Services and the New Economy: Elements of a Research Agenda

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Services and the New Economy Elements of a
Research Agenda

• William B. Beyers
• Department of Geography
• University of Washington
• Seattle, WA 98195
• http//faculty.washington.edu/beyers/research

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The New Economy

• What is the New Economy?
• Why is it new
• What are the research challenges
• for economic geographers?
• What is the role of services in
• the New Economy?

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Defining the New Economy

• Some key elements
• - increased economy-wide productivity
• - a shift in industrial output mix
• - a shift in occupational structure
• - a shift in places that are most vibrant
• The U.S. ESA efforts at definition and
• measurement

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A Powerful Impact on GNP, And Employment
Defined based on of IT Capital or level of
IT capital per worker
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New Economy Impact on GNP
Almost 57 of GNP Growth 1990-1997 was in IT
Intensive Industries
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Composition of IT Using Industries
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Composition of IT-Producing Industries
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Key Research Issues related to the New Economy

• Geographic Shifts in jobs
• Headquarters Control Shifts
• The Growing Importance of Small Enterprises
• Occupational Shifts
• New Forces in Location Decisions
• Interaction bases
• Trade in the New Economy
• New Patterns of Consumption

Why? Where? How?
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Geographic Shifts in Jobs
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Realignment of Metropolitan Areas (1985-1995)
? Role of New Economy Industries?
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Headquarters Shifts

• Old Economy Concentrated in
• New York and Old Economy Cities
• New Economy
• Of the 100 largest IT Corporations
• in the world
• 81 are in the U.S.,
• 54 are in the Western U.S.
• 44 are in California

? Geography of Control in the New Economy?
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Increasing Importance of Small Enterprises
? Role of New Economy Proprietors? Urban
and Rural?
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Occupational Perspectives on Job Creation
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1980 Distribution of Occupations by Industry
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Change in Occupations United States 1980-2000
? Role of New Economy Industries?
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Across Most Occupations Job Gains Have Been
Largely in Services
? How much of this growth has been in New
Economy Industries?
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Location Decisions - More Contingent

• Sites not selected to be close to clients
• or suppliers
• Sites selected to suit founder or employee
• lifestyles e.g. A considerable number of
• employees bike to work or want to bring
• their dogs to work. Golf tees, pool
  tables,
• basketball courts, and ping-pong tables were
• part of the office environment we visited.

? What location factors are key to New Economy
firms?
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Interaction Greater Use of IT and Face-to-Face
Contact
Key New Economy Industries require Face-to-face Co
ntact ? How Are Advances in IT Affecting Locatio
n Decisions?
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Trade in the New Economy Services Lead the
Economic Base
A Minimum Requirements Estimate Likely
Under- States Exports ? What Would Case
Studies Of Trade Patterns Reveal For
New Economy Industries?
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From Production to Consumption Perspectives
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Changing Demands in the Recreation Account
Many New Economy Industries are Linked
to Consumer Recreation Demands ?What is
the Geography Associated With these Outlays?
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Consumption Spaces in the New Economy
? What is the functional classification of
consumption spaces? ? What is the urban and rural
pattern?
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The Opportunity to Push The Envelope

• Geographic, Corporate Control, Enterprise,
• Occupational, and Trade Related Research
• Priorities in the New Economy
• Location and Modes of Interaction in the
• New Economy IT Related Research Priorities
• New Patterns of Consumption (and Investment)
• in the New Economy need to be investigated
• The Need for Wide-Ranging Case Studies
• That Inform and are Informed by Theory