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The Rise and Fall of Urban EconomiesLessons from San Francisco and Los Angeles$
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Michael Storper, Thomas Kemeny, Naji Makarem, and Taner Osman

Print publication date: 2015

Print ISBN-13: 9780804789400

Published to Stanford Scholarship Online: May 2016

DOI: 10.11126/stanford/9780804789400.001.0001

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Economic Specialization

Economic Specialization

Pathways to Change

(p.75) 5 Economic Specialization
The Rise and Fall of Urban Economies

Michael Storper

Thomas Kemeny

Naji Philip Makarem

Taner Osman

Stanford University Press

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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