I’ve been gradually building a presence there: it’s a platform that works particularly well for long-form pieces like this. Go take a look!
I’ve been gradually building a presence there: it’s a platform that works particularly well for long-form pieces like this. Go take a look!
The research looks at the links between ethnic diversity in firms’ top teams (owners, partners and directors) and the performance of those firms (specifically, how much revenue they make).
I also look at how those linkages vary across different types of firms, and how different types of urban environment may help or may not.
I find positive diversity-links – but only for certain kinds of companies. The strongest links are for a group of large, knowledge-intensive businesses who comprise about 16% of my sample. The role of cities is also complex. For this first group, being in London amplifies the diversity ‘effects’.
But for a second, smaller group of younger companies, diversity channels seem to be swamped by London’s higher costs and greater competition. These firms perform better when in smaller, cheaper cities like Manchester or Birmingham. In turn, that suggests policies to promote ethnic diversity in firms need to be quite carefully tailored to industry and local conditions.
Here’s the abstract:
A growing literature examines how ethnic diversity influences economic outcomes in cities and inside firms. However, firm–city interactions remain more or less unexplored. Ethnic diversity may help firm performance by introducing a wider range of ideas, improving scrutiny or improving international market access. Urban locations may amplify in-firm processes via agglomeration economies, externalities from urban demography or both. These firm–city effects may be more beneficial for knowledge-intensive firms, and for young firms with a greater dependence on their environment. However, firm–city interactions could be negative for cost and competition-sensitive younger firms, or for firms operating in poorer, segregated urban markets. I deploy English cross-sectional data to explore these issues within firms’ ‘top teams’, using latent class analysis to tackle firm-level heterogeneity. I find positive diversity–performance links for larger, knowledge-intensive firms, and positive firm–city interactions both for larger, knowledge-intensive firms in London and for younger, smaller firms in second-tier metros.
City Limits is a lovely 1971 film about Jane Jacobs. You can watch the whole thing here; it’s about 30 mins long. Directed by Laurence Hyde for the Canadian National Film Board, the documentary features Jacobs talking through her ideas, interspersed with some terrific footage of Toronto, New York, London and other cities around the world. I’m indebted to Martin Dittus for digging it out of the NFB archives.
The 30-minute film is worth watching for many reasons. For starters, Jacobs herself appears in much of it – sat in a park, shopping in a market, buying a newspaper, and at one point clambering into a helicopter to survey Toronto from above.
At the same time, the film is a great summary of Jacobs’ big ideas about how urban neighbourhoods – and cities – work, when they succeed and when they fail. Jacobs is a superb writer, but she never spells it out for you. The film does, and in the author’s own words:
A city is an organism, and a very complex one, and an ever changing one. I would like us to see cities as ecologies – because that’s what they are. As surely as the ecologies of the natural world. The ecology of a city is of the same order of complexity as the ecology of a woodland. And this is what proper city planning ought to be directed to.
This is the essence of a crucial chapter buried in the back of The Death and Life of Great American Cities: ‘The Kind of Problem a City Is’ (page 558 in my edition). It’s the research design for the book: it’s also Jacobs’ whole way of doing urbanism.
Watching the film reminds me how prescient Jacobs was. There’s a surprising sequence on cultural diversity, which Jacobs presents both as an amenity, and as a channel of innovation:
Foreign districts introduce extra dimensions into a city. They often introduce new kinds of food, new customs, new music, even new kinds of clothing. And they’re a lot of fun for people who aren’t familiar with those customs, foods and so on. … that’s the way things spread in cities. And from cities to other places.
This innovation argument is the big idea from The Economy of Cities. ‘Jacobian externalities’ are knowledge spillovers across sectors: these are self-reinforcing, and help cities become resilient to economic shocks. What I hadn’t previously spotted was that Jacobs sees *cultural* and *economic* diversity as so closely intertwined.
