenfirmswithinSurryHillsbutratheracrosstheindustryandacrosstheinnercityofSydney.
SPATIAL NETWORKThediscussionaboveinrelationtonetworkshighlightsthat,basedontheinterviewsconductedaspartofthisstudy,thereislimitedevidenceofanyspecificspatialconnectivitywithinSurryHills.Socialproximityappearstobeofgreaterimportanceratherthangeographicproximityatthisscale.
SurryHillsisconvenientintermsofaccesstotheCBD,andtootherlocationswhereclientsandsuppliersarelocated.ThereislimitedevidenceofthelabourmarkethavingstrongtiestoSurryHillswithcreativeworkersstatingthattheirpreviousplacesofemploymentwerelocatedoutsideSurryHills.Connectionswithinthenetworkaregenerallybasedonpreviousprojects,clientsorplacesofworkratherthanSurryHillsasalocation.
Socialproximityseemstoplayagreaterroleindevelopingandretainingrelationshipsratherthangeographicproximity.ThereseemstobearoleforSurryHillsinnurturingrelationships,becauseitiseasytomeetupwithconnectionslocally.Nevertheless,someintervieweeshighlightedthattheydidnotknowthatsomeoftheirconnectionswerebasedinSurryHillsuntiltheybumpedintothem:
³AsuburbtotheimmediateeastoftheSydneyCBD
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FIGURE 30: Location of creative industries across Sydney (1 dot = 100 jobs)
Source: Author
“It’sreallyamusinghowyoudon’tknowthatthey’reactuallyworkingaroundhereandyourealisethatthey’reactuallyworkinghere…It’sconvenientthatthey’resoclose.”
(Consultant(GIS),planningandeconomicsfirm(medium),SH,2015)
ThiscouldbeduetothefactthatwhilethereisaconcentrationofcreativeindustriesinSurryHills,thecreativeindustriesarespreadacrossSydney.Althoughthereareafewkeylocationsinwhichthecreativeindustriesarelocated(particularlywithintheinnercitywherethereisageneralconcentrationofemployment),thereisnosingleprecinctwithinSydneyinwhichtheseindustriescluster(refertoFigure30).
Anemergingtrendwithinthisanalysisofthenetworkisastronginterconnectedinner-cityemploymentareawhichcomprisesasignificantproportionoftheGlobalEconomicCorridor.Withinthisareathereisastrongnetworkofsuppliers,clients,professionalsandpotentialfutureandpastemployeesforthecreativefirmslocatedinSurryHills.Thisinner-cityemploymentclusterwouldnotbeconsideredanindustryclusterassuch,duetothediversityofemploymentuses,butratherwouldbeconsideredtoemulatetheconceptofurbanisationeconomies.ThisprovidesfurtherevidenceofstrongurbanisationeconomieswithinSydney,moresothanlocalisationeconomies,asidentifiedbySearle(2010).
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KNOWLEDGE OF FIRMS AND WORKERS LOCATED IN SURRY HILLS Theintervieweeswereaskedwhattheyconsideredasknowledgewhichiseconomicallyvaluabletotheirfirmorthemselvesasworkers–thatis,theknowledgetheyrequireforthepurposeoftheirjobortheknowledgetheyproduceaspartoftheirjob.Themajorityofintervieweesfounditverydifficulttoexplainordescribethisknowledge.Therewereanumberofkeythemesthatwereobservedacrosstheinterviews:
― Theknowledgewhichisconsideredimportantisoftenknowledgeonprocesses and management,forexampletheabilitytomanageteams,workwithotherpeople,manageprojectsandunderstandwhattheclientwants.
― Theknowledgethefirmproducescanoftenbedescribedasthefirm’smarket niche.Forexample,oneparticulararchitecturefirmhasenteredanicheareaoftheadaptivereuseofbuildings,withspecificknowledgeandexperienceinthisarea.Fortheplanningandeconomicsfirm,itsmarketnicheisunderstandingthespatialimplicationsofeconomicissuesandtrends.
― The culture of the organisationisoftenconsideredpartoftheknowledgeofthefirm
― Theknowledgeofthecreativeindustriesisnot easily traceablewhichwashighlightedbyoneparticularintervieweewhostated:
“It’snotasifwedevelopIPthatwethengosell.”
(ManagingDirector,digitalagency(small),SH,2015)
Basedontheinterviews,theknowledgethatwouldbeconsideredvaluableinrelationtoknowledgesharingandknowledgespilloverscouldbemuchbroaderthanwhatmightbeconsideredinnovativeandseemstorelatemoretoknowledgeofbusinessprocessessuchashowtoworkwithparticularclients,businessdevelopmentandmanagingstaff.Huber(2012)questionedwhetherclustersaremoreimportantforseniormanagersforsourcingbusiness
knowledgeratherthandevelopers/researchersintermsoftechnicalknowledgeandthisobservationsomewhatreflectsthis.Inthiscontext,theknowledgeofthecreativeindustrieswouldnotbeconsideredeasilytraceablethroughmethodsadoptedwithintheliteraturesuchastracingpatentcitationswhichhasbeenadoptedinanumberofstudiesincludingJaffeetal.(1993)andSonnandStorper(2008).
KNOWLEDGE SHARING BETWEEN FIRMS AND WORKERS LOCATED IN SURRY HILLS TheinterviewsrevealedsixkeythemesinrelationtoknowledgesharinginSurryHills:
― Internal knowledge sharing: learningwithinthefirmasthesourceofinnovation.
― External knowledge sharing (informal versus formal): focusonformalmechanismssuchascollaborationonprojectsandthroughprofessionalevents.
― Knowledge sharing within shared environments: the roleofco-workingenvironmentsanditspresenceinSurryHills.
― Creative community:thecollectivecreativecommunityasasourceofcreativeinspirationormotivation.
― Incentives to share, competition and trust: whether thereareanyincentives,ortrustandtheissuewithcompetition.
― Role of Surry Hills:istheclusterimportantinallofthis?
Thesesixthemesarefurtherdiscussedbelow.
INTERNAL KNOWLEDGE SHARINGInternalknowledgesharingwasoftenseenasmorevaluablethanexternalsourcesofknowledgeforcreativeworkersbasedinSurryHills.Anumberofintervieweesindicatedthatthemajorityoftheirlearningtakesplacewithinthefirm.Internalknowledgesharingmechanismsarebothformalandinformal,andincluderegularinternalteammeetings,trainingsessionsandseminarsaswellasmoresocialmechanismssuchasafterworkdrinks.However,
projectsorproject-specificinteractions,aswellasinternalresearchanddevelopment,werealsoseenasvaluablesourcesofknowledgeandinnovationwithinthefirm.Thiswashighlightedbyonecreativeworkerwhocomparedthevalueofinternalknowledgesharingasopposedtoexternalknowledgesharing:
“Asageneralcomment,Ithinktheknowledgeyoulearnatworkandasaprofessionalismostlyfrompeoplewithinyourwork,totheextentthatitismostlyfromyourownresearchandnotspeakingtootherpeopleoutsideyourwork.”
(SeniorConsultant(Planner),planningandeconomicsfirm(medium),SH,2015)
Oftenthesourceofinnovationandknowledgewastheidentificationofaproblemorsomethingneedingtobefixed.Inthiscase,innovationwasmorelikelytooccurinternallycomparedtoaccessingknowledgeonhowotherpeopledothings(ManagingDirector,digitalagency(small),SH,2015).Thispointwassimilarlysupportedbyanotherintervieweewhobelievedthatteamsworkingtogetherforlongperiodsoftimearethetruegeneratorsofknowledge(ManagingDirectorandFounder,digitalagency(small),SH,2015).Thisreinforcesthevalueofinternalresearchanddevelopmentassourceofknowledgedevelopmentandinnovation.
Largerfirmsthatcontainedseveraldivisionsorserviceareasnotedthatcollaborationoccurredinternallybetweendifferentteams,moresothanwithexternalfirms.Anexampleofthiswasanarchitecturefirmthatalsocontainedurbanplanning,interiordesignandurbandesigndivisionswhichcollaboratetogetherregularly(Director,architectureandplanningfirm(large),SH,2015).Whilesmallfirmsdidnotnecessarilyhavethevarietyofskillsandexpertisetodrawonin-house,theystillimplementedinternalmechanismsforknowledgesharingsimilartothoseofthemuchlargerfirms.
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EXTERNAL KNOWLEDGE SHARING (INFORMAL VERSUS FORMAL)Intermsofexternalknowledgesharing,informalinteractionswererarelycitedwithintheinterviews.OnefirmrepresentativehighlightedthattheyhadexpectedtheretobemoreinformalinteractionsoccurringinSurryHills:
“It’sfunnyisn’tit?Whenwewerethinkingaboutmoving,Ithinkwehada,Ikindofthoughttherewouldbemoreaccidentalpartnershipandsharingofviewsandsharingideasanditdoesn’treallyhappenthatmuchatall.”
(Principal,planningandeconomicsfirm(medium),SH,2015)
Thelackofinformalinteractionshighlightstheimportanceofmoreformalinteractionsbetweenfirmsasasourceofknowledgeexchange.Formalinteractionsbetweenfirmsincludecollaborationonprojects;engagingsuppliersandspecialisedserviceproviders;structuredmeetingswithclientsorpotentialclients;andindustryevents.Collaborationandoutsourcingworktosupplierswereseenasmechanismsofknowledgesharingforcreativefirms,aswellasthecollaboratorsandsuppliers.ThisisnotconfinedtoSurryHillswithfirmsoftenengagingsuppliersacrossSydney.
Despitethedesireamongsomeoftheintervieweestobeabletoaccessmoreinformalprocessesforsharingknowledge,therewasageneralagreementthatformalmechanismsaremoreeffective.TheDirectorofastart-uplandscapearchitecturefirmsaidhehadtomakeaconcertedefforttocatchupwithcontactsinotherfirmsandithastobeorganised.Anotherintervieweesuggestedthatthereshouldbeorganisedopportunitiesforknowledgesharingbetweenfirms(ManagingDirector,digitalagency(small),SH,2015).Thishighlightsthatformalisingknowledgesharingwasconsideredtobemoreeffective.
Formalprofessionaleventssuchasconferences,seminarsandnetworkingeventswereoftenseenasvaluableforlearningandknowledgesharing.However,asmentionedpreviously,theseeventswereoftenheldoutsideSurryHillsandoftenwithinthenearbyCBD.
Oneintervieweehighlightedthatforhim,knowledgesharingwasnotphilanthropic,itistheserviceheisproviding(AssociateDirector(Planning),architectureandplanningfirm(large),SH,2015).Whetherornothereceivesdirectfinancialcompensationimmediately,heultimatelyreceivescompensationwhenheisengagedtoundertakeworkbythosecontactsinthefuture.Strictlyspeaking,thisprocesswouldnotbeconsideredaknowledgespilloverassuchbecausethereisessentiallycompensationprovidedtotheknowledgesource.
Importantly,formalmechanismsofknowledgesharingdonotnecessarilyrequirethefirmstobelocatedwithinSurryHills(sincetheinteractionsareorganisedasopposedtobeingserendipitous).ThisquestionstheroleofknowledgespilloversindrivingfirmlocationwhichwillbefurtherexploredinChapter6.
KNOWLEDGE SHARING WITHIN SHARED ENVIRONMENTSWithinSurryHillstherearetwotypesofsharedenvironments.Thefirstareformalco-workingenvironmentenvironmentsforstart-upfirms.Co-workingenvironmentsarehosting,workingandmeetingplacesforentrepreneurs(CreativeWallonia,2013inMoriset,2014).Theobjectiveofaco-workingenvironmentistopromoteinteractionbetweenfirms(Moriset,2014)aswellasprovideamoreaffordableofficespaceforstart-upfirms.Firmsoftenrentadeskoranumberofdesksratherthananentireofficesuite.
Anintervieweeworkinginaco-workingenvironmentinSurryHillsbelievedthatsheismorelikelytomeetotherpeopleandshareknowledgeinaco-workingenvironmentbecauseshedoesnotknowanyoneelsewhoworksinotherofficesinSurryHills(ProductandImplementationManager,softwarefirm(start-up),SH,2015).
Thesecondtypeofsharedenvironmentisthemoreinformalsharingofofficesbytwocompanies,oftenwithonefirmsub-lettingofftheotherfirm.ThisisrelativelycommoninSurryHillsandfourfirmswithinthisstudycurrentlyshareanofficewithanotherfirm.Insomecases,thiswasconsideredtoleadtoknowledgesharingthroughworkingonprojectstogetherorsharingideasthroughmoreinformalinteractions.Anintervieweefromonefirmhighlightedthatknowledgesharingusedtooccurquiteregularlywhenthefirmwassharingitsofficespacewithotherfirmsas:
“we’dhavethesecommonareasandwe’dallhangoutasfriendssowe’dbeabletocrosspollinateourideasandbeabletousethemforourdifferentdisciplineswhichwasreallynice.”
(ManagingDirectorandFounder,digitalagency(small),SH,2015)
Generally,thesesharedenvironmentswereconsideredtofacilitatecloseinteractions.However,intermsofdrivingfirmlocation,thismechanismrelatestothepropertymarketduetothesupplyofthesespaceswithinSurryHillsandtheleaseterms(rentandlength)whicharelikelytobedesirableforstart-upfirms.
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CREATIVE COMMUNITYThecreativecommunitywasdescribedbyanumberofdifferentintervieweesasasourceofmotivationthatfostersinnovation.Theconceptdescribedbyoneintervieweeaslikebeingpartofatribereflectingnotionsofacreativemilieu:
“inafunnypsychologicalwayyouactuallyfeelpartofatribal-ness...it’sabitlikebeinginthetribe.Youknowthesepeoplebysight,yousayhello,youdon’tinteractwiththembutit’sanicefeelingtohave.”
(ManagingDirector,architecturefirm(large),SH,2015)
AnotherintervieweesuggestedthatbeingbasedinSurryHillswasnotaboutknowledgesharing,butrathertheintangibleideathatotherpeopleareinthesamesituation,facingthesameissuesandthiswasmotivationtodowell,“theempathyofsortofsharingasituation”(ProductandImplementationManager,softwarefirm(start-up),SH,2015).Thiswassimilarlyhighlightedbyanothercreativeworkerwhostatedthatitisabout“sharedexperience”(Director,architectureandplanningfirm(large)SH,2015).
ThecreativecultureinSurryHillsmayindirectlyfosterinnovationthroughmotivationratherthandirectlythroughknowledgesharing:
“It’smoreasense,Ithink,lessdirectlyrelatedtocommerciallyvaluableknowledge,thanasenseofasharedcreativeculturewhichisenriching…youmeetpeoplethatyouknow,youhaveachataboutwhatthey’redoingandit’snotthatyouwanttostealtheirideasormuscleinonit,it’smorethatyougetasenseof,wow,thisisagreatvibrantenvironmentandIthinkthat’sreallyimportanttothesenseofculturalconnectionandknowledgeproductionandthesenseoflike-mindedness.LikeIcan’timaginebeinglocatedinabusinessparkbecause...youwouldn’tgetthatsenseofculturearoundyouthatsupportsyourcreativeendeavour…Idon’tthinkit’sasenseofpassingthingsover.Itreallyisjustpartoftheculture”.
(ManagingDirector,architecturefirm(medium),SH,2015)
TheconceptofthecreativemilieuofSurryHillsasacommunitycomesbacktothenotionthatSurryHillshasaverypowerfulbrand,whetheritbevaluablefromtheperspectiveofattractingclients,attractingworkersorthegeneralatmosphereofthelocationreflectingtheconceptoflocalbuzzasdiscussedwithintheliterature(Batheltetal.,2004;Storper&Venables,2004).
INCENTIVES TO SHARE, COMPETITION AND TRUSTPorter(1985,1998,2000)suggestscompetitionfostersinnovation.AsdiscussedinChapter2,thetensionbetweencompetitionandcooperationrestsontheideathateitherknowledgespilloversdonottakeplaceacrosscompetitorsorthatthecostsofknowledgespilloversacrosscompetitorsareoutweighedbythebenefitsfromotherformsofknowledgespillover(Huggins&Izushi,2011).Theinterviewsrevealthatcompetitionisseenasamajorbarriertoknowledgesharingbetweenfirms.Competitionseemstofosterinnovationeitherwithinthefirmorthroughformalpartnershipswheremonetarycompensationisavailable.
Forthemostpart,thereappearstobelittleincentivetoshare(butabigincentivetoconsume)andalackoftrustbetweencompetitors.Asoneintervieweeputit:
“look,generallyarchitectsanddesigners,we’reprettysceptical.There’sthatthingof,howdoyouexplainit,there’snotthatopennesstoshareasmuchasyoushould.There’sabitofarrogancethat’salwaysbeenaroundintheindustry…Wedon’tsharestuffwithotherarchitects.”
(TeamLeaderofInteriorDesign,architecturefirm(large),SH,2015)
Assuggestedabove,whetherornotafirmisconsideredacompetitorwillimpacttheopennessofafirmtoshareknowledge.Afirmrepresentativefromonearchitecturefirmhighlightedthattheywouldconsidersharingknowledgewithcollaborators,suchasengineers,butthesefirmsarenotlocatedinSurryHills.
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Thereisalsoaleveloftrustthatneedstobedevelopedandthistakestime.Itmaybethatthereismoretrustbetweendifferenttypesoffirmswithinthecreativeindustriesratherthandirectcompetitors.Anotherfirmsimilarlyhighlightedthatknowledgesharingoccursacrossdesignprofessionsratherthanbetweendirectpeersduetocompetition(SeniorUrbanDesigner,architectureandplanningfirm(large),SH,2015).However,thiscouldbeconsideredafunctionofthepresenceofspecialisedserviceprovidersinlocalisationeconomiesratherthanknowledgespilloversasabenefitinitself.
ROLE OF SURRY HILLS Whilethereissomeevidenceofknowledgesharingbetweenfirms,thelocationisimportanttotietheseconceptsbacktothetheoryoflocalisationeconomiesandtheconceptofspatialclustering.SurryHillswasoftenseenbyintervieweesasthefacilitatorintermsofprovidinganeutralterritoryforpeopletoexchangeideas(Owner,digitalagency(large),SH,2015).Forexample,barsandcafesprovideaneutralterritoryforcreativeprofessionalstomeetupandexchangeknowledge.
WhileitisdifficulttomeasuretheimpactofSurryHills,anumberofintervieweeshighlightedthattheexperiencemightbequitedifferentinotherlocations,suchasNorthSydneyorMascot.However,locatinginprecinctsthatarerelativelycloseby,suchastheCBDandDarlinghurst,mayalsoachievesimilarresults:
“Ithinkitwouldbequitesubtle…butIknowthere’sthingsliketravellinglengthmeansthatwe’reintheofficemoreandthereforeourcommutetoourclientsortheircommutetousmeansmoreproductivity,butIthinksayforexampleifwemovedtoNorthSydneyyouwoulddefinitelythensaythatourknowledgebaseisverystronglyreliantonourlocationinSurryHills,whereasifwemovedtoDarlinghurstsayorifwemovedtotheCBDforexampleyouprobablywouldn’tnoticeitasmuchsoIthinkitdependswhatyou’recomparingitto…SurryHillshasbecomeverymuchapartofouridentityanditisembeddedinourknowledge...andcausewedoalotofworkaroundhere…it’sagoodworkingmodelandgoodtypologyofacity.”
(Director,architectureandplanningfirm(large),SH,2015)
ThisisreinforcedthroughthedecisionofmanyfirmstoremaininSurryHillswhengoingthroughtheprocessofresigningaleaseorfindinganewofficebecauseoftheunknownimpactthatleavingSurryHillsmayhaveonthefirm,whichcouldincludeanintangibleknowledgebenefit.Theknowledgebenefitwouldlikelyremainifthealternatelocationwasstillaccessible,butitwouldpotentiallybethevibeandamenitythatwouldchange.
AnumberofintervieweescommentedthatknowledgewasprobablyexchangedbetweenworkersfromdifferentfirmswithinSurryHills,whiletheywereyettoexperienceit.Reflectingonthenotionofknowledgeexchanges,thisintervieweesummedupageneralfeelingregardingtheconcept:
“Istillkindoflikethetheory,eventhoughifIreallythinkaboutit,Idon’tknowwhetheritisrealforusinSurryHills.It’sreallyhardtopindownandit’sreallyhardtosayyeahitexistsforus.Istillcan’thelpbutthinkthere’sagreattruthtoit,youknow.You’dthinkifyouplonkaloadofsimilarfirmsinthesameplacethere’dbesomesortofsharingofinformation,somesortofknowledgetransfer,you’dthink,butIcan’tgiveyouanyevidencewhereit’shappenedfor(ourfirm)inSurryHills.”
(Principal,planningandeconomicsfirm(medium),SH,2015)
Similarly,someintervieweesnotedtheopportunityforcollaborationinSurryHills,althoughtherewerenotalwaysadequateopportunitiesforthistooccur,particularlyduetothedifficultyinmeetingorfindingoutaboutotherfirmsinSurryHills.AsdiscussedinChapter2,firmsinaclustermustbelinkedinsomeway(Martin&Sunley,2003).ThediscussionaboveillustratesthelimitedevidenceoflinksbetweenfirmswithinSurryHills.ThisquestionswhetherSurryHillsisinfactafunctionalcreativeindustryclusterorjustagroupofco-locatedfirmswhohappentoworkbroadlywithinthesameindustryasaresultofwiderpropertymarketdynamics.Oneintervieweesimilarlyreflectedonthis,notingthatSurryHillsislikelyjustalooseclusterofsimilarindustries:
“They’requitedifferentfromlooseclustersofsimilarindustriesthatwehaveinPyrmontandSurryHills...there’sabigdifferencebetweencolocationandfunctionalclustering...Ifyou’vegotfirmsthathaveareasontobelocatednexttoeachotherandareasontocollaboratethentherewillbeaverydifferentworkingarrangement,verydifferentwayofsharinginformationcomparedtofirmsthatarejustsohappentobeinasimilarindustry,locatedinthesamebuildingoronthesamestreet.”
(Principal,planningandeconomicsfirm(medium),SH,2015)
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SUMMARYThepropertymarkethasplayedandcontinuestoplayaroleindrivingcreativeindustriestoclusterinSurryHills.FactorsthatcharacterisethepropertymarketinSurryHillsratedhighlyinthestatedpreferencesurvey,includingitsproximitytotheCBD,thesuitabilityofavailableofficespace(particularlywarehousesthatcanbeconvertedintostudiosthroughadaptivereuse),theavailabilityofcafes,restaurantsandbars,theSurryHillsbrandandtheavailabilityofpublictransport.
Intermsofthenetworkofclients,suppliers,professionalsandlabourforthecreativeindustries(andcreativeworkers),thereislimitedevidenceofageographicconcentrationofthisnetworkinSurryHillsbutratheranindustry-specificnetwork,highlightingtheimportanceofsocialproximityovergeographicproximity.Aninner-cityemploymentnetworkisincreasinglyobserved,moresothanaSurryHillsnetwork,suggestingevidenceofurbanisationeconomiesratherthanlocalisationeconomies.
Innovationappearstooccurinternallywithinthefirm,castingdoubtontheroleofexternalsourcesofknowledge.Fromanexternalperspective,knowledgesharinginthecontextofSurryHillsislimitedtoformalinteractions,particularlyduetoalackofincentives,andtrustandcompetition.Theinterviews,madeitclearthatacreativecommunityandclearbrandrepresentwhatfirmswanttobeassociatedwith.Thisfurthersupportstheroleofthepropertymarketindrivingfirmlocation.SurryHillsremainsanaccessiblelocationwhichisconvenientforfirmsandworkers,particularlyduetoitsproximitytotheCBD.Thisisasignificantconsiderationforfirms.
Theanalysisabovequestionstheroleofknowledgespilloversindrivingfirmlocation,aswellasgeographicscale,andthiswillbefurtherexploredinChapter6.
5.3 Australian Technology Park
ThissectionadoptsanidenticalframeworktoanalysetheATP,drawingontheresultsfromthestatedpreferencesurveyandtheinterviewsconductedwithfirmrepresentativesandworkersbasedintheATP.IthighlightssimilaritiesanddifferencestotheexperienceSurryHills,wherepossible,reflectingontheroleoftheATPinrelationtoknowledgesharing.
FACTORS DRIVING FIRMS TO LOCATE WITHIN THE ATPBasedonthestatedpreferencessurvey,thepotentialtocollaboratewithotherfirmsisconsideredtobethetopreasonfirmslocatewithintheATP(refertoTable11).
ThisreflectstheplannednatureoftheATPandthemarketedbrandwhichemphasisesopportunitiestocollaboratewithotherfirmsbylocatingattheATP(forexamplerefertoAustralianTechnologyParkSydneyLimited,2014).TheothertopreasonsforlocatingwithintheATPincludetheATPbeingconducivetostart-upbusinesses,theATPbrandandthepotentialtocollaboratewithresearchinstitutions.ThishighlightsastrongerpreferenceforlocationsthatfacilitatestrongbusinesslinksforafirmcomparedtoSurryHills.Beingconducivetostart-upbusinessesrelatesinparttostudyingfirmsthatwereestablishedwithintheATPasstart-ups.ProximitytotheCBDalsorankedhighly.SomefactorsrelatingtoamenityrankedmuchlowercomparedtoSurryHills,withtheavailabilityofcafes,restaurantsandbarsreceivingzerovotes.
