Why Many Cities Should Start Looking Beyond Eds and Meds

For many years, economists have touted the higher-education and health care sectors as powerful engines for local economic growth. However, a growing chorus of observers are warning about the continued validity of that premise.

1 minute read

November 27, 2013, 12:00 PM PST

By Jonathan Nettler @nettsj


"The reasons many cities turn to eds and meds for economic development are easy to understand," observes Richard Florida. "Both industries have been defined by substantial growth over the past few decades, and that looks set to continue." However changes are afoot in those industries that will likely result in a "greater concentration of the education and medicine sectors in fewer cities and regions." 

Florida and his colleagues dig into employment data to determine which local economies are most at risk by such consolidation. Their analysis reveals that small cities like Goldsboro and Greenville in North Carolina; Johnson City, Tennessee; and Rome, Georgia might want to diversify their economies.

And, as he notes, this might not necessarily be a bad thing. Analysis by his colleague Charlotta Mellander indicates that "[e]ds and meds employment levels were uniformly negatively associated with nearly every single important measure of regional economic performance: income, economic output per capita, and high tech industry concentration."

Tuesday, November 26, 2013 in The Atlantic Cities

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 7, 2025 - Diana Ionescu

Person in yellow safety suit and white helmet kneels to examine water samples outdoors on a lake shore.

USGS Water Science Centers Targeted for Closure

If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.

May 1, 2025 - Inside Climate News

Wide suburban road with landscaped median and light pole banners advertising local amphitheater.

End Human Sacrifices to the Demanding Gods of Automobile Dependency and Sprawl

The U.S. has much higher traffic fatality rates than peer countries due to automobile dependency and sprawl. Better planning can reduce these human sacrifices.

April 29, 2025 - Todd Litman

Wasco Viaduct under construction in California's Central Valley as part of California High-Speed Rail project.

Trump: Federal Government Won’t Pay for California HSR

The President has targeted federal funding for the California bullet train project since his first administration.

May 8 - The Fresno Bee

Bird's eye view of Salesforce Park in San Francisco, CA.

San Francisco Enhances Urban Planning Initiatives with Green Infrastructure

San Francisco incorporates green infrastructure in its city development initiatives, elevating the importance of sustainability in urban planning.

May 8 - The Daily Californian

Aerial view of Chicago with river in foreground.

Chicago Approves Green Affordable Housing Plan

The Mayor’s plan calls for creating a nonprofit housing corporation tasked with building affordable housing that meets Green Building standards.

May 8 - CBS News Chicago

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.

Comprehensive Bikeway Design Workshop

Transportation Research & Education Center (TREC) at Portland State University

Early Bird Deadline – save on your tuition fee!🚨

Institute for Housing and Urban Development Studies (IHS)