Superb interview of University of California, Berkeley economist Enrico Moretti.
He explains why despite the internet people continue to work in select concentrated locations:
EF: During perhaps the first decade or so of the World Wide Web, there were numerous predictions that geography would disappear or almost disappear as an issue in knowledge work. It seemed as if white-collar workers, if one believed the predictions, would be able to work from anywhere.
Moretti: Yes.
EF: What happened?
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Utopia, you are standing in it! 
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