In our global economy, place matters more than ever. Even as technology, capital and knowledge diffuse internationally, the levers of national prosperity are, in fact, becoming more localized. As talented people and new ideas become the most critical drivers of economic growth, regional economic conditions have assumed greater importance. Regions that can attract talented residents and support the development of highly innovative firms will support great prosperity. Regions that rely on low-cost labor and basic extraction of natural resources will not. While the United States has many successful regions, it is also home to many areas that do not offer the environment necessary to support productive firms – and the higher salaries those firms offer. We are becoming a land of innovation haves and have-nots.
Addressing this challenge requires a shift away from traditional economic development models. Instead of low-wage rates and tax incentives, regions in industrialized countries compete today on the quality of their skilled workforce and incentives that reward innovation.
The Council on Competitiveness launched the Regional Innovation Initiative to catalyze the necessary shift to an innovation-based paradigm. An advocate for the new paradigm is particularly critical in these challenging economic times, as there is strong temptation to cut long-term investment that supports sustained innovation.
Recently Published
“Making Impact.”
The Council's 2010-2011 Annual Report
“Collaborate: Leading Regional Innovation Clusters.”
From Competitive Disadvantage to Collaborative Advantage