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RANK REASON SCORE1 Potentialtocollaboratewithotherfirms 48
2 Conducivetostart-upbusinesses 35
3 TheSurryHills/ATP“brand” 33
4 Potentialtocollaboratewithresearchinstitutions 30
5 CloseproximitytoCBD 29
6 Accesstopotentialcustomers/clients 27
7 Availabilityofpublictransport 26
8 Events(conferences,workshops)whichareheldinSurryHills/ATP 23
9 Learningthroughpersonalnetworks 21
10 Opportunitytoexpand/consolidate/contract 19
11 Suitabilityofofficespaceavailable 18
12 Cheaperrentscomparedtootherlocations 14
13 Hiringstaff/recruitment(attractinglabour) 11
14 Existinglocalcustomers/clients 10
15 TechnologyCommunity(beingpartof) 10
16 Locationofexistingemployees 6
17 Accesstoparking 6
18 Accesstolocalsuppliers/serviceproviders 5
19 Bicycleaccessorfacilities 3
20 Accesstootherservices(e.g.postoffice,medicalcentres,banks) 2
21 Availabilityofcafes,restaurantsandbars 0
22 Accesstoresidentialaccommodation 0
23 Availabilityofofficespace 0
24 Easyaccesstoworkbycar 0
TABLE 11: Reasons for locating within the ATP PROPERTY MARKETSincetheATPisgovernmentownedandmanaged,thepropertymarketisnotentirelymarketdriven.Tenantsareofferedreducedrentsormoreflexibleleaseterms(theleasesareoftenbetweenoneandthreeyears⁴)comparedtootherlocationsandthisisamajorattractionbecauseitprovidesflexibilityforsmallfirmsthatmightbeunabletocommittolongleases.TherearealsoopportunitiesfortenantstomovetenancieswithintheATP,whichsupportstheexpansionandcontractionofbusinesses(Read2015,ATP).
TheATPclearlylacksbroaderamenity,particularlycomparedtootherlocationssuchasSurryHills.ThiswasregularlycitedbyintervieweesasnegativeaspectofworkingattheATP.
ThedynamicswithintheNICbuilding,inwhichATPInnovations(theincubator)islocated,differtothebroaderdynamicsacrosstheATP.AdividebetweentenantsintheNICbuildingandtheLocomotiveWorkshopsandIBCwasevidentthroughouttheinterviewswhichreflectsthefindingsofanearlierstudybySwat(2006).ThefirmsthatwerepartoftheATPInnovationsprogramwereonlyconcernedaboutwhatoccurredwithintheNICbuilding.Thisishighlightedthroughcommentsfromfirmrepresentativesfromtwostart-upfirmsthatbothhadaspirationstohaveanofficeinSurryHillswhenthefirmsoutgrowATPInnovations:
“Ican’timaginebeinginthat(LocomotiveWorkshops)building…IfIwasn’tinthisbuilding(NIC),noIwouldn’tbehere.I’drentaterraceinSurryHills...Justforthevibe,ifnotanythingelse.”
(ManagingDirector,lifesciencesfirm(start-up),ATP,2015)
“ThisbuildingistheextentoftheParkforus…wewanttomoveoutwithoneofourfriendcompanies,alsointhisbuilding,andwewanttogetlikeanofficeinSurryHills,bigopenspace,topfloor,convertedwarehouseisthedreamandhavelotsofnaturallightandourownspace.”
(Co-founder,hardwarefirm(start-up),ATP,2015)
Thesestatementsinferthatthereasonwhythesestart-upfirmshavelocatedwithintheATPisduetotheATPInnovationsprogramratherthantheATPitself(Hawthorn2015).
ATPInnovationswouldliketoseefirmsmovingthroughregularlyasitispartoftheincubatorbusinessmodel,withfirmsmovingintospaceswithinotherbuildingswithintheATPsuchastheLocomotiveWorkshopsandIBC.Thisdoesnotseemtobeapreferenceforthesefirmsasindicatedabove.TheroleofthepropertymarketindrivingfirmlocationismuchlesssignificantcomparedtowhatwasobservedinSurryHills.
BasedondataprovidedbytheATPSL
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LABOUR MARKETThelocationofexistingemployeesandtheabilitytoattractlabourwererankedlowerbyfirmrepresentativesbasedintheATPcomparedtoSurryHills.ThroughtheinterviewsitwasclearthatthesewerenotmajorconsiderationsforfirmsinchoosingtolocatewithintheATP.FirmrepresentativesgenerallythoughtthattheATPwasaccessible,particularlybypublictransport,suggestingthatlocationwasnotabarriertoattractinglabour:
“theaccesstopublictransportisrelevantforthelabourmarketthemostandhiringstaffandattractinglabour,it’sagoodplacebecauseofitslocation.”
(ChiefOperatingOfficer,ICTresearchinstitution(large),ATP,2015)
DespiteanalysisinChapter3(andAppendixB)suggestingthatasignificantproportionofATP-basedworkerstraveltoworkviacar,themajorityofintervieweestravelledtoworkviapublictransport.
Fromtheperspectiveofcreativeworkers,theATPwasnotconsideredaparticularlydesirablelocation.Inreferencetowhetherlocationwasasignificantconsiderationinacceptingthejob,onecreativeworkedstated:
“Onlyinthatitwasn’tdifficulttogettobutitcertainlywasn’tadrawcard.”
(SeniorBusinessArchitect,softwarefirm(small),ATP,2015)
ThissameintervieweehighlightedthattheamenitiesandservicesavailablewithintheATPandsurroundswereextremelylimited,particularlycomparedtoworkingintheCBD.Asaresult,theworkertriestoworkfromhomeasmuchaspossible.Basedonthisanalysis,thelabourmarketdoesnotappeartobeamajordriverforfirmstolocatewithintheATPasotherlocations(particularlytheCBD)wereconsideredtobemoreattractivefromanaccessibilityandamenitypointofview.
ATP BRANDAsdiscussedabove,theATPbrandscoredwellasareasonforfirmstolocatewithintheATP.Forsomefirmrepresentativesthebrandisaboutbeingpartofatechnologicalcommunity(CEO,softwarefirm(small),ATP,2015).Forothers,theATPisconsideredthebestplacetocreateatechnologybusinessinAustralia(Co-Founder,hardwarefirm(small),ATP,2015).Onefirmrepresentativesuggestedthatthebrandisaboutcorporatecredibilityandbeingtakenseriouslyasafirm:
“Whenyoutellsomeonethatyou’reaTechnologyParkcompany,Isupposeitmeansalittlemore,you’reonelevelupfromagaragehacker,you’renolongerinthehomeoffice.”
(ManagingDirector,lifesciencesfirm(start-up),ATP,2015)
ItmaybethathavinganofficewithintheATPsignifiesthatthecompanyisatastagethatitcanaffordtopayrentandthereforeisnolongerseenasahighriskforclients.
Thenotionofabrandisaboutbeingpartofacommunityofsimilarfirmsandthepositioningofthefirm.TosomeextentthisreflectsthecommentsmadebyfirmsbasedinSurryHills.TheATPbrandisseenasapositiveattributebyfirmrepresentativesandworkerslocatedwithintheATP.However,basedontheinterviewsitseemsthesefirmsseetheATPasasteppingstonetomoredesirablelocationssuchasSurryHillsortheSydneyCBD.
FORMAL BUSINESS LINKSWhilethepotentialtocollaboratewithotherfirmswasrankedasthetopreasonforlocatingwithintheATP,thisdoesnotnecessarilyreflecttheexperiencesfromafirmperspective.Inreferencetoopportunitiestocollaborateandtheconceptofknowledgesharingandlearning,onefirmrepresentativestatedthat:
“Someofthethingswethoughtwouldhappendidn’thappen.”
(CEO,lifesciencesfirm(small),ATP,2015)
Thislackofcollaborationisfurtherdiscussedinrelationtotheprofessionalnetworkandknowledgesharingbelow.
ForthetwofirmswithintheATPInnovationsprogram,thefirmrepresentativeswerebothinvolvedinpreviousventuresaspartoftheATPInnovationsprogramandhadstrongconnectionstotheCEOofATPInnovations.Thislink,whilenotnecessarilyaformalbusinesslink,wasakeyreasonforthefirmstoreturntotheprogram.
AdesignandmultimediafirmhadexistingformalbusinesslinkswiththeATPpriortolocatingthereastheATPSLwasaclientforthefirm.Thefirmrepresentativehighlightedthatitwasnotitsfirstchoiceoflocationbuttheywerepresentedwithagoodoffer.Therefore,thereissomeevidencethatexistingformalbusinesslinkscouldbeconsideredadriverforfirmstolocatewithintheATP,butitisnotconsideredtobesignificantorwidespread.
FIRM SIZE AND LOCATIONUnlikeinSurryHills,theredoesnotseemtobeanyspecifictrendsinrelationwhenthefirmwasestablishedwithintheATP,whichislikelyduetothefactthatthepropertymarketismuchmoretightlymanaged.However,whetherornotthefirmisastart-upwithinATPInnovationsdoeshaveabearingonthefactorsdrivingfirmlocationandthishasbeenalludedtoabove.
ThediscussionabovehasstartedtohighlightthatthefactorsthatdrivelocationaldecisionsalignwiththeopportunitiessoldtothefirmsbytheATPSL,suchasthepotentialtocollaboratewithotherfirms.Start-upfirmslocatewithintheATPbecauseofthesupportprovidedbyATPInnovations.Thisisparticularlyapparentwhenstart-upfirmsexpecttomovetoofficesinSurryHillsiftheyoutgrowATPInnovations
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andnolongerrequirethissupport,indicatingitisthemaindriverofbeingthere.WhilefirmsmayhavechosentolocatewithintheATPforaparticularreason,whetherornottheperceivedbenefitsoflocatingwithintheATPhaveoccurredwillbeexploredbelowinrelationtonetworksandknowledgesharing.
NETWORKS OF FIRMS AND WORKERS LOCATED IN THE ATPAnunderstandingthespatialextentofthenetworkforworkersandfirmslocatedintheATPisdrawnfromthenetworksoffirmrepresentativesandworkersinterviewedaspartofthisstudy.NetworksarenotconfinedtotheATP;rather,connectionsarespreadacrossabroadergeography,demonstratedintermsofclients,suppliers,professionalsandthelabourmarket,asdiscussedbelow.ThequestionswhethertheATPcouldbeconsideredaclusterofinterconnectedfirmsorjustagroupofco-locatedfirmsdrivenbytheplanningandmanagementoftheATP.
CLIENTSOfthesevenfirmsinterviewed,onlyonehadaclientwithintheATPandthatwasthedesignandmultimediafirmwhohadworkedfortheATPSL.Amongthetechnologyfirms(hardware,softwareandlifesciences),clientsaregenerallylocatedacrossAustraliaincludinggovernmentandprivatesectorgroups.Thehealthsectoristhemainclientforthelifesciencesfirmsandduetoitsnaturehasnoobviousspatialclustering.WhilefewclientsarelocatedwithintheATP,itisseenasanaccessiblelocationintermsofproximitytoclients,particularlythoselocatedintheCBD.
SUPPLIERSTheextenttowhichfirmsusedsuppliersvaried.Forhardwarefirms,thesuppliersaregenerallymanufacturerslocatedelsewhereinAustraliaorinternationally.ThedesignandmultimediafirmusesarangeofcontractorsincludingphotographersandvideographerswhoarealllocatedexternallytotheATP.ForNICTA,theuniversitiesare,tosomeextent,suppliers.Thereareoftenlimitedopportunitiesforfirmstopartnerorcollaboratewithotherlocallybasedfirms:
“It’snotobviouscausethetypeofcompaniesherewouldn’treallybeourtargetclient.SoitismorelikelythatwemightgointosomesortofpartnershipratherthanaclientsuppliertyperelationshipbutIhaven’tseenanythingthat’sobvious.”
(BusinessArchitect,softwarefirm(small),ATP,2015)
ThelackofsupplierrelationshipswithintheATPcouldbeduetothenarrowfocusofeachfirmonaspecificproductorserviceaswellasrestrictionsonthetypesoffirmsthatcanlocatewithintheATP.AsdiscussedinChapter3,theATPSLconstitutionsetsupthetypeoffirmsthatshouldbelocatedwithintheATP,withafocusonscienceandtechnology.ThismaylimitopportunitiesforfirmswhocouldprovideaservicetootherfirmstolocatewithintheATP.
PROFESSIONAL NETWORKTheprofessionalnetworkoffirmsandworkerslocatedwithintheATPexpandsbeyondtheATPwiththemajorityofconnectionsformedoutsidetheATP.BothfirmrepresentativesandcreativeworkersgenerallyreportedthattheydidnotknowanyotherworkerswithintheATPonaprofessionalbasis,orwheretheydidtheconnectionswerenotconsideredstrong:
“Wetendtoprettymuchdoourownthing.Youknow,someoftheothersmallercompaniescometousoccasionallybutit’smorebecausewe’vegotasmalllabupstairsandtheywanttousethetoolsorsomething.”
(EngineeringManager,hardwarefirm(small),ATP,2015).
TheCo-founderofahardwarefirmbasedintheNICbuildingclaimedtohavestrongconnectionstoworkersandfirmswithintheNICduetothesheerlengthoftimethathehasbeenworkingwithintheATPonvariousventures(since1998).Asaresult,heconsideredhimselftoberelativelyactiveinengagingwithotherfirmsandworkerswithintheNICbuilding.
Workersgenerallyretainedstronglinkstopreviousplacesofemployment,whichisconsistentwiththeliterature(Huber,2007).Howevertheworkers’previousplacesofemploymentaregenerallylocatedoutsideoftheATPandoftenintheSydneyCBD.Anexceptiontothisarethefoundersofstart-upsbasedintheNICbuilding,whoretainedsomeconnectionstopreviousstart-upventuresthatwerealsobasedinthebuilding.However,whenthesefailedortheymovedon,theirex-colleaguesdidnotalwaysremainattheATP.
AnumberofintervieweescurrentlyattendorpreviouslyattendedMeetupsforthetechnologyindustryinSydney.Thiswasoftenseenasanimportantsourceofknowledgeandlearning(asdiscussedfurtherbelow).Meetup(2015)isanetworkoflocalgroupsforarangeofpeopleortopicsincludingthetechindustry.MeetupswereoftenheldintheCBD,atlargetechnologyfirmssuchasAtlassian,andthereforetherearelimitedtiestotheATP.ThishighlightsthatcreativeworkershavebeenfocusedondevelopingtheirprofessionalnetworkoutsideoftheATP,anditislikelythatthisisduetoalackofopportunitieswithintheATP.
LABOUR MARKETTwomainflowsoflabourwereobservedinrelationtotheATP.Firstly,labourflowsintotheATP,oftenthroughexistingprofessionalconnections.ThesecondobservationwaslabourflowswithintheATP;howeverthiswasrestrictedtotheNICbuilding.
Thefirmsinterviewedaspartofthisstudyprefertorecruitnewstaffthroughexistingnetworks.Wherethiswasnotpossible,theyuseadvertisementsandrecruiters.AnumberofworkersfromasoftwarefirmpreviouslyworkedwiththeCEOatanotherfirminSydneyCBD.ThisdemonstratestheflowoflabourfromoutsidetheATP.Similarlyinotherfirms,workershadpre-establishedconnectionstotheco-foundersorseniormanagement.Therewerealsocaseswhereworkershadnoconnectionspriortoacceptingapositioninthefirm.
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TherewasalsosomeevidenceofemployeesmovingwithinATPthroughspin-offswithintheNICbuilding.Ashighlightedpreviously,thisoccurswhenthestart-upfailsandthefoundersorworkersseekoutotheropportunitieswithinotherstart-upsinthesamebuildingorstartingaspin-off.ThismovementoflabouriscontainedtotheNICbuildingandATPInnovationsoftenmatchestheappropriatepeopleandallowsthenewfirmtoestablishaspartoftheATPInnovationsprogram.
AnexceptiontothisisNICTA,whichhasahightargetforstaffturnoverandencouragesworkerstoestablishspin-offcompanies(ChiefOperatingOfficer,ICTresearchinstitution(large),ATP,2015).NICTAspin-offswerenotinterviewedaspartofthisstudy,butthereissaidtohavebeensomestart-upsestablishedwithintheNIC.
SPATIAL NETWORKAsheerlackofemploymentdensityandopportunitiesencouragescreativeworkerstofocusondevelopingtheirprofessionalnetworkexternaltotheATP.ThelackofinteractionbetweenfirmsandworkerswithintheATPwasemphasisedbyanumberofcreativeworkerswhohadnodirectinteractionwithotherworkersbasedintheATP.ThisislikelyduetothesmallsizeoftheATPintermsofthenumberofjobsbecausetherearelikelytobefeweropportunitiestoformconnections:
“TheATPisjustnotbigenough,that’stheproblem…I’dliketoseemorebuildingswithmorecompanieswithmorepeoplecomingandgoing.”
(ChiefOperatingOfficer,ICTresearchinstitution(large),ATP,2015)
Relatedly,anotherfirmrepresentativehighlightedthattherearelimitedopportunitiesforcollaboration,duetoalackofresultsandthetimeittakes(ManagingDirector,designandmultimediafirm(small),ATP,2015).
Astouchedonearlier,therealsoappearstobeadivisionbetweenthedifferentbuildingswithfirmslocatedwithintheNICbuildingbeingsomewhatdisinterestedinthefirmswhicharelocatedintheLocomotiveWorkshopsandIBCandwouldrathermoveoutoftheATPwhentheygrowratherthanwithintheATPbecauseoftheperceptionofthetypesoffirmsintheotherbuildings:
“Noway.They’reweird…Idon’tfeellikethere’smuchcollaboration.”
(Co-founder,hardwarefirm(start-up),ATP,2015)
ThissuggestsstrongeropportunitiesforfirmsandworkerstogrowtheirnetworkconnectionsoutsideoftheATPthanwithin.ThismaybeduetoalackofcriticalmassorthelocationofexistingconnectionsandmajorclientsoutsideoftheATP.Thissupportsthefindingsofa2006surveyoftheATPwhichfoundthatonly10percentofbusinesseshadcollaborativeprogramswithothertenantsintheATP(Swat,2006).ThisobservationisnotuniquetotheATP.Thenetworkofclients,suppliers,professionalsandlabourforcreativefirmsandworkersbasedinSurryHillssimilarlyextendedbeyondthegeographicalboundaryoftheclusterintoamuchbroaderinner-cityemploymentcluster.TheATPisalsopartofthisbroaderclusterwhich,asdiscussedearlier,mostlikelyreflectstheconceptofurbanisationeconomies.
KNOWLEDGE OF FIRMS AND WORKERS LOCATED IN THE ATPTheknowledgeoftechnologyfirmslocatedwithintheATPiseasiertodefinecomparedtotheknowledgeoffirmslocatedinSurryHills,asfirmsbasedwithintheATPproduceorsellaspecificproductratherthanprovideageneralserviceasisthecaseforcreativefirmsinSurryHills.TherearethreemaincategoriesofknowledgeforfirmslocatedwithintheATP:
― specificproduct(softwareorhardware)whichmayormaynotbepatented
― understandingofhowtouse,implementordeveloptheproduct
― businessprocesses,includingclientrelationshipmanagementandprojectmanagement.
TheknowledgeoffirmswithintheATPcanbepatentedtosomeextent.However,asdiscussedbelow,knowledgeisnotalwayspatentedduetoissuesaroundcompetitionandtrust.Therefore,themethodoftracingpatentcitationsadoptedbyJaffeetal.(1993)andSonnandStorper(2008)isdifficulttoreplicatefortheATP.
KNOWLEDGE SHARING BETWEEN FIRMS AND WORKERS LOCATED IN THE ATPTheinterviewsrevealedsixkeythemesinrelationtoknowledgesharingintheATP:
― Internal knowledge sharing:learningwithinthefirmasthesourceofinnovation.
― External knowledge sharing (informal versus formal):formalmechanismssuchascollaborationonprojectsandprofessionaleventsaswellasmoreinformalinteractions.
― Knowledge sharing within shared environments:theroleofATPInnovations,asasharedenvironment,infacilitatingknowledgesharing.
― Creative community:thenotionofatechnologicalcommunitywithintheATPanditsimpactoninteractions.
― Incentives to share, competition and trust:registeringpatentsandwhetherthereisaneedforamediatortofacilitateknowledgesharing.
― Role of the ATP:whethertheATPplaysaroleinfacilitatingknowledgesharing.
Thesesixthemesarediscussedbelow.
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INTERNAL KNOWLEDGE SHARINGThemajorityoffirmrepresentativesidentifiedformalandinformalprocessesforknowledgesharingwithintheirfirmincludingregularinternalmeetingsregardingbothprojectsandbusinessdevelopment,aswellasproject-basedtrainingandlearning.Largefirms,inthiscaseNICTA,hostregularinternalseminarsthatprovideanopportunityforworkerstolearnfromotherworkerswithintheorganisation.Firmrepresentativesfromsomeofthesmallfirmsreflectedthatduetothesizeoftheirbusiness,workersneedtounderstandhowtodoeverythingandthatisawayoflearningandknowledgesharing.Internalknowledgesharingwasseenbyfirmrepresentativestobevaluableparticularlyduetoalackoftrustandgeneralpreferencetorestrictexternalknowledgesharingwhichwillbediscussedinmoredetailbelow.
EXTERNAL KNOWLEDGE SHARING (INFORMAL VERSUS FORMAL)Basedontheinterviewsconductedaspartofthisstudy,informalopportunitiestointeractdonotappeartooccurserendipitouslyintheATP.Highlightingthislackofinformalcontacts,afirmrepresentativefromtheSurryHillscasestudywhosefirmwaspreviouslylocatedwithintheATPreflectedontheexperienceofworkingwithintheATP’sLocomotiveWorkshops.Hebelievedthatinformalinteractionsarepotentiallylimitedbythedesignandfunctionofthephysicalspace:
“Thedesignofthespaceisreallylimitedbytheheritagerestrictions…prettydifficulttoturnthatintomodernfunctionalwarehousespaces.SoIthinkthat’sareallimitationandthelayoutoftheofficesprobablydidn’tlenditselftomingling.ThatwasoneproblemIthink.”
(Principal,planningandeconomicsfirm(medium),SH,2015)
Thishighlightstheimpactofthebuiltenvironmentonopportunitiesforinteraction.
Inresponsetothislackofinformalinteraction,thereappearstohavebeenaconcertedeffortfromtheATPSLtofacilitatesocialinteractionsbetweenfirmsandworkersthroughanumberoforganisedeventssuchasMelbourneCupdrinks.
OpportunitiesforexternalknowledgesharingwerenotconsideredtobeconsistentacrosstheATP.FirmsbasedwithintheIBCbuildingbelievedtheyexperiencedfeweropportunitiestointeractandshareknowledgecomparedtofirmswithintheNICbuilding.ThisalsoreflectedanexpectationthatbeinglocatedwithintheATPwouldprovideopportunitiestointeractwithotherworkersandfirms:
“TheinteractionbetweenthetenantsisweakerthanIwouldhavehoped….I’vebeenabitdisappointedinopportunitiesforthat(knowledgesharing)…it’sjustvery,veryfewopportunitiestoreallyinteractmuch…wehaven’tfoundanybodythathasanysynergywithwhatwedo.”
(CEO,softwarefirm(small),ATP,2015)
“Inthisparticularbuilding(InternationalBusinessCentre)we’reisolatedandwegetlessvaluefromourproximitythanotherbusinesses.”
(CEO,lifesciencesfirm(small),ATP,2015)
FromtheperspectiveofthefirmsandworkerswithinATPInnovations(withintheNICbuilding),therewereanumberofopportunitiestointeractwithotherfirmsandworkerswithinthebuildingandthiswillbediscussedinmoredetailbelow.
Alongsideagenerallackofinteraction,therealsoappeartobeanumberofbarrierstoknowledgesharing.Therewasaperceptionamonganumberofintervieweesthattherewasnotenoughpeopletoshareknowledgewith,particularlyknowledgethatwouldbeofbenefittothefirm(andtheworker).Asaresult,itseemsthatfirmshavedecidedtofocusoninternalinnovation,asreflectedonbyonefirmrepresentative:
“Lookwetryandcollaborate,butlookattheendoftheday,we’velearnttostopalotofthistrivialsortofuniversitytypecollaboration.Wejustbringingreatpeopleandworkwithutilitiespeopletosolverealproblemsandshiptensofthousandsofproducts.”
(Co-Founder,hardwarefirm(small),ATP,2015)
Anotherconsiderationisdifferentpersonalitiesandwhetherornotworkersenjoyinteractingwithotherworkers.TheHeadofITfromahardwarefirmidentifiedtheopportunitiestointeractbuthedidnotattendtheseeventsbecausehedidnotenjoynetworking(HeadofIT,hardwarefirm(small),ATP,2015).
SurryHillsoffersafocusonformalinteractionsasasourceofknowledgesharing.However,withintheATPthefocusisonorganisedinformalinteractionsfacilitatedbytheATPSL.ThereisalackofclientorsupplierrelationshipswithintheATPandformalinteractionsappeartobelimitedtoconferenceevents,whichweregenerallynotattendedbyworkersbasedwithintheATP.ThepresenceoftheATPSLnaturallyprovidesmoreopportunitiesfororganisedinformalinteractionscomparedtoSurryHills;however,theeffectivenessoftheseinteractionsislimited.
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KNOWLEDGE SHARING WITHIN SHARED ENVIRONMENTS Ashighlightedabove,knowledgesharingprocesseswithinATPInnovationsdifferedtotherestoftheATP.Interactionsbetweenfirmsandworkersismediatedororganisedthroughvariousprocesses.HamishHawthorn,theCEOofATPInnovations,saidtheseinteractionsattractfirmstotheATPInnovationsprogram:
“ThatdifferentiatesusfromtherestoftheParkwhichismoreofatraditionalbusinesspark,whereasasanincubatorweareselectingthecompaniesthatjointheportfoliocausethat’sthesecondplankofwhatweoffer.Andthat’sahighlycuratedconnectedecosystemofotherstart-upentrepreneursthatyouarepartof.”
