Authors
Hiroshige Tanaka & Chiharu Tanaka
The relative advantage among industries has changed remarkably and is expected to bring the alternatives of progressive and declining urban structural change. The emerging industries to utilize ICT, AI, IoT, financial and green technologies foster the social innovation connected with reforming the urban structure. The hypotheses of the shrinking city forecast that the decline of main industries has brought the various urban problems including problems of employment and infrastructure. But the stringent budget restriction makes limit the region on the social and market system that the government propels the replacement of industries and urban infrastructures. By developing the two markets model of urban structural changes based on Tanaka (1994) and (2013), we make clear theoretically and empirically that the social innovation could bring spreading effects within the limited area of the region, and that the social and economic network structure prevents the entire region from corrupting. The results of this model analysis are investigated by moves of the municipal average income par taxpayer of the Tokyo Area in the period of 2011 to 2014 experimentally.