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A Future Vision for Boston’s Innovation Economy

Boston has thrived during the economic recovery of the past 18 months and gained substantial recognition globally as a center for innovation. A recent study published by The Economist ranked Boston as the 10th most competitive city in the world, out of 120 major cities examined. The Economist defined competitiveness, for the purposes of the study, as “the demonstrated ability to attract capital, businesses, talent and visitors.” Similarly, the Index of the Massachusetts Innovation Economy — a key benchmark for measuring our knowledge economy performance, published annually by the Massachusetts Technology Collaborative — shows that we have one of the most intensive R&D economies in the world, making up 7% of our GDP.

Economist study benchmarking global city competitiveness

One of my all time favorite books on innovation and the ecosystems that support it is Richard Florida’s “The Rise of the Creative Class”. Using census and economic data, Florida examines the factors that make Creative Class jobs — in science, engineering, technology, architecture, and the arts — primary drivers for economic growth. He also identifies a number of Creative Class cities that have the right kind of assets — like a strong university system, technological infrastructure, and a tolerant culture — to attract talent and support this kind of economic activity. Boston, of course rates high in Florida’s evaluation, and even though Florida published this book in 2002, I think the analysis holds true today. In the most recent issue of Architecture Boston, the Boston Society of Architects (BSA) asked business, research, and design leaders “Why Boston?”. Their answers were revealing, citing some of the very same creative assets Florida extols in his book — from the universities, to the culture of openness and support, to the multidisciplinary areas of the city like Kendall Square where the cross-pollination of design and technology can happen.

With a host of enviable Creative Class assets, strong activity in the start up, investment, and acquisition spaces, and high rankings for competitiveness on a global scale, Boston is fast becoming the place to be for innovators in a variety of industries — from software to biotech to robotics. However, our broader ecosystem still requires critical and ongoing attention if the Boston area is to continue to thrive. City of Ideas: Reinventing Boston’s Innovation Economy, a 2012 report from the Boston Indicators Project, challenges the city to a critical examination of our Creative Class economy, so that Boston does not lose our advantage in the future. Rising health care costs, continuing need for investment in local education, and the blight of economic inequality — those left behind even as other areas grow — are just some of the problems that need to be addressed in a thoughtful way. In order to drive innovation in the Boston area, we should of course continue to encourage R&D and risk taking in the funding of new companies, but we also need to invest in education, health care, housing and an inclusive civic agenda that binds us together with a vision of being a truly Creative Class city, both now and in the future.

from BostInno http://bostinno.com/channels/a-future-vision-for-bostons-innovation-economy/