Saturday, February 14, 2009

How the Economic Crisis will Impact Cities

Richard Florida, who years back developed the concept of the "creative class" and argued that the successful cities will be those who can attract and retain this group, now argues that the current economic crisis will have disparate effects on cities.

Those committed to industries that are on the decline, and lack the knowledge base to attract or develop new technologies, will lose. Big losers include cities like Phoenix and Las Vegas. Areas with a concentration of people with skills in a growth industry -- finance, communications, entertainment, or energy (that means Houston) -- will become even more dominant. Central to this dynamic is the idea that these places create environments that make an area attractive to people who could live anywhere they choose. If you wonder why Houston spends so much effort sprucing itself up, there's why.

There's a political consequence as well. An interactive map, which includes data showing how many patents are issued in each city in the country, suggests that future growth will happen in areas where Democrats have an advantage. There aren't that many ideas generated in the South and Upper Midwest.