The Importance of Social Networks to Start-Up Economies

More

As our metropolitan areas grow larger, the synapses that connect them -- highly networked people -- become more and more essential to economic growth


city oct18.jpg


For centuries, geography was crucial for economic success. Agricultural societies fared better in temperate climates and near water sources; cities grew up along trade routes or near natural resources. But the most important resource for a city today is its skilled people--and the most critical skills they have are social.    

Social skills (or social intelligence) is not the same thing as sociability. Persuasion, perceptiveness, group management skills, and empathy are all abilities necessary for successful leaders, and those who possess such skills tend to have significantly higher salaries. As local economies grow and become more complex, people who can juggle disparate information and help others work together become increasingly important. Just as a developing brain needs more synapses, developing cities need more people to be good at forming connections. These people are the entrepreneurs that launch new ventures--and the executives that build them into major companies. 

I elaborated on the story in the October issue of The Atlantic magazine:
Jobs requiring physical skill cluster in small and medium-size metro areas--industrial centers where land for factories is relatively inexpensive. Jobs featuring analytic skill are sparse in these places, and heavily concentrated in larger metro areas--indicating the rising benefits of having high numbers of well-educated, highly intelligent people working close together. And jobs requiring the highest level of social skill are the most concentrated in the very largest metro areas--where, combined with the high prevalence of analytic skill, they underpin faster rates of innovation and growth.

Read the full story here.

Image: Ipyo/Flickr.
Jump to comments

Richard Florida is Senior Editor at The Atlantic and Director of the Martin Prosperity Institute at the University of Toronto. See his most recent writing at The Atlantic Cities. More

Florida is author of The Rise of the Creative Class, Who's Your City?, and The Great Reset. He is founder of the Creative Class Group.

Get Today's Top Stories in Your Inbox (preview)


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Miami: The Next Big Start-Up City?

How the city became a center for innovation

Video

Video

A Brief History of Romantic Comedies

From The Atlantic's Chris Orr

Video

Video

Life in 'the New Arctic'

A moving portrait of a fading landscape

Video

Video

The Rise of New York City

A fascinating look at Manhattan in the 1940s

Video

'I Thought It Was Really Funny, but No One Else Did'

A day with New Yorker cartoonist Joe Dator

Video

New Yorkers: The Winemaker

Make your own wine ... in New York City

Video

What Is Methane Hydrate?

"Flaming ice" is a vast natural energy source

Video

NASA's Time-Lapse of the Sun

Now with epic dubstep music

Video

A Video Letter From the Editor

Highlights from the May 2013 issue

Video

Shaken Not Tuned: Cocktail Experiments

Can a tuning fork improve a cocktail?

Video

Video

The Rise of Environmentalism

Tracking 50 years, from the Love Canal disaster to Greenpeace

Video

Is He Cheating? A 1950s Guide

'That little blonde secretary from the office?’

Video

New Yorkers: Vintage Vacuum-Tube Amps

Risking electric shock to restore old amplifiers

Video

The DIY Piano-Bicycle

Everybody needs a hobby

Writers

Up
Down

More in Technology

In Focus

2013 National Geographic Traveler Photo Contest

From This Author