Jacobs also makes some subtle points about mobility and technology. She came to prominence in New York opposing Robert Moses’ megaschemes for urban motorways and ‘sum clearance’: not surprisingly, then, much of the film is concerned with congestion and pollution. But Jacobs has a much more profound argument:
People worry that there’s too much progress – in fact it’s just the opposite. … Automobiles don’t represent progress any more – they’re pretty old …
There’s no solution in saying people should live close to their work and shouldn’t travel. People change their jobs, goods have to move. So the problem is mobility – but the automobile isn’t providing much of an answer.
In other words: the car-based city is old thinking. The future is mass transit, bikes, and mobility as a service, enabled by technology. Scroll forward to 2016, and that future is taking shape all around us.
In 1971, however, this meant ‘Dial-a-Bus’ [link7] – a prehistoric Uber Pool, summoned to your house by landline and whisking you and fellow commuters to the local train station.
Jacobs was a thinker and an activist, not a consultant. It’s not as easy as it looks to derive practical guidance from her work – not least because she is the original full-field urbanist, drawing together history, built form, economics, social structure and culture into her analysis. Watching the film is a salutary reminder of this; it also emphasises how much Jacobs’ work draws on close observation of specific places she knows well.
Death and Life … tends to be distilled into four urban design tropes: high density, short city blocks, mixed use, old buildings. Result: every 1990s block of flats with space for a shop at the bottom (but VAT rules that incentivise developers to knock down old buildings). That’s clearly not enough to make a street or neighbourhood ‘work’, if it has no relation to the demographics and socio-economic life around it. The film is a neat reminder that we shouldn’t reduce Jacobs to design code box-ticking. But it also highlights just how tricky it is to roll her ideas into generalised practice. ‘What should a city be like?’ asked Reason in 2001. Jacobs’ answer: ‘it should be like itself’.
The film also highlights how much Jacobs’ thinking about urbanism is a product of its time. All around her cities were losing people to the suburbs, and losing old urban grain to modernist, car-centric city form. Many neighbourhoods were emptying out. In London and New York today, all of that has flipped around: populations are growing, high-value activity is back, and we have an urgent crisis of housing and cheap space.
Ed Glaeser famously has a go at Jacobs in The Triumph of the City, arguing that preserving old buildings simply chokes off the supply of bigger, newer ones, and the subsequent gentrification pushes out the artists and mixed communities she sought to preserve. I’m not sure that’s completely fair: she was dealing with a different era’s problems. But it also seems that she had fairly little to say about today’s urban crises. That is the message from of this 2003 Brick interview, conducted three years before Jacobs’ death. She’s asked whether today’s cities are in better shape. She replies:
In some ways there’re worse and in some ways better. The things that are worse I don’t think are so much focused or anchored in cities as they are in our North American culture as a whole … I think that things are getting better for cities in that there’s not the great ruthless wiping away of their most interesting areas that took place in the past … however, I think the urban sprawl outside of cities has gotten much worse.
In the Reason interview she goes a little further, citing Portland, Seattle and San Francisco as ‘attractive places … where good things are being done.’ The interviewer asks about gentrification and rising prices. She bats away the question.
It’s early morning, and the city is beginning to dance. The camera follows Jacobs as she crosses a busy street. A man walking beside her notices the camera and gazes in increasing curiousity at our heroine, trying to place her. Unable to do so, he wanders away. Lost in thought, she disappears into the crowd.
Here’s the link to the film again.
A late plug for this. I did a panel event on ‘Europe’s Migration Crisis’ with the Royal Geographical Society a few weeks back, alongside Heaven Crawley, Madeleine Sumption and Christina Boswell. The Guardian’s estimable David Walker chaired it.
I gave an overview of the local economics of migration, focusing on the recent UK experience, and drawing on some of my work – as well as borrowing a couple of nice maps from the Migration Observatory.
Here’s the summary I sent the organisers:
My talk will look at migration impacts at the local level, especially in cities. I’ll argue that we should look both at people flows, but also at the diversity that migration brings. Today’s public conversation about migration is focused on jobs, housing and public services. That’s understandable, and there are some real concerns here.
