Abstract:

According to the land rent theory, innovative activities return to a megacity's downtown based on the formation of land rent residual in the area occupied by factories. The city government regularly modifies the regeneration policy to balance the distribution of land rent residual between different principals and supply space for innovation. City governments have different opinions on the distribution of land rent residuals. Therefore, methods of supplying space for innovation and shaping diverse urban landscapes also differ. Since the city government of Shenzhen relies less on land finance than other megacities in China, and it lacks land resources, they regenerate industrial land into innovative space. With less constraint on function transformation, development density, and property rights, the city government gives out much of the land rent residual and supplies several high quality spaces for innovation at a medium-cost. The city government of Guangzhou chooses to acquire massive land rent residuals by regenerating state-owned factories and business areas under financial pressure and debts into residency. However, the land rent residual of village-owned factories can only be extracted from informal regeneration under the strict constraints posed and acquired by the city government, while supplying medium to lost cost innovation spaces of medium and low qualities. Consequently, it is suggested that the Guangzhou government should thoroughly research on existing industrial land where old state-owned factories and village industrial parks are located. Spatial planning and reformation of the city and resolving problems in old village-owned factories for a complete and legal upgradation will provide a decent space for the innovation industry. To ensure enough land and space for the innovation industry, the Shenzhen government needs to employ precaution against over-exploitation of industrial regeneration policy when real estate gets involved.

Key words: land rent residual, urban renewal, innovation space, Guangzhou, Shenzhen