Knowledge-Based Cities and the Impact on the Financial Markets

Knowledge based cities are cities that have a highly educated and skilled population and are typically found in a “first-tier” urban area. Most of these knowledge-based cities have become successful through emerging technological advancements, “These cities excel in making products or services based upon an infrastructure and supply network that support high valued-added, cost-effective production.” The digital revolution has changed the way our communities communicate, interact and conduct business. This new economy has allowed business to reformat and change the infrastructure to a more efficiently run system. As a result today unskilled workers are being replaced with skilled programmers and information and technology experts.

This article allowed me to relate to issues close to home. My father, trying to make his way up in the business world, found himself working at the Board of Trade as a broker. After spending several years, he and my uncle decided to try to start their own business, focusing on the emerging technological innovations and advancements. Today his business is entirely based on infrastructure. The risk my father and uncle took in the financial markets paid off because electronic markets have become the only option for trading of the future.

The impacts of this novel trading method in the financial markets have had a dramatic impact on the entire economy as well as job force. The influences of these electronic markets have lead to an increase in skilled workers, trading programs and trade volume. Programs now track specific trades, market relationships and enable operations to be more streamlined and efficient. Products are being developed to aid in stock market speculation decisions. Newly designed software provides traders with quotes to track stock prices. The movement in the volume of “Eurodollar futures” traded at the Chicago Mercantile Exchange is an example of the power and influence of new technologies. Innovative technologies, therefore, produce more efficient operations and functioning resulting in an educated, skilled labor force, access to new on-line products and increased volume in financial markets. This leap in Chicago’s newly knowledge-based city has made a major, significant, lasting impact, which in turn contribute to the US and global economy.