Why place is important in innovation

Tech City Ventures

Place-based economic development approaches have been gradually spreading across different areas of policy-making and governments levels around the world.
Although place-based thinking is not new in regional and urban economic development, regulators and scholars were more focused on developing aggregate macroeconomic policies and frameworks during the first few decades of the post-war era.
It wasn’t until the 90’s that place-based theories gained more momentum. Cities were recognised for providing the links between trade and economic growth, while local economic activity clusters were seen as a vital force driving national economies.
Although the theories that emerged differed, they all found that knowledge exchange, spillovers and diffusion were important driving forces of economic growth.
Around this time, globalisation, the process that would forever change global economic development, began.

Is your company a disruptor or a constructor?

Tech City Ventures

Disruptive companies enter markets to challenge and often replace industry incumbents. While they offer great scale and opportunities, they might highlight a risk to established public services if not executed properly.

Take, for example, Uber.

The gig giant’s offer was appealing to both its drivers and customers. Customers could order a taxi which cost less than most alternatives and arrived quicker. Drivers could work on a self-employed basis from anywhere, whenever they liked and use their own car.

Uber’s business model was based on recruiting many drivers to meet increased demand, at no additional cost to the company. The company started off in San Francisco and after gaining popularity and investor backing, expanded globally.

Although a success story, Uber has faced many regulatory hurdles around the world. The company has also been criticised by the taxi industry and endured backlash from both its drivers and consumers.