The Learning Effect

The Learning Effect is really an outcome of the Learning Curve. As we all learned in Economics 101, (and experienced as we learned how to ride a bike) we become more proficient and productive with an activity through repetition and practice. Therefore, an inefficient activity can scale to become an extremely efficient activity as proficiency increases---with an exponential growth in production.


So What is the Learning Effect Then???
The Learning Effect applies this concept 1 step further. When a geographic area has a group of specialists within a specific arena, this specialization has an impact on the entire society around them. Under this premise, those who do not practice the specialty as a profession will still become more proficient, by learning from those experts around them. Thus the specialization in the region has an impact on all of those within the locality, whether or not they practice within the given arena.

The Bay Area Example
Within the SF Bay Area, there is an extremely high proficiency rate in Information Technology and technology applications. From the use of smartphones to the use of home video editing tools, the SF Bay area is among the most proficient in the world. Does everyone in the Bay Area work in IT? No, certainly not. However, the proficiency levels of those who specialize in IT are so great that they have a cultural impact on the entire community. Therefore, this is often the early adopter market.

What is the Impact?
By moving to the Bay Area, you will most likely become much more proficient in technology. Although your job may not require this proficiency, you will be surrounded by early adopters and tech enthusiasts. Friends will indoctrinate you into the culture of "check ins" "tweeting" and talk about operating in "the cloud". Similarly, in NYC, a casual luncheon conversation about the "CAP Rate" of the piano you just purchased for your daughter is fairly common.

So What?
Do you want to become an expert?---just move. You need to go where the Big Fish are. Once you're swimming with the Big Fish, go back to your Pond where you're the Peacock Bass. In NYC, finance is part of the vernacular, just like ordering a "slice of pizza" at Joe and Pat's or taking a "trip to the shore." You're always going to know if your "highly levered" in NYC or if its time to create some liquidity. In SF, it's all about making your online world and offline realities coexist in harmony. It's about living green and managing "friends", and "tweeps". To become an expert, you don't need to go back to school...just move. The Learning Effect will take care of the rest.