Those places that already have invested heavily in the information economy are doing much better than those still relying on manufacturing and distribution, observes Drennan in The Information Economy and American Cities (Johns Hopkins University Press, 2002). Drennan shows how information-economy expansion benefits even the urban poor, a finding disproving earlier claims.
A national network that transmits information rapidly could be "the railroad of the 21st century," writes Drennan. The federal government played a crucial role in the development of railroads, telephone and electric power networks, highways and airports that led to our modern economy, he says, and now must ensure that all places have the same access, at the same cost, to a high-speed, wide-band, fiber-optic network.
"Private firms had been building that network until the high-tech stock market crash in 2000-01," when such efforts slowed, he notes. The downside of no significant federal participation so far has been that only the most lucrative metropolitan markets are getting wired. "Boston has not been bypassed, but Youngstown might be." While the federal government might not choose to take over the building of a national network, it could employ policies, regulations and subsidies that lead to it.
Cities with a college-educated population have an advantage over other cities as players in the specialized information economy, the author states. Such a population base is essential to the new economy's growth, he finds. "The best investment the government can make is in higher education," counsels Drennan. He faults states for greatly expanding their spending on prisons but not their spending on higher education in recent years, and he calls for an increase in such funding at all levels of government. He offers the hard evidence needed to advocate effectively for change, including a wealth of rigorously analyzed econometric data of value to economists, planners and policy-makers concerned with the future of U.S. cities.
For a review copy of Drennan's book, contact Karen Willmes, Johns Hopkins University Press, (410) 516-6932 or kwillmes@mail.press.jhu.edu .