Innovation and the City
Author:
Glenn Athey, Catherine Glossop, Ben Harrison, Max Nathan and Chris Webber
Year published:
December 2007
Download:
Innovation and the City Report 890KB
Cities and innovation (Working paper) 408 kb
Description/aims
Cities provide ideal environments for innovation and are the focus for innovative activity within the private sector. Policymakers have long been concerned with what makes some cities more innovative than others.
Innovation and the City explores the ways in which people, firms and organisations contribute to innovation within cities and presents two interlocking models for innovation in urban areas.
The 'urban hubs' model applies to large cities with access to diverse and international markets, a strong skills base and a well-developed transport and communications infrastructure. In the 'local links' model, specialist businesses tend to cluster together, establishing strong networks and links with local institutions.
The report analyses innovation in Coventry, Dundee, London, Reading and Dortmund and explains the various factors that help to drive innovation in these cities.

Recommendations
The best innovation systems involve well-established sectors and clusters, so policymakers should identify and support innovative sectors at an early stage of development. Businesses of all sizes have a role to play in innovation so policies need to address the needs of smaller firms as well as large ones.
Investment incentives can be used to encourage businesses to locate in specific sectors and clusters, as can improving transport and communications infrastructure to ensure good access to markets. As knowledge networks and partnerships play a vital role in stimulating innovation, businesses and higher education institutions should be supported in establishing and developing networks.
Institutions and regional agencies should also be given the flexibility to design and deliver support services that are tailored to the innovation challenges and opportunities in individual cities.
Impact / Benefit
Creating the right conditions for people, firms and organisations to innovate within a city requires a tailored approach that takes into account the city's existing markets, skills, institutions and networks.
Large cities will almost inevitably innovate but can't afford to rest on their laurels, as smaller cities have the capacity to provide strong competition. Developing policies that support and encourage innovation in cities is a vital part of transforming the UK's capacity for innovation.