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I love how they mention employing the locals even after noting that about half are illiterate and presumably even less have a college or even high school educat

by Hyena 15y ago

I love how they mention employing the locals even after noting that about half are illiterate and presumably even less have a college or even high school education.

rmason 15y ago
What you're not understanding is that Michigan's universities are graduating thousands of very bright engineers every year. Kids who love the state and would prefer to find a job in Michigan. Promise to keep them in Michigan and your recruiters gain what is known as an unfair advantage. Likewise there are experienced people available that would gladly work for half what they're paying in the Valley. People can't sell their houses so they are in effect trapped. Why more Valley companies don't open Michigan offices baffles me. Easier recruiting and getting two developers for the price of one? Does Detroit's reputation handicap it that much?
- Hyena 15y ago
  I don't think companies locate to collect graduates from nearby universities, they locate to collect on positive externalities from aglomeration. How many times has PG statetd that being around other hardworking, innovative people is important? That's the agglomeration externality you want to cash in on. Naturally, this leaves a catch-22 for would-be hotspots for any industry.
- jerf 15y ago
  "Why more Valley companies don't open Michigan offices baffles me." I suspect it's because people don't realize that from a tech company's point of view, Detroit isn't the center of the world anymore. It may be notionally the "Greater Metropolitan Detroit" area, but that's just tradition now, not a reflection of reality. In reality, the "suburbs", many of which would be cities themselves if they were isolated (not large, world-class cities, but still definitely "cities" as opposed to "villages"; think Palo Alto vs. San Francisco) are where the action is, as well as Ann Arbor. You don't locate in Detroit; at most, a few of your employees may live somewhere that is theoretically called "Detroit", but that's all the dealing with the city you'll have. (And if you provide them a stable job, they'll probably move to be closer to it and further from Detroit.) Detroit is a sinking non-entity now, but the area itself is carrying on.

by Hyena 15y ago

I love how they mention employing the locals even after noting that about half are illiterate and presumably even less have a college or even high school education.

rmason 15y ago

What you're not understanding is that Michigan's universities are graduating thousands of very bright engineers every year. Kids who love the state and would prefer to find a job in Michigan. Promise to keep them in Michigan and your recruiters gain what is known as an unfair advantage. Likewise there are experienced people available that would gladly work for half what they're paying in the Valley. People can't sell their houses so they are in effect trapped. Why more Valley companies don't open Michigan offices baffles me. Easier recruiting and getting two developers for the price of one? Does Detroit's reputation handicap it that much?

Hyena 15y ago
I don't think companies locate to collect graduates from nearby universities, they locate to collect on positive externalities from aglomeration. How many times has PG statetd that being around other hardworking, innovative people is important? That's the agglomeration externality you want to cash in on. Naturally, this leaves a catch-22 for would-be hotspots for any industry.
jerf 15y ago
"Why more Valley companies don't open Michigan offices baffles me." I suspect it's because people don't realize that from a tech company's point of view, Detroit isn't the center of the world anymore. It may be notionally the "Greater Metropolitan Detroit" area, but that's just tradition now, not a reflection of reality. In reality, the "suburbs", many of which would be cities themselves if they were isolated (not large, world-class cities, but still definitely "cities" as opposed to "villages"; think Palo Alto vs. San Francisco) are where the action is, as well as Ann Arbor. You don't locate in Detroit; at most, a few of your employees may live somewhere that is theoretically called "Detroit", but that's all the dealing with the city you'll have. (And if you provide them a stable job, they'll probably move to be closer to it and further from Detroit.) Detroit is a sinking non-entity now, but the area itself is carrying on.