Does it Matter where you Work?
The most recent edition of Capital Ideas, Chicago Booth’s research publication, highlights the importance of the “nerdopolis” in driving economic growth...
The most recent edition of Capital Ideas, Chicago Booth’s research publication, highlights the importance of the “nerdopolis” in driving economic growth. In the article, a nerdopolis is defined as a city or location that is able to attract a high proportion of young, creative, knowledge workers and the organisations that employ them. A nerdopolis is typically home to a large number of tech companies, a thriving entrepreneurial community, well-regarded universities and a whole host of services and activities oriented toward creative workers. (Think artisan markets, exotic coffee bars, and adventure activities). Silicon Valley, Boston, and Austin, in Texas, come to mind as key nerdopolis cities in the United States. Outside the US, you might think of London, Zurich or even Oslo, capital of Norway.
According to the article, the future of the world economy may very well rely on the development of these “knowledge cities”. As creative skill, technology and innovation become more and more important to the world’s productivity and economic growth, those areas that can attract large numbers of the “creative class”, and the organisations that employ them, will have a competitive advantage. They will benefit from the cross-pollination of ideas and joint development efforts, and they can create an infrastructure that supports these ideas and firms. Urban areas and technology clusters have long been a driver of economic growth, but as more and more of our economy depends on brain power rather than horsepower, the advantages of knowledge clusters become even more important. Furthermore, a nerdopolis tends to be a virtuous cycle – once a city attracts a critical mass of the “right” type of workers, more of them want to move there – creating even more interesting ideas and making it even more attractive for the next wave.
What does this mean for the typical business school student? For one thing, it means that some of the most interesting job opportunities you’ll find will be located in some extraordinary cities around the world. Secondly, it also means that you should carefully consider where you’ll work, not just the type of work you’ll do. Some cities are likely to be the nerdopolis hubs of the future. If you build your career there, you will find that your career growth potential and learning opportunities far exceed those of other cities.
To be sure, there are downsides to these high-growth, high-wage cities. The most obvious one is a higher cost of living – especially real estate. The influx of well-paid engineers, financiers and others of the creative class drives up rents and housing prices – sometimes to the extent that the next generation of creatives is no longer able to afford to live there. The other potential downside is a growth in economic inequality and economic prospects. Those city dwellers who don’t have the education, skills or connections to thrive in a nerdopolis can be left behind. They don’t reap the rewards of the city’s growth and can ill afford the price increases that result.
So, is Hong Kong a nerdopolis or does it have the potential to become one? In some ways it is already there. Hong Kong has long been a centre of global finance and has attracted the best and brightest of the financial and trading world for generations. It has an energy about it that is both attractive and hard to duplicate – there is a “buzz” here that appeals to anyone trying to make their mark. It is ideally situated in Asia and offers the ability to get anywhere in the region quickly and conveniently. It has several very good universities, a diverse population (at least in some quarters) and a whole host of world-class amenities – from beaches and hiking, to restaurants and clubs.
Unfortunately, it also boasts the high rents and real estate prices common to the world’s most attractive cities. Furthermore, the dominance of the finance industry drives both attention and resources. As important as finance can be, other industries have a difficult time just getting recognised, not to mention supported. When the general consensus is that finance and investing is the best way to make a living, who wants to take the risk of starting something new? Finally, Hong Kong has limited physical space to grow. If Google wanted to recreate its California campus here, where would they put it? Space is at a premium and a significant disadvantage for Hong Kong relative to other cities such as Shenzhen, or even Singapore.
What does Hong Kong need to solidify its position as one of the world’s nerdopolis cities? It may simply come down to luck – having the founder of the next Microsoft or Facebook decide that he or she likes Hong Kong and wants to set up shop here. One successful major firm could easily attract other entrepreneurs and tip the scales decidedly in Hong Kong’s favour. Of course, that decision will depend on the support and infrastructure they find here (regulatory, financial and educational) as well as a continuation of an attractive work and life environment. Culturally, Hong Kong needs to continue to embrace and support entrepreneurs and creative professionals. It needs to celebrate risk-taking and applaud those who shoot for the moon – whether or not they are successful.
As you think about your business school experience and your career plans, take some time to think about where you want to work. What environment appeals? What activities are important to you? Where will you find like-minded colleagues and friends? Most importantly – where will you have the chance to develop your talents and ideas for the long term? You might just find that a nerdopolis is what you’re looking for. Hopefully, Hong Kong will be a strong contender for that title and will be able to attract the best, brightest and most creative minds for years to come.