(Hawthorn2015)
ATPInnovationsencouragestheturnoveroffirmsasapartitsbusinessmodel.Theturnoverofbusinessesbringsinnewknowledgeandmotivatesexistingfirmsastheyseeotherfirmsgrowing,hiringandmovingon(Hawthorn2015).Thismodelofencouragingtheturnoveroffirmsdiffersfromthegovernmentlandlord/tenantrelationshipacrosstherestoftheATP,whichisfocusedonsecuringtenantsforthelongterm(Hawthorn2015).
Thecoordinationofinteractionsrecognisesthatproximityisnotadriveronitsown,ratherthereneedstobeopennesstosharing,collaboration,andanalignmentoftechnologyandinformation.Whileaconduciveenvironmentcanbecreated,mediationisimportant:
“Sothisideaofknowledgespilloverbeingsomethingthatdoesn’trequireintervention,Ithinkunderestimateshowdirecteditneedstobe…Youneedanenvironmentwhereitthenwillstarttohappenbutyougottoalsohavesomesortofcatalyst.”
(Hawthorn2015)
HawthorndescribedATPInnovations’threetypesoffacilitationassocialevents,formalmeetingsandadirectedandforcedefforttoconnectpeople.
ItisimportanttoacknowledgethatATPInnovationshaveastakeineachbusinessthatispartoftheincubationprogram–thisoffersasignificantincentive.Thiswillbediscussedinmoredetailbelowinrelationtoincentivestoshareknowledge.FirmswithintheIBCandLocomotiveWorkshopsdonothaveexposuretothisfacilitation.
SincerepresentativesfromonlytwofirmsfromtheATPInnovationsprogramwereinterviewedaspartofthisresearch,itisdifficulttoconcludewhetherthefacilitationmechanismsarevaluableandeffective.However,thefirmrepresentativesweremorepositiveaboutbeingbasedwithintheATP,generallynotingthattheirexpectationsweremet,comparedtofirmrepresentativeswhowerebasedinotherbuildings.
CREATIVE COMMUNITYSurryHills,generallyoffersaconsistentappreciationoftheroleofthecreativecommunityandthemotivationitprovidesforcreativeworkers.Incomparison,ATPfirmrepresentativesandworkersdidnotexpressthesameconnectiontothecommunity.FromtheperspectiveoftheGeneralManageroftheATPSL,theATPisatechnologycommunityinwhichregularinteractionsoccurbetweenfirmsandworkers(Read2015).However,theextenttowhichthisoccursislimitedandtheredoesnotseemtobethesameviewofopportunitiesorsenseofcommunityinferredbytheATPSL.Thistosomedegreerelatestothedividebetweentenantswithinthedifferentbuildingswithsomewhatofanusandthemattitude:
“Theotherbuilding(LocomotiveWorkshops)isforadifferentcrowd.”
(HeadofIT,hardwarefirm(small),ATP,2015)
TheATPwasnotseenasatechnologyhubbytheHeadofITatahardwarefirmbecausetherewerenotlike-mindedindividualsthatspecifictechnologyknowledgecanbesharedwith:
“WhatI’mlookingforissomeonewhoisdeeplytechnicalandunderstandstechnologiesthatIcankindofshareideas(with)…IthinkthepoolofwhoIcantalktoissmaller.”
(HeadofIT,hardwarefirm(small),ATP,2015)
ThelackofacohesivecommunitycouldalsorelatetothenatureofthetechnologyindustrymoregenerallyinSydney.TheintervieweealsocommentedthatinSydneythereisnotaspecificplacethatisgeneratingtechiepeoplewhichsuggeststhereisnotechnologyhubinSydney.
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ThishasbroaderimplicationsforapplyingthesekindsoftechnologyclusterapproachestocomparablelocationsintheSydneycontext.Thetechnologyindustryrepresentsasubsetofthecreativeindustries,whichasdiscussedpreviouslyarenotconcentratedinanyparticularlocationinSydneybutratherwithintheinnercityofSydneygenerally(refertoFigure30).Variousproposalshaveidentifiedopportunitiesforcreativeindustryclusters(includingthetechnologyindustry)tobedevelopedwithinrenewalprecinctsthroughouttheinnercityincludingtheBaysPrecinctandCentraltoEveleigh(bothmanagedbyUrbanGrowthNSW)aswellasmorebroadlyacrossSydneyandNSW.Consideringthecommentsabove,thereisapotentialneedtoscalebacktheapproachandconcentrateonfewerkeylocationsthatcandevelopastechnologyhubs.Thiswillalsoassistingrowingthetalentpool,anissuecitedwidelybyAtlassian,alargeAustraliansoftwarecompany.
Atlassian: a case study in firm locationAtlassianwasinterviewedaspartofthisstudybecauseitpresentedanopportunitytounderstandthefactorsthatalargeandsignificantsoftwarefirmgothroughwhendecidingwheretolocateitsoffice.Atthetimeoftheinterview,AtlassianwasbiddingforthepurchaseoftheATPandthecompanywasparticularlyvocalinthemediaduringthisbiddingprocess(Fitzsimmons,2015d).ThefocusofthediscussionwasitsexistingperceptionoftheATP,whythecompanywasconsideringpurchasingthesiteandthevisionforitsfuture.WhileAtlassianwasunsuccessfulinthetenderprocess,anumberoflessonsfromtheinterviewhaveimplicationsforthewaygovernmentsplanforemployment.BusinesspreferenceshaveevolvedfromthebusinessparkmodelreflectedinMacquarieParktoamorevibrantandaccessibleCBDasreflectedinthesummaryoftheinterviewcontainedinFigure31.
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AtlassianisanAustralianenterprisesoftwarecompanystartedbyMikeCannon-BrookesandScottFarquharin2002.Thefirstmajorofficeforthefirmwaswithinthecity,nearDarlingParkanditscurrentofficeisonGeorgeStreetnearMartinPlaceinanheritagebuilding.Atlassianhasbeeninthebuildingforfouryearsandisreportedlydoublinginsizeeverytwoyears.TheSydneyofficeemploys700peopleandisexpectedtoreach900peoplebytheendofthefinancialyear.AtlassianalsohasofficesinSanFranciscoandAustinwithpartnersitesinGdanskandVietnam.
Therapidgrowthofthecompanypresentstwokeychallenges: ― alackofphysicalspacetoaccommodatethegrowth ― alackofsupplyofexperiencedtalentedpeople.
ProximitytotheSydneyCBDisimportantforAtlassianasalotofstaffliverelativelyclosetotheoffice.AccordingtoAtlassian,thevibrancyoftheCBDisimportantbecausestaffworkuntilsevenoreighto’clockeachnightandwhentheyleavetheofficetheydon’twanttobeinatypicalcorporatecampuslikeNorthRyde/MacquarieParkwheretheywouldjustgetintheircarandgohome.TheywanttobeabletomeetupwithfriendsorfamilyafterworkandtheCBDhasagreatvibetoit.InresponsetoadiscussionregardinglocatinginWhiteBay,accessibilityisconsideredtobeamajorconstraint–“unlessyoubuyeveryoneahelicopter,youcan’tgettherequickly”.
AnotherconsiderationforAtlassianisaccessibilityasthecompanyhostsusergroupMeetupsregularlyasanimportantpartofadvocacyforthefirm.Therefore,thecurrentofficelocationwithintheSydneyCBDisideal–thesizeisjustalimitationasthecompanywouldliketobeinonebuilding.ThelogicaloptionforAtlassianwouldbetolocatewithinahigh-risetowerwithintheCBDbutthefirmlikesuniqueheritagebuildings.
AtlassianbelieveslocatinginNorthRyde/Macquariewouldkilltheirbusiness.Similarly,theSanFranciscoofficeislocatedindowntownSanFranciscoratherthanSiliconValleyduetosimilarreasonsandinAustinitismuchthesame.
TheATPwasseenasanoptiontosolvebothissuesdescribedabove.However,AtlassianhadpreviouslydeclinedtolocateattheATPwhentheoptionwasputtothem.AtlassianstatedthatitwouldgototheATPifitcouldbesomethingmorethanatenantandcreatea‘trulyworld-classtechnologyecosystem’.Atlassianwouldliketohaveownershipandcontrolofthespaceratherthanbeatenant.
WhileAtlassianwasunsuccessfulinitsbidtopurchasetheATP,thecompanyhighlightedthattheplanwastodevelopandgrowatechnologyecosystem,itwasimportantthatthegrowthwassomewhatorganicratherthanoverlyplanned–“youcancurateit,youcan’tcreateit”.
AtlassianbelievestheATPis“abitlikeashoppingcentrewithoutananchortenant.There’splentyofspecialtyshopsdoingawesomestuffbutthere’snoanchortenant,there’snocriticalmass,sothereforeithasn’tbecomeafocalpointfortheindustryaroundwhichcriticalmasscanbedeveloped”.
However,withlessthan1,000jobs,AtlassianalonemaynothaveprovidedsufficientcriticalmassbutwouldhavesignificantlyincreasedcurrentlyemploymentonthesiteandwouldhavehadthepotentialtodrivethetechnologyfocusoftheATPthroughitsactivitiesandinternationallinks.
Source:ThediscussionaboveisbasedonaninterviewwithHarman(2015)fromAtlassian
FIGURE 31: Atlassian case study
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INCENTIVES TO SHARE, COMPETITION AND TRUSTAlackoftrustwasaconsistentthemeintheinterviewsandemphasisestheneedforinteractionsbetweenworkerstobefacilitatedinordertopromoteknowledgesharing.AsdiscussedinrelationtoSurryHills,competitionwasalsoseenasamajorbarriertoknowledgesharingbetweenfirmswithintheATP.Thereisalackoftrustandfirmrepresentativeswereextremelyprotectiveofvaluableknowledgeandintellectualproperty.Onefirmrepresentativehighlightedthatthedecisiontopatentisdependentonanumberoffactorsincludingwhetheranotherfirmwouldbeabletoreverse-engineerthetechnologyandwhetheranotherfirmisclosetoproducingasimilarproduct(ManagingDirector,lifesciencesfirm(start-up),ATP,2015).Thisfirmrepresentativewasparticularlyprotectiveofthefirm’sproductanddidnotdelveintomuchdetailonitsfunctionsorcapabilities.Meetingswereoftenheldoffsitetoavoidunintentionalknowledgesharing,despitethefactthattherearenotconsideredtobeanydirectcompetitorswithintheNICbuildingortheATP.
Thelackoftrustreinforcestheneedforcoordinatedinteractions.Asmentionedpreviously,ATPInnovationshasastakeineachofthebusinessesintheincubatorandhasavestedinterestedinthesuccessofthesefirms.Knowledgesharingisseenasvaluableforsolvingproblemsforstart-upfirmsandthishasdriventhefacilitation.Onefirmrepresentativereinforcedthispoint,acknowledgingtheimportanceofdevelopingtrustwhichtakestime:
“itneedssomefacilitation(fromsomeone)whoatthesametimedoesn’tneedtomakehugeamountsofmoneyfromthefacilitation…Justthisspacealoneisn’tgoingtodoit,youneedsomesortoforganisingfactorthatdoesn’tgetgreedy.”
(ManagingDirector,designandmultimediafirm(small),ATP,2015)
ThedifficultywithreplicatingtheATPInnovationsmodelistheneedforapartywithvestedinterestinthesuccessofthefirmsunderitsmanagement,whichworksinthecontextofanincubator.Asidentifiedabove,thetenant-landlordrelationshipalonewillnotsupportthisprocess.
ROLE OF ATPTheroleoftheATPinfacilitatingknowledgesharingappearstobelimited.Knowledgesharingisnotconsideredtooccurthroughaseriesofserendipitouscircumstances,butratherneedstobeintentionallyfacilitated.TheneedforfacilitationquestionstheimportanceofgeographicproximityandtheconceptofknowledgespilloverswhichwillbefurtherdiscussedinChapter6.
ThelackofcriticalmasswithintheATPislikelytorestrictopportunitiesforinteractionbetweenfirmsandworkers,aswellasalackofaknowledgecrossover.ThereislimitedevidenceofknowledgesharingoccurringbetweenfirmsexceptwithinATPInnovationswhereitisentirelyfacilitatedandisessentiallypartofthepackagethatATPInnovationsoffers.OnecouldarguethisisthatessentiallypartoftherentthesefirmspaytobepartoftheATPInnovationsprogramandthereforetheknowledgesharingisnotanexternalitybutpartofthepackage.However,whileATPInnovationsencouragesknowledgesharing,itsroleindevelopingrelationshipsbetweenfirmsmaybethesourceoffutureknowledgeexchangeswhichitdoesnotfacilitate.
ThelackofinteractionsbetweencreativeworkersandlinksbetweenfirmsintheATPraisesthekeyquestionastowhethertheATPcanbeconsideredaclusteroraloosecollectionofco-locatedfirmsparticularlyduetoalackofinteractionbetweenworkersandfirms.ThiswasraisedbyoneintervieweewhoreflectedontheirtimeworkingwithintheATP:
“TheATPhadalotgoingforit…(but)itdidn’treallyworklikeanactiveclusterandIknowthatwaspartoftheidea.Itwasjustaloosecollectionofoffices.”
(Principal,planningandeconomicsfirm(medium),SH,2015)
Thisemphasisestheissuesassociatedwithdefiningaclusterandtheneedforlinksbetweenfirmstobeobserved,ashighlightedbyMartinandSunley(2003).Withoutaninterconnectednetwork,interactionsandknowledgesharingtheATPislikelytoreflectaloosecollectionofco-locatedfirmsmanagedbytheATPSLratherthananactiveandfunctioningcreativecluster.
SUMMARYThedriversoffirmlocationobservedwithintheATPweremorebusiness-focusedthanlocation-focused.WhiletheATPandSurryHillsaresimilargeographically,theamenityexperiencevariesgreatlyandthelocationsattractsubstantiallydifferentfirmsdespitebothbeingclassifiedascreativeindustries.TheATPhasagreatertechnologyfocus(softwareandhardware)comparedtoSurryHillswhichhasastrongertraditionallycreativefocus(architectureanddigitaldesign).Thesefirmslikelydesiredifferentattributeswithinafirmlocation;however,thereisevidencethatthiswasnotalwaysthecase,asdemonstratedwhentwofirmrepresentativesfromstart-upfirmsbasedintheATPexpressedanambitiontorelocatetoSurryHills.
Intermsofthestatedpreferencesurvey,factorsthatratedhighlywerenotalwaysevidentinreality,particularlythepotentialtocollaboratewithotherfirms.ThishighlightsthatthebrandwhichistosomeextentsoldtofirmrepresentativeswholocateintheATPdoesnotnecessarilyreflecttheexperience.TheexperienceforfirmrepresentativeswhoarepartoftheATPInnovationsprogramdiffersandthisislikelyduetotheATPInnovationsbusinessmodelandassociatedincentiveforATPInnovationstofacilitatecollaborationsthatarevaluabletothesuccessofthesebusinesses.
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Intermsofthenetworkofclients,suppliers,professionalsandlabourforthecreativeindustries,therewaslimitedevidenceofageographicconcentrationofthisnetworkwithintheATP.ThismaybedrivenbyalackofdensitywithintheATP.Itmayalsoreflectabroadertrend,discussedinrelationtoSurryHillsofaninner-cityemploymentnetworkwhichtheATPfitsin.
ThefocusforfirmsbasedwithintheATPisinnovationdevelopedinternallywithinthefirmthroughresearchanddevelopment.Thisisduetoanumberoffactorsincludingalackoftrustandincentivestoshare,aswellasagenerallackofinteractionsbetweenfirmsandworkerswithintheATP.TheexperiencewithinATPInnovationsdifferswithinteractionsbetweenfirmsandworkersthatarepartoftheprogramfacilitatedbyATPInnovationsitselftodriveandcommongoalofbusinesssuccess.AlackofacreativecommunitywasidentifiedandthismayhighlighttheneedforatechnologyhubinSydney,whichquestionstheexistingapproachtoplanningforcreativeclustersacrossSydney.TheroleofknowledgespilloversindrivingthesefirmstolocatewithintheATPappearstobelimitedandthiswillbediscussedinmoredetailinChapter6.
ThegenerallackofinteractionandlinksbetweenfirmsagainhighlightsthattheATP,likeSurryHills,ispotentiallymorereflectiveofagroupofco-locatedfirmsmanagedbytheATPSL,ratherthanafunctioningindustryclustering.
5.4 Conclusion
TheanalysisabovehighlightsthatthedriversoffirmlocationwithinSurryHillsandtheATParemarkedlydifferentandreflect,tosomeextent,thenatureoftheclustersfromaplanningperspective.ForSurryHills,thepropertymarketisthemostsignificantdriverforfirms.SurryHillsisadesirablelocationfrombothanamenityandaccessibilitypointofview.ThebrandofSurryHillshasevolvedandisconsideredtobesynonymouswithfirmswhotakecreativityseriously.TosomeextentthereisanexpectationthatfirmswithinthearchitectureanddigitaldesignindustrieswillbelocatedinSurryHillssothereisadrawcardfromtheperspectiveofclients.
FortheATP,thedriversarebasedmoreonbusinessopportunities,particularlythepotentialtocollaboratewithotherfirms.ThisreflectsthenatureoftheATPasaplannedandmanagedtechnologyparkandthevisionthatissoldtofirms.WhiletheATPbrandisconsideredtobepositiveandremainsadriverforfirms,itisapparentthattheATPisseenasasteppingstone(fromthehomeoffice)forstart-upswhichaspiretolocatewithinSurryHillsortheSydneyCBDinthefuture.
ProximitytotheCBDisakeydriverforfirmsinbothSurryHillsandtheATP,highlightingabroadertrendofemploymentclusteringwithintheinnercityofSydney.
Thenetworksoffirmsandworkerslocatedinbothcasestudyareasarespatiallymuchbroaderthantheclusterboundaryitself,suggestingthatboundariesaretosomeextentanarbitraryindicator.Thenotionofadenseinnercityemploymentclusteremergedthroughtheanalysis,particularlyinthecaseofSurryHills,signifyingthepresenceofurbanisationeconomiesmorethanlocalisationeconomies.
TheknowledgeoffirmslocatedinbothSurryHillsandtheATPdiffers.ForfirmsbasedinSurryHills,knowledgeisgenerallynotpatentablebutforfirmsintheATPtheknowledgecan,toanextentbepatented.However,thereareissuesaroundcompetitionandtrust.Knowledgeincludesnotonlyafirm’sservicesorproducts,italsoincludesknowledgearoundbusinessmanagementprocesses.Forbothcasestudies,knowledgeisnoteasilytraceable,whichsupportedthemethodologicalapproachofqualitativeinterviewswithfirmrepresentativesandworkerstotraceknowledgespillovers.
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ForfirmsinSurryHillsandtheATP,thefocusisinnovatinginternallythroughresearchanddevelopment.WithinSurryHillstherewassomeevidenceofknowledgesharingthroughformalproject-basedinteractionsbetweenfirmsandsuppliers,yetthiswasnotalwayscontainedwithinSurryHillsassuppliersareoftenlocatedoutsideoftheprecinct.IntheATP,thereislittleformalinteractionbetweenfirmswithclientsandsupplierslocatedoutsideoftheATP. MoreinformalinteractionsarefacilitatedbytheATPSL,thoughthesearegenerallynotproductive.TheexperiencewithinATPInnovationsmaybemoreproductive,withinteractionsbetweenfirmsandworkersthatarepartoftheATPInnovationsprogrambasedonacommongoaldrivenbythevestedinterestthatATPInnovationshasineachfirm.
ThecreativecommunitythathasorganicallydevelopedinSurryHillsdoesnotnecessarilyfosterknowledgeexchangebutdrivesthemotivationandinnovationofcreativeworkers.ThiswasnotobservedwithintheATPwherealackofcohesionislikelyduetoalackofdensitybutalsopotentiallyassociatedwithownershipandmanagementstructure.TechnologyfirmsdonotnecessarilywanttobelocatedinabusinessparkbutareincreasinglyseekingmorevibrantandaccessibleCBDlocations,asdemonstratedinthecaseofAtlassian.ThishighlightstheneedtorethinktheapproachtoplanningtechnologyparksandmorebroadlycreativeclustersacrossSydneyandtheimportanceofunderstandingwhatdrivesfirmstolocateinaparticularlocation.
Withinbothcasestudyprecincts,competitiondoesnotfosterknowledgeexchangebuthindersitwithalackofincentivestoshareandalackoftrust.ThisisovercometosomedegreewithinATPInnovationsthroughmediatedinteractionsbetweenfirms.However,thismodelisnoteasilytransferrabletotherestoftheATPorSurryHills.
Thegenerallackofinteractionandlinksbetweenfirmsraisesquestionsregardingthedefinitionofeachcasestudyasanindustrycluster.Rather,SurryHillsandtheATPmightbemoreappropriatelyconsideredaslooseclustersofco-locatedfirms.InthecaseofSurryHills,thisco-locationispotentiallydrivenbybroaderpropertymarketdynamics.FortheATP,theco-locationisdrivenbyplanningandintentionaldevelopmentofspaceforthesefirms.
Drawingonthesequestionsregardingthepresenceofthedriversoflocalisationeconomieswithinthecontextofthesetwocasestudies,theroleofknowledgespilloverswillbefurtherexploredinthefollowingchapter.
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Comparative analysis of creative clusters, knowledge spillovers and the planning process
However, a market for the creative industries still needs to exist, as zoning a site will not necessarily
result in development.
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CHAPTER 6: COMPARATIVE ANALYSIS OF CREATIVE CLUSTERS, KNOWLEDGE SPILLOVERS AND THE PLANNING PROCESS
6.1 Introduction
ThediscussionwithinChapter5relatedtoknowledgesharingmorebroadlywithinSurryHillsandtheATP,andalludedtosomeoftheelementsrelatingtothedefinitionofknowledgespilloversandgeographicboundaries.Thefocusofthischapterwillbeknowledgespilloversasdefinedwithintheliterature,withafocusonthemechanismsascategorisedbyHuber(2007).UnderstandingwhetherknowledgespilloversoccurasdefinedwithintheliteratureisanimportantstepinunderstandingmorebroadlywhatdrivesindustryclusteringinthecontextofSurryHillsandtheATP.Thisisparticularlythecasesinceknowledgespilloversareconsideredtobethemostsignificantdriverofindustryclustering.
ThischapterfirstlydiscusseswhetherknowledgespilloverscouldbeconsideredtobedrivingindustryclusteringinthecontextofSurryHillsandtheATPthroughanalysisofthefourmechanismsofknowledgespillovers.Secondly,itdiscussesotherdriversoffirmlocationthatarenotnecessarilycapturedwithintheexistingeconomicgeographyliterature,specificallythepropertymarket.Finally,itexplorestheroleofplanninginfacilitatinglocalemploymentclusters,includingcreatingnewclustersandmaintainingexistingclusters,whichwillinformanyrecommendationswithinthefollowingchapter.
6.2 Analysis of knowledge spillovers
Inanalysingknowledgespilloverswithinthetwocasestudyprecincts,itisimportanttorevisitthedefinitionoflocalisedknowledgespilloversadoptedforthepurposeofthisstudyasbeingknowledgeexternalitiesboundedinspace(Huber,2007).Theassumptionwithintheliteratureisthatknowledgeflowsfreelybetweenco-locatedfirmsthroughnon-marketinteractionsandthereisnodirectcompensationfortheproduceroftheknowledge.
AsdiscussedinChapter2,Huber(2007)identifiesfourmechanismsofknowledgespilloverthathavebeenadoptedasaframeworkforanalysisinthecontextofSurryHillsandtheATP.Themechanisms,assummarisedinChapter2,arerepeatedbelow:
1. Knowledgeflowsvia mobility of the labour force: when labourmovesbetweenfirmsorresearchinstitutions,theytransferpersonalknow-howandknowledgeaboutthepreviousfirmorresearchinstitution.Inaddition,itislikelythatpersonalnetworksbetweenformeremployeeswillsubsequentlyremainactive(Huber,2007,p.89).
2. Knowledgeflowsvia entrepreneurship and spin-offs: whenindividualssetupnewenterprises,theyexploittheknowledgeandpersonalcontactstheydevelopedintheirpreviousposition.Inthiscontext,venturecapitalistsareconsideredtoprovidenotonlyfinancialsupportbutalsoaccesstoawideinformalandformalnetwork(Castilla,2003;Zook,2004bothcitedinHuber,2007,p.89).
3. Knowledgeflowsvia relationships with customers and suppliers:customersorclients,andsuppliers,mayhaveinsightsintorivalfirmsorresearchinstitutionswhichtheycommunicatetoothers.However,thequalityofthisknowledgemightnotbehighasthecustomer,clientorsupplierisindirectlyinvolvedintheknowledgeactivities(Huber,2007,pp.89-90).
4. Knowledgeflowsvia networks of personal relationships:thisoverarchingconceptconsidersthatnetworksofpersonalacquaintancesfacilitateknowledgeflows,witharangeofdifferentsub-mechanismsandprinciples(Huber,2007,p.90)includinginformationtradingandsocialobligations.
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1. KNOWLEDGE FLOWS VIA MOBILITY OF LABOUR FORCEKnowledgeflowsviathemovementoflabourcanbemeasuredbyunderstandingtheextentofthelabourmarketandnetworkofflowsacrossSydney.AsdiscussedinChapter5,workersinterviewedaspartofthisstudywereaskedwheretheyworkedpreviously(typeoffirmandlocation)inordertounderstandhowlabourflowswithinSurryHillsandtheATPandmorebroadlyacrossSydney.Firmrepresentativeswerealsoaskedaboutrecruitmentmethodsandstaffturnovertounderstandthemobilityofthelabourforce.