I also want to shift the conversation to cover migration as an influence on long term economic growth, with impacts on productivity, innovation, entrepreneurship and trade. Skilled migrants (from inside and outside the EU) are central to this, and the evidence we have suggests that there are positive effects of these groups on economic outcomes policymakers should care about. We need to know much more about how these channels work, of course. But national government and cities can start – now – to adjust policy to make more of these opportunities.
I’ve written a couple of posts for the What Works Centre on how to use new data sources, and data science techniques, in designing and evaluating local growth programmes.
In parts of the interweb ‘Big Data’ is now such a cliché that dedicated Twitter bots will dice up offending content – see above. But in local economic development, and urban policy more broadly, researchers and policymakers are only beginning to exploit these resources.
Bonus Levels is a series of beautifully realised recreations of London locations, re-imagined as Ballardian dreamscapes, elements of an impossible city. In After Us, creator Lawrence Lek describes his work as ‘architecture as site-specific simulation’, in which existing parts of the cityscape and its institutions are ‘reconfigured and subverted’ by some apocalyptic or economic shock. I think this can help us think about real-world urban change too. Let’s look at a couple of examples.
In ‘Dalston, Mon Amour’, some familiar landmarks of the Kingsland Road – the Rio Cinema, Gillett Square and once on-trend Efes Bar are rendered empty and open to the elements after a biblical weather event. Terraformed by desert and water, Renais’ film plays in the background as the sky darkens.
You can certainly treat this work as satirical – hipster touchstones crumbled into dust – and Lek is clear that this is part of the point. The use of video game aesthetics is also nice, although as Lek points out, ‘the player begins when the game is already over’: it’s first-person flaneur. The game framing also exacerbates the dreamlike quality of each episode – background sounds pan around, and there are sudden changes in perspective or time of day.
There’s also a deeper, uncanny power to it. Places we knew and hold dear, transformed into dreamspaces. As Adam points out, Vermilion Sands, The Sprawl or De Chirico are never far away. But also – for some viewers – their own memories are reconfigured. As Lek argues, the more time you spend in each episode, the more meaning your own mind layers over it.
I experienced a real-world retelling of my own world a few months back, in farcical form, as a group of us were taken on a guided tour of ’Silicon Roundabout and Tech City’. The tour had felt like a good idea as part of a new paper we’ve been writing on the East London tech scene: in practice it involved much psychodrama.
As the tour went on, for example, I was alarmed to find that the guide’s spiel included numerous factoids taken from my own research, fed back in slightly distorted form. Even worse, as we left Old St roundabout we were taken to the Foundry, a now-deceased bar and venue my friends and I spent much time in during years gone by, and which was shut down amid much protest. The guide described it as an ‘important cultural institution throughout the 90s and some of the 00s’: opening up a chasm of lost time in the process. The site now houses the Hoxton Pastry Union, an almost comically resonant symbol of the changes the neighbourhood has since gone through.
Sharing this moment with friends afterwards, it became clear what a powerful charge it packed.
A more formal way to think about Lek’s project is a series of spatial imaginaries, Bob Jessop’s term for the mental maps we all use to get purchase on everyday life. More formally, Jessop means imaginaries to act as mapping systems or ‘fixes’ that allow agents to navigate otherwise impossibly complex late capitalism.
Imaginaries – like Silicon Roundabout / Tech City itself – are necessarily partial, pushing some elements to the fore and ignoring others. They are thus ripe for the kind of reconfiguring and questioning Lek engages in.
Part of the paper I’m working on looks at Here East, the vast Olympic Broadcast and Media Centre which is being rapidly transformed into a new, maker-focused neighbourhood. On a recent visit the site was still under construction, but we got a clear sense of the developers’ vision.
Notice how the rebrand involves both a new name, a new industrial niche, and a spatial repositioning of the site, away from Stratford and into Hackney, specifically the artist-centric milieu of Hackney Wick which sits just over the canal.
