What role do cities play in innovation, and to what extent do we need city-based innovation policies and approaches?

This report presents interim findings from the research project on innovation in cities that the Centre for Cities is conducting for NESTA (the National Endowment for Science, Technology and the Arts). It discusses the extent to which innovation is an urban phenomenon, and what is special about cities that enables innovation. The report reveals that innovation is concentrated in a number of cities and urban areas in the UK, although there are some innovation poor as well as innovation rich cities. The report provides a conceptual framework for understanding the process of innovation in cities, and how urban assets, networks, markets and institutions might facilitate higher levels of innovation. We conclude that the main ways that cities can enable innovation lie in Urban Hubs and Local Links models.

'Local links' models are based on the concept of 'localisation economies' - the specialised connections and networks that cities help firms to form. Local links models tend to stress the role of networks and institutions, and the importance of activist local government, public-private partnerships and 'change agents'. urban hubs models stress the importance of 'urban basics' - assets such as skills, infrastructure and public services, and using transport policy to improve effective market size. Urban hubs models also highlight the role of good governance - and in some cases, quality of life.

However, there is not a great deal of research and evidance available that allows us to assess which urban characteristics and processes are the most important for innovation. During Summer 2007 we will conduct case studies on sectors and cities to understand this in greater depth, and to draw lessons on 'what works' for innovation policy at the city-level.

Download this report from the NESTA website.

Centre for Cities has re-launched as an independent think tank. You can visit them online at http://www.centreforcities.org.