SURRY HILLSFortheindustriesconcentratedinSurryHills,workersgenerallyappeartoflowthroughfirmswithintheindustryinwhichtheyareemployed.OnlyoneintervieweehadpreviouslybeenemployedbyanotherfirmlocatedinSurryHills.AllotherintervieweeswerepreviouslyemployedbyfirmslocatedoutsideSurryHills,albeitoftenwithintheinnercityofSydney.WhilethereisaclusterofcreativeindustrieswithinSurryHills,thecreativeindustriesarealsoclusteredinanumberofotherlocationsacrossSydney,particularlywithintheGlobalEconomicCorridorwherethemajorityofjobswithinSydneyarelocated.ThereisnotonespecificlocationinSydneyinwhichcreativeworkersareemployed.Intervieweesoftencommentedthatthespecificindustrysectorwithinwhichtheyworkedwassmall,implyingthateveryoneknowseveryoneandthisoftenfacilitatesflowsbetweenfirmshighlightingtheimportanceofsocialproximityabovegeographicalproximity(BenLetaifa&Rabeau,2013).
Intermsoflabourforcemobility,whilestaffturnoverfluctuatesacrossthefirmsandnewemployeesareapotentialsourceofinnovationandnewknowledge(Searle,2010),ifworkersarenotoriginatingfromotherfirmswithinSurryHills,itisdifficulttoassumethatthemobilityofthelabourforceisasourceofknowledgeflows.Therefore,thereisnoevidenceoflocalisedknowledgespilloversoccurringwithinSurryHillsduetothelocalmobilityofthecreativelabourforce.
AUSTRALIAN TECHNOLOGY PARKSimilarobservationsweremadeinrelationtothelabourmarketwithintheATP.Asdiscussedpreviously,anumberofworkerswhowereinterviewednotedthattheyknewtheiremployerpriortobeingemployedintheircurrentpositionandthiswasduetoworkingwiththempreviouslywithinanotherfirm.FirmslocatedwithintheATPareusuallyentrepreneurialventuresandthefoundersgenerallybringlabourfromtheirpreviousplaceofemploymentwiththembecausetheyknowandtrustthem.However,intermsofthespatialelementtothismovement,thisconnectionwasformedoutsidetheATP.ThereislimitedevidenceoflabourmovementswithintheATPandwherelabourwasobservedtomovebetweenfirmsthiswasthroughspin-offswhichwillbediscussedbelow.Therefore,aswithSurryHills,ifworkersarenotmovingbetweenfirmswithintheATP,itisdifficulttoassumethatthemobilityofthelabourforceisasourceofknowledgeflows.
CONCLUSIONWithlimitedevidenceoflabourflowswithinthecreativeindustriesgeographicallytiedtoSurryHillsandtheATP,thereisnoevidencethatthisisasourceofknowledgeflow.ItcanbeconcludedthatknowledgespilloversviamobilityofthecreativelabourforceasdefinedbyHuber(2007)havenotbeenobservedwithinthecontextofthisresearch.
2. KNOWLEDGE FLOWS VIA ENTREPRENEURSHIP AND SPIN-OFFSItisimportanttounderstandtherelationshipbetweenthespin-offandtheoriginalfirmfromageographicalperspective.Oncethisisunderstood,flowsofknowledgecanbetracedandassumptionsmaderegardingknowledgespillovers.Interviewswithfirmrepresentativesprovidedinsightintothehistoryofthefirmandwhetherthefirmitselfwouldbeconsideredaspin-off.
SURRY HILLSThefirmsbasedinSurryHillswereformedthrougharangeofmeans.AnumberofarchitectureandplanningfirmsestablishedinSydneyasabranchofficeofaMelbourne-basedfirm.Thedigitaldesignfirmsarespin-offsfrompreviousfirmsfromtheinnercityofSydney–areassuchasDarlinghurstorBalmain.Thiswassimilarlythecasewiththetwostart-upfirms(landscapearchitecturefirmandsoftwarefirm).Additionally,somearchitecturefirmrepresentativesmentionedthatpreviousemployeeshadlefttoestablishtheirownfirms,startingbyworkingfromhomeratherthanSurryHills.Inthecontextofthisstudythereisnoevidenceofnewfirmspin-offsinSurryHillsandthereforethereisnoevidencethatthisisamechanismofknowledgespilloverwithinSurryHills.
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AUSTRALIAN TECHNOLOGY PARKAsdiscussedwithinChapter7,withintheATPthereissomeevidenceofspin-offsestablishingintheNICwhereastart-uphasfailedandthefoundersorworkershavesetupanewfirm.WhilethisisnotrepresentativeofpatternsacrossthewiderATP,itservesasevidenceofspin-offswithintheheavilymediatedenvironmentofATPInnovationsandtheNIC.UnlikeinSurryHills,therearelikelytobemoreopportunitiesforspin-offstoestablishwithintheATPduetothepresenceofATPInnovations,anincubatortailoredtostart-upfirms.AsmentionedinChapter5,anumberofintervieweesmentionedthatspin-offsfromNICTAhaveoccurredwithstart-upsestablishedwithintheNIC;however,thesefirmswerenotinterviewedaspartofthisstudy.Withevidencethatspin-offsoccurintheNIC(andATPInnovations)thisispotentiallyamechanismofknowledgespillover.
CONCLUSIONTheobservationsinrelationtoentrepreneurshipandspin-offshighlightakeydifferencebetweentheorganic(unplanned)creativeclusterinSurryHillsandtheplannedtechclusterattheATP.Thefindingsfromtheinterviewsprovidenoevidenceofspin-offfirmsestablishingwithinthegeographicboundaryofSurryHills.WithintheATP,spin-offshavebeenobserved,andtheopportunityforspin-offfirmstoremainwithintheATPisprovidedbythepresenceoftheincubatorthatsupportsstart-upfirms.Whiletheremaybeopportunitiesforspin-offfirmstoremaininSurryHillsinco-workingspacesthatmayprovideasimilarenvironmentforthesefirmstosetupoperations,co-workingspacesdonotgenerallyprovidethebusinesssupportservicesprovidedbyATPInnovations.Therefore,whileknowledgespilloversarepotentiallybeingfacilitatedbyspin-offsinATPInnovationswithintheNICattheATP,thisisconsideredananomalysinceitisahighlymanagedenvironment.ItdoesnotnecessarilyrepresentabroadermechanismacrossindustryclustersinSydney.
3. KNOWLEDGE FLOWS VIA RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERSKnowledgeflowsviarelationshipswithclientsandsupplierscouldbeassociatedwithamarketinteraction,suchasaformalengagementonaproject.Overthedurationofaproject,aclientmayspillknowledgeinformallytothefirminrelationtocompetitors.Thefirmbenefitsfromthisspecificknowledgewithoutpayingforit.Thismechanismisdifficulttotraceanditisimportanttounderstandthegeographicalrelationshipbetweenthefirms,clientsandsuppliers.
SURRY HILLSProximitytoclientsisanimportantdriverforfirmstolocatewithinSurryHills,butthisisassociatedwithitsproximitytotheSydneyCBD.Moreover,manyofthoseinterviewedhadclientslocatedacrossSydney,Australiaandinternationally.ThelackofclientrelationshipswithinSurryHillssuggeststheunlikelihoodofknowledgespilloversbetweenfirmsandclientsatthisgeographicalscale.
TherewassomeevidenceofsupplierrelationshipswithinSurryHillsforcertainfirms.NotallsupplierrelationshipsarebasedinSurryHillssothereisnotanexclusiveconcentrationofsuppliernetworks.AsdiscussedinChapter5,theserelationshipswerenotnecessarilyestablishedduetobeinglocatedinSurryHills,buttheserelationshipsmaystillfacilitateknowledgespillovers.Basedontheinterviews,interactionsbetweensupplierswereprimarilyformalproject-basedinteractions.WhereintervieweesdiscussedcatchingupwithotherprofessionalswithintheirnetworkinSurryHills,thediscussionswerealwaysbasedonfutureopportunitiestoworktogetheronaproject(collaborationorsupplier-clientrelationship).Ratherthansuppliersprovidinginsightsintorivalfirmsorresearchinstitutions,itappearsthatinthecaseofSurryHills,potentialknowledgeflowsbetweensuppliersandfirmswereassociatedwithaformalproject-basedrelationship.
AUSTRALIAN TECHNOLOGY PARKAsdiscussedinChapter5,therearelimitednetworkconnectionsbetweenfirmsintheATP.TheclientsoffirmswithintheATParegenerallylocatedoutsidetheATP,theexceptionbeingthedesignandmultimediafirmthathadtheATPSLasaclient.AlackofclientrelationshipssuggeststhisisnotamechanismoflocalknowledgespilloverswithintheATP.ThisisalsothecaseforsuppliersthatarealsonotlocatedwithintheATP.WhileopportunitieswereidentifiedbysomeofthefirmrepresentativesinterviewedwithinATPInnovations,therewerenoexistingsupplierrelationships.ThereforeknowledgeflowsviarelationshipswithclientsandsupplierscouldnotbeconsideredasamechanismofknowledgespilloverinthecaseoftheATPcluster.
CONCLUSIONTheclientandsupplierrelationshipsforfirmsbasedinSurryHillsandtheATParenotexclusivelyconcentratedwithinthegeographicboundaryoftheseclusters,buttherewassomeevidenceofsupplierrelationshipswithinSurryHills.
Whileknowledgeflowsareinevitableviarelationshipswithcustomersandsuppliers,thesewillprimarilybeviaformal,andoftenproject-specific,relationships.AshighlightedbyHuber(2007),thevalueoftheknowledgeexchangedmaynotbehighsincetheclientorsupplierisindirectlyinvolvedintheknowledgeactivities.Thefindingsdiscussedhereindicatethatwhileknowledgeflowsviarelationshipswithcustomersandsupplierscannotbeentirelyruledout,thevalueofknowledgespilledoverthroughthismechanismandtherolethismechanismplaysdrivingclusteringisdebatableinthecontextofSurryHillsandtheATP.
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4. Knowledge flows via networks of personal relationships
Thisoverarchingconceptconsidersthatnetworksofpersonalacquaintancesfacilitateknowledgeflowsandoverlapssomewhatwiththethreemechanismsdiscussedabove.ThismechanismisofteninferredwithinpopularisedliteratureandinrecentmediaarticlesthatsuggestspilloversoccuraxiomaticallywithinindustryclustersinSydney.AnunderstandingofifandhowthisoccursinthecontextofSurryHillsandtheATPwasdevelopedthroughthequalitativeinterviewswithfirmrepresentativesandworkerswhichsoughttounderstandtheextentofprofessionalnetworksandinteractionsbetweenworkersandfirms.Thetwomajorconsiderationsinrelationtothisconceptarethegeographicextentofpersonalrelationships(thenetwork)andincentivestoshareknowledge.Thediscussionbelowrelatestoprofessionalrelationshipswhichhavenotbeenconsideredthroughthediscussionsaboveandtheextentoftheprofessionalnetworkmorebroadly.
SURRY HILLSWithinSurryHillsnetworksofpersonalrelationshipsclearlyexist,althoughtheknowledgeflowsassociatedwiththesepersonalrelationshipsaretiedtoformalrelationships(marketinteractions).Competitionseemstofosterinnovation,butthisoccurslargelywithinthefirm,asfirmsareveryprotectiveoftheirknowledge.
ThisraisesquestionsastotheroleofSurryHillsasaspecificgeographicentity.Basedontheinterviews,thegeographicextentoftheprofessionalnetworksoffirmsandworkersbasedinSurryHillsextendsbeyondSurryHills,particularlyacrosstheinnercityofSydneywherethemajorityofknowledgejobs(includingwithinthecreativeindustries)arelocated.FirmsinSurryHillsbenefitfromproximitytotheCBD
andpotentiallystronglinksassociatedwithitspositioningintheGlobalEconomicCorridor.Theaccessibilityofthelocationmeansclientsandsuppliersdonotnecessarilyneedtobeco-locatedinSurryHillsassuppliersandclientscaneasilytraveltoSurryHillsandworkerscaneasilytraveltomeetingswithintheCBDandelsewhereinSydney.Ashighlightedbyanumberofinterviewees,firmsdonotchoosesuppliersbasedonproximitybutratherrapportandabilitytodeliver.ThishighlightsthattheextentoftheprofessionalnetworkbeyondSurryHillsisnotnecessarilyanissueforproductivityandinfactmaybedrivingfirmstolocatewithintheprecinctasopposedtowithintheCBD.
AUSTRALIAN TECHNOLOGY PARKTherearelimitedpersonalrelationshipswithintheATPandthereforelimitedopportunitiesforknowledgespilloverstooccur.Alongsidethis,firmsareconsciousofsharingknowledgeasthereisalackoftrust.ThereisanetworkofpersonalrelationshipswithintheNICfacilitatedbytheCEOofATPInnovations,butthereisafinancialincentivefortheCEOofthisfacilitytopromotetheseduetoATPInnovations’investmentineachfirm.Itwouldbedifficulttoconsiderthisanorganicknowledgespilloverasitisahighlymediatedinteractionandtiedtoasignificantpotentialfinancialbenefit.AsdiscussedinChapter5,thisinitialcuratedencounterbetweenfirmssetupbyATPInnovationsmay,however,facilitatefurtherknowledgespillovers.
CONCLUSIONAprincipalconclusionisthatwhileformalrelationshipsfosterknowledgesharing,thefactthattherelationshipisformalisedraisesthequestionastowhetherthiscouldbeconsideredatrueknowledgespilloverintermsofthedefinitionbyHuber(2007).Alackofincentivestoshare,inter-firmcompetitionandlackoftrustplaceintoquestionthevalueofsharingknowledgeforafirmandactasabarrierratherthanafacilitatorofknowledgespillovers.
LOCALISED KNOWLEDGE SPILLOVERSThegeographicextentofthenetworksofprofessional(orpersonal)relationshipsextendswellbeyondthegeographicboundariesofSurryHillsandtheATPasdefinedwithinthisstudy.Thishighlightsthatwhileitisdifficulttosuggestthatknowledgespilloversdonotoccurviathismechanism,thereisnoevidencethatthishasanyrelationshiptothefirmbeinglocatedineithercasestudyarea.Thesetwoprecinctsarewellintegrated,fromanaccessibilityperspective,intothenetworkofknowledgeindustries(includingthecreativeindustries)acrosstheinnercityofSydneyandasaresultthespatialboundaryofthetwocasestudyprecinctsis,inthecontextofthisresearch,anarbitraryindicatorofthepresenceoflocalisationeconomies.Thetwocasestudiesmaybebetterclassifiedasagroupofco-locatedfirmsratherthanclustersduetoalackofstronglinksbetweenfirms(particularlywithintheATP)andthusalackofinterconnectednesswhichisthekeybasisofthedefinitionofanindustrycluster.AshighlightedbyMartinandSunley(2003)thereisnothinginherentintheliteraturetodefinethespatialrangeorlimitsofclustering.Inthecontextofthisresearch,itappearsthatatthisspatialscaleclusteringprocessesarenotoperating.ThisreflectsthefindingsofpreviousstudiesofclusteringinSydneybySearleandDeValence(2005)andSearle(2010)which,asdiscussedinChapter2,foundthaturbanisationeconomiesaredrivingclusteringinSydney,moresothaninter-firmclusterlinks.
TheobservationsrelatingtoknowledgespilloversaresummarisedinTable12,highlightingalackofevidenceinSurryHillsandtheATP.Thereissomeevidenceofknowledgeflowsviaentrepreneurshipandspin-offsintheATPandsomeevidenceofknowledgeflowsviarelationshipswithclientsandsuppliersinSurryHills.However,thisisrestrictedtoanumberofconditionsandnotwidespread.
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TABLE 12: Summary of analysis of the mechanisms of knowledge spillovers
MECHANISM SURRY HILLS ATP CONCLUSION
Knowledgeflowsviamobilityofthelabourforce
Knowledgeflowsviaentrepreneurshipandspin-offs
Knowledgeflowsviarelationshipswithcustomersandsuppliers
Knowledgeflowsvianetworksofpersonalrelationships CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4CHAPTER 3
CHAPTER 4
CHAPTER 3
CHAPTER 4
Legend
Lackofevidence
Someevidence
Observed
Source:Author
Basedontheanalysisconductedabove,trueknowledgespilloversasdefinedwithintheliteraturearenotconsideredtobedrivingtheclusteringoffirmsinthecontextofthisresearch.AsemphasisedbyHuber(2012)theroleofknowledgespilloversindrivinglocalisationeconomiesisoverstated.Theforcesbehindclusteringatthisscalearethereforemuchmorelikelytoberelatedtopropertymarketdynamics,asemphasisedinChapter5.Thisisfurtherexploredbelow.
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6.3 Other drivers of firm location
Driversoffirmlocationvaryatdifferentgeographicalscales.AsdiscussedwithinChapter2,urbanisation economies involveeconomicinteractionsbetweenindustriesandarisefromalargenumberofdifferentindustrieslocatedincloseproximitytoeachother(TheWorldBank,2009).Ontheotherhand,localisation economiesinvolveeconomicinteractionswithinanindustryandarisefromalargenumberoffirmswithinthesameindustryinthesamelocation(TheWorldBank,2009),reflectingtheconceptofindustryclustering.
TheoutcomesofthisresearchquestionwhetherSurryHillsandtheATPcouldbeconsideredindustryclusters.Asdiscussedpreviously,MartinandSunley(2003,p.10)suggestthatfirmsinaclustermustbelinkedinsomeway.Firmswithineachofthecasestudyprecinctshavelimitedbusiness-relatedconnections,andwhilethefirmsoperatebroadlywithinthecreativeindustries,thisappearstobetheonlyclearlinkbetweenthem.Asaresult,theleveltowhichthesecasestudiesrepresentlocalisationeconomiesisunclear.
InthecontextofSydney,thereisstrongevidenceofurbanisationeconomies(Searle,2010)particularlyintheinnercityofSydneyandnorthshore,drivenbyaccesstolabour.Thishighlightsthatthelabourmarketisastrongdriverforfirmlocationatasubregionalscale.
Atthelocalscale,itappearsthatthepropertymarketisadriveroffirmlocation,actingasasorterofindustriesandfirmswithinthelargeragglomerationoffirms.Thepropertymarketrepresentsasubsettotheotherdriversandisnottraditionallydiscussedwithinthiscontextwithintheliterature.
WithintheunplannedSurryHillsprecinct,thepropertymarkethasbeenobservedasakeydriveroffirmlocation.Table13comparesthetopfivereasonsthatdrivefirmlocationbasedonthestatedpreferencesurvey,asreportedearlier.ThefocusonthepropertymarketwithinSurryHillsisparticularlyapparentwhencomparedtotheATPwhereagreaterpresenceofbusiness-relateddriverswasobserved.FortheATP,planningandeconomicdevelopmentarekeydriversoffirmlocationduetohistoryandcurrentgovernmentownershipoftheprecinct.However,thiswilllikelychangewiththesaleoftheATPtotheprivatesector.
TABLE 13: Top 5 reasons for locating in Surry Hills and the ATP
RANK SURRY HILLS ATP 1 CloseproximitytoCBD Potentialto
collaboratewithotherfirms
2 Suitabilityofofficespaceavailable
Conducivetostart-upbusinesses
3 Availabilityofcafes,restaurantsandbars
TheSurryHills/ATP“brand”
4 TheSurryHills/ATP“brand”
Potentialtocollaboratewithresearchinstitutions
5 Availabilityofpublictransport
CloseproximitytoCBD
Legend
Businessrelatedconsiderations
Propertymarketconsiderations
THE ROLE OF THE PROPERTY MARKET IN EMPLOYMENT CLUSTERS GENERATING LOCAL Basedontheresearchconductedwithinthisthesis,thepropertymarketisasignificantdriverforfirmstolocatewithinSurryHills.Thishasbeenassociatedwiththeprocessofgentrificationintheresidentialpropertymarketinthisarea,andtheresurgenceoftheinnercityasadesirablelocationinitsownright.AsthedesirabilityofSurryHillsasaresidentiallocationhasincreased,theemploymentwithinthecreativeindustrieshasincreasedhighlightingthatthepropertymarketisapotentialdriveroffirmlocationandclustering.
ThepropertymarketinSurryHillsischaracterisedbyitsproximitytotheCBD,asupplyofsuitableofficespaceforcreatives(forexample,warehousesthatcanbeconvertedtostudiospacesthroughadaptivereuse)andtheamenityassociatedwithothersupportingusesandthebuiltenvironmentincludingcafes,restaurantsandbars.TheSurryHillsbrandrepresentssomewhatofanumbrellaconceptwhichencompassesthesecharacteristics.TheseareallthekeyreasonsfirmsidentifiedasinfluencingthedecisiontolocateinSurryHills.
Theavailabilityandlocationofsuitablyzonedlandhasaroletoplayinwherefirmscanlocateandindustriescancluster.InSydneyandNSW,zoningisoftenusedtoprotectanareaforemploymentusesbecauseresidentialuseswillbeconsideredofhighervalueandwillpricecommercialandindustrialusesoutofthemarket(Spencer,2014).Whereamixedusezoningisadoptedinaparticulararea,thereisariskthatthedevelopmentcouldcompriseprimarilyresidentialuseswithsomeretailorcommercialatgroundlevel(Spencer,2014).Councilsoftenimplementaminimumrequirementforretailandcommercialfloorspacewithinthesezonestoavoid100percenttransitiontoresidentialasthisisnottheintentionofthezone.However,theexperiencewithintheCityofSydneyisdifferentwithastrongmarketforcommercialusesbothwithintheCBDandsurrounding
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precinctssuchasSurryHills.Thecurrentmixeduse⁵zoningofSurryHillsissubjecttothepropertymarket,sincethereisnorequirementforaminimumamountofemploymentuses.ThisfurtherhighlightsthesignificanceofthepropertymarketinpromotingtheclusteringofcreativeindustrieswithinSurryHillsaswithoutastrongmarketforcommercialuses,residentialuseswouldlikelydominate.
AsdiscussedinChapter3,thefutureofSurryHillsasacreativeindustryclusterissubjecttothecyclesofthepropertymarket.WarehouseswithinSurryHillsareincreasinglybeingconvertedtoresidentialusesandthereisanecdotalevidencethatthecreativeindustriesarealreadybeingpushedoutofSurryHills,highlightingtheimpactofthepropertymarketonfirmlocation.However,thereareavarietyofopinionsastowhetherthecreativeindustrieswillremaininSurryHills,willbepricedoutbyresidential,orwhetherthebenefitsassociatedwithbeinglocatedwithinSurryHillswarrantthehighrents.
WhileitisacknowledgedthatthelabourmarketandbusinesslinksarekeydriversforfirmslocatinginSydneyorintheGlobalEconomicCorridor,locatinginSurryHillsspecificallyisassociatedwiththepropertymarket,whichcanactasasortingmechanismforindustriesandfirmswithinthebroaderagglomerationofindustries.
THE ROLE OF PLANNING IN FACILITATING LOCAL EMPLOYMENT CLUSTERSTheroleofplanninginpromotingthedevelopmentofcreativeindustryclustersremainsunclearwithintheexistingbodyofliterature.ThereisoftenamisconceptionthatexistingmodelsaretransferrablewithgovernmentsoftenlookingtoreplicateSiliconValleyinanumberofcities,includingSydney.
Theliteraturesuggeststhatindustryclusters,particularlywithinthecreativeorknowledge-basedindustriesaremorelikelytoevolveorganicallyratherthanviapublicpolicyinitiatives(Tallon,2013),particularlyinresponsetotheamenityqualitiesofthecity(Searle&Pritchard,2008)andcontextissignificant.Scott(2006,p.12)highlightstheneedtobalanceinterventionandorganicgrowth,suggestingthaturbanplannershaveanimportantroletoplayin:
“fosteringpositiveurbansynergiesthroughappropriateland-usecontrolsandinhelpingtoclearawaythebottlenecksanddiseconomiesthatappearconstantlyascitiesexpand”.
Scott(2006,p.15)alsosuggeststhatcreativity“mustbeorganicallydeveloped”.Theconfusioninrelationtotheroleofplanningstemsfromthecontradictionthatorganicgrowthiskeybutthereisaroleforplanningaswell.Here,organicmaybeconsideredtobeanaturally-evolvingprocesswherelanduseplanningwasnotentirelyabsent,buttherewasnogovernmentinterventioninvolved.ThisreflectstheexperienceinSurryHills.
WhilethepropertymarketisconsideredasignificantdriverforfirmstolocateinSurryHills,theroleofplanninginfacilitatingthepropertymarketshouldnotbeignored.DespitetherebeingnoconcertedefforttoestablishaclusterofcreativeindustriesinSurryHills,andtheclusterwasacknowledgedinretrospect,thelandusecontrolshelpedfacilitatethecreativeindustriesbybeingflexibleandpotentiallyclearingbottlenecks.ThemixedusezoneadoptedinSurryHillsisconsideredbyJensen(2009)tobeoneoftwozoneswhichhavethebroadestcompatibilitywiththecreativeindustries(theotherzonebeingthelocalcentrezone,whichisalsopresentwithinSurryHills).
