“But size is not everything, as Nashville’s dominance and the performance of other smaller metros show. Smaller places can develop significant clusters of musicians and the music industry. The key here, as it is in so many other fields, is the clustering of talent, as talented musicians are drawn to and cluster around other talented musicians. Doing so, they generate a human capital externality of a musical kind — competing against each other for new sounds and audiences, combining and recombining with each other into new bands — a Darwinian process out of which successful acts rise to the top and achieve broad success.”
Cities with vibrant music scenes mimic the process of innovation.
Source:Mapping musicians and the music businesses across the U.S.