Technology and Tolerance: The Importance of Diversity to High-Technology Growth

The rules of the economic
development game have
changed. Companies were the
force behind the old game.
Cities and suburbs gauged their status
by the number of corporate headquarters
within their borders. Economic
developers used financial and other
incentives to lure companies to their
communities. Now, however, people
are the center of the action. High
human capital individuals—or as we
like to call them, talent—are the key
to success in this new era of economic
growth. Their ideas and creativity are
the most important ingredients in the
economic success of a firm or region.
Firms have always located near their
key factors of production. In the past,
companies located near raw materials,
good transportation, or low costs. So,
it is not surprising that firms in today’s
knowledge-based economy are increasingly
making location decisions based
on where the talent pool is located.