Tech jobs continue to congregate in particular metropolitan regions

A new analysis looks at where tech jobs located between 2005 and 2017:

Researchers from the Brookings Institution and the Information Technology and Innovation Fund, a tech-industry-backed think tank, arrived at their conclusion by looking at a fairly narrow slice of jobs—13 industries that involve the highest rate of research and development spending and STEM degrees per worker. That includes much of the software industry, as well as jobs in areas like pharmaceuticals and aerospace. The researchers found that, between 2005 and 2017, five metro areas—San Jose, San Francisco, Seattle, San Diego, and Boston— not only added lots of jobs, they were also becoming more dominant in those industries overall.

TechJobsWired2005to2017

In part, that’s due to changes in what businesses need, says Enrico Moretti, an economist at UC Berkeley who wasn’t involved in the study. The enduring dominance of some tech hubs is somewhat counterintuitive. Technology was supposed to be a democratizing force—the internet and iPhone would make it possible to do innovative work from just about anywhere. But instead, high-tech industries became about proximity to your fellow high-tech workers. Businesses clustered around hubs of investment, in places where skilled workers could stick around after school, hop between jobs, and stay in touch with contacts. That plays out on an individual level too, Moretti says. In recent research tracking the patent activity of scientists as they moved in and out of places like the Bay Area, Moretti found that they were far more productive in those innovative hubs…

The researchers’ point is that it’s hard to build hubs of innovation from scratch—in places where the economy is really struggling, and where there’s little existing tech talent. Instead, you want to start with places that are already buzzing, and through a mix of investment—in things like R&D, education fellowships, and financing for small businesses—and tax incentives to encourage new business, nudge them to become innovation hubs. In other words, those places are already fertile ground for high-tech companies, but they need a little more fertilizer to get there. The researchers prefer federal investment to local subsidies that try to attract individual businesses—an often fruitless effort for smaller communities, as incidents like the downsized Foxconn factory in Wisconsin and Amazon’s HQ2 search demonstrate.

How exactly these centers of industry arise, thrive, and consolidate (and then maybe fade away or die?) is a good subject of academic study. Through a series of decisions, conditions, and good circumstances, agglomerations start. Inertia can carry them for a long time. As noted in the last paragraph, it can be difficult to introduce competition from other centers or create new centers once the main locations are well-established. Tech center do not just happen; they are the result of multiple social processes, interactions, and decisions.

Additionally, it is interesting to see that there is still a lot of value of actual physical locations near other businesses or organizations – even in a field that can render spatial and time distances less relevant. Being close to other people, being able to actually stop by or talk to them, still matters. All of this can add up to a location with a collection of similar organizations being more than the sum of its parts.

Designing your own Peytonville, Part 3

A new Peytonville commercial from Nationwide is on television. This one focuses on the college campus:

Peytonville3

For all of the big images from the first commercial – the wide shots of a metropolitan region – the focus here is on a traditional looking college campus. In the image above, there is the impressive brick building, likely home to administrative offices. There is the gate marking the main entrance. Students and other people are walking and biking in and around campus. The lawns are well-manicured, the sidewalks wide.

And lurking in the back left is the football stadium. I should have known that with Peyton Manning in the commercials that the emphasis would not remain solely on small town life outside the big city. In the wide shots from the original commercial, it appears the college campus is on the top left:

Peytonville1

The campus is a good distance away from downtown and might even exist on its own platform.

One concern: do viewers associate Peyton Manning more with college football or pro football? He had successful years at Tennessee. But, he really stood out in the professional ranks where he won two Super Bowls, one season MVP, went to the Pro Bowl numerous times, and set multiple passing records. Peyton is on campus in the commercial but wouldn’t he be better set outside of the Colts stadium in downtown Indianapolis or the Broncos stadium in Denver? Such a scene would not lend itself to the green, bucolic college campus.

National political leaders’ connections to cities, urban areas, and population centers

In thinking over the (dwindling) 2020 Democratic field for president, I wondered whether national politicians on the whole come from big cities and metropolitan regions. Some (somewhat incoherent) thoughts on the possible connection:

1. The United States is an urbanized country with a little over 80% of residents living in metropolitan areas. Most people live in these places, more politicians come from these places.

2. Politicians need to connect to large pools of voters before they hit the national stage. They can do that in sizable regions/cities and build a base before seeking a larger presence.

