Who’s to challenge Silicon Valley, Shenzhen in AI?

The 21st century has witnessed an unprecedented surge in technological advancements, with artificial intelligence emerging as a worldwide transformative force across the economy. The integration of AI-based technologies into regional economies through the manufacturing and design of goods such as smartphones and smart speakers has sparked significant changes, leading to increased efficiency, innovation and economic growth.

So far, analyses have shown that the economic development driven by AI, like other waves of high technology, tends to concentrate in specific areas such as the San Francisco Bay Area and the Washington-to-Boston Northeast Corridor, as well as Shenzhen, often referred to as China’s Silicon Valley.

All are centers of innovation with vibrant tech ecosystems and home to leading global tech companies, such as Google, Apple and many AI startups in the case of Silicon Valley, and Huawei and Tencent in the case of Shenzhen. The ability of AI-based technologies to augment rather than replace human capabilities in such hubs has led to the creation of new job opportunities.

This suggests that regions that actively support the development of these technologies are likely to witness a positive relationship between workforce transformation and economic growth.

Technology and creativity

There are two significant points that the urban theorist Richard Florida makes about regional growth dynamics related to AI-based technologies and regional growth. First, regions that want to thrive economically need to attract what he has coined the creative class: professionals, including but not limited to university professors, scientists and engineers.

Second, attracting those individuals is important because they possess