Moretti’s economic tale of two cites: where Microsoft is now and Albuquerque

Posted by Dwight Steward, Ph.D. | U.S. Economy

In Moretti’s book, he provides a detail study of how innovation jobs can be economic driver and dictate the economic future of a town, city or region.

Moretti discusses where Microsoft (MSFT) is now , Seattle, and Albuquerque, NM.  These two cities embody the natural experiment that he suggest shows the impact of innovation jobs.  In short he shows how one town has grown and blossomed and the other has not.

 He points to three factors that have lead to the drastic divergence.

1 Job Creation.  The sheer number of innovation jobs created by Microsoft both directly and the tradition jobs that were created indirectly.

2. The MSFT millionaires. These millionairies changed the landscape of Seattle as they started their own companies in around the city (and the industry).

3. The Hubs.  According to Moretti cities like Seattle have become ‘Hubs’ that attract other businesses.  Many businesses find that the existence of other companies both in their industry (competitors) and related companies attracts other companies and makes it easier for them to do business