Silicon Valley Syndrome
The House of Innovation and the Swedish House of Finance held a webinar on the 15th of September with Professor Olav Sorenson about his latest research exploring how expansion in the high-tech sector influences the broader economy of a region.
Olav Sorensons research demonstrates that an infusion of venture capital in a region appears to cause: (i) a decline in the number of establishments and employment in non-high-tech industries in the tradable sector; (ii) an increase in entry and employment in the non-tradable sector; and (iii) a rise in income inequality in the non-tradable sector. Expansion in the high-tech sector, therefore, leads to a less diverse tradable sector and to increasing inequality in the region.
Professor Sorenson is the Joseph Jacobs Chair in Entrepreneurial Studies, the Faculty Research Director of the Price Center for Entrepreneurship & Innovation, and a Professor of Strategy at UCLA.
Olav Sorenson is joining House of Innovation and the Swedish House of Finance as an Erling Persson Visiting Professor starting in the academic year 2021 / 2022.
This seminar was a joint production with House of Innovation, HOI.