The Geography of Innovation

Richard Florida writes:

recent study by economists Enrico Berkes of Northwestern University and Ruben Gaetani of the University of Toronto Rotman School cracks the proverbial code on the geography of innovation. They find that while there is actually a greater amount of innovation (as measured by patents) in suburbs, cities produce far more “unconventional innovations,” which require a greater diversity of contributors and have a more disruptive economic impact.

Unconventional patents are more likely to come from smaller companies, university labs, or independent inventors than large, publicly-traded companies. And they are often the harbingers of revolutionary new technologies.

In other words, density plays a much bigger and more important role in the type of innovation than in the rate of innovation.

Large cities not only have deep pools of talent and a critical mass of specialists, they also have the density to forge connections between people and firms with diverse bases of knowledge.

Ultimately, the better way to think about the geography of innovation is not city versus suburb but city and suburb. If cities are the centers for more cutting-edge innovation, the suburbs remain home to the big established companies that require large campuses to house their activities and people, and which tend to engage in a lot of patenting.

It will be interesting to track these trends in the coming years, as big companies seek to urbanize their suburban campuses.