3. If national politicians do not necessarily connect with cities, it still seems to help to come from a more populous state where they have appealed to more voters and can make a stronger case about facing complexity before addressing a national stage. I’m thinking of George W. Bush who had numerous connections to Dallas, came from Texas, yet seemed to prefer more rural life in Crawford. He may not have been an urbanite but he had enough connections and experience in one of the most populous cities and states. In contrast, politicians like Bill Clinton or Nikki Haley might have to work harder to reach the national scene coming from less populous states or communities or those operating in second tier cities or regions like Jay Inslee in Washington state or Amy Klobuchar in Minnesota.

4. Does social media help candidates breakthrough an urban/rural divide? If the ultimate outcomes still come to votes, probably not.

5. Is there a major candidate or figure in any party who truly exemplifies a suburban lifestyle? I can think off the top of my head of numerous figures from big cities and others from more rural areas but who is a suburbanite in an era when political elections are decided by suburban voters?

Reminder: only 17% of the jobs in the Chicago region are downtown

An article I posted about earlier in the week included this statistic:

Downtown Chicago accounts for 17% of jobs in the six-county region, according to the Illinois Department of Employment Security…

But most of the region’s jobs — almost 3 million — are outside of downtown and may require more complicated commutes. More than 400,000 people commute every day from Chicago to jobs in the suburbs, according to the Regional Transportation Authority

This 17% is still a sizable percentage of jobs within the region. Put those jobs together with other economic resources, cultural opportunities, political resources, and historical inertia and the Loop is still a center of the region.

But, this also suggests 83% of the jobs in the region are outside Chicago’s downtown. Many Chicagoland residents do not need to go near downtown for work. Many commutes are suburb to suburb. As the second paragraph above notes, even hundreds of thousands of Chicago residents travel from the center to the suburbs for work.

At the least, such numbers should help us reconceptualize cities, suburbs, and regions. The varied pieces within a region are interdependent. Problems need to be solved across communities and taxing bodies. Celebrations take place across the region. The problems of either cities or suburbs are not only theirs to address. The communities are competing against other regions more than each other.

Mapping vehicle emissions in the Chicago metropolitan region

The New York Times maps and discusses vehicle emissions across American metropolitan areas:

ChicagoVehicleEmissionsMap

Even as the United States has reduced carbon dioxide emissions from its electric grid, largely by switching from coal power to less-polluting natural gas, emissions from transportation have remained stubbornly high.

The bulk of those emissions, nearly 60 percent, come from the country’s 250 million passenger cars, S.U.V.s and pickup trucks, according to the Environmental Protection Agency. Freight trucks contribute an additional 23 percent…

Suburban driving, including commuting, has been a major contributor to the expanding carbon footprint of urban areas, Dr. Gately said.

But, he added, “Even in the densest cities, the vast majority of trips still happen in a motor vehicle.” These trips include work commutes, school drop-offs and millions of other daily errands as well as freight deliveries and other business traffic, each of which contribute to planetary warming.

The United States has organized much of its society around driving. Plus, many Americans like driving or the benefits they believe driving offers. It will be hard to enact quick large-scale changes to this though smaller efforts (such as fleets of electric vehicles or denser suburban areas) could add up to change over time.

The data from the Chicago area is interesting. Like most metro areas, the emissions are centered on major highways with some of the areas with most emissions being the Kennedy Expressway, the Dan Ryan Expressway, I-88 at I-294, and I-88 at I-355 (these are likely areas with high levels of congestion and gridlock). From the maps, it is hard to know how much of the emissions come from freight trucks but I would imagine the proportion could be high in the Chicago area given its central location, highways, and intermodal facilities. Chicago ranks 5th in total emissions – behind New York, Los Angeles, Dallas-Fort Worth, and Houston – and the per-person emissions ranks on the low end of metropolitan areas. Although the region is the third largest metropolitan region in the United States, it does have more mass transit than a number of other regions.

Sports stadiums and white flight

How the Atlanta Braves and Atlanta United went about procuring their stadiums hints at the city’s racial divides:

Accompanying the announcement, the team released a map showing where, precisely, Braves Country was—and, notably, where it wasn’t. That view of the greater Atlanta area was speckled with red dots, each one indicating the home of a 2012 ticket buyer, including season-ticket holders. Only a smattering of red appeared to the east, west and south of Turner Field, while thousands of dots congealed into a ribbon above downtown that expanded into a wide swath in the half-dozen suburban and exurban counties to the north. The new stadium would be closer to the middle of that mass, which happened to embody an older, whiter and more conservative population than the city proper. Those northern suburbs were fast diversifying, yet many in Atlanta—particularly in its black population—felt slighted by the decision, their perspectives colored by decades of racial and political tension between city and sprawl.

