Carla Maria Kayanan

Innovation districts have gained attention as a fast-spreading urban economic development strategy, raising numerous questions. What are their distinguishing attributes? Are they a substantive policy innovation? Are they likely to succeed in fostering innovation and economic dynamism? We propose a definition of innovation districts based on their characteristic features. Given the ambiguity of the term in practice, this is crucial for understanding and analyzing the strategy. We then evaluate innovation districts by applying theories and current understandings of the spatial and economic development aspects of innovation, entrepreneurship, and human capital, illustrating with examples from Boston, Detroit, Saint Louis, and San Diego. We conclude that the combination of components that comprises innovation districts is both new and valuable. Innovation districts present a potential pathway for advancing regional economic development goals via the pathways of innovation and entrepreneurship. We stress the importance of rigorous empirical evaluation and research regarding a variety of practical and strategic concerns.

Innovation districts are being advocated for their potential to create or revitalize communities, produce neighborhoods with housing near work, and benefit surrounding communities by creating jobs for a wide range of skill sets. However, these aspirations are often mismatched with the application of innovation districts. Analyzing four innovation districts (Boston, Detroit, St. Louis, and San Diego), we demonstrate how the direction of innovation district development determines whether community goals are realized. Promoting innovation involves prioritizing high-skilled workers. When real estate development takes center stage, market demands become the focus. The construction of high-end housing, entertainment, and retail amenities may leave affordable housing options for lower-skilled workers as secondary considerations. Surging real estate prices within and around an innovation district can eventually push out long-standing residents, further negating the innovation district as a space for a diversity of people, ages, resources, and amenities.