Emergence of polycentric structures and their practical application in the modern economy

The purpose of the paper is to develop a model revealing consumer preferences towards cities of different sizes, which can explain the emergence and optimality of polycentric urban structures in the modern economy. The paper provides microeconomic foundations for the existence of polycentric urban structures on the basis of consumer preferences. It is shown that clusters of smaller urban centers can sometimes give higher utility than a large urban center. The model is based on generalization of a central business district model and takes into account not only the distance of commuting, but also its convenience. Some examples of polycentric urban structures of different topology are provided. It is proposed to apply the model of polycentric structure to form innovative clusters in the regions. Innovation clusters are formed on the basis of the existing specialization as a result of integration interaction of the innovative process participants. A polycentric structures model allows for formation of innovative clusters in regions when integration of the cluster members around the scientific core allows them to use the innovative potential more effectively and provides an opportunity to save on transaction costs.