Looking at Los Angeles and San Francisco, two successful California cities in 1970 whose fortunes have since diverged radically, The Rise and Fall of Urban Economies tries to answer an old question: Why do some cities thrive while others stagnate? The authors chose their subjects wisely. Had they paired up any other American cities—say, Chicago and Dallas—too many disparate factors would have come into play. Cities in the same state, however, share a universe of government policies, whether concerning income-tax rates or right-to-work rules, grounding the comparison and lending credence to the conclusions.
Los Angeles and San Francisco have much in common: top-notch climates, natural amenities like oceans and mountains, thriving arts and culture communities, and major international airports. In 1970, both cities boasted powerful industry clusters, similar concentrations of manufacturing firms, and highly educated and technically oriented workforces employed by innovative companies (Amgen in L.A., Genentech in the Bay Area). Prior to the 1990s, Los Angeles actually produced more patents than the Bay Area.
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