Quote:
Originally Posted by mhays
HQ/invention tech employment isn't just about concentration. It's also people with high incomes (employees, leaders) that can choose their favorite cities. That probably means water, topography, recreation, urbanity, and so on. The selection of tech/finance/etc cities has already been defined by this dynamic as a major part.
|
Definitely, though that’s still partly a story of concentration. Some places are productive because a lot of people live there, and a lot of people live there because there are lots of amenities. Some of those amenities are natural, like water and topography, and some are agglomeration amenities that come from density and wealth, like urbanity and cultural attractions.
So to the extent that the West Coast is rich in natural amenities, that alone will attract people and that concentration will create productivity spillovers, and so yeah we run into the same problem. Giving up on California isn’t really an option unless the benefits of agglomeration elsewhere are sufficiently large.