Seeding Innovation for Economic Growth

Economic development in the 21st century requires a concentration of firms, innovation, talent, and investment. When economic clusters are successful, they enable regions to obtain an economic advantage, grow a skilled workforce, increase wages, and connect to the global economy.  

Creating economic clusters is both art and science. State and local governments can stimulate the enabling conditions for clusters to grow and succeed, such as tax incentives and a permissible business environment. However, merely attempting to agglomerate firms, workers, and activities is not enough.  

The transition to the knowledge economy and the global competition for talent and investments require states and local governments to look further. New technologies have emerged, from Artificial Intelligence to robotics, EVs, gene editing, and the internet of Things. Accessing these high value-added specializations will make or break the ability of U.S. localities to remain relevant in the global marketplace and to lead in knowledge creation. 

Developing these frontier technologies require a more complex set of interventions and policies that enable dynamic spillovers and linkages between networks of firms, incubators, and research institutions across industries. State and local governments need to train, attract, and retain highly skilled, entrepreneurial, and creative workers through placemaking, quality of life, and improved transportation systems and school districts. They must set a bold vision for their future, creating an appetite for risk, experimentation, and collaboration. 

The time is now.