Brookings Examines Emerging Model of Metro Innovation Districts

A growing number of metropolitan areas are incorporating urban density and connectedness into their innovation strategies by fostering innovation districts devoted to research commercialization, entrepreneurship and housing for highly skilled workers, according to a new report from the Brookings Institution.  The districts combine the concentrated research activities of science parks with the accessibility and economic ties of city neighborhoods. These districts, which have emerged in the heart of Detroit, Houston, Pittsburgh and others, offer desirable work and living environments for talented workers, valuable connections for researchers and entrepreneurs, and strong potential for regional economic transformation for metro areas.

Authors Bruce Katz and Julie Wagner note that innovation districts often employ one of three models. In the “anchor plus” model, districts emerge in the downtowns and mod-towns of major cities near large anchor institutions. These institutions may be large private companies, hospitals, universities or other research centers. Metros, such as Cambridge, Philadelphia, Atlanta and Detroit, have used these institutions to anchor large, mixed-use development, filled with related businesses, entrepreneurs and other services. 

The “re-imagined urban areas” model appropriates industrial or waterfront districts that have fallen into decline, but have proximity to central areas and access to transit. These areas are used as hubs for innovative development and reintegrated into the urban economy. The final model, “urbanized science parks,” usually involves former parks set in suburban or more isolated areas. Stakeholders in these cases are attempting to provide better housing, transit and other amenities for these areas in order to increase their desirability and connectedness.

The innovation district approach offers a number of benefits for local economies. By locating innovative spaces within the context of the central urban economy, spillovers from research can reach more people and businesses. Increasing the connections between researchers, entrepreneurs and the greater economy, can help bring these forces into alignment, and enable cities to better leverage their competitive advantages. It also allows innovative businesses to have a greater impact on the urban economy by maximizing the number of connections that firms have in the city and encouraging entrepreneurs and workers to live in central neighborhoods. Brookings suggests that these approaches can fuel more inclusive growth in high-tech industries and be truly transformative for regional economies.

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