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The Texas tech cluster

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SubscribeSign inShare this postThe Texas tech clusternoahpinion.substack.comCopy linkTwitterFacebookEmailDec 12, 2020Share this postThe Texas tech clusternoahpinion.substack.comCopy linkTwitterFacebookEmailAs y’all might know, I am from Texas. And it has long been a dream of mine to see Texas become one of America’s premier technology hubs. So I’m pretty happy to report that this might actually happen now.the Human CapitalMeanwhile, Houston is a VERY underrated city, and is changing fast; something I plan to write more about.So, Texas.Now the question is whether this Texodus will be enough to build Texas — or Austin, specifically — into a tech supercluster to rival the Bay Area or Seattle. To make a tech cluster, you basically need four things:A lot of engineersSome big tech companiesVenture capitalStartupsThe key to clustering effects is that each one of these players gets something from the presence of each of the others. I made a little diagram in Microsoft Paint to illustrate this web of relationships:The other piece of this is to make sure that Texas housing stays cheap. Here Texas has two big disadvantages — everyone likes single-family homes, and cities don’t like public transit. That will make density hard, maybe even harder than in SF. So there’s a chance that Texas might be able to keep rents reasonable even with an influx of tech workers. If it can do those two things — lure in venture capital firms, while continuing to keep land cheap — Texas has a real shot at stealing a chunk of the tech industry from California. And if San Francisco and other Bay Area cities find themselves with less tax revenue when tech companies start to move out — well, that’s the choice they made! That’s why we have states in the first place.____________________________________________________________________________(By the way, remember that if you like this blog, you can subscribe here! There’s a free email list and a paid subscription too!)Like this postShare this postThe Texas tech clusternoahpinion.substack.comCopy linkTwitterFacebookEmail47 CommentsFor your security, we need to re-authenticate you.Click the link we sent to , or .Expand full commentExpand full commentNo posts© 2022 Noah Smith ∙ ∙ &nbsp;is the home for great writingThis site requires JavaScript to run correctly. Please or unblock scripts

SubscribeSign inShare this postThe Texas tech clusternoahpinion.substack.comCopy linkTwitterFacebookEmailDec 12, 2020Share this postThe Texas tech clusternoahpinion.substack.comCopy linkTwitterFacebookEmailAs y’all might know, I am from Texas. And it has long been a dream of mine to see Texas become one of America’s premier technology hubs. So I’m pretty happy to report that this might actually happen now.the Human CapitalMeanwhile, Houston is a VERY underrated city, and is changing fast; something I plan to write more about.So, Texas.Now the question is whether this Texodus will be enough...

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