Pathways to Change
Industries, firms, and entrepreneurs in the Bay Area and Los Angeles did not plan the economic divergence of their regions. They faced challenges from the restructuring of the Old Economy and benefited from the opportunities of the New Economy. Their successes and failures widened the income gap between the two regions. This chapter presents comparative case studies of entertainment, aerospace, information technology, logistics, and biotechnology in San Francisco and Los Angeles, showing how they developed differently and shaped specialization, wages, and income divergence in the two regions.
Keywords: aerospace industry, biotechnology industry, information technology industry, entertainment industry, Hollywood, Silicon Valley, origins of the Internet, industry-building entrepreneurship counterculture, Whole Earth Catalog, venture capital
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