The Smartest Places on Earth

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The Smartest Places on Earth Page 3

by Antoine van Agtmael


  We knew we needed to test our theory, and to do that, we needed more data. We decided to do more fieldwork, this time together, and started with a trip to Albany, in the Hudson Valley of New York, and Akron, Ohio. What we witnessed there filled us with excitement. We saw groups working in collaboration, new technologies and manufacturing methods being employed, and smart, value-added products being created. Cities and whole regions were being revitalized by the activities.

  That trip turned into a two-year journey through the United States and Europe in which we visited ten locations. In Europe we went to Dresden, Germany; Eindhoven, the Netherlands; Lund-Malmö, Sweden; Oulu, Finland; and Zurich, Switzerland. With the help of Bruce Katz and his Brookings colleagues, we put five regions in the United States on our itinerary: in addition to Akron and Albany, we traveled to Minneapolis, Minnesota; Portland, Oregon; and Raleigh-Durham, North Carolina. We also conducted interviews with leaders in many other areas, participated in numerous conversations with people in various disciplines and positions around the world, and did our due research diligence—reading, reviewing material, and digging into the relevant data.

  We realized there are many other examples of new, university-centered brain hubs, some of them former “rustbelts,” whereas others were not anchored in an industrial past. Some are already well known, some others only just emerging. In the United States, Austin, Texas (information technology [IT] and biotechnology), was the most promising example of a new brainbelt that does not have an industrial history. Its high-tech area, Silicon Hills, started in the 1990s around the University of Texas, and companies such as IBM, Dell, and Oracle and now has at least fifteen incubators.2 Other examples of brainbelts are Houston (energy) in Texas; Palm Bay (aerospace) and Gainesville (life science) in Florida; and Boulder (aerospace and life science) in Colorado. In Europe, we also see the phenomenon in Cambridge, United Kingdom; Stockholm and Göteborg, Sweden; Berlin and the Munich-Stuttgart region in Germany; Paris, Grenoble, and Toulouse in France; and Graz in Austria. Outside the United States and Europe are Seoul in South Korea; Singapore; Hsinchu in Taiwan; and Tel Aviv in Israel.

  The discovery and creation process was an amazing experience for us, an economist and a journalist traveling the world, trying to understand what was going on, gradually accumulating evidence and steadily sharpening our thesis. We visited universities and community colleges, big corporations and tiny start-ups, laboratories and production facilities. We talked with senior executives in suits and start-up founders in jeans, researchers in cleanrooms and tinkerers in lofts, administrators of science parks and government officials in statehouse offices. They all told us about a process of innovation and the creation of products that involved collegial collaboration, open exchange of information, partnerships between the worlds of business and academia, multidisciplinary initiatives, and ecosystems composed of an array of important players, all working closely together. The much-storied model of innovation—featuring the solo genius or the brilliant pair of geeks in a garage—was no longer relevant in an era when new product development is expensive, multidisciplinary, and complex. And the brainbelt approach went far beyond the joint ventures and occasional project-based engagements we had seen before. We began to refer to it as the “sharing of brainpower.”

  BRAINBELTS

  United States

  Well-known

  State: California

  Region: West

  Name/Place: Silicon Valley

  Focus: IT, bioscience, electric car, next-gen bendable and wearable electronic devices

  Universities, Research Institutes, Hospitals: Stanford, University of California, Caltech

  State: Massachusetts

  Region: East

  Name/Place: Cambridge (and Route 128)

  Focus: Bioscience, robotics

  Universities, Research Institutes, Hospitals: MIT, Harvard

  State: Texas

  Region: South

  Name/Place: Austin (Silicon Hills)

  Focus: Computers, new materials, bioscience

  Universities, Research Institutes, Hospitals: University of Texas

  Focus of this book

  State: North Carolina

  Region: Southeast

  Name/Place: Durham- Raleigh-Chapel Hill (Research Triangle Park)

  Focus: Bioscience, new materials, energy (LED)

  Universities, Research Institutes, Hospitals: Duke, UNC, NC State

  State: New York

  Region: East

  Name/Place: Albany (Hudson Tech Valley)

