A Strong Indicator of Local Prosperity: How Startups Help Austin Measure Its Economic Development Frontier20 Dec Team ATX Life Admin
The most prosperous metro areas in the U.S. have been able to foster an innovative, entrepreneurial culture driven by technology industries, according to a Brookings analysis of technological complexity. Austin, TX ranks 8th on The Startup Complexity Index, a key indicator of local prosperity.
Development in cities like Austin tends to comprise of young, high-growth technologically-driven companies that often achieve product or process breakthroughs, leading to new markets and quality job growth.
Because of this, areas like Austin have primarily built their economic development strategies on technology entrepreneurship and the environment it fosters. While it’s difficult to predict which companies are most likely to achieve significant breakthroughs, understanding what the future may hold is crucial because it is often the primary source of innovation, growth, and prosperity.
While it may seem counter-intuitive, a complex economy is a good thing. Austin’s economic development frontier correlates with its diversity of technological capabilities and the rarity of those capabilities.
The Brookings “Startup Complexity Index” (SCI) measures startup diversity (different types of technology) and startup ubiquity (an advantage in a technology category). Austin nabs the 8th spot with 121 technological advantages, preceded by San Francisco, New York, Los Angeles, San Jose, Boston, Chicago, and Seattle.
Understanding the SCI and what it means for Austin is crucial to foster long-term entrepreneurship that drives a robust economic development frontier forward. If you have questions about what it’s like to live, work or be an entrepreneur in Austin, TX, reach out to Team ATX Life today. We know Austin.
SCI and data courtesy of Brookings: https://www.brookings.edu/research/how-startups-help-cities-measure-their-economic-development-frontier/