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The aim of the article is to study the localization process of reproduction of the workforce of the modern city. Transaction costs are high in two cases: when it is difficult to find a replacement for participants of market interaction, and when the number of potential participants of the market interaction is large. Localization allows optimization of the organizations demographics and thus reducing transaction costs. At that, if contractors have average specificity assets and stable contracting relations, formation of hybrid forms of integration, namely quasi-integration, is possible. This leads to the formation of inter-corporation network, which includes other existing or emerging organizations (research institutes, universities, infrastructure companies, specialized services providers, etc.). Contacts between inter-corporation network and these organizations are irregular and still do not significantly affect the efficiency of network operation and territorial-sectorial value creation system. According to M.E. Porter’s terminology, such structures can be designated as quasi-cluster integrations. During the operation quasi-cluster integration can turn into a cluster, though this may not happen at its regression, i.e. degradation of the territorial-sectorial value creation system or formation of classical integration. In general, quasi-cluster integration differs from the concept of "inter-corporation network" by the fact of the geographical localization of business processes and the presence of relationships with other organizations. It differs from the cluster by the irregularity and low significance of the relationships of inter-corporation network and other organizations, as well as the existence of abruptions in the resources flow circulation and/or information within the value delivery system.

Localization of the Urban Workforce Reproduction of the Modern City