LanduseplanninghasalsohelpedtoensurethereisadequatebuildingstocktoattractcreativeindustriestoSurryHills.AnumberofwarehousesinSurryHillsarelistedaslocalheritageitemsundertheSydney Local Environmental Plan 2012whichmeanstheycannoteasilybedemolished(Thomas2015).Thede-industrialisationofmanufacturingleftbehindredundantindustrialspacesintheformofwarehouseswhichwereidealfortheneedsofthecreativeindustries(Hutton,2004;Tallon,2013)andplanningcontrolshavehelpedprotectthesewarehousesfromredevelopment
FortheATP,thenatureofthedevelopment,ownershipandmanagementmeansthatplanningandeconomicdevelopmentplayedasignificantroleindrivingthelocationoffirms.Thebusinessparklandusezoningpermitsofficeandlightindustrialusesandprohibitsresidential.Byprotectingthesiteforemploymentusesonly,thezoningservesasadriverforfirmstolocatewithintheATP.However,amarketforthecreativeindustriesstillneedstoexist,aszoningasitewillnotnecessarilyresultindevelopment.
Inadditiontothezoningcontrols,ATPSLalsoplaysaroleindrivingfirmlocationthroughbothmarketingandleasingactivities.Basedontheinterviews,thebrandoftheATPdevelopedbytheATPSLissoldtoprospectivefirms.FirmsarealsoselectedbasedoncriteriasetoutintheconstitutionoftheATPSLwithafocusonattractingfirmsengagedinresearch,technology,development,innovationandcommunity.ATPInnovationshasevenmoreinvolvementinfirmlocation,determiningwhichfirmscanlocateintheNICbuildingaspartoftheincubatorprogram.Whilethismaynotbeconsideredaroleforplanningassuch,theserestrictionsimpactfirmlocation.
TheATPalsocontainsheritagelistedwarehouses,thescaleofthesewarehousesmadeitdifficulttofitoutandthereforemaynotnecessarilyhavethesameattractionaswarehousesthatcanbeeasilyconvertedtostudiospacesbythetenantsinSurryHills.
⁵TherearealsoprecinctsinSurryHillswhicharezonedGeneralResidentialandLocalCentre.TheMixedUsezoneistheprimaryzoneandgenerallywherethecreativeindustriesarelocated
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Thisdiscussionraisesthequestion-whatisthebestapproachtoplanninginordertofacilitatelocalemploymentclusters?Therearetwomainconsiderations:
― Canlocalemploymentclustersbecreated?(andifso,how?)
― Canexistinglocalemploymentclustersbemaintained?(andifso,how?)
CAN LOCAL EMPLOYMENT CLUSTERS BE CREATED?Whileneithercasestudycanbedefinedasacluster,thereareimportantlessonsfromtheATPandSurryHillsintermsofattractingthecreativeindustriesandknowledge-basedindustriestoparticularlocations.TheapproachofcreatinganemploymentclusterinSydneyhasgenerallyinvolvedzoninglandforemploymentuses,forexampletheATPandMacquariePark.Thisapproachhasnotnecessarilybeensuccessful.
ThevisionforMacquarieParkinthe1960swastodevelopanindustrialparkwithlinkstoauniversity,basedontheAmericanmodelofStanfordUniversityandSiliconValley(Freestone,1994,1996,2010;Mansfield&Hutchinson,1992).WhiletherewasoriginallyarequirementthatfirmslocatedinMacquarieParkcarryoutresearch,thiswasnotafocusofthebusinesseswhichlocatedthere(Freestone,1996,p.26),highlightingthedifficultyincontrollingbusinessfunctionsthroughzoning.MacquarieParkisconsideredtohaveevolvedinto“aprestigioussuburbancorporate‘branchplant’addresswhereeconomicactivityrevolvesaroundadministration,sales,storageanddistributionratherthandynamicproductresearchanddevelopment”(Freestone,1996,p.27).Whileitmightbeconsideredsuccessfulfromthepointofviewofcreatingjobs,with45,000jobsasof2011(CityofRyde,2016),MacquarieParkhasnotachievedtheaimsofitsoriginalvision,particularlythelinksbetweenfirmsandMacquarieUniversity.ThishighlightsthedifficultyinreplicatingtheSiliconValleymodelinadifferentcontext.
AsdiscussedinChapter3,itiswidelyconsideredthattheATPalsodidnotmeetitsoriginalvision.WhentheNSWGovernmenttookoverthemanagementoftheATP,thelinkstotheuniversitiesdiminished.Theinconsistencyofmanagement,withresponsibilityshiftingbetweenmultiplegovernmentagenciessince2000,mayalsohaveimpactedonitssuccessasthefocusshiftedawayfrominnovationandtowardsattractingtenants.Thelackofasignificantanchortenantwasalsohighlightedasapotentialfailure.Googledidnotwanttolocatethere(Ruehl&Harley,2015)andAtlassianonlywantedtolocatethereifitwasnolongergovernmentownedandithadsomesortofcontrol.TheCommonwealthBankofAustraliaissettobecomethenewanchortenantoftheATPaspartofMirvac’ssuccessfulbidtopurchasethesite,resultinginthemovementof10,000jobs(fromParramattaandSydneyOlympicPark)totheATP(Cummins,2015).TheATPmightbeconsideredasuccessintermsofsecuringthesejobs,butnotintermsofachievingitsoriginalvision.Additionally,withtheinfluxofbackofficejobswithintheCommonwealthBankofAustralia,itisunlikelythattheATPwillcontinuetocontainasignificantconcentrationofthecreativeindustriesandmayevolveintomoreofastandardbusinesspark(moresothanitalreadyis).
TheexperiencesoftheATPandMacquarieParksuggestthatitisdifficulttodeveloplinksbetweenuniversitiesandbusiness.SiliconValleyisconsideredanidealmodel,butthecontextinwhichitevolvedisimportant.AsdiscussedinChapter2,SiliconValleyissuccessfulduetovariousfactorsanditwasnotspecificallyplanned.ItsgrowthwasfuelledbymilitaryspendingduringWWIIandtheclusterwasabletoadapttothedevelopmentoftechnology.However,newstart-upsareincreasinglyestablishingwithintheSanFranciscoCBDratherthanoutinSiliconValley(TheEconomist,2015),reflectingtheshiftawayfromthesuburbanbusinessparkmodeltowardstheinnercityofglobalcities(Katz&Bradley,2013;Katz&Wagner,2014).ThistrendwassimilarlydemonstratedbyAtlassian,whichhasestablisheditsCalifornianofficeindowntownSanFranciscoratherthanSiliconValley,becausethevibrancyoftheCBDisimportanttoitsstaff.
Theapproachofzoninglandforbusinessparkusesmaynolongerbeappropriate.SearleandPritchard(2008,p.199)questionthestandardplanningapproachoftechnologyparksandwhetherthisideaisnowoutdated.Thebusinessparklandusezoningisunlikelytofacilitateacreativeindustryclusterwithoutastrongmarketfortheseuses.Asdiscussedwithintheliterature,apositiveoutcomecannotbeforced(Lambooy,1997).Zoningasitedoesnotnecessarilyresultinacluster,justas“labellingsomethinginnovativedoesnotmakeitso”(Katz,Vey,&Wagner,2015).Localormetropolitangovernmentsarequicktojumponthelatesteconomicdevelopmentbandwagon.Inthecaseofinnovationdistricts,governmentssometimeslackanunderstandingofwhataninnovationdistrictisandwhatisrequiredtofosterinnovation(Katzetal.,2015).Oftenwhatresultsis“misguidedgovernmentglitz”(Doctorow,2014).Anunderstandingofexistingcompetitiveadvantagesinparticulareconomicsectorsisvitalandthisagainhighlightstheimportanceofcontext.Katzetal.(2015)suggestthatconnectivity,diversityandqualityofplacearenecessarytocreateauniqueandvibrantenvironmentwhereinnovationcanthrive.ThesethreeelementsarereflectedinSurryHills.
SurryHillsprovidesanalternateapproachtocreatingalocalemploymentcluster.However,itmayrepresentananomalyratherthanamodelforadaptation.SurryHillsevolvedduringaperiodwhenemploymentwasconsideredtobeahighervalueusecomparedtoresidentialintheinnercityofSydney.Duringthe1980s,zoningwasusedtoprotectresidentialareasandcontrolagainstwhatwasconsideredtobeincompatibledevelopment.Thecreativeindustriesestablishedintheareadespitethis,highlightingtheroleofthepropertymarketinprovidingtheadequatespacesforfirmstooccupy.
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TheelementsofthepropertymarketinSurryHillsthatcouldbeconsideredtocharacteriseasuccessfullocalemploymentclusterinclude:
― suitablefloorspaceforthecreativeindustriesintheformofheritagewarehousesthatcanbeconvertedtostudiospacesthroughadaptivereuse
― finegrainbuiltenvironmentassociatedwithitsdevelopmenthistoryincludingsmalllotsandblocksandpermeablespaces
― diverseandfragmentedownershipwhichcontributestothediversityofbuiltform
― accessibility(viapublicandprivatetransport),particularlytotheCBDbutalsotothecreativeworkforcewhoareconcentratedineasternSydney
― amenityandculture(thelocalbuzz)associatedwithcafes,barsandrestaurantsaswellastheatres.
TheseelementscanallbesummarisedasthebrandofSurryHillsandissignificantlydifferentfromtheapproachtotheATP.SurryHillsisaproductofitstime.ItwouldbedifficulttoreplicateSurryHillsinotherareasacrossSydneybecausethecontextissosignificant.
WhetheritbeSurryHillsorTechCityinLondon,thecreativeindustriesmorebroadly“generallystartinplacesyou'renotlooking…Theyoftenstartinplacesnobodyelsewantstobe,asthey'reverylowcost”(Silver,2011).TechCity,originallyreferredtoasSiliconRoundabout,evolvedintheearly2000swhenrentswerecheapinEastLondonandthisattractedthecreativeindustries(particularlytechstart-ups)(Gray,2014).AswithSurryHills,theclusterevolvedorganicallyanditappearsasthoughthegovernmenthassimilarly
claimedsomecreditforitssuccess(Gray,2014).WhiletheNSWGovernmentwantstoreplicateTechCityorRooseveltIslandinNewYorkCity(whichisincompleteandthereforeitssuccessisunknown)atWhiteBay(intheBaysPrecinct⁶)(Mao,2015),itisimportanttorememberthat:
“Techhubsarerarelycreatedbygovernmentandalmostneverbytheofferoffreeofficespace.They'realmostalwayscreatedbygovernmentsknockingdownimpedimentstostartingandgrowth,andthenlettingentrepreneurstakecareoftherest”(Silver,2011).
ManyoftheelementsofSurryHillsdescribedabovearedifficulttoreplicateandtheroleofgovernmentnowandintothefutureisquitelimited.However,governmentcanremoveanyimpedimentstothegrowthofemployment,whetheritisensuringthezoningfacilitatesratherthanrestrictstheselanduses,providingadequatefundingforeducationandbusinessorencouragingdiversitybyensuringthatdevelopmentisnotdominatedbyonedeveloper.Ultimately,thereisastrongroleforgovernmentinprovidingaccessiblelocationsforemploymentacrossSydneythroughinvestmentsinpublictransportinfrastructure.
CAN EXISTING LOCAL EMPLOYMENT CLUSTERS BE MAINTAINED?WhetherexistingemploymentclusterscanbemaintainedisanimportantconsiderationforSurryHillsasitsfutureasanemploymentclusterisunknown.Asdiscussedpreviously,thereisanecdotalevidencethatcreativeindustriesarealreadybeingpushedoutofSurryHillsanditisnotclearwhetherthiswillcontinue.Thishighlightsapotentialroleforplanninginmaintainingexistingemploymentclusters.
Governmentinvolvementinorganicemploymentclusterscankillthecreativeenergythatinspiredtheseclusters(Doctorow,2014;Gray,2014).ThereismuchtolearnfromtheexperienceinTechCity.HackneyCouncilreportedlyallowedthedemolitionofwhatwasconsideredtobeaffordableofficespacetomakeroomformorevaluableresidentialdevelopment(Doctorow,2014).Thishasnotonlyreducedtheamountofofficespaceavailable,ithasalsopusheduprents.
Theremaybearoleforplanning,particularlyatalocalgovernmentlevel,toprotectexistingcreativeclustersfromresidentialturnover.Anapproachtoprotectingcheapofficeaccommodationforcreativeindustries(similartotheapproachforaffordablehousing)couldbeintroduced(Searle&Pritchard,2008,p.199).However,theeffectivenessofthisapproachandtheappropriatetoolstobeimplementedisnotyetknown.
Fragmentedownershipofexistingcommercialspaces(throughstratatitling)willlikelypreventawidespreadturnovertoresidentialuses.AnexampleofthisisHolt&HartinSurryHillswhichisaconvertedwarehousebuildingwhichcontainsarangeofcreativebusiness(someofwhichwereinterviewedaspartofthisstudy)andretailuses.Thebuildingisstratatitled(StrataSense,2016)andthesuiteswithinthebuildingareownedbydifferentgroups.Thediversityofownershipmeansthatitwouldbedifficultforthebuildingtobeturnedovertoresidentialasthiswouldinvolvecooperationbyallowners.Existingstratatitleschemesmayinadvertentlyprotectthecreativeindustriesfrombeingpricedoutbyresidential;however,thisdoesnotpreventsmallscalecreativefirmsbeingpricedoutbylargercreativefirms.
⁶TheBaysPrecinctisarecentlyidentifiedurbanrenewalprecinctlocateddirectlywestofDarlingHarbourandtheSydneyCBD
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6.4 Conclusion
Thischapterdemonstratesthattrueknowledgespillovers,asdefinedwithintheliterature,arenotconsideredtobedrivingtheclusteringoffirmsinSurryHillsortheATPinthecontextofthisresearchandtheroleofknowledgespilloversindrivinglocalisationeconomiesisoverstated.Theforcesbehindclusteringatthisscalearemuchmorelikelytoberelatedtopropertymarketdynamics.
SurryHillsandtheATPmaybebetterclassifiedasgroupsofco-locatedfirmsratherthanclustersduetoalackofstronglinksbetweenfirms(particularlywithintheATP).InthecontextofSydney,thereisstrongevidenceofurbanisationeconomiesatasubregionallevel,drivenbyaccesstolabour.
Alongsidethis,thepropertymarketcanactsomewhatasasorterofindustriesandfirms.ThepropertymarketinSurryHillsischaracterisedbyitsproximitytotheCBD,asupplyofsuitableofficespaceforcreatives(forexample,warehousesthatcanbeconvertedtostudiospacesthroughadaptivereuse)andtheamenityassociatedwithothersupportingusesincludingthecafes,restaurantsandbarsandthebuiltenvironment.TheSurryHillsbrandrepresentssomewhatofanumbrellaconceptthatencompassesthesecharacteristicswhichfirmrepresentativesidentifiedasinfluencingthedecisiontolocateinSurryHills.
Theroleofplanninginfacilitatingthepropertymarketshouldnotbeignored.ThemixedusezoningisconsideredtobebroadlycompatiblewithcreativeindustriesanditsflexibilitymayhavefacilitatedthegrowthoftheseindustriesinSurryHills.LanduseplanninghasalsohelpedensureadequatebuildingstockwasavailabletoattractthecreativeindustriestoSurryHillsbyheritagelisting–andprotecting–warehouses.
FortheATP,planningandeconomicdevelopmentarekeydriversoffirmlocationduetothehistoryofthesiteandcurrentgovernmentownership.ThiswilllikelychangewiththesaleoftheATPtotheprivatesector.Byprotectingthesiteforemploymentusesonly,thezoningservesasadriverforfirmstolocatewithintheATP.However,amarketforthecreativeindustriesstillneedstoexist,aszoningasitewillnotnecessarilyresultindevelopment.Inadditiontothezoningcontrols,ATPSLalsoplaysaroleindrivingfirmlocationthroughbothmarketingandleasingactivities.
Thisdiscussionraisesthequestion:whatisthebestapproachtoplanningwhichfacilitateslocalemploymentclusters?Thefirstconsiderationiswhetherlocalemploymentclusterscanbecreatedandthesecondconsiderationiswhetherlocalemploymentclusters,whichhaveevolvedorganically,canbemaintained.
TheapproachinSydneyhasgenerallyinvolvedzoninglandforemploymentuses,forexampletheATPandMacquariePark,inabidtorecreatethedynamicsofSiliconValley.Thisapproachhasnotnecessarilybeensuccessfulandissomewhat outdated.
Understandingthecontextinwhichorganicclustersevolvedisimportant.Whatisoftenseenasanidealmodelwasoftenaproductofitstimeandthefactorsthatleadtothesuccessoftheseplacesarenoteasytoreplicateindifferentcontexts.Governmentinterventioncanalsohaveadetrimentalimpactonorganicallyevolvingclustersbykillingthecreativeenergythatdrivesthesuccessoftheseplaces.
Thereislikelytobearoleforgovernmentinremovinganyimpedimentstothegrowthofemploymentclustersbyensuringplanningcontrolsfacilitatethecreativeindustries,providingadequatefundingforeducationandbusinessandencouragingdiversitysuchthatdevelopmentisnotdominatedbyonedeveloper.ThegovernmentwillalwaysretainaroleinprovidingaccessiblelocationsforemploymentacrossSydneythroughinvestmentsinpublictransport.
Theremayalsobearole,particularlyforlocalgovernment,inensuringthatappropriatespacesforthecreativeindustriesinexistingorganicclustersareretainedandprotectedfromturnovertoresidentialusesassociatedwithgentrification,asthiscouldpotentiallydiminishthecluster.
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Conclusion
In terms of the planning process, the role of planning in facilitating
creative industry clusters remains unclear.
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CHAPTER 7: CONCLUSION
7.1 Introduction
Thischaptersummarisesthefindingswithintheprecedingchaptersinresponsetothemainresearchquestionandeachofthesub-questionsproposedaspartofthisresearch.Recommendationsareprovidedforbothstateandlocalgovernmentanddrawfromthefindingsinrelationtotheroleofplanningindrivingindustryclustering.Areasforfurtherresearchhavebeenalsobeenidentifiedwhichcanbuildonthefindingsofthisresearch.
7.2 Research questions
Thefollowingdiscussionrevisitstheresearchquestionandsub-questionstodrawsomeconclusionsregardingtherelationshipbetweenindustryclusters,knowledgespilloversandtheplanningprocess.
TO WHAT EXTENT DO KNOWLEDGE SPILLOVERS PROMOTE INDUSTRY CLUSTERING?Theliteraturesuggeststhatknowledgeflowsfreelybetweenfirmswithinaclusterthroughnon-marketinteractionsandthereisnodirectcompensationfortheproduceroftheknowledge.However,asdemonstratedwithinthepreviouschapters,thereislimitedevidenceofthisoccurringwithinSurryHillsandtheATP.Inthecontextofthisresearch,trueknowledgespilloversarenotconsideredtobedrivingtheclusteringoffirmsatthelocalgeographicscale.
Thereissomeevidenceofknowledgeflowsviaentrepreneurshipandspin-offsintheATPandsomeevidenceofknowledgeflowsviarelationshipswithclientsandsuppliersinSurryHills.Thisisrestrictedtoanumberofconditionsandnotwidespread.Therewaslittleevidenceoftheothermechanismsofknowledgespilloverswithinbothcasestudyprecincts.
Theroleofknowledgespilloversindrivinglocalisationeconomiesisoverstated,andthereforetheextenttowhichknowledgespilloversaredrivingindustryclusteringislimited.Theforcesbehindclusteringatthisscalearethereforemuchmorelikelytoberelatedtopropertymarketdynamicsandthisisdiscussedfurtherbelow.
i. Where do workers source their knowledge from (informal networks, formal networks or both)? Throughthequalitativeinterviews,workerswereaskedvariousquestionsthatrelatedtosourcingknowledge,includingbothinformalandformalnetworksaswellasinternalandexternaltothefirm. WorkersinbothSurryHillsandtheATPsourcedknowledgeinternally(withinthefirm)andexternallythroughformalnetworksandrelationships,particularlywhenworkingonaspecificprojectorproduct.Thereislimitedevidenceofworkerssourcingknowledgefrominformalnetworksduetoanumberofissuesassociatedwithtrustandincentivestoshare.Formalrelationshipsprovideagreaterincentivetoshareandtheformalisingoftherelationshipbuildstrust.Internally(withinthefirm)thisisnotanissueandknowledgeflowsfreely.However,theseinteractionsdonothaveanygeographicrelationshiptoSurryHillsortheATP. WithinATPInnovations(intheATP),knowledgesharingwasmediatedbytheCEOofATPInnovations.Duetoitsvestedinterestedineachofthefirmswhicharepartofitsprogram,trustwasbuiltandtherewasagreaterincentiveforinteractionstobefacilitated.
ii. (iWhere are connections formed and how do they evolve into a working relationship? Qualitativeinterviewswithbothfirmsandworkersinvolvedarangeofquestionstargetedatunderstandingtheextentoftheinterviewees’professionalnetwork,particularlywhereconnectionsareformed,andifand
howknowledgeissharedbetweentheseconnections.Theintervieweeswereconsistentlyaskedaboutlocationtounderstandthespatialrelationshipbetweenthenetworkandthefirms’locationinSurryHillsortheATP. Generally,connectionswereformedoutsidetheprecinctatpreviousplacesofemployment,whileworkingonprojectswithclientsorsuppliersoratuniversity.ThegeographicextentoftheprofessionalnetworksofworkersandfirmsextendswellbeyondtheprecinctboundariesofSurryHillsandtheATP.Networksarestrongwithintheindustryandsocialproximityisconsideredtobemoresignificantthangeographicproximity.Oftenitwasdifficulttoestablishwhentheconnectionevolvedintoaworkingrelationshipbutitwasclearthatlocationhaslittleimpactonthis.
iii. Why do firms choose to locate in an industry cluster? Thestatedpreferencesurveydistributedduringtheinterviewrequiredfirmstorankthetop10reasonsforlocatingintheapplicablecasestudyareatoidentifykeyfactorsdrivingtolocateinSurryHillsortheATPandthereforefactorsdrivingclustering.Duringthequalitativeinterviews,intervieweeswereaskedmorebroadlywhythefirmchosetolocatewithinSurryHillsorattheATP. Inthecontextofthisresearchotherfactors,asidefromknowledgespillovers,areconsideredtodrivefirmlocation.Whilethisstudyisnotfocusedontheroleofthicklabourmarketsandspecialisedserviceprovidersper se,thesetwootherforcesofclusteringarosethroughouttheinterviewsandthestatedpreferencesurvey.Despitethis,thesetwofactorsarenotsolelydrivingfirmlocationandthereappearstobeasignificantfactornottraditionallyconsideredwithintheeconomicgeographyliterature:thepropertymarket.
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WithinSurryHillsthepropertymarkethasbeenobservedasakeydriveroffirmlocationwhichcomprisesitsproximitytotheSydneyCBD;thesuitabilityofofficespaceavailable(heritagewarehousebuildingsthatcanbeconvertedintostudiospacesthroughadaptivereuse);theavailabilityofcafes,restaurantsandbars;andtheavailabilityofpublictransport.ThesefactorsrepresenttheSurryHillsbrandwhichappealstofirmsandisconsideredastrongdriveroffirmlocation.ThesignificanceofthepropertymarketasadriveroffirmlocationinSurryHillsisparticularlyapparentwhencomparedtotheATP. FortheATP,planningandeconomicdevelopmentcurrentlydrivefirmlocationduetoitshistoryandcurrentgovernmentownershipoftheprecinct.Business-relatedconsiderationsrankedhighly,includingthepotentialtocollaboratewithotherfirmsandresearchinstitutionsandanunderstandingthattheATPisconducivetostart-upbusinesses.However,thispotentialtocollaboratedidnoteventuateforfirms,suggestingthatwhatismarketedtofirmsdoesnotalwaysreflectreality.ThebrandandcloseproximitytotheCBDwerealsosignificantconsiderations. ThedifferencebetweenthetwocasestudiesreflectsthenatureoftheplanningprocesswiththeunplannedSurryHillsbeingmarket-drivenandtheplannedATPbeingpolicy-driven.
iv. What role does planning play in promoting localised knowledge spillovers? Anunderstandingoftheroleofplanningisconsideredimportanttohighlightwhethercurrentpolicyapproachesandzoningmechanismsthatpromoteindustryclusteringalsoindirectlypromoteknowledgespillovers.Analysisoftheurbanplanningcontextthroughanhistoricaldocumentandpolicyreview(detailedinChapter3)providedanunderstandingofthe
roleofplanninginthedevelopmentofthecluster.TheroleofplanninginpromotingknowledgespilloverswasexploredthroughacomparativeanalysisofknowledgespilloverswithinSurryHillsandwithintheATPtounderstandwhetherthereisarelationshipbetweenplanningandknowledgespillovers. DuetoalackofevidenceofknowledgespilloverswithinSurryHillsandtheATP,theroleofplanninginrelationtoknowledgespilloversislimited.However,thereisalikelyroleforplanninginfacilitatinglocalemploymentclusters,bycreatinglocalemploymentclustersandmaintainingexistingemploymentclusters. Understandingthecontextinwhichunplannedclustersevolvedisimportant.Manysuccessfulindustryclustersevolvedorganicallyanditisimportanttoconsiderthecontextinwhichtheseclustersestablished.Governmentinterventioncouldkillthecreativeenergywhichdrivesthesuccessoftheseplaces. However,thereislikelytobearoleforgovernmentinremovinganyimpedimentstothegrowthofemploymentclustersbyusingplanningcontrolstofacilitatethecreativeindustries,providingadequatefundingforeducationandbusinessandencouragingdiversitysuchthatdevelopmentisnotdominatedbyonedeveloper.GovernmentwillalwaysretainaroleinprovidingaccessiblelocationsforemploymentacrossSydneythroughinvestmentsinpublictransport. Additionally,theremayalsobearole,particularlyforlocalgovernment,inensuringthatappropriatespacesforthecreativeindustriesinexistingorganicclustersareretainedandnotturnedovertoresidentialusesbyincreasingpressuresassociatedwithgentrification,asthiscouldpotentialkillthecluster.
