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For more than three decades chaotic and disorderly spatial developments have taken place on the peripheral zones of cities. In general, post-suburbanisation is characterized by urban processes that contain not simply the homogenous suburbanization of housing, but also a mix of uses, such as significant economic activities in the service sector Phelps et al. Soja stresses that the spatial dynamics of Los Angeles can occur in any other city, but on a different scale and in different ways Soja, This fact leads Phelps et al.

While classic suburban regions have seemed dependent on developments towards the core Fishman, , recent post-suburban spaces show a more complex relationship towards the core city: for US-cities, studies show a higher level of economic job growth in the outskirts of metropolises which indicates a growing independence from the core Phelps et al. Against this background it is necessary to clarify whether post-suburbia actually hold functions previously reserved for the core city Borsdorf, Has suburbia developed into more than an important though subordinate supplement of the core city? Can a new centrality be spoken of?

On the one hand, post-suburban developments cannot been seen as independent of the core, which supports the outskirts e. Employing the same metaphor, the central question of this study is whether suburbia has equally become a small stage for the global economy, even if on a smaller scale.

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More precisely - which role do the surroundings of Vienna play with regard to the globalisation of the city? Although Vienna is an over-sized agglomeration like many other European cities, there are good reasons to query the global centrality of post-? Parallel to these developments, which led to an increasing internationalization of Viennese firms — especially in Eastern Europe Musil, — suburbanization processes displayed an increased rate of growth Fassmann, In view of the overlapping of these two developments it makes sense to scrutinize post-suburban tendencies in the agglomeration of Vienna.

It can be the CBD, as in New York, to a large extent, or it can present itself in an urban landscape in the form of a network of nodes of intensive economic activity As a matter of fact it can be observed — not just in the edge cities of the USA, but also in the surroundings of European metropolises - that high value producer service branches as well as headquarters of multinational enterprises MNEs can be found in the suburban regions to an increasing extent Beauregard and Haila, , p.

But cautiousness is necessary: even in US-cities, independent economic dynamics in post-suburban areas is [sic! Drawing on Global City theory makes sense in this context, as this approach connects global processes with urban development Gerhard, It is our view that the nature of these interrelations e. The crucial role of these branches can be backed up by two arguments: first, these firms possess the specific knowledge in law, finance, marketing and of computing that allows multinational enterprises the management of globalisation, the worldwide decentralisation of production and the organisation of global commodity chains Parnreiter et al.

Second, the high degree of specialisation of these firms leads to a concentration in a small number of exclusive cities, where such specific knowledge is available.


The resulting linkages make it possible to arrange world cities into a complex spatial hierarchy. This assumption depends, above all, on the circumstance that FDIs are made on behalf of investors for strategic, long-term reasons and not merely speculative ones. It is thus no surprise that foreign direct investment can be understood as being not merely an indicator of the economy or location, but also a manifestation of spatial actions by global companies Heiduk, Kerlen-Prinz The indicators drawn upon for this are the producer service sector and headquarters of multinational enterprises MNEs.

Different approaches lead to different findings, depending on the method used figure 1. International comparative studies harmonizing delimitation make this point clear Bachmann, The spatial structures of the European urban landscape are too diverse and heterogeneous to be systematically classified according to morphological criteria, such as the N. Figure 1. Delimitation of Vienna. As can be seen in figure 1, the administrative units lead to a generous delimitation for the agglomeration of Vienna.

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In spite of our method on firm date, this delimitation makes more sense than a more narrow one like e. The extent of tertiarization — of course, for the high value service sector — and the outflow of investments, reflected in headquarters located in the agglomeration of Vienna, are the indicators used in this work. In the early s — comparatively late in comparison to other cities — the main development in suburbanization started.

In , the population of the whole agglomeration comprised 2. By , the population had increased up to 2. As a consequence of this and the migration within the agglomeration, the relation turned over to The relation between core city and suburbia was In contrast to the demographic development, the growth of jobs was primarily concentrated on the core city: two thirds 66 percent of a total of , new jobs were located in the core. Regarding respective industrial relocations from the city towards peripheral zones since the s Mayerhofer and Palme, , the total share of firms in suburban areas is below the average of the whole agglomeration.

Surveys on service firms have shown that in contrast to industry, relocations in the tertiary sector play just a minor role. If relocation takes place, the company moves inside the same region core city or suburbia 1 Bachmannn, In about 87, employees commuted from suburbia towards the core city, ten years later there were already 99, commuters.

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In the same period of time, the number of commuters in the opposite direction increased from 34, to 44, Although the number of suburbia-orientated commuters is growing significantly faster, the dimension of both regions must be considered: while commuters from the core to the suburbia just make up 5. In terms of availability of jobs, an emancipation of suburbia cannot be spoken of.

Or are they just helping to provide shopping-center functions consumer services for the core city? Asked in another way: What role do high value services — like banking and finance, real estate or data management — play? The high growth rates for high value service jobs in the suburbia The spectacular growth in a few sectors, like data management plus The share of definite high value producer service jobs of the total number of producer service jobs is just Table 1.

Number of employees for selected economic sectors in the agglomeration of Vienna for und source: Statistik Austria, In the same year 1, Multinational Enterprises MNEs — firms with subsidiaries in one or more foreign countries — were listed by the Austrian Federal Bank. Thus, just a very small part of all Viennese companies hold foreign direct investments: 8.

The focus of the following analysis will be on that little group of MNEs or company headquarters. Nevertheless this is a significant growth, the suburban region - as a location for headquarters - lagged behind its level of suburbanization in population and jobs. Figure 2. Number of headquarters, located in core city and suburban region, between and Source: OeNB, ; Musil, b. Just 5,6 percent or 1. Furthermore, it can be ascertained that the headquarters in the suburban region have on average significantly lower capital intensity equity capital per employee. Surprisingly, capital intensity tells us nothing about the profitability of an investment: the share of profits on equity capital makes up 6.

Revilla Diez, J. In: Journal of Southeast Asian Economics 36 1 , Nguyen Xuan, T. Breul, M. Journal of Economic Geography.

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