Editorial - 28-6

Will high tech innovation be the saviour of North America's inner cities? A new study by urban theorist Dr Richard Florida contends that it is, at least in the US. The Univ of Toronto-based researcher tracked the recent flow of US venture capital and found that more is going into the core of major city regions than the suburbs, where high-tech research parks have traditionally gravitated towards.

That's a significant departure from the early boom years of high tech of when money flowed to opportunities in Silicon Valley, North Carolina's Triangle Research Park and Boston's Route 128.

The finding, using data sets from Thompson Reuters and Dow Jones, builds upon and complements Florida's previous research into cities showing that urban centres which are tolerant and culturally, ethnically and sexually diverse attract highly educated, innovative minds. And now it appears the money is following those talent pools as the tolerance declines for long commutes to the sterile suburbs.

Another report on Canada by the Global Entrepreneurship Monitor finds that entrepreneurship attitudes in Canada are stronger than common wisdom has previously indicated (see page 4). The report by The Centre for Innovation Studies argues that enlightened government policy could help to turn innovative attitudes into new companies, jobs and clusters of entrepreneurial activity.

In stark contrast to the rancorous politics that have plagued both nations in recent years, the research shows how all countries can benefit economically and socially by focusing on entrepreneurship in innovative urban centres.