Although governments have been reluctant to resort to New Deal-style direct job creation, agencies at all levels are seeking ways to accelerate the current economic recovery. One of the most reliable formulas researchers have identified for private-sector growth has been the regional innovation cluster model. Regions build upon their existing university programs, industrial capacity and technology strengths to develop a competitive advantage that promotes export-driven growth with high-value jobs. Some regional planners proudly report that their innovation clusters provide “5% of the companies, 10% of the jobs and 20% of the payroll.”
The innovation cluster model has failed only in that technology-driven businesses are attracted to locate within a comfort zone of existing infrastructure, amenities, anchor institutions and social networks. High-growth clusters can become more crowded and more affluent while concentrated, intergenerational poverty can continue to get worse in nearby neighborhoods, even in regions where average levels of wealth attainment are rising. A rising tide does not automatically lift all boats.
To read the original article: Eds, Meds & Feds: The Innovation Economy in the DC Metro Region | Fourth Economy Consulting
