Open Innovation

Economic development must now change because the nature of business development in the global economy has fundamentally changed. Business development today is based on an open innovation model where firms seek innovation assets- ideas, talent, capital- from many sources, often outside the firm itself. Under this model, the role of economic development is to intervene at appropriate times to help firms achieve higher value and productivity by gaining access to appropriate innovation assets at each stage of the business development process- start up, expansion, production and marketing.

Regional Assets

Talent

Current Workforce (managerial, technical, sales/marketing)

Workforce advancement efforts

(K-12, universities, technical schools, community college)

Technology

Business/technical service & expertise (consultants, lawyers, networks)

R&D Systems

(universities, national labs, corporate)

Capital

Early stage investing Expansion Financing

Local Firms

Startup

Stage

Commercialization

Stgae

Market Expansion

Stage

Global Assets

Talent

Data & Engineering Management Sales & Marketing

Technology

Technology Sourcing/acquisition R&D partnerships

Global industry networks

Capital

Joint venture Foreign Investment

Innovation Driven Economic Development Model

By Collaborative Economics

Prepared For The Bay Area Council Economic Institute Subcontractor to the California Space Authority Through a Grant from the U.S. Department Of Labor Workforce Innovation in Regional Economic Development (WIRED)

Prosper Memphis