Accelerating Innovation Ecosystems: The Promise and Challenges of Regional Innovation Engines

Motivated by the recent establishment of major US federal programs seeking to harness the potential of regional innovation ecosystems, we assess the promise and challenges of place-based innovation policy interventions. Relative to traditional research grants, place-based innovation policy interventions are not directed toward a specific research project but rather aim to reshape interactions among researchers and other stakeholders within a given geographic location. The most recent such policy—the National Science Foundation “Engines” program—is designed to enhance the productivity and impact of the investments made within a given regional innovation ecosystem. The impact of such an intervention depends on whether, in its implementation, it induces change in the behavior of individuals and the ways in which knowledge is distributed and translated within that ecosystem. Although this logic is straightforward, from it follows an important insight: innovation ecosystem interventions—engines—are more likely to succeed when they account for the current state of a given regional ecosystem (in terms of latent capacities, current bottlenecks, and economic and institutional constraints) and when they involve extended commitments by multiple stakeholders within that ecosystem. Beyond outlining the key dependencies for place-based innovation policy interventions, we also discuss opportunities for real-time assessment and course correction of such interventions.