  Focus: Semiconductors

  Universities, Research Institutes, Hospitals: SUNY, RPI

  State: Ohio

  Region: Midwest

  Name/Place: Akron

  Focus: New materials, polymers

  Universities, Research Institutes, Hospitals: University of Akron, Kent State

  State: Minnesota

  Region: Midwest

  Name/Place: Minneapolis- St. Paul

  Focus: Medical devices/ bioscience

  Universities, Research Institutes, Hospitals: University of Minnesota

  State: Oregon

  Region: West

  Name/Place: Portland (Silicon Forest)

  Focus: Bioscience

  Universities, Research Institutes, Hospitals: OHSU

  Others

  State: Pennsylvania

  Region: East

  Name/Place: Pittsburgh

  Focus: Robotics, IT

  Universities, Research Institutes, Hospitals: Carnegie Mellon

  State: New York

  Region: East

  Name/Place: Rochester

  Focus: Photonics (link with Albany)

  Universities, Research Institutes, Hospitals: University of Rochester, SUNY

  State: New York

  Region: East

  Name/Place: Buffalo (Buffalo Billion, Riverbend)

  Focus: Battery technology, clean energy

  Universities, Research Institutes, Hospitals: University of Buffalo, SUNY

  State: New York

  Region: East

  Focus: New York (Silicon Alley)/New Jersey

  Focus: IT, digital media, telecom, biotech

  Universities, Research Institutes, Hospitals: Cornell

  State: Ohio

  Region: Midwest

  Name/Place: Columbus

  Focus: Bioscience, agribusiness

  Universities, Research Institutes, Hospitals: Ohio State University, Battelle Memorial Institute

  State: Ohio

  Region: Midwest

  Name/Place: Dayton

  Focus: Aerospace, RFI, new materials, sensors

  Universities, Research Institutes, Hospitals: University of Dayton, National Air & Space Intelligence Center, Kettering

  State: Michigan

  Region: Midwest

  Name/Place: Ann Arbor

  Focus: Bioscience, electronics, engineering

  Universities, Research Institutes, Hospitals: University of Michigan

  State: Michigan

  Region: Midwest

  Name/Place: Detroit- Oakland County (Automation Alley)

  Focus: Automation, automotives

  Universities, Research Institutes, Hospitals: Wayne State University

  State: Illinois

  Region: Midwest

  Name/Place: Chicago (Golden Corridor)

  Focus: Materials, IT, engineering, biotech

  Universities, Research Institutes, Hospitals: Northern Illinois University

  State: Kansas

  Region: Midwest

  Name/Place: Wichita

  Focus: Aerospace, heavy machinery

  Universities, Research Institutes, Hospitals: Wichita State University

  State: Missouri

  Region: Midwest

  Name/Place: St. Louis (Cortex, Missouri Research Park)

  Focus: Bioscience, ag-tech

  Universities, Research Institutes, Hospitals: Washington University, University of Missouri
>
  State: Minnesota

  Region: Midwest

  Name/Place: Rochester

  Focus: Life science

  Universities, Research Institutes, Hospitals: Mayo Clinic, University of Minnesota

  State: Indiana

  Region: Midwest

  Name/Place: Indianapolis

  Focus: Biotech

  Universities, Research Institutes, Hospitals: Indiana Biosciences Research Institute

  State: Washington

  Region: West

  Name/Place: Seattle

  Focus: Aerospace, automotives, IT, retail, biotech

  Universities, Research Institutes, Hospitals: University of Washington

  State: Idaho

  Region: West

  Name/Place: Boise (Boise Valley)

  Focus: IT, engineering

  Universities, Research Institutes, Hospitals: University of Idaho, Idaho State University

  No rustbelt background

  State: Utah

  Region: West

  Name/Place: Salt Lake City- Ogden-Provo (Silicon Slopes)

  Focus: IT, life science, automotives

  Universities, Research Institutes, Hospitals: University of Utah, Brigham Young University

  State: Colorado

  Region: West

  Name/Place: Boulder-Denver (Denver Tech Center)

  Focus: Aerospace, life sciences, energy

  Universities, Research Institutes, Hospitals: University of Colorado, NREL’s National Wind Technology Center, National Oceanic and Atmospheric Administration (NOAA)

