24
C. Lenzi and G. Perucca
seem happier than others. Compared with the findings from previous studies, this
evidence suggests that urbanization per se is not a source of dissatisfaction. Rather,
agglomeration benefits seem to prevail over agglomeration costs, but only up to a
certain threshold, when increased population size generates more disadvantages than
advantages, as in the case of Bucharest.
In order to test the generality of these results, a similar approach was applied
to a sample including all European countries (Lenzi and Perucca 2018, 2019a). As
before, in each region, the number of people living in larger urban zones (LUZ)
allowed us to define a ranking of areas, from the most (more than 1.5 mln people
living in a LUZ) to the least (less than 300 k people living in a LUZ) urbanized.
Results show that, taking the least urbanized regions as reference, SWB is lower
in the most urbanized ones (first rank) and the higher ones in second rank regions, i.e.
those with a degree of urbanization immediately below the maximum. This finding,
consistent with the one uncovered in Romania, suggests the perceived effect of the
disadvantages arising in metropolitan areas, such as congestion, pollution and greater
costs of living to prevail with respect to the perception of its advantages. On the other
hand, the opposite mechanism remains in regions characterized by an intermediate
urbanization level (i.e. second rank).
Taken together, the findings from the previous studies pointed out a positive
effect of urbanization on SWB, at least until a certain threshold of agglomeration
are reached. In order to fully understand the mechanisms associating urbanization
and SWB, it is fundamentally important to analyse the characteristics of cities (i.e.
advantages and disadvantages) and their effect on individuals’ well-being.
Among these factors, a prominent role is played by innovation. Economic literature, whatever the level of analysis adopted (from individuals to firms, from cities to
regions, from countries to continents), and the time span considered, pointed out that
innovation is the key to competitiveness. The innovation process, however, is strictly
related to urbanization. Cities play a primary role in the development of new ideas and
the introduction of innovations into the market. Moreover, highly innovative places
tend to attract creative and more educated individuals. Despite these premises, very
little is known about the relationship between innovation, urbanization and SWB.
In our research, we explored this nexus and empirical findings indicate that different types of innovation play different roles in differently urbanized contexts: more
technology-intensive innovations (i.e. patents) impact on SWB only in highly urbanized areas, whereas less technology-intensive innovations (i.e. trademarks) are associated with greater SWB in all settings. The interpretation of these results is linked
to the different natures of the two types of innovation. In order to make technologyintensive innovation have an impact on SWB, a more sophisticated demand and, possibly, a certain scale to conduct research activities efficiently are needed. These conditions are typical for the most urbanized areas. On the other hand, less technologyintensive innovations, closer to the commercialization stage, are, on average, more
easily appreciated by market demand, less radical and often do not require a substantial scale for their creation.
These results add to our previous findings (Lenzi and Perucca 2016a, 2018) and
suggest that the opposite impact on SWB of innovation in settings of different ranks
C. Lenzi and G. Perucca
seem happier than others. Compared with the findings from previous studies, this
evidence suggests that urbanization per se is not a source of dissatisfaction. Rather,
agglomeration benefits seem to prevail over agglomeration costs, but only up to a
certain threshold, when increased population size generates more disadvantages than
advantages, as in the case of Bucharest.
In order to test the generality of these results, a similar approach was applied
to a sample including all European countries (Lenzi and Perucca 2018, 2019a). As
before, in each region, the number of people living in larger urban zones (LUZ)
allowed us to define a ranking of areas, from the most (more than 1.5 mln people
living in a LUZ) to the least (less than 300 k people living in a LUZ) urbanized.
Results show that, taking the least urbanized regions as reference, SWB is lower
in the most urbanized ones (first rank) and the higher ones in second rank regions, i.e.
those with a degree of urbanization immediately below the maximum. This finding,
consistent with the one uncovered in Romania, suggests the perceived effect of the
disadvantages arising in metropolitan areas, such as congestion, pollution and greater
costs of living to prevail with respect to the perception of its advantages. On the other
hand, the opposite mechanism remains in regions characterized by an intermediate
urbanization level (i.e. second rank).
Taken together, the findings from the previous studies pointed out a positive
effect of urbanization on SWB, at least until a certain threshold of agglomeration
are reached. In order to fully understand the mechanisms associating urbanization
and SWB, it is fundamentally important to analyse the characteristics of cities (i.e.
advantages and disadvantages) and their effect on individuals’ well-being.
Among these factors, a prominent role is played by innovation. Economic literature, whatever the level of analysis adopted (from individuals to firms, from cities to
regions, from countries to continents), and the time span considered, pointed out that
innovation is the key to competitiveness. The innovation process, however, is strictly
related to urbanization. Cities play a primary role in the development of new ideas and
the introduction of innovations into the market. Moreover, highly innovative places
tend to attract creative and more educated individuals. Despite these premises, very
little is known about the relationship between innovation, urbanization and SWB.
In our research, we explored this nexus and empirical findings indicate that different types of innovation play different roles in differently urbanized contexts: more
technology-intensive innovations (i.e. patents) impact on SWB only in highly urbanized areas, whereas less technology-intensive innovations (i.e. trademarks) are associated with greater SWB in all settings. The interpretation of these results is linked
to the different natures of the two types of innovation. In order to make technologyintensive innovation have an impact on SWB, a more sophisticated demand and, possibly, a certain scale to conduct research activities efficiently are needed. These conditions are typical for the most urbanized areas. On the other hand, less technologyintensive innovations, closer to the commercialization stage, are, on average, more
easily appreciated by market demand, less radical and often do not require a substantial scale for their creation.
These results add to our previous findings (Lenzi and Perucca 2016a, 2018) and
suggest that the opposite impact on SWB of innovation in settings of different ranks