Creating urban platforms – Opportunities and challenges for innovation in commercial real estate development

Rajakallio, Karoliina, Cuthbertson, Richard, Pulkka, Lauri and Junnila, Seppo (2018) Creating urban platforms – Opportunities and challenges for innovation in commercial real estate development. Cities, 77. pp. 92-103.

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Current theories of commercial urban development are dominated by a concept of linearity that poorly accommodates the demands of adaptation posed by the pace of change in digital developments, which is in marked contrast to the pace of change in physical developments. In the hi-tech sector, the application of platform ecosystems has been employed to accommodate innovation and change. This paper explores the potential application of platform ecosystem theory to the commercial urban development process, where there is now great uncertainty regarding the future economic implications and societal requirements of physical commercial space. The boundary conditions for value creation in platform ecosystems: modularity, standardization, complementarity, and connectivity, are explored through a survey of key actors in recently completed commercial urban developments. The analysis identifies significant differences in the capacity of public and private sector actors to promote platform ecosystem emergence, particularly in the complementary action of development participants. The application of an approach to urban development based on a platform ecosystem might offer great opportunities but will be held back by the major challenges identified in this paper.

Item Type: Article
Keywords: urban development, platform ecosystem, value creation, complementarity, modularity, connectivity
Subject(s): Retail
Centre: Oxford Institute of Retail Management
Date Deposited: 23 Jul 2018 14:32
Last Modified: 23 Jul 2018 14:32
Funders: Finnish Funding Agency of Innovation (TEKES)

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