  State: Arizona

  Region: West

  Name/Place: Tucson (Optics Valley)

  Focus: IT, optics, aerospace, bio-science

  Universities, Research Institutes, Hospitals: University of Arizona

  State: California

  Region: West

  Name/Place: San Diego and Tech Coast

  Focus: Defense, biotechnology, nanotechnology, wireless

  Universities, Research Institutes, Hospitals: University of California

  State: California

  Region: West

  Name/Place: Los Angeles metro

  Focus: Bioscience, aeronautics, entertainment, defense

  Universities, Research Institutes, Hospitals: UCLA

  State: Texas

  Region: South

  Name/Place: Houston

  Focus: Energy, bioscience

  Universities, Research Institutes, Hospitals: Rice, University of Houston, Texas Southern, Texas Medical Center

  State: South Carolina

  Region: South

  Name/Place: Greenville

  Focus: Automotives

  State: Florida

  Region: South

  Name/Place: Palm Bay

  Focus: Avionics

  State: Alabama

  Region: South

  Name/Place: Huntsville (Cummings Research Park)

  Focus: Aerospace

  Universities, Research Institutes, Hospitals: University of Alabama, Huntsville Hospital system, NASA Space Flight Center

  State: Mississippi

  Region: South

  Name/Place: Batesville

  Focus: Aerospace

  Universities, Research Institutes, Hospitals: Mississippi State University

  State: Tennessee

  Region: South

  Name/Place: Knoxville

  Focus: Composite materials and process technology

  Universities, Research Institutes, Hospitals: Oak Ridge National Laboratory, University of Tennessee

  State: DC region

  Region: East

  Name/Place: Washington (Dulles Technology Corridor)

  Focus: Defense, homeland security, biotech

  Universities, Research Institutes, Hospitals: Johns Hopkins, University of Maryland, George Washington University

  Canada and Mexico

  Country: Canada

  Name/Place: Waterloo- Kitchener

  Focus: Wireless, bioscience

  Universities, Research Institutes, Hospitals: University of Waterloo, Wilfrid Laurier

  Country: Canada

  Name/Place: Ontario

  Focus: Aerospace

  Universities, Research Institutes, Hospitals: University of Toronto, Ryerson University, York University, Centennial College

  Country: Mexico

  Name/Place: Monterrey

  Focus: Biotechnology, mechatronics, nanotechnology

  Universities, Research Institutes, Hospitals: Monterrey Institute of Technology

  Northern Europe

  In book

  Country: Netherlands

  Name/Place: Eindhoven (High Tech Campus)

  Focus: Semiconductors, new materials

  Universities, Research Institutes, Hospitals: Technical University

  Country: Sweden

  Name/Place: Lund-Malmö (Ideon)

  Focus: Life science, new materials

  Universities, Research Institutes, Hospitals: Lund University

  Country: Finland

  Name/Place: Oulu (Technopolis)

  Focus: Medical instruments, wireless

  Universities, Research Institutes, Hospitals: Oulu University

  Country: Germany

  Name/Place: Dresden (Silicon Saxony)

  Focus: Semiconductors

  Universities, Research Institutes, Hospitals: Max Planck

  Country: Switzerland

  Name/Place: Zurich

  Focus: Life science

  Universities, Research Institutes, Hospitals: Technical University

  Others

  Country: United Kingdom

  Name/Place: Cambridge (Silicon Fen)

  Focus: Bioscience, engineering

  Universities, Research Institutes, Hospitals: Cambridge University

  Country: United Kingdom

  Name/Place: Oxford (Science Park)

  Focus: Bioscience, IT, clean tech

  Universities, Research Institutes, Hospitals: Oxford University

  Country: Germany

  Name/Place: Munich- Karlsruhe- Stuttgart- Heidelberg (Isar Valley)

  Focus: Automotives, robotics, bioscience

  Universities, Research Institutes, Hospitals: Fraunhofer, Stuttgart University, Heidelberg University, Karlsruhe Institute of Technology

  Country: Germany

  Name/Place: Berlin (Silicon Allee)

