Innovation and Knowledge-Based Economic Development: the Paradigm

This is the current rage in economic development. Some would call it the paradigm. The more cynical among us label it the politically correct approach to revitalize your community and save Western Civilization. If ever there were an economic development strategy whose proponents are true believers on the path to salvation, Innovation and Knowledge-Based ED is it. Does it really work, however?

Innovation economics, an offshoot of neo-Keynesian economics and the knowledge-based Economy, while certainly interrelated with innovation economics, has a longer history and can usefully be thought of as a derivative of the old Third Wave, Post Industrial Revolution Era.

The Curmudgeon does not reject this approach, but believes very strongly any economic developer attempting this strategy should be aware of its underlying goals, values and its origin. In our current world, it is the solution to all urban and community ails, the key which opens up heaven’s doors. It also may be hollowing out our working and middle classes–and condemning the underclass to perpetual inequality and poverty.

Articles in 'Innovation & Knowledge-Based Economics'

No Interrupting Peter Thiel: Zero to One

If entrepreneurialism, venture capital, and tech start up are your thing–this is exactly the kind of info you need to help evaluate proposals, perform due diligence on applications, understand tech business plans, and in general, familiarize yourself with technology business formation. Otherwise, this book can be a great crib sheet to follow the TV hit “Silicon Valley”. It is alleged by some that Thiel is the inspiration for the show’s character, Peter Gregory. I recommend Zero to One because it challenges our conventional principles about young tech companies, and introduces the reader to a new way of thinking and offers economic developers new ideas on how to evaluate potentially successful tech start up. Or if you prefer, it does make HBO’s Silicon Valley more hilarious.

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Give me that old-time religion — Innovation is good enuf for me!

Innovation has become the rage du jour in economic development. Politicians, especially governors, have incorporated it into their state economic development platforms and policy initiatives. What is this innovation thing and how has it changed in recent years? And why has innovation become so pervasive in state and local economic development public policy?

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Silicon Valley and Route 128: The Camelots of Economic Development

Silicon Valley and the Route 128 Massachusetts Miracle are a bit of reality and myth tossed together like a Caesar salad. In recent years, the Silicon Valley, in particular, has become a Camelot of sorts for economic developers–a place where the mythical king of technology, innovation and creativity ruled over the dominion of the knowledge-based economy. These magical geographies have personified the holy grail of economic development. What are the realities behind these legends? What lessons can we learn?

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The Ghost of Christmas Future:

The last installment of the Oscar-Forgotten Small Business Trilogy finally has arrived.In the third installment, the all too predictable Ghost of Christmas Future, delves into the horrible underlying, real-life story behind start ups and gazelles and how (if) a young and promising economic developer can hitch them up to his/her community revitalization. The issue endsoptimistically by offering a few suggestions on how a sub-state economic developer can actually use some of this Think Tank babble.

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The Ghost of Christmas Present: Ok, It’s Not True But Is There a Truism That Is True?

  The first article in our Tolkien-like small business trilogy asks (asked) the question if , as claimed in the Economic Development  truism, “small business is the nation’s best and greatest job creator” is actually true and literally correct. A related question that follows from the Truism is: “Are start ups the best, most dynamic job creators […]

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The Ghost of Christmas Past: Small Business is the Best Job Creator is a Truism, but that doesn’t mean it’s True

This article, The Ghost of Christmas Past, is the first in our Small Business Holiday Trilogy. The Ghost of Christmas Past describes how and why the Small Business Truism came to be, and how Evil Forces successfully questioned its validity. Is small business our best new net job creator? Open up the first of three Christmas visitors to your email box and find out.

In subsequent issues over the Christmas and New Years holidays we shall send out The Ghosts of the Small Business Present and Future which carry the research on Small Business job creation to the present day and into the future.

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The New Geography of Jobs (Enrico Moretti)

Enrico Moretti’s, The New Geography of Jobs (Houghton Mifflin Harcourt, Boston, 2012). has been exceptionally well received by many of the economic development literari. Some commentators have described New Geography as the best economic development book of 2012. And if you don’t read New Geography, you would also miss reading the best, most readable explanation and defense of innovation, knowledge-based economics and their effects on the location of jobs in the United States. There is a lot going on in New Geography. You should read on because what lies below the thematic visible tip of New Geography and innovation economics is its frank and realistic understanding of what innovation economics can do and not do, and, perhaps more important, the linkage of innovation economics with American culture and society.

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What's the Theory Behind Innovation and the Knowledge-Based Economy

Who are the Gods of Innovation and Knowledge-Based Economics? Who “Thunk” It Up? Where Did It Come From? Don’t Know? Then this review is The Perfect Take It to the Beach-Labor Day Reading — Innovation Economics–Everything you wanted to know (AND LOTS AND LOTS MORE) about the economics underlying innovation, creativity, entrepreneurship and the knowledge-based economy. Learn about Romer, Krugman, Lucas, Solow and Schumpter from our review of David Warsh’s, Knowledge and the Wealth of Nations.

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Innovation: A Dirty, Sloppy, Time-consuming and Unfair Process

Innovation is too important a concept, too serious a strategy to be treated with the casualness, simplicity and inevitable benevolence that we read in current literature and blogs. Innovation has become so trivialized we have lost sight of its Luke Skywalker/Darth Vader two edge sword complexity. Instead we have an “everything is beautiful” and it’s “so easy we all can do it” atmosphere. It’s time we sobered up and remember that Innovation is a wonderful but dark, dirty, greedy, timeconsuming and very sloppy economic development strategy.

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Below the Tip of the Iceberg: Innovation and the Knowledge-Based Economy as Political Strategy

Innovation or growth economics is everywhere, but should it be taken at face value as a non partisan solution to present day economic woes and the single best strategy for local economic development? Let’s dissect the National Governors Association report, “Innovation America: the Final Report”. Is the really deep down justification for innovation and growth economics political, not economic? Like an iceberg, it’s what you don’t see that sinks ships.

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Rummaging Around the Basement: The Economic Theory behind Innovation and the Knowledge-Based Economy

Have you ever noticed that most advocates for innovation and knowledge-based policies simply state that innovation, creativity, entrepreneurism, education are the best strategy for future economic growth in our new global competitive economy? Where’s the Proof? On what basis can they make that claim which most of us blindly accept? Let’s take a look at the little known economic “theory” which supports the innovation and knowledge-based “growth economics”.

Written for those of us who speak only English, not Economese!

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