7.3 Recommendations
TheNSWGovernmentshouldmoveawayfrompoliciestorecreatetechnologyhubsinSydney(thenextSiliconValleyorTechCity)andfocusoncreatingaccessiblelocationsforemployment.Thisisbasedonanunderstandingthatthecontextisimportantanditisdifficulttorecreatesuccessfulclusterswhichlikelyevolvedorganically.Additionally,basedonthesuccessofSurryHills,varietyintermsofscaleandtheurbanmorphologywillencourageadiversityofactivitiesandfirms.
TheNSWGovernmentshouldalsorecognisethatknowledgeandcreativeemploymentcannotbeattractedtoallurbanrenewalprecinctsacrossSydney.Thesesiteswilllikelycompetewitheachotherandfirmswillchoosealocationbasedonconnectivityandaccessibility.TheNSWGovernmentshouldfocusongrowingtheknowledgeandcreativeindustriesinSydney(andAustralia)throughfundingandeducation.Growingtheworkforcewillpotentiallyassistingrowingtheseindustries.
Stateandlocalgovernmentbothneedtoplanforemploymentatabroaderlevel.Thisthesisfoundthattheprofessionalnetworksoffirmsandworkerswithinthecreativeindustriesspreadmuchwiderthatthegeographicboundaryoftheclusterandsuggestthatclustersfunctionatsubregionalorregionallevels(likelybasedonthelabourmarket).Planningforemploymentatasubregionalormetropolitanlevelwillbettersupporttheseclusters.
Localgovernmentshouldretainanyexistingconcentrationsofemployment,wherepossible.Throughzoningfortheseusesappropriatelyorprovidingflexibility,localgovernmentmaybeabletoattractthecreativeindustriestoitslocalarea,butwillneedtoensurethatresidentialusesdonotpriceoutemployment.Furtherresearch,asdetailedbelow,isrequiredtoinvestigatewhattoolscouldbeused.
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7.4 Areas for further research
Thereareanumberofareasoffurtherresearch.
Firstly,adeeperunderstandingoftheeffectivenessofvariousapproachestoprotectingspaceforthecreativeindustries(suchasprovidingaffordableofficeaccommodationbyprotectingrents)isrequired.Thisunderstandingwillbetterguidelocalgovernmentindeterminingitsrole,ifany,inmaintainingexistingclustersofthecreativeindustries.Itisalsounderstoodthattheseplaceswillevolveandthegrassrootscreativeindustrieswillshiftovertimeleavingimprovedplacesbehind.Flexibilityaroundthisshouldbeincorporatedintopolicy.
Secondly,theroleofthelabourmarketindrivingurbanisationeconomiesversuslocalisationeconomiesshouldbeexploredinthecontextofAustraliancities.AnunderstandingofthiswillsupportplanningforemploymentandeconomicdevelopmentpolicieswhichseektoattractemploymenttocentresoutsidetheCBDbyprovidingabetterunderstandingofwhatdrivesemploymenttoclusterinsubregions.
Further,thelinkbetweendiversifiedglobalcitiesandurbanisationeconomiesversusthelinksbetweenspecialisedcitiesandlocalisationeconomiesshouldbeexplored.Itisexpectedthatdiversifiedglobalcitiesarenaturallymorelikelytocontainurbanisationeconomies,asopposedtolocalisationeconomies,duetothenatureoftheeconomy.ThiswasobservedinSydney,butfurtherresearchshouldexplicitlyexplorethislink.Anunderstandingofthiswillinfluencelocaleconomicdevelopmentpolicyapproachesforglobalcitiesaswellasmediumsizedspecialisedcitiesthataremorelikelytobevulnerabletoeconomicdownturns.TheintegrationoflanduseandeconomicplanningwithintheNSWGovernmentwouldlikelybebeneficialindrivingthis.
Finally,theroleofplanninginclusterdevelopmentshouldbeexploredthroughfurthercasestudyanalysisincludinginternationalapproachestozoning.ItwillbeimportanttounderstandthecontextinanycasestudiesbeforeadoptingsimilarmodelsintheAustraliancontext.
7.5 Concluding remarks
Despitealackofanunderstandingoftherelationshipbetweentheplanningprocess,industryclusteringandknowledgespillovers,theNSWGovernmentisfocusedondrivingindustryclusteringasakeyplanningpolicyobjectivewithinSydney.Thisresearchhasconcludedthat,inthecontextofSurryHillsandtheATP,localisedknowledgespilloversarenotamajordriveroftheselocalindustryclusters.Theroleofknowledgespilloversindrivinglocalisationeconomiesisoverstated.Theforcesbehindclusteringatthisscalearemuchmorelikelytoberelatedtopropertymarketdynamics.
ThisresearchalsoraisesquestionsregardingthedefinitionofclusterswithinSydney,particularlyduetoobservationsregardingthebroaderspatialextentofthenetworkofworkersandfirmsinterviewedaspartofthisstudy.
Sydneyisadiversifiedglobalcitywhichcontainsemploymentinarangeofindustrysectors.Thereisnoonemajorindustryofemploymentandhencenoonespecificclusterofemployment.Thereisstrongevidenceofurbanisationeconomies,particularlyintheinnercityofSydney,whichisconsideredtobedrivenbyaccesstolabour.Thissuggeststhatthelinkbetweenglobalcitiesandlocalisationeconomiesispotentiallylimitedandlocalisationeconomiesmaybemorelikelytobeobservedwithinspecialisedcities.
Intermsoftheplanningprocess,theroleofplanninginfacilitatingcreativeindustryclustersremainsunclear.ThereisoftenamisconceptionthatexistingmodelsaretransferrablewithgovernmentsoftenlookingtoreplicatesuccessfulindustryclusterssuchasSiliconValleyincitiessuchasSydney.Itisimportanttounderstandthecontextinwhichtheseclustersdevelopedanditisoftenanorganicprocessduetoanumberoffactorsincludingtheeconomicclimateatthetime.Thesefactorsaredifficulttoreplicate.However,thereispotentiallyaroleforplanninginprovidingaccessiblelocationsforemploymentgenerally,andmaintainingexistingclustersofthecreativeindustries.
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Appendix AOverview of metropolitan plans for Sydney 1948-2014
The Planning Scheme for the County of Cumberland (CumberlandCountyCouncil,1948)(refertoFigure32)wasthefirststrategicplanforSydneyandfocusedonmovingawayfromamonocentriccitywithParramattaidentifiedasthesecondCBDforSydney.
The1968Sydney Region Outline PlanintroducedMacarthur-CampbelltowninsouthwestSydneyasanewgrowthareaforresidentialandemployment(refertoFigure33).NewindustriallandwasproposedacrossSydney,particularlyinthewest,signifyingthebeginningoftheshiftofindustrialusestowardsthewest,followingpopulationandhousingexpansionintothe1950sand1960s(Fagan,2000).
In1988,Sydney into its third centuryintroducedacentrespolicyforSydney(refertoFigure34).However,themetropolitanplansofthe1990s,adoptedafocusonclustersofemploymentactivityandconcentratingemploymentinalimitednumberofthesecentresandclusters(refertoFigure35andFigure36).Thismayhavebeeninresponsetorecognitionofboththeshifttoroadlogisticsandfurtherpopulationandhousingsuburbanisation.
FIGURE 32: County of Cumberland functional plan (1948)
FIGURE 33: Sydney Region Outline Plan (1968)
FIGURE 34: Sydney into its third century (1988)
Source: (Cumberland County Council, 1948)
Source: (State Planning Authority of New South Wales, 1968)
Source: (NSW Department of Environment and Planning, 1988, p. 44)
128
FIGURE 35: Cities for the 21st Century (1995)
FIGURE 36: Shaping our Cities (1998)
Source: (NSW Department of Planning, 1995, pp. 103-104)
Source: (NSW Department of Urban Affairs and Planning, 1998, p. 9)
By2005,thefocusoftheCity of Cities (NSWDepartmentofPlanning,2005)hadshiftedtoanetworkofcentresandcorridors,withaparticularfocusontheGlobalEconomicCorridor(refertoFigure37).TheGlobalEconomicCorridorwasoriginallyidentifiedastheareabetweenMacquarieParkandSydneyAirport.ItwasconsideredtobetheeconomicpowerhouseoftheAustralianeconomycontaining40percentofSydney’stotaljobsin2005,and75percentofinformationtechnologyandtelecommunicationjobs(NSWDepartmentofPlanning,2005,p.86).TheGlobalEconomicCorridorcontainsfiveofthesixuniversitiesinSydney,significanthealthandresearchfacilities,aswellasindustrialareasandtransportgateways(NSWDepartmentofPlanning,2005,p.86).
129
FIGURE 37: City of Cities: Metropolitan Strategy for Sydney to 2031 (2005)
Source: (NSW Department of Planning, 2005, pp. 10-11)
SpecialisedcentreswerealsointroducedinCity of Cities.Specialisedcentresareareascontainingmajorairports,ports,hospitals,universities,researchandbusinessactivitiesthatperformvitaleconomicandemploymentrolesacrossthemetropolitanarea(NSWDepartmentofPlanning,2005,p.92).TheNSWDepartmentofPlanning(2005)identifiedaneedtomanagethewaythesecentresinteractwiththerestofthecity.Thesecentreshavearesearchanddevelopmentfocus.
The2005strategyalsoidentifiedafocusoninnovationandknowledgeclusterswithanactiontoworkwiththePremier’sCouncilonScience,Innovation,EconomicDevelopmentandTradetoprepareanInnovationStrategy,whichwastofocusonboostinginnovationactivitiesatkeylocations(NSWDepartmentofPlanning,2005,p.68).ThesekeylocationsincludedtechnologyparkssuchastheATPandNorthRyde,whichwasidentifiedascontainingsignificantinformationandcommunicationtechnologies,biotechnologybiomedicaldeviceandpharmaceuticalindustryclusters(NSWDepartmentofPlanning,2005,p.69).
Strengtheningindustryclusterswasintroducedasanotherkeyactionwithinfrastructurehighlightedasamajormagnetforbusinessesandkeytostrengtheningexistingandcreatingnewclusters:
“Toachievethebenefitsofclustering,andtheemploymentcapacitytargetsforthestrategiccentres,thereisaneedtoplanforandcreateenvironmentsthatattractnewbusinessactivitiesandtoprovidemagnetinfrastructureasacatalystfornewinvestment”(NSWDepartmentofPlanning,2005,p.87).
Thishighlightsthatplanningisconsideredvitaltofacilitatingindustryclusters.
TheconceptsandstrategiesintroducedinCity of Cities were generallyretainedinthefollowingmetropolitanstrategyin2010,Metropolitan Plan for Sydneyto2036(refertoFigure38).The2010strategyalsoacknowledgedthatinnovationanddevelopmentcanoftenoccurinsmall-scalefirmswhicharegenerallylocatedwithintheinnercityinareassuchasSurryHillsandChippendaleduetotheavailabilityoflowercostspacewithaccesstolargeorganisationandmajorprecincts(NSWDepartmentofPlanning,2010,p.139).
130
FIGURE 38: Metropolitan Plan for Sydney to 2036 (2010)
Source: (NSW Department of Planning, 2010, pp. 18-19)
Thisresearchanddevelopmentfocushaspotentiallybeenlostwithinthe2014metropolitanstrategyAPlanforGrowingSydney(NSWDepartmentofPlanningandEnvironment,2014)becausespecialisedcentresarenolongeracategorywithinthecentrehierarchyandthesecentresarenowlabelledmorebroadlyasstrategiccentres(refertoFigure39).
131
FIGURE 39: A Plan for Growing Sydney (2014)
Source: (NSW Department of Planning and Environment, 2014, pp. 12-13)
132
Appendix BData analysis
SURRY HILLSThissectionanalysesemploymentdataforSurryHillsfrom1991to2011,illustratinghowtheindustrycompositionoftheprecincthasevolvedduringthisperiod.TheanalysishighlightstheclustersofindustriesandoccupationswhichhaveemergedandcomparesthesetotheindustriesandoccupationswhichwerelocatedinSurryHills15to20yearsago.TheresidentialoriginofworkerswhowereemployedinSurryHillsin2011hasbeenmappedtounderstandwhetherworkerslivedincloseproximitytotheprecinctandhowtheytravelledtowork.
Broad trends in employmentTotalemploymentinSurryHillsfluctuatedoverthepasttwodecades(refertoFigure40).In1991therewerealmost22,000jobslocatedinSurryHills.Adeclinewasexperiencedbetween1991and1996whichwaslikelyreflectiveofthedeclineinemploymentwithinthemanufacturingindustries.Therewasgrowthintotalemploymentbetween1996and2001;howeverthiswascounteractedagainbyadeclinebetween2001and2006,withtotalemploymentreachingitslowestlevelat19,170jobs.Aproportionofthisdeclinecouldbeattributedtotheboundarychange,butthisdidnotaccountforthetotaldecline⁷.Stronggrowthinemploymentwasexperiencedbetween2006and2011,witha34percentincreaseinemployment(6,500additionaljobs).
⁷Thenumberofjobswhicharelocatedwithin2001boundarybutexcludedfromthe2006boundaryislowerthanthedifferencebetweenthe2001and2006employmentnumbers.Thereisalackofinformationonwhetherthiscouldbeduetoapotentialundercount.
FIGURE 40: Total jobs 1991-2011 - Surry Hills
Source: Author using data from Bureau of Transport Statistics (1991, 1996, 2001, 2006, 2011)
Tota
l job
s
1991 1996 2001 2006 201121,743 19,888 22,271
Year
19,170 25,634
30,000
25,000
20,000
15,000
10,000
5,000
-
Surry Hills
133
ThefluctuationsintotalemploymentweremostlikelyreflectiveofachangingeconomicstructureinSurryHills.In1991,20percentofworkerswereemployedinmanufacturingand19percentofworkerswereemployedinprofessionalandfinancialservices(refertoFigure41).Since1991,professionalandfinancialservicesasanindustryofemploymentgrewinSurryHillstoalmost30percentoftotalemployment.Ontheotherhand,manufacturingdeclinedtoonlytwopercentofemployment.Anothernoticeabletrendwasthegrowthinaccommodationandfoodserviceswhichdoubledfromfourpercentofemploymentin1991toninepercentofemploymentin2011.Informationmediaandtelecommunicationsgrewstronglybetween2001and2006intermsoftheproportionoftotalemploymentwithinthisindustry,butprofessionalandfinancialservicesgrewatamuchstrongerratebetween2006and2011.
ThesetrendsarefurtheraccentuatedwhencomparedtotheCityofSydneyLGAandSydneyGMA.WhilemanufacturingalsodeclinedacrosstheCityofSydneybetween1991and2011,itdeclinedatamuchslowerrateandfromamuchsmallerproportionoftotalemploymentwhencomparedtoSurryHills.In1991,only10percentofemploymentacrosstheCityofSydneywaswithinmanufacturingindustries(refertoFigure42).Thiscomparedto20percentwithinSurryHills.TheCityofSydneyexperiencedstrongergrowthwithintheprofessionalandfinancialservicescomparedtoSurryHills,particularlybetween1991and2001.However,thisstabilisedoverthepastdecade.EmploymentwithinaccommodationandfoodservicesacrosstheCityofSydneyhasremainedrelativelystable,whichhighlightsthesignificanceofthegrowthinthisindustryobservedinSurryHills.
AcrosstheSydneyGMA,thetrendsweremuchmorestable(refertoFigure43).Theproportionoftotalemploymentwithinprofessionalandfinancialservicesremainedsteadyataround20percentoftotalemploymentbetween1996and2011.Theproportionofpeopleemployedinmanufacturingdeclined,butatamuchslowerratethaninexperiencedSurryHills.ThishighlightsthebroadershiftintheeconomicgeographyofSydneyexperiencedoverthepasttwodecades.ThisshiftwascharacterisedbyadeclineinmanufacturingintheinnercityandthemovementofmanufacturingouttothewesternsuburbsofSydney,aswellasstronggrowthinprofessionalandfinancialservicesemploymentwithintheinnercityofSydney.
FIGURE 41: Trends in key industries – Surry Hills
Source: Author using data from Bureau of Transport Statistics (1991, 1996, 2001, 2006, 2011)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%1991
Manufacturing
Informa�on Media and Telecommunica�ons
Accommoda�on and Food Services
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1996 2001 2006 2011Year
Prop
or�o
n of
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s
134
FIGURE 42: Trends in key industries – City of Sydney FIGURE 43: Trends in key industries – Sydney GMA
Source: Author using data from Bureau of Transport Statistics (1991, 1996, 2001, 2006, 2011) Source: Author using data from Bureau of Transport Statistics (1991, 1996, 2001, 2006, 2011)
50%
45%
40%
35%
30%
25%
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Informa�on Media and Telecommunica�ons
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Accommoda�on and Food Services
Professional and financial services
1996 2001 2006 2011Year
Prop
or�o
n of
tota
l job
s
135
FIGURE 43: Trends in key industries – Sydney GMA
Source: Author using data from Bureau of Transport Statistics (1991, 1996, 2001, 2006, 2011)
FIGURE 44: Industries of employment (ANZSIC8 1 digit) 2011 – Surry Hills
Source: Author using data from Bureau of Transport Statistics (2011)
Surry Hills City of Sydney Sydney GMA
Industries of employment (ANZSIC 1 digit)
Prop
or�o
n of
jobs
0%
5%
10%
15%
20%
25%
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lture
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ufactu
ring
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e
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Industries of growth and declineIn2011,therewerefourmainindustriesofemploymentinSurryHills:
― Professionalandtechnicalservices, ― Publicadministration, ― Informationmediaandtelecommunications,and ― Accommodationandfoodservices.
Theseindustriesweresignificantintermsoftotalemploymentin2011,particularlycomparedtotheCityofSydneyandSydneyGMA(refertoFigure44).SurryHillslackedtheconcentrationoffinanceandinsuranceserviceswhichisthelargestindustryofemploymentintheCityofSydney,duetoitsconcentrationwithintheSydneyCBD.
Creativeindustriesweredrawnoutasaseparateindustryofemployment,whichhighlightsthesignificantconcentrationofthecreativeindustriesinSurryHillsin2011(refertoFigure45).Almost25percentofworkersinSurryHillswereemployedwithinthecreativeindustries.Thisindustryofemploymentwassupportedbyemploymentwithinpublicadministration(duetothepresenceofstateandfederalgovernmentagenciesinthegovernmentownedofficebuildingsatCentennialPlazaonElizabethStreet)andaccommodationandfoodservices.
8AustralianandNewZealandStandardIndustrialClassification;refertoAppendixCfordescription
136
FIGURE 45: Industries of employment (ANZSIC 1 digit) 2011 with creative industries – Surry Hills
Source: Author using data from Bureau of Transport Statistics (2011)
Surry Hills City of Sydney Sydney GMA
Industries of employment
Prop
or�o
n of
jobs
0%
5%
10%
15%
20%
25%
30%
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tate
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sional
and te
chnica
l
Admin. and su
pport
Public
administ
ra�on
Educa
�onHea
lth ca
re
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d recre
a�on
Other
servi
ces
Crea�ve
industr
ies
Between2006and2011,thecreativeindustriesexperiencedthestrongestgrowthintermsoftotaljobs,withanadditional1,800jobs(refertoFigure46).However,intermsofproportionategrowth,smallerindustriessuchasartsandrecreationandeducationgrewatmuchfasterrates(refertoFigure47).ThegrowthinemploymentinthecreativeindustriesinSurryHillsbetween2006and2011similarlyexperiencedacrosstheCityofSydneyandSydneyGMA,highlightingthatthegrowthofthecreativeindustrieswasrepresentativeofawidertrendacrossSydneyandnotnecessarilyuniquetoSurryHills.
137
FIGURE 46: Growth/ decline in industries of employment (ANZSIC 1 digit) between 2006 and 2011 in Surry Hills (absolute)
FIGURE 47: Growth/decline in industries of employment (ANZSIC 1 digit) between 2006 and 2011 in Surry Hills (proportionate)
Source: Author using data from Bureau of Transport Statistics (2006, 2011) Source: Author using data from Bureau of Transport Statistics (2006, 2011)
2,000
1,500
1,000
500
-500
--
Num
ber o
f job
s
Industries of employment
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConclu
sion
Wholes
ale Tr
ade
Retail T
rade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia,
and te
lecomm.
Finan
ce an
d insu
rance
Rental
, hirin
g and re
al es
tate
Profes
sional
and te
chnica
l
Admin. and su
pport
Public
administ
ra�on
Educa
�onHea
lth ca
re
Arts an
d recre
a�on
Other
servi
ces
Crea�ve
industr
ies
Prop
or�o
n of
jobs
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConstr
uc�on
Wholesale Trade
Retail Tr
ade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia an
d teleco
mm.
Finan
ce an
d insu
rance
Rental, h
iring a
nd real
estate
Professional
and te
chnica
l
Admin. and su
pport
Public ad
ministra�
onEd
uca�on
Health ca
re
Arts an
d recre
a�on
Other servi
ces
Crea�ve
industr
ies
Industries of employment
Surry Hills City of Sydney Sydney GMA
Prop
or�o
n of
jobs
150%
100%
50%
0%
-50%
-100%
Analysisofindustriesofemploymentatamorefinegrainlevel(ANZSIC4digit)wasconducted,comparingtheindustriesofemploymentin1996and2011.ThisanalysishighlightstheindustrieswhichwerepotentiallyclusteringinSurryHills.SpecialisationwascalculatedusinganLQ(againsttheCityofSydneyandSydneyGMAasbenchmarks).Theresultsin1996and2011arenotdirectlycomparablebecausetheindustryclassificationswereupdatedin2006,butsomegeneralconclusionscanbedrawnfromcomparingtheresults.
In1996,theremnantsoftheformerragtradeinSurryHillswerestillvisible.Therewasstillemploymentinanumberofmanufacturingindustriesin1996,whenmanufacturingrepresented17percentofemployment.Theseincludedclothingmanufacturing,clothingwholesaling,women’sandgirlswearmanufacturing,textileproductwholesaling,andelectricalandequipmentmanufacturing(refertoTable14).SurryHillsretainedasignificantspecialisationintheseindustriesevenwhentheywereindecline.
Notably,therewasevidenceofthegrowingcreativeindustriesin1996.SurryHillshadaspecialisation(comparedtotheCityofSydneyandSydneyGMA)inmusicandtheatreproductions,architecturalservices,advertisingservicesandfilmandvideoproduction.
NewspaperprintingorpublishingwasasignificantindustryofemploymentwithinSurryHillsduetothepresenceofNewscorp,andrepresentedsomewhatofahybridindustrywithbothmanufacturing(printing)andcreative(publishing)functions.
138
TABLE 14: ANZSIC 4 digit industries of employment (≥1% total employment), 1996, Surry Hills
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA8112 StateGovernmentAdministration 1,103 5.5% 2.04 4.78
2421 NewspaperPrintingorPublishing 998 5.0% 5.18 12.95
7321 Banks 906 4.5% 0.67 1.63
9631 PoliceServices 791 4.0% 2.90 5.85
8111 CentralGovernmentAdministration 655 3.3% 1.52 3.43
8431 HigherEducation 502 2.5% 1.16 2.17
8440 OtherEducation 497 2.5% 2.94 3.05
5730 CafesandRestaurants 486 2.4% 1.05 1.22
2240 ClothingManufacturing,undefined 395 2.0% 4.73 5.70
5243 Newspaper,BookandStationeryRetailing 389 2.0% 3.74 4.12
4722 ClothingWholesaling 378 1.9% 5.27 10.13
8623 DentalServices 372 1.9% 5.99 5.26
9241 MusicandTheatreProductions 354 1.8% 4.30 12.54
5210 DepartmentStores 328 1.6% 2.20 1.35
2242 Women'sandGirls'WearManufacturing 312 1.6% 5.50 12.78
5221 ClothingRetailing 298 1.5% 1.65 1.85
7869 BusinessServices,nec 286 1.4% 1.94 2.26
5720 Pubs,TavernsandBars 280 1.4% 2.55 3.44
7821 ArchitecturalServices 279 1.4% 2.21 3.31
4721 TextileProductWholesaling 259 1.3% 4.54 8.85
7851 AdvertisingServices 258 1.3% 2.61 2.90
2859 ElectricalandEquipmentManufacturing,nec 249 1.2% 8.15 5.46
7841 LegalServices 248 1.2% 0.27 0.89
9111 FilmandVideoProduction 235 1.2% 5.19 5.63
8729 Non-ResidentialCareServices,nec 221 1.1% 1.80 1.33
5710 Accommodation 208 1.0% 0.47 1.32
7120 TelecommunicationServices 202 1.0% 0.38 0.69
Source:AuthorusingdatafromBureauofTransportStatistics(1996)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
139
In2011,thepresenceofthecreativeindustrieswithinSurryHillswasapparentthroughthepresenceofcomputersystemdesignandrelatedservices,advertisingservicesandarchitecturalserviceswhichalldemonstratedhighemployment,asignificantspecialisation(comparedtotheCityofSydneyandSydneyGMA)andstronggrowthbetween2006and2011(refertoTable15).
Therewereanumberofothertrendsinindustries,bothcreativeandnon-creative,whichareworthnoting:
― Newspaper publishingwasthemostsignificantindustryofemploymentwithinSurryHillsandanindustryofspecialisation,howeverithadexperiencedrelativelyslowgrowthinemploymentbetween2006and2011,whichwaspotentiallyduetochangingstructureoftheindustry.
― Therewereasignificantnumberofjobsincentral government administrationwithinSurryHills.ThiswasduetotheconcentrationofanumberoffederalgovernmentofficeswithintheCentennialPlazabuildingsonElizabethStreetsuchastheDepartmentofVeteransAffairs,DepartmentofSocialServicesandIndigenousCoordinationCentre.
