Whether tech companies and their workers actually do better in and prefer cities

A recent Chicago Tribune article echoed a theme I have now seen numerous times: companies must have downtown campuses to compete for tech workers.

To lure data scientists and other tech workers, companies in industries from fast food to insurance have opened outposts in the heart of the city, where tech employees want to work. Having hip, downtown spaces has proved worth the extra cost to suburban companies, even as rents have increased…

When suburban companies first started catching on to millennials’ desire to live and work in the city, managers had a new culture to learn, Reaumond said. Employees in the downtown innovation hubs didn’t want to be chained to desks 10 hours a day…

Tech-focused downtown spaces feel different than their suburban counterparts, and that’s how it should be, Arity President Gary Hallgren said. Allstate’s Northbrook campus has a barber, a pharmacy and a doctor, but the Merchandise Mart space isn’t trying to be a campus, Hallgren said. Its goals and culture are different, and the space is too. Arity’s office has a pingpong table and the same fizzy water dispenser featured in the HBO show “Silicon Valley.” It hosts meetups that draw tech workers from outside the company.

The underlying premise in these articles is that tech workers prefer to be in urban settings. However, I do not believe I have seen much data that measures this claim. When Americans as a whole are asked where they prefer to live, they tend to say either small towns or suburbs.

If tech workers do tend to prefer urban settings, is this due to the work itself actually going better in cities (higher productivity, more innovation, more efficiency, etc.) or other factors? For example, these stories often do not distinguish between the work activities of these firms and the age (younger) and generation (millennials) of the featured tech workers. Will the tech workers of today be the suburban parents of ten years from now? There is evidence that cities are innovation centers (see the scaling effects of patent production chronicled in Geoffrey West’s Scale) yet tech innovation is possible in the suburban office park (see the Route 128 area outside Boston, Silicon Valley around San Jose, and Bell Labs research centers in suburbia after World War Two).

And while this is often pitted as an either/or issue – tech firms must be in the big cities or must be elsewhere – I suspect there could be some benefits to each as well as some mixing of locations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s