Knowledge city and urban economic resilience
| DOI | https://doi.org/10.1108/14635781311292980 |
| Published date | 01 February 2013 |
| Date | 01 February 2013 |
| Pages | 78-88 |
| Author | Simon Huston,Clive Warren |
| Subject Matter | Property management & built environment |
VIEWPOINT
Knowledge city and urban
economic resilience
Simon Huston and Clive Warren
UQ Business School, The University of Queensland, Brisbane, Australia
Abstract
Purpose – The purpose of this paper is to investigate the limitations and potential usefulness of a
“knowledge city” concept as diversification vehicle for property investors.
Design/methodology/approach – The paper first dissects the “knowledge city” concept and then
investigates whether it inoculates against economic turbulence as measured by growth and jobs
recovery. The paper also looks at the protection offered by middle class population growth.
Findings – The idea of the “knowledge city”comes from earlier economic constructsbut concentrated
at the urban scale. Thereare two versions – a technical and one enriched with institutional and social
dimensions.The limited analysis of selectivesecondary data suggests that “knowledgecity” and strong
middle class population growth provide some protection from economic and, presumably, property
market instability.
Research limitations/implications – Statistical limitations include arbitrary sample frames; lack
of data and unclear spatial resolution, short time frames for aggregate analysis. Further research
requires, first, a structured grading of knowledge precincts and, second, randomised sampling of
individual properties to investigate any links between total risk-adjusted performance is measured
over a decade.
Practical implications – To mitigate risk, investors should consider re-weighting their portfolios to
increase exposure to knowledge cities and second-tier but fast growing cities in emerging countries.
Social implications – A knowledge-city cannot be imposed by infrastructure, technology or place
configuration alone. It involves multiple precinct configurations and subsidiarity. Institutions and
people matter. A broader knowledge-city conceptualisation helps inform planning, management and
oversight for regional second-tier cities.
Originality/value – Dissecting, noting the limits and drawing out the practical implications of the
“knowledge city” concept.
Keywords Knowledge city,Middle class growth, Diversification,Risk-adjusted returns, Real estate,
Emerging markets
Paper type Viewpoint
Introduction
Recovery from global financial crisis (GFC) in property markets has been somewhat
patchy. Globally, commercial trading activity remains well below pre-crisis levels but,
in Asia, volumes have already exceeded their 2007 peak. Emerging markets aside,
asset disposals by deleveraging banks could present investment opportunities in core
markets. However, investors must be selective. Here, we look at the merits of focusing
on so-called “knowledge cities”. However, the concept of knowledge city itself is
somewhat obscure and its practical usefulness is constrained by inadequate statistics.
Notwithstanding, we conduct a preliminary investigation looking to see if knowledge
city indicators confer any resilience to adverse economic headwinds knowledge city.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
JPIF
31,1
78
Received June 2011
Accepted August 2012
Journal of Property Investment &
Finance
Vol. 31 No. 1, 2013
pp. 78-88
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635781311292980
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