Despite widespread adoption of creative class economic development strategies, one of its basic tenets—the connection between community tolerance (running through talented individuals and high-tech employment) and economic health and growth— has not been sufficiently tested. This analysis of 40 midsized Canadian urban areas finds a connection between diversity and gay and creative populations and economic health. Neither high-tech employment nor economic growth, however, was found to be linked to the other measures. Although there is some evidence that amenity- and creative class-based economic development strategies can be effective, they do not appear to be sufficient in themselves. Other local policies (e.g., basic marketing to tourists, infrastructure improvements, and traditional business attraction and retention strategies) combined with a measure of “place luck ” seem to be important ingredients as well
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