Innovation Economics - Geography

Geography

While innovation is important, it is not a happenstance occurrence as a natural harbor or natural resources are, but a deliberate, concerted effort of markets, institutions, policymakers, and effect use of geographic space. In global economic restructuring, location has a become key element in establishing competitive advantage as regions focus on their unique assets to spur innovation (i.e., information technology in Silicon Valley, CA; digital media in Seoul, South Korea). Even more, thriving metropolitan economies that carry multiple clusters (i.e., Tokyo, Chicago, London) essentially fuel national economies through their pools of human capital, innovation, quality places, and infrastructure. Cities become “innovative spaces” and “cradles of creativity” as drivers of innovation. They become essential to the system of innovation through the supply side: ready, available, abundant capital and labor; good infrastructure for productive activities, and diversified production structures that spawn synergies and hence innovation. In addition they grow due to the demand side: diverse population of varying occupations, ideas, skills; high and differentiated level of consumer demand; and constant recreation of urban order especially infrastructure of streets, water systems, energy, and transportation.