― Cafes and restaurantswasthefifthlargestindustryofemploymentinSurryHills.Theindustryexperiencedstronggrowthbetween2006and2011,andwasanindustryofspecialisationforSurryHills.Similartrendswereobservedforpubs, taverns and bars asanindustryofemployment.ThesetrendshighlightapotentiallocalbuzzwhichmayhavedevelopedinSurryHills.
― TherewerestillremnantsoftheformerragtradeinSurryHillswithclothing and footwear wholesaling an industryofspecialisationforSurryHillswhichemployedarelativelysignificantnumberofworkersinSurryHills.
― Asignificantconcentrationofemploymentwithinperforming arts operation,comparedtoSydneyGMA,whichwaslikelyduetothepresenceoftheAustralianInstituteofMusic,BelvoirTheatreandOperaAustraliawithinSurryHills.
140
TABLE 15: ANZSIC 4 digit industries of employment (≥1% total employment), 2011, Surry Hills
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA GROWTH 06-115411 Newspaperpublishing 1,394 5.4% 6.72 19.34 3.3%
7510 Centralgovernmentadministration 1,171 4.6% 3.24 5.61 84.1%
7000 Computersystemdesignandrelatedservices 1,139 4.4% 1.41 2.17 95.7%
6940 Advertisingservices 1,031 4.0% 2.66 7.43 179.4%
4511 Cafesandrestaurants 943 3.7% 1.63 2.02 48.5%
7711 Policeservices 826 3.2% 4.76 5.47 12.2%
7520 Stategovernmentadministration 701 2.7% 1.20 2.14 -31.7%
6921 Architecturalservices 626 2.4% 3.09 6.50 26.0%
8790 Othersocialassistanceservices 548 2.1% 3.66 1.68 74.0%
6924 Otherspecialiseddesignservices 536 2.1% 4.14 6.35 43.7%
3712 Clothingandfootwearwholesaling 505 2.0% 4.54 9.27 13.0%
6962 Managementadviceandrelatedconsultingservices 499 1.9% 1.17 2.26 77.0%
4520 Pubs,tavernsandbars 469 1.8% 2.34 3.42 40.4%
4512 Takeawayfoodservices 386 1.5% 1.49 0.75 224.4%
9001 Performingartsoperation 384 1.5% 5.09 20.48 19.3%
6931 Legalservices 363 1.4% 0.31 1.11 86.2%
4400 Accommodation 345 1.3% 0.65 1.42 16.2%
4251 Clothingretailing 343 1.3% 1.31 1.33 84.4%
6950 Marketresearchandstatisticalservices 306 1.2% 2.65 3.85 32.5%
7211 Employmentplacementandrecruitmentservices 285 1.1% 0.88 1.92 -21.5%
7299 Otheradministrativeservicesnec 261 1.0% 2.03 3.89 8.8%
8102 Highereducation 257 1.0% 0.39 0.75 117.8%
9559 Otherinterestgroupservicesnec 257 1.0% 2.38 4.24 35.3%
8101 Technicalandvocationaleducationandtraining 252 1.0% 1.46 1.47 26.0%
8401 Hospitals(exceptpsychiatrichospitals) 247 1.0% 0.49 0.30 72.7%
8219 Adult,communityandothereducationnec 247 1.0% 2.15 2.17 36.5%
7294 Callcentreoperation 247 1.0% 6.03 9.27 85.7%
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
141
Occupations of employmentTheoccupationstructureofSurryHillshasremainedrelativelyconsistentsince1996,despitethechangingemploymentcompositionobservedinSurryHillsoverthisperiod.Theproportionofpeopleemployedintypicalwhitecollaroccupationsincreasedmarginallybetween1996and2001andthiswasaccompaniedbyasmalldeclineintheproportionofpeopleemployedintypicalbluecollaroccupations.
In2011,SurryHillscontainedasignificantproportionofworkersemployedasProfessionals,followedbyClericaland
FIGURE 48: Occupations of employment (ANZSCO9 1 digit) 2011 – Surry Hills
0%
5%
10%
15%
20%
25%
30%
35%
40%
Occupa�ons of employment (ANZSCO 1 digit)
Prop
or�o
n of
jobs
Surry Hills City of Sydney Sydney GMA
Managers Professionals Technicians and Trade Workers
Community and Personal
Service Workers
Clerical and Administra�ve
Workers
Sales Workers Machinery Operators and
Drivers
Labourers
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
Administrativeworkers(refertoFigure48).TheoccupationprofileofSurryHillsgenerallyreflectedthatoftheCityofSydney.However,acrosstheSydneyGMAthereisamuchsmallerproportionofProfessionalsandagreaterproportionofbluecollaroccupations.
Analysisofoccupationsatafinegrainlevelwassimilarlyconductedfor1996and2011.In1996,clothingtradespersonsandsewingmachinistsweresignificantoccupationsofspecialisationforSurryHills(refertoTable16).Astheragtradewasdeclining,therewasevidenceofanascentcreativeclusterwithdesignersandillustratorsthe
fourthlargestoccupationofemploymentandjournaliststhesixth.ComputingprofessionalsandmarketingandadvertisingprofessionalswerealsopresentasoccupationsofemploymentinSurryHillsin1996.TherewasasignificantconcentrationofadministrativeoccupationsinSurryHillsin1996includinggeneralclerks,secretariesandpersonalassistantsandkeyboardoperators.Thesewerelikelysupportingoccupationsforvariousoccupationswithintheprecinct.
9AustralianandNewZealandStandardClassificationofOccupations;refertoAppendixCfordescription
142
TABLE 16: ANZSCO 4 digit occupations of employment (≥1% total employment), 1996, Surry Hills
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA6111 Generalclerks 939 4.7% 1.25 1.76
8211 Salesassistants 668 3.3% 1.10 0.69
5111 Secretariesandpersonalassistants 639 3.2% 0.64 0.85
2533 Designersandillustrators 530 2.7% 3.46 5.07
6143 Bankworkers 511 2.6% 1.01 1.86
2534 Journalistsandrelatedprofessionals 468 2.3% 3.23 7.54
3911 Policeofficers 467 2.3% 2.40 4.65
6121 Keyboardoperators 429 2.2% 1.26 1.84
6211 Salesrepresentatives 419 2.1% 1.56 1.32
2211 Accountants 366 1.8% 0.49 0.95
3292 Projectandprogramadministrators 355 1.8% 0.98 1.65
2231 Computingprofessionals 348 1.7% 0.58 0.96
1231 Salesandmarketingmanagers 334 1.7% 1.06 1.28
3311 Shopmanagers 313 1.6% 1.51 0.85
6131 Receptionists 294 1.5% 1.06 1.01
1112 Generalmanagers 282 1.4% 0.87 1.24
4941 Clothingtradespersons 272 1.4% 4.53 6.09
1000 Managersandadministrators,nfd 270 1.4% 1.29 1.17
6141 Accountingclerks 258 1.3% 0.94 1.16
2291 Humanresourceprofessionals 251 1.3% 0.98 1.83
9111 Cleaners 240 1.2% 0.91 0.75
2221 Marketingandadvertisingprofessionals 233 1.2% 1.11 1.64
3291 Officemanagers 226 1.1% 0.98 1.09
6323 Waiters 199 1.0% 0.83 1.19
7211 Sewingmachinists 195 1.0% 4.99 3.05
Source:AuthorusingdatafromBureauofTransportStatistics(1996)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
In2011,SurryHillscontainedasignificantconcentrationofcreativeprofessionalsincludinggraphicandwebdesigners,advertisingandmarketingprofessionals,journalistsandarchitectsandlandscapearchitects,withhighLocationQuotientsindicatingsignificantspecialisation(refertoTable17).
143
TABLE 17: ANZSCO 4 digit occupations of employment (≥1% total employment), 2011, Surry Hills
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA GROWTH 06-112324 Graphicandwebdesigners,andillustrators 772 3.0% 2.96 6.15 1508.3%
5311 Generalclerks 732 2.9% 1.22 1.22 306.7%
1311 Advertising,publicrelationsandsalesmanagers 724 2.8% 1.11 1.98 616.8%
2251 Advertisingandmarketingprofessionals 722 2.8% 1.72 3.74 1404.2%
2124 Journalistsandotherwriters 693 2.7% 3.03 9.11 4231.3%
5111 Contract,programandprojectadministrators 613 2.4% 1.32 2.49 1877.4%
6211 Salesassistants(general) 579 2.3% 0.98 0.53 124.4%
6113 Salesrepresentatives 521 2.0% 1.87 1.81 313.5%
2321 Architectsandlandscapearchitects 470 1.8% 3.18 7.92 3515.4%
2211 Accountants 459 1.8% 0.40 0.94 264.3%
4413 Police 445 1.7% 3.85 3.81 1102.7%
4311 Barattendantsandbaristas 438 1.7% 1.99 2.05 342.4%
2613 Softwareandapplicationsprogrammers 429 1.7% 0.82 1.89 793.8%
4315 Waiters 370 1.4% 1.32 1.64 802.4%
5511 Accountingclerks 361 1.4% 0.97 1.12 73.6%
1421 Retailmanagers 344 1.3% 1.22 0.73 73.7%
3513 Chefs 343 1.3% 1.52 2.17 757.5%
998 Inadequatelydescribed 323 1.3% 0.97 1.21 127.5%
2231 Humanresourceprofessionals 321 1.3% 0.90 2.14 970.0%
5121 Officemanagers 310 1.2% 1.20 1.13 342.9%
1111 Chiefexecutivesandmanagingdirectors 292 1.1% 1.26 1.97 403.4%
5421 Receptionists 288 1.1% 0.98 0.82 116.5%
6393 Telemarketers 274 1.1% 8.14 10.90 9033.3%
2253 Publicrelationsprofessionals 270 1.1% 2.08 5.15 2900.0%
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
144
Theseoccupationsallexperiencedparticularlystronggrowthinemploymentbetween2006and2011.Similartrendswereobservedforcontract,programandprojectadministrators.AnumberofoccupationswhichcouldbeconsideredassupportservicestothecreativeindustrieswerealsosignificantintermsofthelevelofspecialisationcomparedtotheCityofSydneyandSydneyGMAandthelevelofgrowthexperiencedbetween2006and2011.Theseincludebarattendantsandbaristas,waitersandchefswhichagainhighlightapotentiallyemerginglocalbuzzenvironmentinSurryHills.
Journey to work and mode shareJTWdatawasanalysedtodevelopanunderstandingastowhetherworkersbasedinSurryHillsalsolivewithintheinnercityofSydneyasthismightbeconsideredadriveroffirmlocation.Relatedly,ifworkerslivelocallytheymaybemorelikelytosocialiseintheareaandthiscouldbeconsideredtopromotesocialinteractionsandknowledgespilloversbetweencreativeworkers.
In2011,40percentofworkerslivedwithin10kilometresoftheprecinct.Mostsignificantly,sixpercentofworkerslivedwithinSurryHills(refertoFigure49).
FIGURE 49: Origin of workers travelling to Surry Hills, 2011
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
145
OutsideofSurryHills,workersgenerallyresidewithintheinnerwestandeasternsuburbsofSydney,howeverdoliveacrossSydney.TheaveragedistancetravelledtoworkamongthoseworkersbasedinSurryHillsis18kilometreswhichisslightlyhigherthanthereportedaverageacrossSydneyof15kilometres(BureauofInfrastructure,2015)10.
ThemajorityofworkersinSurryHillstraveltoworkviapublictransport.CentralrailwaystationislocatedalongtheborderoftheprecinctandislikelytobeakeydriverofthehighpublictransportusageasitisthelargesttransportinterchangeinSydney.Therearealsoanumberofbusrouteswhichtravelaroundtheborderoftheprecinctalongmajorarterialroads.Publictransportusagehadbeendeclininguntil2006whentherewasaspikeintheproportionofworktripstoSurryHillsmadeviapublictransport(refertoFigure50).Thiswasaccompaniedbyasharpdeclineinprivatetransportusageoverthesameperiod.Thegeneraldeclineinpublicandprivatetransportusagebetween1991and2011wasaccompaniedbyanincreasingusageofactiveformsoftransportsuchaswalkingandcycling,andanincreaseintheproportionofpeopleworkingfromhomewhichisrepresentedwithintheothercategory.
10ThemethodologyadoptedbytheBureauofInfrastructure(2015)wasreplicatedfortheSurryHillscalculation
FIGURE 50: Trends in mode share – Surry Hills
Source:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
1991 1996 2001 2006 2011
Year
Public transport
Ac�ve transport
Private transport
Other
50%
60%
40%
30%
20%
10%
0%Pr
opor
�on
of tr
ips
146
ThemodeshareforworkersinSurryHillswasgenerallyreflectiveofmodeshareacrosstheCityofSydney(refertoFigure51).However,therewasamarginallyloweruseofpublictransportinSurryHillscomparedtotheCityofSydney,buttherewereahigherproportionofpeoplewhowalkedandcycledtowork(activetransport)inSurryHillscomparedtotheCityofSydney.AcrosstheSydneyGMA,privatetransportusagewasmuchhigherthanpublictransportusageandthiswasduetoanumberoffactors,particularlythevariationinpublictransportaccessibilityacrossSydney.
FIGURE 51: Comparison of mode share – Surry Hills
Public transport Private transport Ac�ve transport Other
Mode of transport
Prop
or�o
n of
trip
s
0%
10%
20%
30%
40%
50%
60%
70%
Surry Hills City of Sydney Sydney GMA
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
147
AUSTRALIAN TECHNOLOGY PARKSimilaranalysisasaboveadoptingthesamemethodologytotrackemploymentwithintheATPoverthepasttwodecades
Broad trends in employmentIntermsofanalysis,theATPisaverysmallemploymentprecinctandthereforethemovementofasinglefirmintooroutoftheprecinctbetweencensusperiodscanhaveasignificantimpactonthedata.AswithSurryHills,employmentwithintheATPhasfluctuatedoverthepasttwodecades(refertoFigure52).In1991and1996theareainwhichtheATPcurrentlysitscontainedaround900jobs.TheATPopenedinNovemberafterthe1996censuscollectiondate(6August1996)andthereforetheincreaseinemploymentassociatedwiththeopeningoftheATPwasnotcaptureduntilthe2001Census.Thedeclineinemploymentbetween2001and2006mighthavebeenduetotheexitofamajorfirm,howeveritmayalsobeduetoageographicalvariationinboundaries.Thenon-ATPareacomprisesmostlyresidentiallandusesandtheraillinebutwouldhavealsolikelycapturedsomelocalemployment.Thegrowthinemploymentbetween2006and2011wasassociatedwiththecompletionoftheNICTAheadquartersin2008andthecompletionofMediaCityin2010(comprisingChannel7,PacificMagazinesandGlobalTelevision).
FIGURE 52: Total jobs 1991-2011 - ATP
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1991 1996 2001 2006 2011917 915ATP 1,723 1,256 1,883
Tota
l job
s
YearSource:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
148
The2014ATPAnnualReport(AustralianTechnologyParkSydneyLimited,2014)reportedthattherewere4,500jobswithintheATPasof2014.Thiswassignificantlymorejobsthanreportedatthetimeofthe2011Census.OfficialnumbersprovidedbyATPthroughitsannualreportsfrom2006to2014aredetailedinFigure53.BasedonthesenumberstheATPhasgrownfrom1,200jobsin2006to2000jobsin2011and4,500jobsin2014,almostdoublingeveryfiveyears.ThesefiguresarerelativelyconsistentwiththenumberofjobsreportedintheCensusin2006and2011.The2014employmentnumberwasbasedonatenantsurveyconductedin2014bythegovernmentownedmanagementcompany,ATPSL,andresultedinanupdatingofthe2013figurewhichwasconsideredtohavebeenoutofdate11.
11ConclusionbasedonresponsefromATPSLregardingcalculationofemploymentnumbersandtenantsurvey
FIGURE 53: Total jobs ATP 2006-2014
1,000
1,500
2,000
2,500
1,000
1,000
1,000
1,000
1,000
500
-20061,200 1,200 1,200 1,800 2,000 2,000 3,000 3,000 4,500
2007 2008 2009 2010 2011 2012 2013 2014ATP
Tota
l job
s
Year
Source:AuthorusingdatafromAustralianTechnologyParkSydneyLimited(2006,2007,2008,2009,2010,2011,2012,2013,2014)
149
FIGURE 54: Employment by building across the ATP
Source:AuthorbasedondataprovidedbyATPSLfromTenantSurvey2014
TheemploymentnumbersbyindividualbuildingacrosstheATPin2014isillustratedinFigure54.ThesedataaredrawnfromtheATPSLTenantSurveywhichwasconductedin2014.Accordingtothedata,therewere5,190jobswithintheATPin2014.However,thisincludesstudentsofboththeUniversityofSydney(Biomedicalbuilding)andtheTopEducationInstitute(LocomotiveWorkshops).Excludingthestudents,theemploymentwithintheATPwasaround4,500jobs(asreportedabove).
ThecompositionofemploymentwithintheATPhasevolvedoverthepasttwodecadesasaresultoftheredevelopmentofthesiteintoatechnologypark.In1991,16percentofworkerswereemployedinmanufacturingand11percentofworkerswereemployedinprofessionalandfinancialservices(refertoFigure55),whichwaslikelyreflectiveofthesurroundinglandusesastheATPwasstillunderconstruction.In2011,manufacturingwasnolongeranindustryofemploymentwithintheATP.
ProfessionalfinancialservicesgrewintheATPtoover35percentofemploymentin2006.Howevertheseindustriesexperiencedasignificantdeclineinemploymentbetween2006and2011toreachunder15percentoftotalemploymentin2011.Accommodationandfoodservicesremainedstableataroundtwopercentofemploymentoverthepasttwodecades.Informationmediaandtelecommunicationshasexperiencedparticularlystronggrowthbetween2006and2011tobecomethelargestindustryofemploymentwithintheATP.ThiswasduetotheestablishmentofMediaCityattheATP(asdiscussedabove).
Asmentionedpreviously,theATPisasmallprecinctandcautionmustbetakenwhenobservingtrendsassmallabsoluteincreasesinthenumberofjobswithinaparticularindustrycanhavequitevolatileimpactsontheproportionofemploymentinaparticularindustry.ThisisevidentwhencomparingtrendswithintheseindustriesacrosstheCityofSydneyandSydneyGMA.ThevariationinTZboundariesfortheATPareaalsoneedstobetakenintoaccount.Despitethis,thegrowthininformationmediaandtelecommunicationsissignificantwhencomparedtotheCityofSydneyandtheSydneyGMA.ThisindustryhasremainedrelativelystableacrosstheCityofSydneyoverthepasttwodecadeswithanincreaseintheproportionofpeopleemployedinthisindustrybetween2001and2006fromthreetosixpercent(refertoFigure56).
AcrosstheSydneyGMA,theproportionofemploymentwithinInformationMediaandTelecommunicationshasremainedrelativelystableataroundtwopercentofemploymentoverthepasttwodecades(refertoFigure57)whichsuggeststhattheindustryisnotasignificantindustryofgrowthforSydneyGMAasawhole.ThecompleteeradicationofmanufacturingasanindustryofemploymentintheATPisindicativeofrestructuringoftheeconomyfrommanufacturingtoservicebasedemploymentwhichhasbeensomewhatobservedacrosstheSydneyGMA,howevernottotheextentthathasbeenexperiencedintheinnercitythroughdevelopmentssuchastheATP.
150
FIGURE 55: Trends in key industries - ATP
Source:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
1991 1996 2001 2006 2011
Year
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Prop
or�o
n of
tota
l job
s
Manufacturing
Informa�on Media and Telecommunica�ons
Accommoda�on and Food Services
Professional and financial services
FIGURE 57: Trends in key industries - Sydney GMA
Source:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
Prop
or�o
n of
tota
l job
s
1991 1996 2001 2006 2011
Manufacturing
Informa�on Media and Telecommunica�ons
Accommoda�on and Food Services
Professional and financial services
Year
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
FIGURE 58: Industries of employment (ANZSIC 1 digit) 2011 – ATP
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConstr
uc�on
Wholesale Trade
Retail Tr
ade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia an
d teleco
mm.
Finan
ce an
d insu
rance
Rental, h
iring a
nd real
estate
Professional
and te
chnica
l
Admin. and su
pport
Public ad
ministra�
onEd
uca�on
Health ca
re
Arts an
d recre
a�on
Other servi
ces
Industries of employment (A NZSIC 1 digit)
Prop
or�o
n of
jobs
ATP City of Sydney Sydney GMA
FIGURE 56: Trends in key industries - City of Sydney
Source:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
Prop
or�o
n of
tota
l job
s
1991 1996 2001 2006 2011Year
Manufacturing
Informa�on Media and Telecommunica�ons
Accommoda�on and Food Services
Professional and financial services
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
151
INDUSTRIES OF GROWTH AND DECLINEIn2011,InformationmediaandtelecommunicationswasthemainindustryofemploymentinATPintermsofbothproportionoftotalemploymentwithinATPandcomparedtotheCityofSydneyandSydneyGMA(refertoFigure58).Thisindustrywassupportedbypublicadministration(duetothepresenceofofficesofanumberofstategovernmentagencieswithintheATPsuchasRoadsandMaritimeServicesandtheDepartmentofEducationandTraining)andprofessionalandtechnicalservices.
Oncecreativeindustriesweredrawnoutasaseparateemploymentsector,theconcentrationofcreativeindustrieswithinATPisapparent(refertoFigure59).In2011,over40percentofworkersbasedintheATPwereemployedwithinthecreativeindustries.Thisindustryofemploymentissupportedbypublicadministrationandprofessionalandtechnicalserviceswhicharenotconsideredtobecreative.
Between2006and2011,thecreativeindustriesgrewstronglyintermsoftotaljobs,withanadditional600jobs(refertoFigure60),aswellasproportionategrowth,growingby350percent(refertoFigure61).Thegrowthinthecreativeindustries,intermsofemployment,wasmuchgreaterthanacrosstheCityofSydneyandSydneyGMAoverthesameperiod,howeverthemarkeddifferenceillustratedinFigure61isduetothesmallbaseemploymentnumberfortheATP.
Thecompositionofemploymentatafinegrainlevel(ANZSIC4digit)intheATPandsurroundingareawasalsoanalysedfortheATPfor1996and2011.EmploymentwasrelativelylowwithintheATPandsurroundingsin1996priortotheopeningoftheATP.However,therewasaconcentrationofmanufacturingobserved.Thisincludedclothingmanufacturing,railwayequipmentmanufacturing,printing,men’sandboys’wearmanufacturingandcardiganandpullovermanufacturing(refertoTable18).Alongsidethis,therewereanumberofjobswithinaswellasrailtransportemployment,whichwaslikelyassociatedwiththerailwaylandsurroundingtheATPwhichwascapturedinthe
boundarysincetheEveleighRailyardshadclosedin1989.TherewasevidenceofmoreprofessionalservicesindustrieswhichmayhavebeengrowinginthesurroundingareaspriortotheopeningoftheATPincludingcomputerconsultancyservices,telecommunicationservicesandscientificresearch.Thismayhighlightapre-existingclusteroftheseindustrieswithinthesurroundingareawhichwaslocatedincloseproximitytotheUniversityofSydney.
FIGURE 59: Industries of employment (ANZSIC 1 digit) 2011 – ATP
Source:AuthorusingdatafromBureauofTransportStatistics(2011)Pr
opor
�on
of tr
ips
ATP City of Sydney Sydney GMA
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConstr
uc�on
Wholesale Trade
Retail Tr
ade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia an
d teleco
mm.
Finan
ce an
d insu
rance
Rental, h
iring a
nd real
estate
Professional
and te
chnica
l
Admin. and su
pport
Public ad
ministra�
onEd
uca�on
Health ca
re
Arts an
d recre
a�on
Other servi
ces
Crea�ve
industr
ies
Industries of employment
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
FIGURE 60: Growth/decline in industries of employment (ANZSIC 1 digit) between 2006 and 2011 in the ATP (absolute)
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConstr
uc�on
Wholesale Trade
Retail Tr
ade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia an
d teleco
mm.
Finan
ce an
d insu
rance
Rental, h
iring a
nd real
estate
Professional
and te
chnica
l
Admin. and su
pport
Public ad
ministra�
onEd
uca�on
Health ca
re
Arts an
d recre
a�on
Other servi
ces
Crea�ve
industr
ies
Industries of employment
Num
ber o
f job
s
-100
100
200
300
400
500
600
700
-200
-
FIGURE 61: Growth/decline in industries of employment (ANZSIC 1 digit) between 2006 and 2011 in ATP (proportionate)
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Industries of employment
Prop
or�o
n of
jobs
ATP City of Sydney Sydney GMA
Agricu
lture
Mining
Man
ufactu
ring
Elect.
, gas
, wate
r, was
teConstr
uc�on
Wholesale Trade
Retail Tr
ade
Accomm. a
nd food
Transp
ort an
d ware
housing
Inform. m
edia an
d teleco
mm.