I was happy to see that Bonus Levels has also engaged with this territory. ‘Delirious New Wick’ is a hysterical rebuild of E9 and the Olympic Park, in which the Games’ iconic structures float above the park and are accessed through teleporters. A gorgeous Burial soundtrack runs in the background as we float high above the city, before descending onto the ruins of the Westfield mall, now partially submerged in an Arthurian Lake. It is heady, brilliant stuff.
The Tech Map London is out, and so is the research that underpins it. It’s an extremely impressive piece of work, and anyone remotely interested in urban tech ecosystems should take a look. Kudos to the GLA for commissioning it, and to Trampoline Systems and SQW who put the thing together. Other city-regions should try and do something similar.
Here’s some notes I made. It gets a bit geeky in places.
1/ Patterns – one widely-reported headline is that London has a whole bunch of technology hotspots, not just one. That makes sense, and chimes with other recent analysis. And as some colleagues and I explore in a forthcoming paper, even pre-2010 Silicon Roundabout was linked into a much larger system.
Another is that the tech sector is ‘shunning’ the Old St area. That’s harder to see, as there’s no time dimension in the data, but it’s clear that as that neighbourhood’s technology scene grows, and the area gets pricier, things will tend to spread out. This is what I found recently in some work for Centre for London.
2/ Definitions – The definition of ‘tech’ is important, and this NESTA piece makes clear, there’s a bunch of competing definitions in play. The project team base their work on the recent ONS science and technology categories, though they tell me they tweaked these a bit. This feels sensible, and has the advantage of allowing them to consider (say) medicine and life sciences alongside ICT.
3/ Data – the report uses high quality IDBR data for some of the analysis, but relies on Companies House data for the actual mapping, which identifies tech firms using self-reported industry codes. This isn’t great, as the authors acknowledge: a non-trivial share of firms don’t report anything, others put down non-informative codes (say, ‘other business services’), and SIC codes often don’t tell us much about products/services. Companies House data on employment and revenues is also quite gappy, and comes off of a selected subsample. Use those numbers with caution.
Anna Rosso and I have used a big data-driven approach [unlocked version] to try and get around some of these issues, though this isn’t perfect either. We’re now testing a combination of administrative and modelled info which should plug a lot more of the holes.
4/ Location – I’m still scratching my head a bit on this. Companies House data gives the address of a registered office, not the trading address. The two could be quite different, and in extremis, not even in the same city. The project team did a survey to explore these issues, finding that for most SMEs, the two addresses are the same, so developed the map on that basis. It’s obviously critical that the survey is robust for us to believe the map.
I couldn’t find that much detail in the report, but assuming the survey is sound, this is a pretty helpful finding for me and others working with company data. Meanwhile, we can get a rough sense of the correspondence by comparing the map at the top of the page with this one.
The first uses IDBR employment data from actual plant locations, the second uses Companies House registered addresses. For some reason, the first map covers the whole of science and tech, while the second only looks at digital technologies (around 18% of all science and tech jobs in 2013) and is in logs, not raw counts. The two line up *fairly* well, but really we need to see a like-for-like comparison using plants/enterprises, not jobs. Note: I’d be very happy to update this material if the team can furnish me with more detail.
I’m going to be a Senior Birmingham Fellow in Regional Economic Development. This is basically an Assistant Professor position, but focused on research until 2020 after which it converts to a regular tenured slot. So it’s a lovely thing to have.
I’ll be working on a bunch of projects looking at technology ecosystems and clusters across the UK and further afield, as well as helping out with the new City-REDI initiative. More details on those soon. I’m also planning to continue research on diversity and migration, with new colleagues at the Institute for Research into Superdiversity. And I’m looking forward to kicking off new ideas with colleagues in Geography, Economics and elsewhere on campus.
Here are slides and audio from my public policy talk at Motu. This looks at the What Works agenda in the UK, particularly the work of the What Works Centre for Local Economic Growth, and some of the opportunities and challenges these institutions face.