Big companies moving back to big cities is a trendy thing and here the CEO of General Electric describes their recent move back to Boston:
Immelt: You know, we wanted to get to a city. At the end of the day, I think for the company we wanted to get into a place where there was more of an every day where you could get up and be part of an academic setting. So I think it was important to get to a city...
I have to say it’s real. I thought it was a little bit of B.S. initially, I wasn’t sure. And when I looked out the window—when I was in Connecticut, it was beautiful, awesome, great office—but when I looked out my window, I saw nothing, there was nothing going on. I could watch cars go on the highway, things like that.
I’ve been Boston now six weeks and you just walk out the door. You’re in the middle of an ecosystem that quite honestly for a big company, it makes you afraid. You’re where the ideas are. You get more paranoid when you’re doing that and that’s a good thing. So I thought it was—
Isaacson: Only the paranoid survive!?
Immelt: No, no. It’s a good thing. When you’re a big company, it can get hidden but it’s important that you’re in touch with what the next idea is or what the next disruption is. And so I’m kind of a big believer that that’s the wave of the future.
The summary suggests this echoes Richard Florida’s approach to cities. Yet, when people talk about Florida, they often refer to his ideas about employees and the workforce: a talented, diverse, and tolerant workforce that is attracted to thriving cultural and entertainment scenes. Immelt is suggesting something else is also important: competition between ideas. In the suburbs, it is easy to become comfortable and become insulated from cutting edge thinking (and technologies?).
It seems like it wouldn’t be too hard to test this idea: cities produce more innovation and competition than suburban areas. Off the top of my head, it seems like Bell Labs did okay for decades in largely suburban office and R&D facilities. Are the various companies in Silicon Valley hampered by being in more suburban settings (or to put it another way, could they have been even more successful)? Is being in the metropolitan area enough to help spur innovation or does a physical location in an urban core (even opposed to being within city limits but not near thriving areas) near other firms and employees doing these things matter?