  Focus: IT

  Universities, Research Institutes, Hospitals: TU Berlin (Technical University), Humboldt University, Free University

  Country: Germany

  Name/Place: Aachen (E.ON Research Center)

  Focus: Clean energy

  Universities, Research Institutes, Hospitals: Technical University of Aachen

  Country: Germany

  Name/Place: Kaiserslautern (Silicon Woods)

  Focus: IT

  Universities, Research Institutes, Hospitals: University of Kaiserslautern

  Country: Netherlands

  Name/Place: Delft (Technopolis Innovation Park)

  Focus: Cleantech, 3D printing, IT

  Universities, Research Institutes, Hospitals: Delft University

  Country: Netherlands

  Name/Place: Enschede (Kennispark Twente)

  Focus: New materials

  Universities, Research Institutes, Hospitals: University of Twente, Saxion

  Country: Netherlands

  Name/Place: Wageningen

  Focus: Agri-bio

  Universities, Research Institutes, Hospitals: Wageningen University

  Country: Netherlands

  Name/Place: Heerlen (Avantis European Science and Biomedicine Park)

  Focus: New materials

  Universities, Research Institutes, Hospitals: Zuyd University of Applied Sciences

  Country: Netherlands

  Focus: Leiden (Bio Science Park)

  Focus: Bioscience

  Universities, Research Institutes, Hospitals: University of Leiden

  Co
untry: Sweden

  Name/Place: Stockholm (Kista)

  Focus: IT, robotics

  Universities, Research Institutes, Hospitals: Stockholm University

  Country: Denmark

  Name/Place: Copenhagen (Science City)

  Focus: Bioscience, clean tech

  Universities, Research Institutes, Hospitals: University of Copenhagen, Metropolitan University College

  Country: France

  Name/Place: Grenoble (Giant Campus)

  Focus: Nanotech, bioscience, clean tech

  Universities, Research Institutes, Hospitals: Grenoble Institute of Technology, Inria

  Country: France

  Name/Place: Toulouse (Aerospace Valley)

  Focus: Aerospace, agri-bio

  Universities, Research Institutes, Hospitals: University of Toulouse, University of Bordeaux

  Country: Israel

  Name/Place: Tel Aviv (Silicon Wadi, Kiryat Atidim Hi-tech Zone)

  Focus: IT, bioscience, plant bioscience

  Universities, Research Institutes, Hospitals: Tel Aviv University

  With each visit, it became clearer that we were indeed witnessing a whole new phenomenon in which the sharing of brainpower was taking place in very unlikely places that were becoming hotspots of innovation. Most of these were cities and regions that had been ravaged by the outsourcing of the 1980s and 1990s and had formulated a new approach and kindled a new ambition. By sharing brainpower, they were achieving exactly what their Asian and MIST competitors were worried about: creating smart, complex products that delivered value far greater than products that could be created using the outdated, low-cost model.

  But there was more to it than sharing brainpower through collaborative partnerships. There was the actual making of things. What we were seeing in such places as Batesville and Eindhoven was not, however, what journalists sometimes like to call a “return” to traditional manufacturing, but its reinvention. For some time, R&D had taken a backseat in the corporate enterprise, with disastrous consequences. But R&D got a new lease on life and got even smarter than before, when companies integrated it with manufacturing. Then, when low-cost sensors became available, it was possible to reintegrate all of the elements—information technology, data analytics, wireless communications, new production methods, new materials, and new discoveries. This created a new branch of the economy, which soon flourished. Companies in these brainbelts had no intention of firing up the old equipment and hiring back laid-off workers to run the assembly lines. No way. These facilities were radically different, like the GE plant in Batesville: smart, clean, flexible, and operated by processes that integrated electronics and mechanics. The people engaged in the facilities worked in teams of specialists and professionals, some with advanced-skills training, some with PhDs, and, yes, some retrained former line workers. And the products that emerged were innovative, connected, customized, and of high quality—as complex as a jet engine or as seemingly simple as an athletic shoe. This was by no means your father’s manufacturing—things fashioned by the repetitive interplay of hand and machine—but rather smart manufacturing: very clever things created by the creative interaction of skilled workers and professionals with smart technologies.

 

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