Regional Innovation Engines for Development

Abstract

Through efficiency gains and productivity increases from the interactions between firms and people located near one another, agglomeration economies remain the basis for innovation ecosystems in cities and industrial clusters. This chapter draws on Michael Porter's thesis that nations and regions must compete to attract firms by offering the most productive environment. Porter, in essence, implies that to be competitive, regions must increase productivity in the use of human, capital, and natural resources.. While the baseline for regional success is often available in many cases, policy innovations that can help sustain a robust innovation ecosystem would be important. Considering Africa's bourgeoning urbanization, manifest in the growth of its megacities and smaller towns and cities, innovation superclusters present a great opportunity. For success, it is imperative for policy paradigms, frameworks, and devices to be sensitive to Africa's unique but heterogenous socioeconomic dynamics. Harnessing the benefits of the innovation economy requires a strategic policy framework focused on unleashing the potential of the technology ecosystem, with the appropriate policy mix and doses of investments, talent, and risk sharing paradigm.