Local economies are pressing to find growth that leads to higher-value employment. This may include sector-based strategies or routes to harness economic benefits from collaborative research and spillovers. Perhaps there is an inbuilt bias in economic development to focus on a spatial aspect of the solutions—linked to innovation districts or creating incubation space.
An examination of multiple impact reports suggests that this focus on space is only a small part of the solution—and the enabling proximity of players in innovation may be the least important of the main factors.
On this basis, it is worth reflecting on the 8 main factors which are cited as being the critical success factors in enabling an innovation-based economy. These are as follows:
- Accurately describing an area's points of differentiation in a particular aspect of research and development is necessary. This is more difficult than it may first appear since the target is a sophisticated audience that understands the aspects of their sector or the science in which they have the strongest interest. The message must capture the genuine opportunity.
- Early Engagement with start-ups. Whilst the foundations of the innovation district may be rooted in a research institute or a large anchor business, the sector's dynamism will arise from opportunities to build new companies and find ways to commercialise research and development in new ways. These businesses are essential to driving the growth of the area.
- Management infrastructure/governance. Of course, research and development and business growth can take place organically, but if the business ecosystem can be managed in terms of marketing, business support, enabling interactions, funding opportunities, business space, skills and employment, and frameworks for collaborative research, the potential for growth can be accelerated.
- Shared goals. To maximise success, those participating in the innovation district should share a common goal of growing the entire activity for the good of everyone involved. Clearly, organisations will want to generate their own success, but this is an area in which the cluster can grow larger than the sum of its collective parts.
- Opportunities for graduates/access to talent. To allow the sector to grow, an ongoing supply of talent from students participating in relevant learning is needed. Promoting the innovation district should enable a mutually supportive cycle of business investment, creating employment, and attracting students.
- Sharing of knowledge/research data. The sharing of knowledge is essential to enabling creative collisions that generate new ideas, propelling further investment in the sector.
- Legal agreements. Research institutions need to ensure that Intellectual Property is protected, although when this is enforced too rigorously, restricting the commercial opportunities for the research staff involved in discovery, there is a risk that economic potential is stifled.
- Co-location. The co-location of businesses can help ensure that interactions happen more readily. One important finding, however, is that interactions do not happen automatically. Those locations where this takes place most effectively tend to involve business development teams driving opportunities and physical spaces where interactions can occur more naturally – recreating the company canteen environment of the past.
There are many examples of innovation districts being developed effectively or failing to deliver with more lessons to be learned. For more information or a discussion on delivering effectiveness contact Nigel Wilcock at Mickledore at nwilcock@regionaldevelopment.co.uk