Working Paper: NBER ID: w31541
Authors: Jorge Guzman; Fiona Murray; Scott Stern; Heidi L. Williams
Abstract: Motivated by the establishment of major U.S. Federal programs seeking to harness the potential of regional innovation ecosystems, we assess the promise and challenges of place-based innovation policy interventions. Relative to traditional research grants, place-based innovation policy interventions are not directed toward a specific research project but rather aim to reshape interactions among researchers and other stakeholders within a given geographic location. The most recent such policy - the NSF “Engines” program - is designed to enhance the productivity and impact of the investments made within a given regional innovation ecosystem. The impact of such an intervention depends on whether, in its implementation, it induces change in the behavior of individuals and the ways in which knowledge is distributed and translated within that ecosystem. While this logic is straightforward, from it follows an important insight: innovation ecosystem interventions – Engines -- are more likely to succeed when they account for the current state of a given regional ecosystem (latent capacities, current bottlenecks, and economic and institutional constraints) and when they involve extended commitments by multiple stakeholders within that ecosystem. We synthesize the logic, key dependencies, and opportunities for real-time assessment and course correction for these place-based innovation policy interventions.
Keywords: Innovation ecosystems; Place-based policy; Regional development; Federal investment
JEL Codes: D78; L2; O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| place-based innovation policy interventions (O36) | productivity of regional innovation ecosystems (O36) |
| design of interventions (C90) | success of interventions (I24) |
| commitment from multiple stakeholders (D70) | success of interventions (I24) |
| addressing key bottlenecks (L91) | success of interventions (I24) |
| leveraging untapped capabilities (O36) | success of interventions (I24) |
| interventions (O31) | behavioral changes among stakeholders (D91) |
| interventions (O31) | knowledge distribution within the ecosystem (O36) |