Is the World “Flat” or “Spiky”? Rethinking the Governance Implications of Globalization for Economic Development*†

This chapter critically examines the Thomas Friedman-Richard Florida debate and offers a quite different perspective and strategy for economic development in a global economy. In his best-selling book, The World Is Flat, Thomas argues that the information age accompanying globalization has diminished the importance of location as a competitive edge in fostering economic growth. In contrast, Richard Florida, author of The Rise of the Creative Class (2002) and The Flight of the Creative Class, argues that although globalization has exposed many regions to heightened competition, the world is far from flat. The chapter explores their continuities and discontinuities through four major pillars of economic development strategy in the United States. It illustrates how a regional governance perspective can become a bridge spanning Friedman’s and Florida’s perspectives. Finally, the chapter reviews various strategies for overcoming the collective action problems inherent in building regional governance institutions.