In terms of innovation and development, government process more policies to encourage company to move outside of the city due to its overweight population and transport. In order to clearly illustrates the issue, I will provide visual perspective and my own opinion of the statement, as I believe disadvantage will take over its advantage.
As a result of industrialization and modernization, more individuals remain at the city because of its high career opportunities and living condition, causing to the shortage of accomodation and overpooulation whereas government do not have enough welfare to cover the need. Thus, companies are the one who take over the shortage of the resources and provide retail service for people on the city. For example, due to overpopulation, government unable to cover their citizens health at public hospital but private companies can fill the hole of times and qualifications. The existent of businesses is an nescessary for city to cover the needed of citizens and creating symbiotic relationship with government.
On the one hand, once the businesses be gone from city, there will be serveral impactful events that lead city to meet downfall of the economy. For instance, private businesses make up a large portion of GDP, because the US economy is largely based on private businesses and the free market. According to data, private businesses contribute about 80% of US GDP. As if they are moving out to rural area, their productivity will significantly fall due to lacking of opportunities to develop.
As a result of these consequences, the economy will meet a downfall, leading to economic reseccion in the future. From an overall perspective, I suggest keeping companies instead of encourage leaving in order to maintain and develop benefit for people.