Archive for the ‘Martin Prosperity Institute’ Category

Creativity, Clusters and the Competitive Advantage of Cities

June 26, 2015 Comments off

Creativity, Clusters and the Competitive Advantage of Cities
Source: Martin Prosperity Institute

Among the many important contributions made by Michael Porter in The Competitive Advantage of Nations was to call attention to the central role played by industrial clusters in the process of economic development (Porter, 1990a). He was not the first to identify the economic advantages of clustering of firms and industries, what economists refer to as “agglomeration economies.” Here he followed in the great tradition of Alfred Marshall (Marshall, 1890) and later Jane Jacobs (Jacobs, 1961). But what made his work so influential was how he identified these clusters empirically and was able to specify their role in economic development in a way that captured the attention not just of other economists and academics but also of policy makers in the real world.

Tourism as a magnet for creativity: Insights for creative class attraction in a tourism-based region

November 5, 2013 Comments off

Tourism as a magnet for creativity: Insights for creative class attraction in a tourism-based region
Source: Martin Prosperity Institute

Talent is seen as the crucial factor for growth and economic capacity. This is a commonly accepted corollary of the ideas presented by Florida in ‘The Rise of Creative Class’. This article explores the possibilities of a Portuguese ‘sun and sand’ tourism destination, the Algarve, to gain economic dynamism by using tourism resources to catch the attention of the creative class. The analysis presents the creative performance of this region in the three Ts, talent, technology and tolerance. An evaluation of possibilities for tourism product differentiation is presented. The high levels of tolerance and the potential of new tourism products anchored in historic, monumental, ethnographic and natural resources enhances the potential to attract the creative class.

Is your Region … Creative, Innovative, Productive, … or Just Populated?

October 19, 2012 Comments off

Is your Region … Creative, Innovative, Productive, … or Just Populated? (PDF)
Source: Martin Prosperity Institute

Previous Martin Prosperity Institute Insights have looked at the relationship between the population and GDP share for U.S. metropolitan areas. This Insight will look deeper into these findings, by looking at metros in relation to two additional variables-awarded patents and Creative Class occupations. While previous Insights have looked at metro population and GDP shares in relation to U.S. totals, this Insight will examine the percentage shares of each of these four variables relation to the U.S. metro total.

The top 5 metros that contribute the most to the U.S Metro Creative Class are New York, Los Angeles, Chicago, Washington and Boston. These 5 metros contribute to 23.33% of the total U.S. metro Creative Class occupation total. The top 10 largest Creative Class metros contribute to 35.04% of the total share and the top 25 contribute to 53.09%. These metros contribute a higher percentage to the total Creative Class metro total than the top 25 most populated metros contribute to total population (49.19%), but less of a percentage than the top 25 GDP metros contribute to total GDP (57.09%).

The top 5 metros with the most awarded patents are San Jose, San Francisco, New York, Los Angeles and Seattle. These top 5 metros contribute to 31.83% of the total awarded patents in U.S. metros (top 10: 47.03%, top 25: 68.39%!). This percentage is much higher than the percentages that the top Creative, populated and GDP metros account for. Established tech centers like Seattle, San Jose and San Francisco have much higher shares of awarded patents than they do GDP, population or Creative Class. Found on this list was also that metros such as Detroit, and Austin contribute more to the total patents, than much higher populated and GDP generating metros such as Houston and Dallas.

When looking at Creative Class share and awarded patents, it is once again apparent that the larger metros generally punch above their weight. This is especially true when looking at patents, as a small number of metros account for an astonishingly large percentage of the total U.S. metropolitan share.

Talent vs. Trade in Regional Economic Development

September 11, 2012 Comments off

Talent vs. Trade in Regional Economic Development

Source: Martin Prosperity Institute

Talent and trade are two key factors in regional economic development. But little research directly compares the comparative influence of the two. This research employs multivariate regression models to examine the independent and combined effects of these talent and tradable sectors on three measures of regional development: productivity (economic output per capita), wages, and innovation (patents per employee). Talent is measured as educational attainment and the regional share of knowledge-based occupations; trade is measured as traded industry employment shares. The findings indicate that talent has considerably more explanatory power than trade in accounting for regional economic performance.

The Geography of Music Preferences

December 9, 2011 Comments off

The Geography of Music Preferences
Source: Martin Prosperity Institute (Peter J. Rentfrow, Charlotta Mellander, Richard Florida, Brian Hracs and Jeff Potter)

Music spans many styles and genres, and previous research has identified five major categories of music preferences: mellow, unpretentious, sophisticated, intense, and contemporary. Our research examines the geographic variation in these five categories of music preferences and the socio-economic factors that shape them. Our research uses factor analysis to plot music preferences across the fifty U.S. states, and employs bivariate correlation analyses to relate the music-preference factor scores with socio-economic structures, personality variables and other factors across states. We find significant geographic variation across certain types of music preferences. We also find that the geographic structure of music preference is related to key socioeconomic variables such as income, education, and occupation, as well as political preference expressed as voting patterns.

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Effects of the Housing Boom and Bust on U.S. Metro Employment

July 15, 2011 Comments off

Effects of the Housing Boom and Bust on U.S. Metro Employment
Source: Martin Prosperity Institute

This paper examines the effects of the housing boom of the early 2000s on unemployment in U.S. metropolitan areas. A region’s share of housing units built between 2000 and 2006 has a negative effect or no influence on unemployment prior to the recession of the late 2000s, but the extent of a region’s housing boom generally increases unemployment during and immediately following the recession. Extensions to our main analysis suggest that construction-dependent regions with high shares of employment in retail and food service occupations, suggestive of a false economy supported by housing growth, were hit particularly hard by the recession.

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