Five months later MLS commissioner Don Garber, Falcons owner Arthur Blank and then-mayor Kasim Reed proclaimed in their own press conference that downtown Atlanta would be home to MLS’s 22nd franchise, and the new club, Atlanta United, would take the pitch in 2017, the same year the Braves headed to Cobb. The soccer team would play in the same new $1.6 billion stadium the Falcons would soon call home, but United would be no afterthought. The facility would be designed to accommodate the beautiful game from the start. Pushing back against skepticism and pointing to an influx of young professionals near Atlanta’s urban core, Blank assured MLS’s leaders he could fill the massive venue, even in a market known for lukewarm enthusiasm toward pro sports. Reed boasted that his city’s foreign-born (and, seemingly implied, soccer-loving) population was growing at the second-fastest rate in the U.S. Garber himself insisted these factors combined to make downtown an ideal MLS incubator. The city “embodies what we call a ‘new America,'” he said, “an America that’s blossoming with ethnic diversity.”

Fast-forward five years, and Atlanta United’s ticket-sales map, while not a direct inverse, is considerably more centralized than Braves Country (or even, says United president Darren Eales, a depiction of the Falcons’ fan base). United, meanwhile, aided no doubt by winning the 2018 MLS Cup, has led MLS in attendance in each of its three seasons, averaging 53,003 fans in ’19, among the highest in the world. This echoes the success the Braves found when they chased their audience to the north, the farthest any MLB team had ventured from its city center in 50 years. The Braves’ average home attendance, aided too by on-field success, reached 32,779 fans this season, up 31% from their last year at Turner Field…

Kruse, the Princeton history professor, is blunt in his assessment of such feelings. “These ideas about downtown being a dangerous place are really about the people downtown,” he says. For years he thought that “suburbanites want nothing to do with the city except to see the Braves.” But today? “That last connection has been severed. I see this movement of the stadium as the culmination of white flight.”

Trying to connect with particular fan bases or contributing to decades-long processes of residential segregation and white flight? How about both?

Three additional thoughts:

  1. More could be made here of the public money the Braves received from Cobb County. Plus, they could develop land around the new stadium, now a common tactic to generate more revenue beyond fan attendance. Yes, fan attendance is important but the long-term money may be in investing money in land surrounded by whiter and wealthier residents. Stadium development then just continues the process of limited capital investment in neighborhoods that could really use it and concentrates it in places where wealth is already present.
  2. Baseball is widely regarded as having an older and whiter fan base. Soccer is said to have a more diverse and younger fan base. In addition to the demographics of the Atlanta area, the sports themselves try to appeal to different audiences (even as they might work to reach out to different groups).
  3. It will be interesting to see how many sports teams in the next few decades move to more niche locations while still claiming to be from the big city. Civic identity is often tied to sports teams as most metro areas can only support one team from the major American sports. Can big city politicians still lose when the team from the area decides to move to a suburb (see a recent example in the Las Vegas area) but takes that revenue out of the big city? Can a team that locates in one particular area of the metropolitan region still easily represent the entire region?

Finding the second cities in tickets sales for NFL teams

Vivid Seats looked at ticket sales for NFL teams by location and found the place with the second-most ticket sales could vary:

Naperville represents the No. 2 most popular market for the fan base of a certain team from a certain town, known as Da Bears, according to ticket sales from Vivid Seats

It should come as no surprise that outside Green Bay, Milwaukee has the biggest fan base of Packers fans…

According to Vivid Seats, the second city with the highest overall percentage of ticket orders for its team was Colorado Springs, Colorado…

The Patriots’ fan base spans across New England, and Vivid Seats reports Quincy, Massachusetts, is the team’s second city. Providence, Rhode Island, isn’t far behind, and Nashua, New Hampshire, and Saco, Maine, are other hotbeds of Patriots fans…

For the Oakland Raiders, its No. 2 city is Sacramento, California, and Erie, Pennsylvania, comes in second to Pittsburgh for the Steelers.

A quick hypothesis: the distribution of ticket sales by NFL team is largely a function of the population of communities and distance from the home city of the team or the city where the team’s stadium is located.

These factors could be mediated by other influences. The relative wealth of communities could matter as NFL tickets are not cheap. The distance from the stadium may not be the best measure compared to access or time needed to get to the venue. Furthermore, the analysis suggests some fan bases draw from secondary cities in a region, like Providence for the Patriots or Sacramento for the Raiders.

With these factors at play, would the distribution of NFL ticket buyers largely reflect inequality across metropolitan regions or do ticket sales cut across racial, ethnic, and class divides?