Finan
ce an
d insu
rance
Rental, h
iring a
nd real
estate
Professional
and te
chnica
l
Admin. and su
pport
Public ad
ministra�
onEd
uca�on
Health ca
re
Arts an
d recre
a�on
Other servi
ces
Crea�ve
industr
ies
-150%
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
152
TABLE 18: ANZSIC 4 digit industries of employment (≥1% total employment), 1996, ATP
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA7834 Computerconsultancyservices 60 6.8% 5.61 5.14
7120 Telecommunicationservices 49 5.6% 2.07 3.78
6200 Railtransport 39 4.4% 4.53 7.94
7855 Businessmanagementservices 31 3.5% 2.69 3.65
2249 Clothingmanufacturing,nec 28 3.2% 18.30 25.43
2823 Railwayequipmentmanufacturing 28 3.2% 152.43 50.50
2412 Printing 25 2.8% 2.76 2.96
2241 Men'sandboys'wearmanufacturing 23 2.6% 86.17 47.07
2422 Otherperiodicalpublishing 22 2.5% 5.65 12.20
2240 Clothingmanufacturing,undefined 21 2.4% 5.70 6.86
7854 Businessadministrativeservices 21 2.4% 1.83 3.00
2232 Cardiganandpullovermanufacturing 19 2.2% 245.18 249.96
8431 Highereducation 18 2.0% 0.94 1.76
7864 Securityandinvestigativeservices(exceptpolice)
18 2.0% 8.14 5.23
7810 Scientificresearch 18 2.0% 7.79 7.09
8634 Communityhealthcentres 16 1.8% 13.63 8.31
8421 Primaryeducation 15 1.7% 6.89 1.15
8113 Localgovernmentadministration 13 1.5% 3.04 1.83
4623 Motorvehiclenewpartdealing 13 1.5% 39.39 4.68
9900 Non-classifiableeconomicunits 12 1.4% 2.02 1.27
5329 Automotiverepairandservices,nec 12 1.4% 6.10 1.82
8432 Technicalandfurthereducation 10 1.1% 2.05 1.77
6644 CustomsAgencyServices 9 1.0% 4.67 6.66
Source:AuthorusingdatafromBureauofTransportStatistics(1996)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
In2011,therewerethreemainindustrieswhichdominatedemploymentintheATPwithhighemployment,highgrowthbetween2006and2011andsignificantspecialisationcomparedtotheCityofSydneyandSydneyGMA.Theseincludedmagazine and other periodical publishing, free-to-air television broadcasting(Channel7includingPacificMagazinesandGlobalTelevisionstudios)andscientific research services (NICTA)(refertoTable19).Theseindustriesweresupportedbystate government administration(RoadsandMaritimeServices), motion picture and video production and computer system design and related services.ThesewereindustriesinwhichtheATPhasaspecialisation,buthaveexperienceddeclinesinemploymentbetween2006and2011.Thesupportindustriessuchascafes,restaurantsandbarswhichwerepresentinSurryHillswerenotsignificantindustriesofemploymentwithintheATP,whichhighlightsakeydifferencethatmayimpactonamenityandthelocalbuzzenvironment.
153
TABLE 19: ANZSIC 4 digit industries of employment (≥1% total employment), 2011, ATP
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA GROWTH 06-115412 Magazineandotherperiodicalpublishing 403 21.4% 34.38 101.56 47.2%
7520 Stategovernmentadministration 294 15.6% 6.88 12.24 -71.4%
5621 Free-to-airtelevisionbroadcasting 181 9.6% 10.55 33.94 1541.8%
6910 Scientificresearchservices 131 7.0% 14.45 22.82 219.3%
8591 Ambulanceservices 97 5.2% 103.10 43.55 116.2%
5511 Motionpictureandvideoproduction 83 4.4% 10.19 24.07 -43.3%
7000 Computersystemdesignandrelatedservices 79 4.2% 1.33 2.05 -86.4%
3499 Othermachineryandequipmentwholesalingnec
61 3.2% 27.24 19.56 1930.0%
7600 Defence 49 2.6% 2.54 3.65 308.3%
8102 Highereducation 40 2.1% 0.81 1.59 -66.2%
8023 Combinedprimaryandsecondaryeducation 40 2.1% 9.33 2.70
5910 Internetserviceprovidersandwebsearchportals
36 1.9% 6.05 18.90 -32.6%
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
154
OCCUPATIONS OF EMPLOYMENTTheoccupationsofworkersbasedintheATPhassomewhatevolvedsince1996.Between1996and2001therewasstronggrowthintypicalwhitecollaroccupationsandthiswasaccompaniedbyadeclineintheproportionofpeopleemployedintypicalbluecollaroccupationsoverthesameperiod.In2011,theATPprimarilycontainedprofessionalswithahigherproportioncomparedtoCityofSydneyandSydneyGMA(refertoFigure62).
Lookingbackto1996,theworkforceinEveleighwasquitedifferentpriortothedevelopmentoftheATPwithprimarilyadministrativeandmanufacturingoccupationsofemploymentincludingsewingmachinists,salesrepresentatives,projectandprogramadministrators,cleaners,secretariesandpersonalassistantsandgeneralclerks(refertoTable20).ThisreflectsasimilartrendobservedinSurryHillsin1996.Further,thereiscontinuedevidenceofthestartofacreativeclusterwithanumberofcreativeoccupationsemergingwithintheATPsurroundsincludingcomputingprofessionals,designersandillustratorsandjournalistsandrelatedprofessionals.
FIGURE 62: Occupations of employment (ANZSCO 1 digit) 2011 – ATP
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
Prop
or�o
n of
jobs
Managers Professionals Technicians and Trade Workers
60%
50%
40%
30%
20%
10%
0%Community and Personal Service
Workers
Clerical and Administra�ve
Workers
Sales Workers Machinery Operators and
Driverrs
Labourers
ATP City of Sydney Sydney GMA
Occupa�ons of employment (ANZSCO 1 digit)
155
TABLE 20: ANZSCO 4 digit occupations of employment (≥1% total employment), 1996, ATP
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA4316 Communicationstradespersons 42 4.7% 14.82 14.82
2231 Computingprofessionals 41 4.6% 2.52 2.52
7211 Sewingmachinists 31 3.5% 10.83 10.83
6211 Salesrepresentatives 27 3.0% 1.90 1.90
3292 Projectandprogramadministrators 23 2.6% 2.39 2.39
1112 Generalmanagers 22 2.5% 2.16 2.16
9111 Cleaners 22 2.5% 1.53 1.53
5111 Secretariesandpersonalassistants 21 2.4% 0.63 0.63
6111 Generalclerks 20 2.2% 0.84 0.84
3311 Shopmanagers 19 2.1% 1.15 1.15
2533 Designersandillustrators 18 2.0% 3.85 3.85
7993 Storepersons 16 1.8% 1.08 1.08
8211 Salesassistants 15 1.7% 0.35 0.35
1231 Salesandmarketingmanagers 15 1.7% 1.29 1.29
4912 Printingmachinistsandsmalloffsetprinters 14 1.6% 4.36 4.36
2534 Journalistsandrelatedprofessionals 12 1.3% 4.32 4.32
8311 Guardsandsecurityofficers 12 1.3% 3.12 3.12
4112 Metalfittersandmachinists 12 1.3% 1.63 1.63
6153 Stockandpurchasingclerks 11 1.2% 1.28 1.28
1299 Otherspecialistmanagers 11 1.2% 2.59 2.59
1000 Managersandadministrators,nfd 10 1.1% 0.97 0.97
3291 Officemanagers 10 1.1% 1.08 1.08
1211 Financemanagers 9 1.0% 1.35 1.35
5911 Bookkeepers 9 1.0% 1.23 1.23
2222 Technicalsalesrepresentatives 9 1.0% 1.92 1.92
7311 Truckdrivers 9 1.0% 1.02 1.02
Source:AuthorusingdatafromBureauofTransportStatistics(1996)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
In2011,theATPcontainedasignificantconcentrationofcreativeprofessionalsincludingjournalistsandotherwriters,artisticdirectors,andmediaproducersandpresenters,film,television,radioandstagedirectorsandperformingartstechnicians(refertoTable21).Theseoccupationsexperiencedparticularlystronggrowthinemploymentbetween2006and2011duetotheinfluxofmediacompanies.Thehighgrowthproportionswerereflectiveofthesmallemploymentbasein2006.
156
TABLE 21: ANZSCO 4 digit occupations of employment (≥1% total employment), 2011, ATP
CODE 4 DIGIT INDUSTRY JOBS % LQ-CITY OF SYDNEY LQ-SYDNEY GMA GROWTH 06-112124 Journalistsandotherwriters 166 8.8% 9.86 29.67 936.9%
2613 Softwareandapplicationsprogrammers 95 5.1% 2.47 5.70 98.3%
2121 Artisticdirectors,andmediaproducersandpresenters
92 4.9% 9.37 26.35 2980.0%
5999 Othermiscellaneousclericalandadministrativeworkers
72 3.8% 10.02 17.66 94.9%
1351 ICTmanagers 65 3.5% 2.27 5.15 110.0%
1311 Advertising,publicrelationsandsalesmanagers 60 3.2% 1.24 2.22 -41.1%
3131 ICTsupporttechnicians 53 2.8% 2.85 4.91 64.1%
2324 Graphicandwebdesigners,andillustrators 51 2.7% 2.67 5.54 6.5%
4111 Ambulanceofficersandparamedics 51 2.7% 82.19 27.42 143.3%
2123 Film,television,radioandstagedirectors 48 2.6% 7.26 17.89 1510.0%
2251 Advertisingandmarketingprofessionals 37 2.0% 1.20 2.61 -22.7%
5111 Contract,programandprojectadministrators 37 2.0% 1.09 2.05 19.7%
2621 Databaseandsystemsadministrators,andICTsecurityspecialists
37 2.0% 3.31 6.99 85.5%
5311 Generalclerks 33 1.7% 0.75 0.75 -81.7%
3995 Performingartstechnicians 33 1.7% 6.27 11.76 996.7%
6113 Salesrepresentatives 29 1.5% 1.40 1.36 -77.2%
2600 ICTprofessionalsnfd 27 1.4% 2.03 4.14 141.8%
2631 Computernetworkprofessionals 26 1.4% 3.27 5.93 159.0%
2632 ICTsupportandtestengineers 25 1.3% 5.01 10.93
2340 Naturalandphysicalscienceprofessionalsnfd 24 1.3% 14.06 21.20 2280.0%
2000 Professionalsnfd 20 1.0% 1.30 2.84 -32.4%
2211 Accountants 19 1.0% 0.23 0.52 -85.0%
Source:AuthorusingdatafromBureauofTransportStatistics(2006,2011)
Legend
Creativeindustries Manufacturing Cafes,barsetc. Othernotableindustries
157
FIGURE 63: Origin of workers travelling to ATP, 2011ThegrowthofcomputingcontinuedwiththedevelopmentoftheATP,particularlythemorerecentestablishmentofNICTA,andthiswasevidentthroughthepresenceofanumberofgrowingICT-relatedoccupationsinwhichtheATPhasasignificantspecialisation.TheATPalsohadasignificantspecialisationinanumberofotheroccupations,suchasclericaladministrationandambulanceservices,whichalsogrewstronglyduringthesameperiod.Therewereanumberofsignificantoccupationsofemploymentwhichexperiencedlossesinemploymentbetween2006and2011includingadvertising,publicrelationsandsalesmanagers,advertisingandmarketingprofessionalsandgeneralclerks,whichwaspotentiallyduetoarestructuringwithinthemediaindustryormovementoffirmsoutoftheATP.
JOURNEY TO WORK AND MODE SHAREAswithSurryHills,thejourneytoworkdatawasanalysedtounderstandwhetherworkerslivelocally.Some20percentofworkerslivedwithintenkilometresoftheprecinct,andthreepercentofworkerslivearoundErskinevilleandAlexandriawhicharesuburbsdirectlytosouthoftheATP(refertoFigure63).
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
158
However,overallworkersaretravellingforamuchwidercatchmentincludingtheeasternsuburbs,innerwestandnorthshore,aswellasnorthernsuburbssuchasHornsbyandsouthernsuburbsofSydneysuchasOysterBay(southofHurstville).In2011,commuterstravelledanaveragedistanceof21kilometrestoworkattheATP,whichisgreaterthantheaverageacrossSydneyof15kilometresfor2015andslightlymorethantheSurryHillsaverageof18kilometres12.
In2011,around45percentofworkersattheATPtravelledtoworkviaprivatetransport(refertoFigure64),whichisgreaterthantheproportionofworkerswhichcommutedviapublictransport.ThismayhavebeenduetotheavailabilityofcarparkingwithintheATP.PrivatetransportusageishigherforthoseworkerstravellingfromtheeasternsuburbswhichmaybeassociatedwithalackofdirectaccesstotheATPviarail.
12ThemethodologyadoptedbytheBureauofInfrastructure(2015)wasreplicatedfortheATPcalculation
FIGURE 64: Trends in mode share - ATP
Source:AuthorusingdatafromBureauofTransportStatistics(1991,1996,2001,2006,2011)
Prop
or�o
n of
jobs
Prop
or�o
n of
trip
s
60%
50%
40%
1991 1996 2001 2006 2011
30%
20%
10%
0%
Year
Public transport
Ac�ve transport
Private transport
Other
159
FIGURE 65: Comparison of mode share - ATP
Source:AuthorusingdatafromBureauofTransportStatistics(2011)
Prop
or�o
n of
jobs
Prop
or�o
n of
jobs
ATP City of Sydney Sydney GMA
70%
60%
50%
40%
30%
20%
Public transport Private transport Ac�ve transport Other
10%
0%
Mode of transport
In2011,themodeshareforworkersinATPdifferedfromthemodeshareacrosstheCityofSydneyandSydneyGMA(refertoFigure65),fittingsomewhatin-betweenthetwo.TherewashigherprivatetransportusageandlowerpublictransportusageintheATPthanacrosstheCityofSydney.GiventhelocationoftheATPdirectlyadjacenttoamajorrailstation,thisfindingisperhapssurprising.However,privatetransportusagewaslowerandpublictransportusagewashighercomparedtoacrosstheSydneyGMA.
160
Appendix CDetail on data analysis, geographies and industry codesGEOGRAPHIESThedatawasavailableattheTravelZone(TZ)geographywhichissmallerthanStatisticalLocalAreasbutlargerthanCollectionDistrictsorMeshBlocks(BureauofTransportStatistics,2015).TheTZdefinitionschangeregularlybasedonpopulationandemploymentgrowthandthereforethecentredefinitionsvaryforeachCensusyear.
SurryHillswasdefinedbasedontheTZboundariesfor2006and2011,whichalsoreflectstheareaidentifiedasSurryHillsasacentreandsuburb.TheboundarydefinedforSurryHillsforthepurposeofextractingdatafromthe1991,1996and2001JTWdata,isslightlylargerthan2011boundary(refertoFigure66).ThisisduetoaTZwhichcrossesovertheboundaryandcoversaportionofPaddington/Darlinghurst.TheTZcontainsonlyasmallamountofemploymentoutsideofSurryHillsandthusthedecisionwasmadetoretaintheTZinordertocapturetheentireSurryHillscentre.Somecautionshouldbetakenwheninterpretingtrendsinemploymentbetween2001and2006forSurryHills,acknowledgingthevariationintheboundary.
TheATPwasdefinedbasedontheareazonedforbusinessparkuses.TheTZboundariesfor2006and2011arerelativelyconsistentandcovertheATPaswellassurroundingrailland.Priorto2006,theTZboundarywasmuchlarger(refertoFigure67)duetothelowemploymentlevelsandthusthesmallestavailablegeographycapturesavarietyoflandusessurroundingtheATPincludingresidential,mixeduseandraillanduses.SomecautionshouldbetakenininterpretingtrendsforATP,duetothesignificantboundarychangebetween2001and2006.
FIGURE 66: Comparison of boundaries for Surry Hills 1991-2011
Source:Author
161
FIGURE 67: Comparison of boundaries for ATP 1991-2011
Source:Author
TheCityofSydneyLGAandSydneyGMAwereusedasbenchmarkstoisolateanyuniquetrendsorcharacteristicswithineachcasestudyarea.CityofSydneyisdefinedasthecurrentLGAboundary.Forthe1991,1996and2001Censusyears,theboundariesforthenCityofSydneyandSouthSydneyCouncilswerecombinedtoreflectthecurrentboundary.TheSydneyGMAboundarywasbasedontheareaidentifiedbytheBTSwithintheJTWdataasSydneyGMAforeachCensusyear.
INDUSTRY CATEGORIESTheindustryofemploymentcategoriesvariedbetweenCensusyears.In1991,therewere18broadindustriesofemploymentcategoriesand42sub-categories.In1993,theAustralianandNewZealandStandardIndustrialClassification(ANZSIC)andAustralianandNewZealandStandardClassificationofOccupations(ANZSCO)wereintroduced.The1993ANZSICreleaseincluded171digitindustrycategorieswithanumberofsubcategories;themostdetailedbeingthe4digitindustryclassifications.In2006,theANZSICcodeswereupdated,withtwoadditionalindustrycategoriescreatedtobringthetotalnumberof1digitcategoriesto19.Anumberofadditionsweremadetothemoredetailedclassifications.AcomparisonofindustrycategoriesisshowninTable22.Thismeantthatitwasdifficulttocompareemploymentwithinallindustriesacrossthefivecensusperiods.
Atabroadlevel,ANZSICcodescouldbecombinedtomatchthecategoriesin1991.Forexamplethe2006industriesofFinanceandInsuranceandProperty&BusinessServiceswerecombinedforthepurposeofcomparingtothe1991categoryofFinance,property&businessservices.Wherethe1991categoriesweretoobroad,thesubcategoriescouldbeusedtoextractaparticularindustryofemployment.Forexample‘Restaurants,hotels&clubs’,whichfitsunderthe1991industrycategoryRecreation,personal,otherservices,wasconsideredtobecomparabletotheANZSICcategoryofAccommodation,CafesandRestaurantsandthereforewasusedforthepurposeofcomparingthegrowthofthisindustryovertheperiodfrom1991to2011.
162
INDUSTRY CATEGORIES 1991 INDUSTRY CATEGORIES 1996 AND 2001 (ANZSIC 1993 RELEASE) INDUSTRY CATEGORIES 2006 AND 2011 (ANZSIC 2006 RELEASE)Agriculture,forestry,fish,hunt Agriculture,forestryandfishing Agriculture,forestryandfishing
Mining Mining Mining
Manufacturing Manufacturing Manufacturing
Electricity,gas,water Electricity,gasandwatersupply Electricity,gas,waterandwasteservices
Construction Construction Construction
Wholesale,retailtrade Wholesaletrade Wholesaletrade
Retailtrade Retailtrade
Accommodation,cafesandrestaurants Accommodationandfoodservices
Transport,storage Transportandstorage Transport,postalandwarehousing
Communication Communicationservices Informationmediaandtelecommunications
Finance,property&businessservices Financeandinsurance Financialandinsuranceservices
Property&businessservices Rental,hiringandrealestateservices
Professional,scientificandtechnicalservices
Administrativeandsupportservices
Publicadministration,defence Governmentadministrationanddefence Publicadministrationandsafety
Education Educationandtraining
Communityservices Healthandcommunityservices Healthcareandsocialassistance
Recreation,personal,otherservices Culturalandrecreationalservices Artsandrecreationservices
Personalandotherservices Otherservices
TABLE 22: Comparison of industry categories
Source:Author
163
1612Printingsupportservices 5610Radiobroadcasting
2591Jewelleryandsilverwaremanufacturing 5620Televisionbroadcasting,nfd
5400Publishing(exceptinternetandmusicpublishing),nfd 5621Free-to-airtelevisionbroadcasting
5410Newspaper,periodical,bookanddirectorypublishing,nfd
5622Cableandothersubscriptionbroadcasting
5411Newspaperpublishing 5700Internetpublishingandbroadcasting
5412Magazineandotherperiodicalpublishing 6921Architecturalservices
5413Bookpublishing 6924Otherspecialiseddesignservices
5420Softwarepublishing 6940Advertisingservices
5500Motionpictureandsoundrecordingactivities,nfd 6991Professionalphotographicservices
5510Motionpictureandvideoactivities,nfd 7000Computersystemdesignandrelatedservices
5511Motionpictureandvideoproduction 9000Creativeandperformingartsactivities,nfd
5514Post-productionservicesandothermotionpictureandvideoactivities
9001Performingartsoperation
5600Broadcasting(exceptinternet),nfd 9002Creativeartists,musicians,writersandperformers
J000Informationmediaandtelecommunications,nfd
TABLE 23: Creative industries (ANZSIC 4 digit categories)CREATIVE INDUSTRIESThegrowthofthecreativeindustries,particularlyintheinnercityofglobalcities,hasbeenincreasinglyobservedwithintheliterature.SincecreativeindustriesisnotaspecificindustryofemploymentwithintheANZSIC1digitcategories,inordertounderstandthesizeofthisindustrycomparedtotheotherbroadindustriesofemployment,thefinegrainindustries(ANZSIC4digit)whichcomprisethecreativeindustrieswereextractedfromtheBTSJTWdatasettocalculatetotalemploymentinthecreativeindustries.TheANZSIC4digitcodeswhichformthecreativeindustriesweresourcedfromarecentstudybySGSEconomicsandPlanning(2013)fortheformerCreativeIndustriesInnovationCentre(refertoTable23).
ThetotalemploymentwithineachoftheseindustrieswascalculatedforSurryHills,theATP,CityofSydneyLGAandSydneyGMAandtheemploymentnumbersweresubtractedfromtherelevantANZSIC1digitcategoriestoavoiddoublecounting.
Source:(AdaptedbyAuthorfromSGSEconomicsandPlanning,2013)
164
Appendix DInterview questions: firm interviews
FIRM LOCATION ― Whatdoesyourfirmdo?Whenandwherewasitestablished?
― Whatisthebusinessorcompanystructure?Howmanyemployeesdoyouhave?
― Wherewasthefirmlocatedpreviously? ― WhydidthefirmchoosetolocateinSurryHills/ATP?
• Followingresponse,pleasefilloutstatedpreferencessurvey(attached)
― WhatdoyoulikeanddislikeaboutworkinginSurryHills/ATP?
― Doyouhaveacompanypolicyonworkingfromhome?
RECRUITMENT ― Howdoyourecruitnewstaff?Doyouusepersonalcontacts,advertisements,previousclients?
― Doyoutargetstafftoexpandthebusinessorjustreplacestaffwhohaveleft?
― Isstaffturnoverhigh?
NETWORKS ― Whoareyourclientsandwherearetheylocated? ― Whoareyoursuppliers?Islocationimportantforsupplychainlinks?
― Whoareyourmaincompetitors?Wherearetheylocated?
― Whowouldyouconsideriswithinyourprofessionalnetwork?Wherearethesefirms/institutionslocated?
― Isyourfirmassociatedwithanyparticularprofessionalbodies?
KNOWLEDGE ― Whatwouldyouconsidertobetheknowledgeofyourfirm?Whatisthemostimportantknowledgerequiredtoworkatyourfirm?
― Whoaretheknowledgegenerators? ― Howisknowledgesharedwithinyourfirm? ― Howisknowledgesharedwithexternalworkersandfirms?
― Howdoyouthinkknowledgespillovers(particularlyeconomicallyvaluableknowledge)occurinrelationtoyourfirm?Doyouthinkyoushareknowledgewithotherfirmsandhow?Doesyourlocationimpactonthis?
165
Appendix EInterview questions: worker interviews
ROLE AND LOCATION ― Whattypeoffirmdoyouworkfor? ― Whatisyourrolewithinthefirm? ― Howlonghaveyoubeenemployedbythisfirm? ― Wheredidyouworkpreviously?(firmandlocation) ― Wheredidyoustudy(ifapplicable)? ― Wheredoyouliveandhowdoyoutraveltowork? ― Whydidyoumovetothisfirm? ― Hadyouheardofthecompanybefore?Didyouhaveanyexistingrelationshipswithpeoplewhoworkedforthisfirmpriortoworkinghere?Hadyouworkedwithanyoneherepreviously?Ifso,inwhatcapacity?
― Waslocationamajorfactorinthedecisiontoworkforthiscompany?
― WhatdoyoulikeanddislikeaboutworkinginSurryHills/ATP?
― Doyouregularlyworkfromhome?
KNOWLEDGE ― Whatwouldyouconsidertobeeconomicallyvaluableknowledgeinrelationtoyourrole?
― DoyouthinkknowledgeisdevelopedandsharedbetweenfirmswithinSurryHills/ATP?Ifso,howdoesithappen?
FORMAL KNOWLEDGE SHARING ― Doyouhavemanyface-to-facemeetings?Ifsowherearethesemeetingsoftenheld(location)andwhoaretheyheldwith?
― Whatproportionofyourworkrelationshipsarewithfirms/workersbasedinSurryHills/ATP?Whatproportionareoutside?
― Doyouhaveanysignificantbusinessrelationshipsinthearea?
― Doyouattendmanyseminars/conferences/networkingevents?AretheseheldwithinSurryHills/ATPorinotherlocations?Doeslocationimpactonyourdecisiontoattendthese?
― Doyoufindattendingtheseeventsvaluableindevelopingrelationships?Doyouthinktheserelationshipsevolveintoaworkingrelationshipandanexchangeofeconomicallyvaluableknowledge?
INFORMAL KNOWLEDGE SHARING ― DoyouhaveanyexistingconnectionswithotherworkersandfirmswithinSurryHills/ATP?Ifso,howweretheseconnectionsformed?
― Doyouvisitcafes,restaurantsand/orbarsregularlyinthisarea?Ifso,atwhattimesoftheday?
― Doyousocialisewithworkersfromotherlocalfirms? ― Doyouspendmuchtimeinthelocalareaoutsideofworkhours?
― Canyouthinkofanexampleofwhenyoudevelopedeconomicallyvaluableknowledgewithsomeoneexternaltothefirm?Howwassocialinteractioninitiatedandhowdiditevolveintoaworkingrelationship?Whatwastheendresult?
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Appendix FEthics approvalApprovalfromBuiltEnvironmentHumanResearchEthicsAdvisoryPanel:
Appendices 238
Approval from Built Environment Human Research Ethics Advisory Panel:
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Projectinformationstatement:
Appendices 239
Project information statement:
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