Services and the New Economy: Elements of a Research Agenda William B. Beyers Department of Geography University of Washington Seattle, WA

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?

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

A Powerful Impact on GNP, And Employment Defined based on % of IT Capital or level of IT capital per worker

New Economy Impact on GNP Almost 57% of GNP Growth was in IT Intensive Industries

Composition of IT Using Industries

Composition of IT- Producing Industries

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?

Geographic Shifts in Jobs

Realignment of Metropolitan Areas ( ) ? Role of New Economy Industries?

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?

Increasing Importance of Small Enterprises ? Role of New Economy Proprietors? Urban and Rural?

Occupational Perspectives on Job Creation

1980 Distribution of Occupations by Industry

Change in Occupations United States ? Role of New Economy Industries?

Across Most Occupations Job Gains Have Been Largely in Services ? How much of this growth has been in New Economy Industries?

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?

Interaction – Greater Use of IT and Face-to-Face Contact Key New Economy Industries require Face-to-face Contact ? How Are Advances in IT Affecting Location Decisions?

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?

From Production to Consumption Perspectives

Changing Demands in the Recreation Account Many New Economy Industries are Linked to Consumer Recreation Demands ?What is the Geography Associated With these Outlays?

Consumption Spaces in the New Economy ? What is the functional classification of consumption spaces? ? What is the urban and rural pattern?

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