Innovatia

ning strategy in areas ripe for regentrification. Despite all these benefits, some of Australia’s innovation districts seem to be stuck in second gear. I suspect there are two reasons behind this. First, an innovation district needs to have a compelling proposition. What makes it differ- ent and what about it will attract the right peo- ple into the fold? What is its focus, and what benefits will it provide? Without clear answers to these questions, an innovation district will struggle to take flight. Second, once this raison d’être can be articu- lated, success metrics should be put in place to ensure future sustainability. Examples could be the number of successful business launches or jobs generated. There could also be a focus on local community engagement, measurable by the number of events or programs that could be said to have enriched the lives of residents. Or it could be about creating links to not-for- profit organisations, or other socially responsi- ble targets, or ensuring greater gender diversi- ty among entrepreneurs. This is simply a commercial planning approach: defining the one-to-three-year plan, and the three-to-five-year plan. An element of the Aus- tralian psyche is a strong desire to avoid failure. But there is an element of risk for any start-up – something Silicon Valley and other such districts openly acknowledge. The idea that “it’s okay to fail, as long as you learn” has to be part of any in- novation district’s culture. Some of the world’s most successful innovation districts share three distinctive features. 1. A compelling anchor Any shopping centre operator will tell you how important the anchor tenant is to set the tone

and draw the right mix of tenants and visitors. In an innovation district, this could be a university, a major tech company or another high-profile cor- porate with a collaborative culture. For example, Cortex Innovation Community in St Louis is adja- cent to Washington University, Saint Louis Uni- versity and Barnes Jewish Hospital. Sprawling across 200 acres (81 hectares), it has transformed what was a vacant industrial landscape into a commercial nursery contributing $US2.1 billion to regional business activity in 2018. St Louis is also home to the first Venture Café, a global not- for-profit that accelerates innovation by providing opportunities for people to connect, hone ideas and build relationships. Done well, this initiative can act as an anchor. 2. An inviting, visible hub Innovation districts need a central point (like a Venture Café), a communal heart where peo- ple can gather. This should be architecturally appealing, drawing people in daily for those ad hoc bump moments. In the United Kingdom, the Engine Shed hosts over 1,200 events every year in the heritage Brunel’s Engine Shed at Temple Meads station in Bristol. It has become synony- mous with the city’s tech start-up acceleration and is a partnership between the University of Bristol, Bristol City Council and the West of Eng- land Local Enterprise Partnership. Physical hub spaces allow fertile minds to meet formally or in- formally to learn or propound ideas. They also en- able community involvement. One of the reasons ORIX supports Venture Café in Macquarie Park, Sydney, is the way it involves local residents. It’s a fantastic initiative: on any given Thursday, a di- verse group of people with a shared interest in a topic will assemble and connect.

INNOVATION PARKS DONE WELL PROMOTE ENTREPRENEURSHIP For disruptive innovation, and considered collaboration, few physical spaces open as much opportunity and entrepreneurship as well-designed innovation

districts, as Reggie Cabal explains. F rom Boston’s 1,000-acre innovation dis- trict to Be’er Sheva innovation city in Is- rael, innovation parks have been around for decades. Traditionally hubs for technology R&D, they attract a cluster of tech business- es at various stages of maturity to co-locate and share knowledge or skills. They are often also co-located with an academic institute – a source of a steady stream of talent as well as research capabilities. Silicon Valley, for example, benefits from its proximity to Stanford University and UC Berke- ley. It’s exciting to also see new urban models emerge. These innovation districts are revital- ising urban areas and building creative, walka- ble precincts. They create a new level of energy in a business park environment. In their essay on the rise of innovation dis- tricts in the United States, Bruce Katz and Jul- ie Wagner define innovation districts as “ge- ographic areas where leading-edge anchor institutions and companies cluster and connect

with start-ups, business incubators and accel- erators”. They are also well-integrated into the surrounding community, with housing, retail, education and transport all close by. Diversity thrives beyond the confines of the innovation districts when they enable the ex- change of ideas – not just between businesses in one industry but between very different peo- ple from different backgrounds. They are more than technology or science parks because they are purposely designed to attract a diverse mix of organisations and create “bump” opportuni- ties. These are the moments when true innova- tion happens, when ideas turn into opportuni- ties with tangible and commercial possibility. Having worked in Silicon Valley for 18 years, I know that the rate of ideas generated from in- novation districts can create a sense of momen- tum that is inspiring. As well as providing a solid foundation for business growth, they can also expand opportunities for education and jobs when they are part of a considered urban-plan-

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