Years ago, people would drive miles for jobs in secluded office buildings to keep ideas and technology a secret. Today, technology has changed how and where individuals work.
The high-tech field, such as big data, machine learning and AI, requires collaboration, which is why innovation districts are becoming popular options.
What Are Innovation Districts?
An innovation district is an area within a city that houses related entities, such as co-working spaces, startups, colleges and universities, different established industries and government offices. It often attracts young people, and it can prove to be an economic boon to cities and entire regions.
Most innovation districts are characterized by physical proximity there is usually no more than a 10-minute walk between two points. Employees who work there have access to housing, public transportation, the arts and commerce to improve quality of life and encourage diversity.
The five most important components of an innovation district include:
- Density: Usually, innovation districts are located in metropolitan areas where there is a diversity and density of population. This makes it easier for groups of people to meet and interact.
- Commercializing knowledge: Innovation districts need to have a competitive edge and quickly turn ideas into commercial success. Most districts center on emerging technologies or recognition in specific fields.
- Quality of life: Even those outside of the innovation district should want to come and take advantage of the culture and community.
- Engaging pre-existing residents: People live in innovation districts before they become classified as one, which is why it’s important to include those residents. They can help create new commercial relationships and keep the entire ecosystem running.
- Collaboration: People in an innovation district need to find each other easily and talk about new technology, businesses, events and culture. Companies should encourage their workers to expand their immediate circles and learn across disciplines.
Technology and
the Rise of Innovation Districts
High-tech has encouraged the rise of innovation districts because of how it’s used across sectors. For example, research-oriented industries focusing on clean energy may want to partner with a high-tech firm that focuses on big data. When the two work together, they can brainstorm ways to improve clean energy initiatives.
A great example of the marriage of technology and innovation districts comes from pharmaceutical companies. These businesses used to be located in suburban areas or secluded settings where they protected their intellectual property.
However, drug development prices have gone up, and research and development pipelines have slowed, which have caused pharmaceutical companies to look elsewhere for innovation. Now, many companies are working with biotechnology firms and major research universities, such as MIT and Harvard. This collaboration solves a problem for pharma and helps universities gain recognition.
How Innovation Districts Have Helped Advance
Technology
When people work together instead of in silos, they can come up with ideas they may have never considered before. A great example is the “app economy.” Gifted students often learn in the classroom and then link up with third-party entities in business, tech and science. These students, with their education and new ideas, help create apps that become successful in the marketplace.
Innovation districts also advance technology when certain established companies move into them. For example, when Twitter moved to Market Street in San Francisco, it instantly became a hub for other high-tech advances. One of the best examples of this is Silicon Valley, which was modeled after the suburban science park. Today, it’s home to Stanford University and many tech startups.
How Innovation Districts May Continue to Grow and Change in 2020
In 2020, innovation districts will continue to grow and change. They may start to take advantage of areas that need expanded employment and educational opportunities. This will give some disadvantaged populations and those in low- and moderate-income neighborhoods better economic opportunities.
Also, expect innovation districts to use high-tech to focus on cultural issues. Environmental degradation, inefficient land use and mass transit are all issues impacting innovation districts and metropolitan areas. More companies, universities and startups may focus on fixing these issues within innovation districts to keep them moving forward.