What's Driving High-Tech's Urban Love Affair?

Richard Florida chronicles the reasons why high-technology firms are increasingly vacating suburban office parks and "nerdistans" for urban addresses, from London to Los Angeles.

2 minute read

September 4, 2012, 5:00 AM PDT

By Jonathan Nettler @nettsj


Although the decidedly suburban Silicon Valley remains the world's pre-eminent center of the high-tech industry, start-ups and smaller firms are putting down roots in urban areas such as New York City's Silicon Alley and London's Shoreditch district, in order to lure coveted employees, connect to customers, and spark innovation. 

According to Florida, the reasons for this migration are many. For one, "Compared with previous
generations, today's younger techies are less interested in owning cars
and big houses. They prefer to live in central locations, where they can
rent an apartment and use transit or walk or bike to work, and where
there are plenty of nearby options for socializing during nonwork hours." 

It's not just young professionals that are attracted to citiesm however. "With all their cultural
and intellectual amenities, urban centers are also the preferred
locales for many leading scientists and engineers."

"An even bigger part of the story is rooted in the changing nature of
technology itself," notes Florida. "A generation or so ago, the fastest-growing high-tech
companies were more like factories," requiring large spaces (most readily and cheaply available in the suburbs) to located their operations. But, "The changing nature of technology-cloud-based applications in
particular-enable new start-ups to succeed more quickly, with smaller
teams and much smaller footprints."

"Cities are central to innovation and new technology," concludes Florida. "They act as giant
petri dishes, where creative types and entrepreneurs rub up against each
other, combining and recombining to spark new ideas, new inventions,
new businesses and new industries." 

 

Friday, August 31, 2012 in The Wall Street Journal

View form second story inside Southdale Mall in Edina, Minnesota with escalators and model cars parked on downstairs floor.

The Mall Is Dead — Long Live the Mall

The American shopping mall may be closer to its original vision than ever.

March 21, 2024 - Governing

Houston, Texas skyline.

Report: Las Vegas, Houston Top List of Least Affordable Cities

The report assesses the availability of affordable rental units for low-income households.

March 22, 2024 - Urban Edge

Historic buildings in downtown Los Angeles with large "Pan American Lofts" sign on side of building.

Adaptive Reuse Bills Introduced in California Assembly

The legislation would expand eligibility for economic incentives and let cities loosen regulations to allow for more building conversions.

March 18, 2024 - Beverly Press

Amtrak train passing over tall trestle bridge on California coast at Gaviota Beach.

LA-to-San Francisco Night Train Closer to Reality

A train operator has entered into formal negotiations with Union Pacific to move the project forward with a projected launch date of 2025.

March 27 - SFGate

Major League Baseball Stadium

Lawsuit Aims to Stop Dodger Stadium Gondola

A proposed aerial tram project that would shuttle visitors to L.A.’s Dodger Stadium faces backlash from environmental and community groups.

March 27 - Los Angeles Times

ROwn of grey and white townhomes with gabled roofs and front porches.

Why Parking Reform Goes Hand in Hand With More Housing

To achieve the full benefits of ‘missing middle housing’ and make way for small-lot construction, cities must rethink parking mandates.

March 27 - Sightline

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.