Pittsburgh - Always the Topic of Conversation
I was having a conversation with a gentleman the other day about Pittsburgh. He was arguing that Pittsburgh’s reputation as a down’n’out post-industrial town is not accurate. Instead, it is a hive of venture capital and innovation. This reminded me of how Pittsburgh will always be a topic of conversation with regards to economic development and the competiveness of regional economies.
It is true, according to the Brooking Institution’s Metro Monitor Pittsburgh was one of the top 20 performing Metro regions in America in the first quarter of 2009. This is no small feat, given the state of the American economy. Pittsburgh is also one of the few large city governments that is currently operating with a budget surplus, while simultaneously building a new sports arena. However, Pittsburgh is one of the few metropolitan regions with negative population growth. Besides the fact that it is obvious that the housing bubble did not affect Pittsburgh, it is clear that while possessing strong institutions, active foundations great small businesses and a well managed local government that the region cannot translate these accomplishments into population growth.
Why is this? Richard Florida began his career in Pittsburgh and I have heard him tell this story. “I would watch great businesses start in Pittsburg and then relocate once they reached a certain level of success. I always asked why? You have everything here: universities, infrastructure, financial institutions and wonderful amenities. Why are you leaving? The answer was, because I need more and better people now. Our company needs to move to where the people are.”
And this is how Richard Florida’s Creative Class was born. It doesn’t matter what economic incentives and programs can accomplish. It’s the people that matter. Many economic development strategies rely simply on making a place a great place to be, whether through providing residents with symphony orchestras, music festivals, community gardens or puppet shows. If people want to be there, then innovative business will be there too.
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