Abstract
This paper analyzes the high-tech economies of 350-plus metropolitan areas across the U.S. during 2010. Attention is given to 20 different production attributes—including the age and education of the workforce, patent production, business startups, per capita productivity of the workers, and the like. Multivariate analysis is used to reduce these 20 attributes down to 10 orthogonal dimensions; then the scores on these dimensions are used to identify eight different innovation and entrepreneurial clubs. Basically the exercise deconstructs the metropolitan economies into various parts so that each economy is assigned a signature score on each of the independent factors. High-tech places, which are especially active in both patents and startups, are shown to be more heterogeneous than low-tech places. Moreover, the recent growth and change seen in many metropolitan areas appears to be associated with the incidence of very different factors: population growth has been driven by forces that are different from those that have induced either employment change or productivity growth in those metropolitan areas.
Highlights
During the closing decades of the twentieth century the U.S and many other advanced nations entered a long wave of innovation-driven prosperity that has been called The NewEconomy [1]
A loading indicates the degree of correlation of a given variable with a particular factor, while a score represents the performance of a given metropolitan economy on a particular factor
Many of the 20 variables load heavily on Factor 1 (F1), which alone accounts for nearly 20% of the overall variance and can be interpreted as a general innovation factor
Summary
During the closing decades of the twentieth century the U.S and many other advanced nations entered a long wave of innovation-driven prosperity that has been called The NewEconomy [1]. Little is known about the full implications of this recent socioeconomic division. In part this is the case because no overarching theory exists to clarify how firms and households continuously interact in order to shape the metropolitan attributes of the American space-economy [3]. An incomplete picture still exists of the dramatic population and economic changes that have been experienced across the nation’s metropolitan landscape in recent times. Many studies of U.S labor markets are content to rank-order the performances of metropolitan economies using one or a few measures of economic health (or success) without addressing the factors most responsible for the changes that are occurring in levels of economic health
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