Technology-services workforce
03.01 · APA Economic Development Division · News & Views · 2026
Innovation Districts and Urban Economic Resilience: Lessons from Kendall Square
Research figure · Kendall Square and economic resilience
A study of how Kendall Square’s extraordinary technology growth has increased economic concentration, housing pressure, and vulnerability in supporting sectors.
2023 concentration index
Median rent, 2020–23
Research question
Does deeper specialization make a globally successful innovation district more resilient—or more exposed to sector-specific shocks?
Approach
- Shift-share analysis of employment change in Kendall Square and the wider Massachusetts economy.
- Herfindahl–Hirschman Index tracking of local sector concentration.
- Fine-grained comparison of rents and service employment by distance from major campuses.
Principal findings
- Technology-services employment grew 238 percent between 2020 and 2023.
- Economic concentration rose from 0.346 to 0.376—well above the state average.
- Nearby service jobs fell faster than those farther from major campuses as median rents rose 25 percent.
Why it matters