Innovation for transformation

For most of us, an ecosystem is all about the interdependent world of flora and fauna. When the term is applied to urban areas and mixed in with innovation, it can be a powerful transformer. Cities correspondent Alice Uribe reports on an inspiring innovation ecosystem study tour

Emeryville in California has always attracted innovators and pioneers. While its first settlers made the most of the idyllic setting and the abundance of nature, the 19th century saw the arrival of Joseph Emery, for whom the city is named.

Not only did he try his hand at gold mining and supervised the building of San Francisco County Jail, he also seized the opportunity to develop Emeryville just as the railroad arrived.

Following its growth as an industrial town throughout the 20th century came a period of decline and then reinvention for the 21st century.

Proximity to Silicon Valley and universities and the arrival of Pixar Animation Studios played a pivotal role in making this place the thriving innovation hub that it is today.

For the Future Cities Collaborative (FCC) — an initiative of the United States Studies Centre at the University of Sydney, Australia, that brings together visionary city makers and promotes sustainable development, places like Emeryville in the San Francisco Bay Area point to the future.

“The city has been able to transform itself from a former industrial area to a thriving science and technology innovation ecosystem,” says James Rosenwax, AECOM’s Market Sector Director — Cities, Australia and New Zealand. “It certainly offers lessons to be learned by other cities interested in improving their resilience.”

He recently took an exchange tour to the city which today is home to 11,000 people, with a workforce of 20,000 and connections to world-class universities and research institutions. The tour, arranged by the FCC, explored a number of America’s exemplary innovative districts.

The transformation of Emeryville was born of necessity; as industry moved out of the area, the city was left with vast sites of contaminated wasteland and economic decline. Rosenwax continues, “the city formed a development agency and, using tax incremental financing, provided the essential infrastructure and attracted global brands such as Pixar, Novartis and Bayer.”

Innovation ecosystems: James Rosenwax, AECOM’s Market Sector Director – Cities, Australia and New Zealand, left, and the Future Cities Collaborative U.S. tour

Another location on the tour was the Seattle district of South Lake Union which revealed a similar transformation

Once populated by warehouses and light industrial buildings, this area is now one of Seattle’s fastest growing neighborhoods. It is home to Amazon’s new campus and other big name tech companies such as Google are moving in.

The two city stories are different however.

“Emeryville’s makeover was born of a dire necessity, and the local government did what we wanted these precincts to do — it innovated,” says Rosenwax. “It engaged with a reputable developer, saw an opportunity and capitalized on it before the competition in Oakland did.”

Meanwhile, for South Lake Union, the route to transformation involved planning and government buy in, coupled with heavy investment in infrastructure and the ability to collaborate with big- name tech firms. A favorable Washington State corporate tax rate also helped.

The combination of these factors has helped Seattle achieve an annual growth rate of 2.1percent and a reputation as one of the fastest growing cities in the U.S.

In addition to touring the ascendant cities, a further highlight of the study trip for Rosenwax was the tech company campus. “Designed not only to attract and retain the world’s best talent, campuses are increasingly hotbeds of innovation, as the communities that typically cluster around them intersect, cross-pollinate and create,” he says. “A truly brilliant city needs to make it possible for the thinkers, makers, consumers and financiers to hang out, kick back and interact — everywhere.”

The time is right

Professor Ed Blakely, chair of the FCC, and a champion of innovation ecosystems is confident of their ability to create thriving communities, deliver new jobs and drive economic growth.

“This is the perfect time for federal, state and local governments to look to the United States for lessons on how to plan, finance, implement and support innovation ecosystems,” he says.

“These districts can contribute to the new economy, provide housing and civic amenities, and turn precincts into world-class urban areas that are vibrant, connected, competitive and resilient places.”

“Innovation ecosystems can’t be created artificially by government,” continued Professor Blakely. “But they are dependent on the decisions that governments make which affect the built environment and the economic, social, and political conditions in which the innovation ecosystem operates.”

Innovation precincts around the world

China’s Torch program

Since 1988, China’s Torch program has been colocating Chinese businesses, universities and research organizations in science and technology precincts to drive innovation. There are now 150 Torch precincts in China that generate 10 percent of industrial output and 16 percent of export value.Australia’s South East Melbourne Innovation Precinct (SEMIP) Located 25 kilometers out of Melbourne is Australia’s South East Melbourne Innovation Precinct that houses 40 percent of Victoria’s manufacturing activities and more than 56,000 registered businesses.

New York City’s Sidewalk Labs

This tech company is focused on the potential offered by the digital revolution for urban innovation that it hopes will accelerate innovation in cities around the world.

Israel’s innovation ecosystem

For a country with over eight million people, Israel has garnered the reputation as one of the largest centers of technological innovation due to its government’s heavy investment. Israel has the highest concentration of tech companies outside of Silicon Valley and its tech industry accounts for 15.7 percent of the country’s GDP.

What is an innovation ecosystem?

There are different interpretations of what makes an innovation ecosystem, but according to the FCC, these urban precincts or districts have a powerful organic mix of good quality amenities, access to transport, affordable housing and jobs for economic growth. Essentially a focus on innovation helps create thriving communities to live, work, play and invest in and to visit.