Economy

The Innovations of the Creative Class Affect a Rural Area’s Fortunes

A new study measures innovation and shows that when found in rural areas, it is tied to significant presence of the creative class.
Wild horses walk near the site of the Tahoe Reno Industrial Center in Nevada's Storey County. The Tesla Gigafactory 1 opened there in 2016. Innovation is closely tied to the presence of the creative class, in urban and rural areas.Max Whittaker/Reuters

One of the most persistent themes in America is the notion of an urban-rural divide. The legend is that urban areas are dense, diverse, and innovative—home to a disproportionate share of college grads and the creative class, while rural areas face brain drain, lag badly on innovation, and are suffering widespread economic decline. While it is true that innovation and the creative class tend to concentrate in leading knowledge hubs and superstar cities like San Francisco, Boston, Seattle, Washington D.C., and New York City, rural areas can be centers of innovation and talent too.

Even though innovation remains higher in urban areas, a new study finds clear evidence of it in a subset of rural communities, closely tied to the presence of a rural creative class.