A couple of folks had interesting counterpoints to the superstar effect. Neil Strickland gave me permission to post the following email he sent: I wonder if you've read, or if I've referred to, the Santa Fe Institute's highly cited 2007 paper in PNAS (Proceedings of the National Academy of Sciences) called "Growth, Innovation, Scaling, and the pace of life in cities." Its work was in "deriving growth equations which quantify the dramatic difference between growth fueled by innovation versus that driven by economies of scale. This difference … [Read more...]
Search Results for: superstar effect
Superstar Effect Wins Again as Amazon Chooses New York, Washington for HQ2/3
Amazon, obviously embarrassed at the way their HQ2 process has been received, leaked the results of the competition the night before Election Day, ensuring coverage will be largely muted. Amazon has reportedly decided to split HQ2 between two locations, New York City (Long Island City, Queens) and Washington (Crystal City, VA). I will have more analysis over the next several days, but this shows that the superstar effect is alive and well. Amazon chose note one but two elite coastal cities for its new headquarters. There's no other way … [Read more...]
Scaling Superstar Cities
My latest Manhattan Institute report is now available. It's called "Scaling Up: How Superstar Cities Can Grow to New Heights" and it examines the well-known problem of housing costs in coastal superstar cities. I argue that some of these cities simply forgot how to grow during the decades during which they suffered from external constraints (the Depression, World War II), followed by decades of decline. (Even the city of San Francisco lost population for three straight decades). I also explain why the average resident of these cities does … [Read more...]
Tony Hsieh and the Las Vegas Downtown Project
The Downtown Project in Las Vegas, an attempt to completely reinvent downtown Las Vegas spearheaded by Zappos CEO Tony Hsieh, is one of the better known downtown revitalization initiatives in America. I've been planning to write on it since I saw Tony speak about it in Providence last fall. I was kicked in the pants to finally do so by a trip I took to Vegas last week to check the Downtown Project out. Before going any further, I should disclose that I stayed there for free in one of the project's "crash pad" apartments (more on those … [Read more...]
Review: The New Geography of Jobs
The New Geography of Jobs by Enrico Moretti Houghton Mifflin Harcourt (2012) Starting in the 1980s, the American economy bifurcated. On one side, cities with little human capital and traditional economies started experiencing diminishing returns and stiff competition from abroad. On the other hand, cities rich in human capital and economies based on knowledge-intensive sectors started seeing increasing returns and took full advantage of globalized markets. - Enrico MorettiFor unto every one that hath shall be given, and he shall have … [Read more...]