Just what makes an innovation district? Is it a city's cultural vibe, modern amenities and transport? Or is it the mix of business and cutting-edge technology located there?
Older cities in the US and Europe are seeing a resurgence in their inner-city areas as educated young workers flock to authentic urban environments. But it is not just hip new bars and restaurants that are drawing talent to cities – it is also the mix of forces that creates innovative environments, spawning opportunity and new ideas.
In his recent book, The Metropolitan Revolution, Bruce Katz, vice-president of the Brookings Institution and director of its Metropolitan Policy Programme, has termed these areas ‘innovation districts'. Here, leading-edge anchor institutions and cutting-edge firms cluster and connect with supporting and spin-off companies, business incubators, mixed-use housing, office and retail space, and 21st-century amenities and transport. In the US, the phenomenon is widespread, concentrated in inner-city areas.
A new model for innovation
Several factors are driving a change in preference. Across the globe, populations are rapidly urbanising. The millennial generation is displaying a preference for quality places to both live and work. Areas that provide around-the-clock amenities will attract the kind of workforce sought out by innovative companies.
Dense environments also breed innovation. Employment density creates intellectual spillovers that have been shown to increase employment and patent rates. Furthermore, co-location improves the effectiveness of systems of innovation and commercialisation. When researchers are connected to capital, technology created in labs or universities can be brought to the market sooner. In these environments, small entrepreneurial firms intermingle with larger firms with the ability to scale and grow their ventures. In turn, large firms gain the advantage of access to cutting-edge ideas.
Starting from scratch
Outside the US, recently developed technology parks are attempting to create environments for open innovation from scratch. These developments tend to be spearheaded by national governments, so they have the advantage of access to land and capital.
In Singapore, One-north is a 200-hectare business park that was launched in 2001. The development is connected to Singapore's MRT rail network and has ties to academic institutions, including Insead Asia, the National University of Singapore, Singapore Polytechnic and the Institute of Technical Education.
Fusionopolis, the core urban area of the One-north development, is a research and development complex housing labs, high-tech companies, government agencies, shops and apartments, all developed by JTC Corporation, the government agency responsible for developing and managing industrial estates. While Fusionopolis houses larger, more established firms, the Singapore government is seeding a start-up community nearby.
Just business
Located 50 kilometres south of Kuala Lumpur, the Malaysian city of Cyberjaya was founded in 1997 as a hub for IT. Through incentives packages, the city has attracted investment from foreign companies seeking IT workers. It has also seen the development of several institutions of higher learning. But, due to Cyberjaya's lack of residential housing and amenities, it functions more as a traditional business park with most of the city's workforce vacating after the workday. Planned residential expansion may help to turn the tide, especially if combined with amenities and opportunities for the city's young student population.
Innovation districts in existing cities have the advantage of an established urban environment with a mix of uses and density that creates opportunities for workers to engage with peers outside work, brainstorming solutions and ideas. Where density of research, small and large firms, and residential and retail projects locate, educated young workers and innovative companies will follow. And where successful businesses and cutting-edge technology meet, investment will flow.
Emily J Brown
