Inducing phase transitions in local innovation networks: Implications for state economic development

Abstract

States can undertake innovation system network-focused actions to enhance their entrepreneurial networks. Actions directed primarily at creating transitions in their innovation network structure include: identifying the components and connectivity of the innovation network (persons, entities, businesses, etc.) and communicating with the network; establishing intermediary organizations (academies, roundtables, councils, etc.); establishing interfacial organizations to enhance information diffusion; and creating and supporting an Informatics HUB to facilitate network functions. Actions to enhance information access and communications within the innovation network include: ensuring local access to global information; supporting personal and business interactions within and outside of the local innovation system; supporting creation and maintenance of missing databases; supporting recruitment of talent in gap areas; and utilizing knowledge analytics to identify local overlaps with the global knowledge base. These are relatively inexpensive, but nonetheless challenging, alternatives to firm-level direct payments or incentives typically used by local governments. This Perspective briefly sketches the rationale behind these and related recommendations.