December 11 (UPI) — The Brookings Institution and the Information Technology and Innovation Foundation, a think-tank, report that Silicon Valley and several U.S. coastal tech cities are still struggling to shake their status as “tech capitals” despite soaring housing costs, transportation chaos and aging infrastructure in Silicon Valley and several U.S. coastal tech cities. It is eating up more high-paying tech jobs than ever before, making the rich richer.
The researchers’ survey of the 13 technology-related industries with the highest spending on research and development and the highest percentage of STEM degrees earned by practitioners found that between 2005 and 2017, the five metropolitan areas of San Jose, San Francisco, Seattle, San Diego and Boston not only added a large number of high-paying technology jobs. And these cities are becoming more and more dominant in these industries.
Among them, San Francisco-Oakland-Hayward, California, added 77,192 new high-paying technology jobs, up 2 percent. This was followed by Seattle-Tacoma-Bellevue, Wa,”i. 56,394), San Jose-Sunnyville-Santa Clara, Ca., 52,288, Boston-Cambridge-Newton, Massachusetts (up 26,066) and San Diego-Carlsbad, California (up 1,999).
Mark Muro, a senior fellow at the Brookings Institution and co-author of the report, said their goal was to show where the focus of research-intensive industries was shifting, but the results did not change much. Perhaps most surprising is the widening employment gap. “We are seeing a growing trend that has lasted at least 20 years: the status of innovation centers is stronger and the rich become richer, ” Mr. Murrow said. “
Enrico Moretti, an economist at the University of California, Berkeley, points out that this is partly due to changes in corporate demand. The high-tech industry is getting closer to more people working in high-tech jobs, and companies are more concentrated around investment centers. In these places, skilled workers are more likely to stay, jump around between different jobs, and stay closer together. This also plays a role at the individual level, as scientists are much more productive at these innovation centers.
Moretti says the trend for innovation companies to come together is now on the cards. The growing focus on people also means that businesses are finally less sensitive to infrastructure issues that many people bemoan. This makes government policy intervention more difficult to do and to shift high-paying industries elsewhere. Where the economy is in trouble, or where there are few tech talents available, building an innovation center from scratch presents many challenges.