Workers in high-tech cities earn raw wages that are on average 17% higher than wages of workers in other cities. Using a large sample from the 5% PUMS of the 2000 Census of Population, this paper presents econometric evidence of a 'tech-city wage premium' of approximately 4.6% that is not the result of higher-ability people self-selecting to live in high-tech cities, but rather the result of high-tech cities actually making workers more productive. Although knowledge spillovers are difficult to assess, we use the concepts of the new economic geography and evidence from empirical studies of high-technology regions, such as Silicon Valley and Austin, Texas, to support the view that workers who live in high-tech cities might be more productive because they benefit from a larger supply of knowledge spillovers than workers who live in low-tech cities. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

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ECHEVERRI-CARROLL E., H UNNICUTT L., and HANSEN N. (1998) Do asymmetric networks help or hinder small firms' ability to export?, Reg. Studies 32, 721-733. Studies of industrial districts in Europe and the US and of networked firms in Japan recognize the positive correlation between symmetric networks - those between firms of similar size - and their success in international markets. This relationship is not obvious in the case of asymmetric networks - those between firms of relatively different sizes. The management of territory hypothesis (MTH) predicts that asymmetric networks increase small firms' access to information from large firms, but they could also enhance large firms' control over small firms' strategic decisions, including the decision to export. The increased independence hypothesis (IIH) predicts that asymmetric networks increase small firms' access to information from large firms without compromising their independence in making strategic decisions. We test both hypotheses on a sample of high technology firms in five metropolitan areas in Texas. ECHEVERRI-CARROLL E., H UNNICUTT L. et HANSEN N. (1998) La contribution des reseaux asymetriques a la vocation exportatrice des petites entreprises: atouts et inconvenients, Reg. Studies 32, 721-733. Des etudes portant sur des zones industrielles situees en Europe et aux Etats-Unis et sur les reseaux d'entreprises au Japon reconnaissent la correlation etroite entre les reseaux symetriques, dont les entreprises sont de taille similaire, et leur reussite sur les marches internationaux. Ce rapport n'est pas evident pour ce qui est des reseaux asymetriques, dont les entreprises sont de tailles relativement differentes. L'hypothese qui prone la gestion de l'espace (Management of Territory Hypothesis) predit que les reseaux asymetriques non seulement ameliore l'acces des petites entreprises a l'information des grandes entreprises, mais aussi ils pourraient faciliter le controle des grandes entreprises sur la prise de decision strategique des petites entreprises, y compris la decision d'exporter. L'hypothese qui prone l'independance accrue (Increased Independence Hypothesis) predit que les reseaux asymetriques ameliore l'acces des petites entreprises a l'information des grandes entreprises sans mettre en peril leur independance quant a la prise de decision strategique. A partir d'un echantillon d'entreprises a la pointe de la technologie et situees dans cinq zones metropolitaines dans le Texas, on met a l'epreuve les deux hypotheses. ECHEVERRI-C ARROLL E., H UNNICUTT L. und HANSEN N. (1998) Stellen asymmetrische Netzwerke eine Hilfe oder ein Hindernis fur die Fahigkeit kleiner Firmen, zu exportieren, dar?, Reg. Studies 32, 721-733. Untersuchungen von Industriegebieten in Europa und den Vereinigten Staaten von Amerika sowie von vernetzten Firmen in Japan lassen den positiven Zusammenhang zwischen symmetrischen Netzwerken - jenen zwischen Firmen ahnlicher Grosse - und ihrem Erfolg auf den internationalen Markten erkennen. Im Falle asymmetrischer Netzwerke, der zwis...

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The Japanese firm and the “traditional” US firm have different inter‐firm knowledge systems; in particular, Japanese firms tend to exchange information more frequently with their main suppliers, customers and other kinds of organizations (i.e. non‐profit organizations). As a result, they tend to develop new products and processes faster than the “traditional” US firm. Shows that non‐Japanese high‐technology firms that adopt Japanese‐style networks tend also to develop new products and processes faster than their competitors.

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The literature on the relationship between city size and urban wages argues that productivity and wages are higher in larger cities. Indeed, a doubling of city size is associated with a 4-8 per cent increase in wages. The human capital externalities literature finds evidence of higher wages in cities with an abundant supply of human capital where knowledge spillovers are plentiful. Interestingly, cities with a large supply of human capital are not themselves large. They have a population of fewer than 1.5 million inhabitants. In view of this evidence, this paper questions whether city size has lost its importance as a determinant of high wages. In other words, is city size necessary to explain wage variations, after controlling for knowledge spillovers? Using a large sample from the 5 per cent PUMS of the 2000 US Census, this paper presents econometric evidence for city size and learning spillover effects on productivity.