The importance of where we live

by Jörgen Eriksson on January 26, 2012

Pareto efficiency

I am a strong believer in Globalization. As the importance of free trade was observed by David Ricardo and the mechanisms of optimal wealth allocation was discovered by Vilfredo Pareto in the Pareto principle, globalization brings wealth, as the global economy becomes even more efficient and traversing the spectrum toward pareto-optimal resource and wealth allocation.

Sure, there will be painful changes as the economies adapt, as is experienced in Greece, Spain and Italy among other European countries in the recent year and gradually in the entire western world in the recent decade, but this is all the pain of transition, not the pain of long term decline.

I like economic theory. As we all know, theory is a simplified image of reality that allows us to deduct conclusions which would otherwise be far more complex to understand without the simplification of economics. Much of economic theory, especially financial economics is built on not-so-solid foundations and then strong conclusions may be fundamentally wrong to make. See my earlier blog post about the recent economic crises and “Margin Call” for an example.

It is a mantra of the age of globalization and economic theory that it does not matter where we live. We can innovate just as easily from a ski chalet in Aspen or a villa in Provence as in the office of a Silicon Valley startup.

Richard Florida - Who is your city
According to Richard Florida, this is wrong. Globalization is not flattening the world; in fact, place is increasingly relevant to the global economy and to our individual lives.

Where we live determines the jobs we find and the careers we have access to, the people we meet and the spouse we mate . And everything we think we know about cities and their economic roles is up for grabs.

In the book Who’s Your City? Richard Florida offers the first available city rankings by life-stage, rating the best places for singles, families, and empty-nesters to reside. Florida’s insights and data provide an essential guide for the more than 40 million Americans who move each year, illuminating everything from what those choices mean for our everyday lives to how we should go about making them.

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail, connect on LinkedIn onörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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