1/Lots of tech companies and workers are making noises about leaving San Francisco, LA, NYC, and other "superstar" cities.

Some are predicting a shift to remote work and distributed companies.

Let's take a hard look at what that would actually

2/We're all familiar with the trend of tech companies and other knowledge industries (finance, biotech, etc.) piling into a few tech hubs, raising rents and house prices.

Now some think the advent of Zoom, Slack, etc. might reverse this trend.

https://t.co/nQVCJrKvrB
3/But escaping the superstar cities is going to be tough.

The forces keeping tech companies in places like SF are so strong that these regions have essentially become prisons for these companies.
4/In order to escape the prison of the superstar cities, tech companies and other knowledge industries will have to overcome the Four Jailers of Industrial Clustering:

1. In-person office productivity

2. Thick market effects

3. Knowledge spillovers

4. City life amenities
5/I'm actually pretty optimistic that companies can find ways to make remote work productive.

Studies show that working from home *some* of the time actually tends to raise productivity.

https://t.co/HK9DW99qAl
6/Does that mean people can work productively away from the office ALL of the time?

It's not clear yet. But remember, in order to shift out of top cities, tech companies only need to shift PART of their workforce to 100% remote.

That seems very doable.
7/Then there's the "thick market" effect.

Lose your engineering job in SF, and it's easy to find another nearby.

Lose your engineering job in Tulsa and you're in trouble.

Same goes for companies who need to find new employees.
8/To beat the thick market effect, companies and workers will need to learn to do 100% remote job search and hiring. They'll need to get comfortable working closely with people they've never been in a room with.

That seems like a difficult but doable shift.
9/VCs will also have to get used to investing in companies remotely.

In fact, this was a shift that needed to happen long ago, because VCs' cultural preference for in-person investing means that a lot of cities unfairly lose out.
10/But remote work, hiring, job search, and investing are all things that are possible as technology improves.

Companies will look for solutions, and they will find solutions.

But a harder challenge will be replacing the good things about cities that companies DON'T generate.
11/One of those good effects of cities is knowledge spillovers.

Many economists believe that when knowledge workers (like engineers) live in close proximity, they exchange ideas that boost their productivity.

https://t.co/hROA2pMOsw
12/No one company is responsible for knowledge spillovers. They happen outside the company.

So companies can't really replace this benefit of cities.

Maybe the internet will naturally replace knowledge spillovers. Maybe Stack Overflow is all we really need.

...Maybe??
13/Maybe universities, or industry associations, or other actors can try to recreate virtual spaces where engineers can mix, mingle, and share ideas? Just spitballing here.

Anyway, this going to be a taller order than switching companies over to Zoom/Slack.
14/Now we come to the fourth benefit of cities, and the most difficult to replace.

Cities are great places to meet people and do fun stuff.
15/Here's an important but subtle point:

If distributed remote work means that tech workers just move to DIFFERENT SUPERSTAR CITIES, you haven't really changed anything!
16/To really distribute the workforce, you need more than for San Franciscans to work in Tokyo and New Yorkers to work in LA.

You need to get knowledge workers to work in Tulsa, Oklahoma and Cleveland, Ohio.
17/One function of cities -- dating -- actually seems somewhat easy to replace, since it's basically just a 1-to-1 matching process.

But social discovery -- meeting whole groups of friends online -- is a problem that no social media company seems to have solved yet.
18/And restaurants will be even harder. I can't even think of how cities like Tulsa will be able to achieve the variety and quality of dining options of cities like Los Angeles.

Maybe there is a way, but it'll take some creative supply chaining and matching!!
19/Anyway, so there you have it. To escape the prison that cities like San Francisco have become, knowledge industries will need to UNBUNDLE THE CITY completely, for the first time in human history.

It's a tall order. We'll see if they can do it!

(end)

https://t.co/3XYIftJAHd
20/Oh and if you like stuff like this, make sure to sign up for my free email list, so you can get my newsletter delivered directly to your inbox! :-)

https://t.co/FGppA1M8W6

More from Noah Smith 🐇

Time for panel #3: Big Tech and regulation!

I will be live-tweeting again, and you can also watch video at either the Twitter or Facebook links below!


Kaissar: Every industry gets regulated when it gets big. The question is what kind of regulation Big Tech will get,and whether the companies will be proactive in shaping it.

Kaissar: More profitable companies have higher returns. Why? Maybe it's a risk factor, because more profit = higher risk of getting regulated.

Bershidskyis showing a diagram of GDPR complaince pop-ups. What a massive ill-conceived bureaucratic mess.

Ritholtz: It's 2018 and we're still talking about Facebook privacy settings?! If you're still giving your personal data to Facebook, you just don't care about privacy!
Yes, we have been more divided than we are now. Within living memory.


Labor disputes used to kill hundreds of people!

In 1932 Douglas MacArthur called in tanks on protesting veterans, injuring over a thousand people!

In 1967 there were 159 race riots in cities across

In 1921, rioters used airplanes to bomb black businesses in Tulsa, Oklahoma! Hundreds were killed in the riot!

More from Society

1/ A thread of comments & observations about the death of the cackling vampire Rush Limbaugh.

My first observations in the main thread are here, but this offshoot is needed because there's been so many wise & witty things I've


2/ First, re: those who in their wayward moral obtuseness feel we "can't speak ill of the dead." I've said that this is what abuse enablers say, but I hear that some religious traditions preach this. Oy.
So there's this: https://t.co/7Ky4RA3nkZ &


3/ Drucker is another great wit, and this carries the proper mood


4/ There's definitely a Jewish Tradition angle for how to treat evil people who die: the only respect is to justice, right & wrong, and above all compassion's existence necessitates condemning cruelty


5/ We're coming up on #Purim, and that's all about how to remember evil. There may be a reason, then, that I share the attitude of many other people committed to righting

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Tip from the Monkey
Pangolins, September 2019 and PLA are the key to this mystery
Stay Tuned!


1. Yang


2. A jacobin capuchin dangling a flagellin pangolin on a javelin while playing a mandolin and strangling a mannequin on a paladin's palanquin, said Saladin
More to come tomorrow!


3. Yigang Tong
https://t.co/CYtqYorhzH
Archived: https://t.co/ncz5ruwE2W


4. YT Interview
Some bats & pangolins carry viruses related with SARS-CoV-2, found in SE Asia and in Yunnan, & the pangolins carrying SARS-CoV-2 related viruses were smuggled from SE Asia, so there is a possibility that SARS-CoV-2 were coming from
1. Project 1742 (EcoHealth/DTRA)
Risks of bat-borne zoonotic diseases in Western Asia

Duration: 24/10/2018-23 /10/2019

Funding: $71,500
@dgaytandzhieva
https://t.co/680CdD8uug


2. Bat Virus Database
Access to the database is limited only to those scientists participating in our ‘Bats and Coronaviruses’ project
Our intention is to eventually open up this database to the larger scientific community
https://t.co/mPn7b9HM48


3. EcoHealth Alliance & DTRA Asking for Trouble
One Health research project focused on characterizing bat diversity, bat coronavirus diversity and the risk of bat-borne zoonotic disease emergence in the region.
https://t.co/u6aUeWBGEN


4. Phelps, Olival, Epstein, Karesh - EcoHealth/DTRA


5, Methods and Expected Outcomes
(Unexpected Outcome = New Coronavirus Pandemic)