Costas Spirou - Anchoring Innovation Districts: The Entrepreneurial University and Urban Change

THE GENESIS of this project goes back to the spring of 2017, when I had the opportunity to meet with Rafael Bras, who was provost and executive vice president for Academic Affairs at Georgia Institute of Technology from 2010 until 2020. A few months earlier, I was awarded an American Council on Education (ACE) Fellowship and was exploring the possibility of a placement at the Institute. During that preliminary conversation, Rafael shared with me information about the Technology (Tech) Square initiative, across the highway, on the other side of the Fifth Street bridge in Midtown Atlanta. Committed to its continued advancement, he described the setting as a vibrant environment where university activities and corporate research were intersecting, driving economic development. As an urban affairs scholar and someone interested in the broader issues facing higher education, I was intrigued by the enterprising venture and its impact and implications for the local community. Furthermore, this part of Midtown was rapidly changing, with construction sprouting everywhere.

This book examines a recent trend in higher education as universities are actively investing resources in the establishment of innovation districts. Embedded in the urban environment, the creation of these entities is fueled by the formation of structures to support and attract entrepreneurial activity, primarily emanating from the commercialization of technology. This direction has significant implications for both higher education and the city. Engaging universities with the surrounding communities in this manner departs from past practices which viewed university campuses as isolated entities. As a result, the lines of where the university ends and the community begins are blurred. At the same time, these initiatives are contributing to the continuous rebirth of the urban core and adjacent neighborhoods. By embracing an interdisciplinary perspective, this work expands the scholarship in entrepreneurial science, higher education, technological innovation, and the university as a driver of urban economic development.

The contextual framework for this analysis rests within the broader response to the continued decline of public trust in higher education which has intensified in recent years. Beyond questions about the rising costs of a college education and the relevance of a degree in a society that is undergoing rapid change, universities cannot continue to rely primarily on resources derived from tuition and fees, as well as federal and state appropriations. In the long run these mechanisms are simply unsustainable. The effects of the unprecedented economic crisis of 2008 powerfully brought these issues to the forefront, requiring institutions to reorient themselves by pursuing bolder strategic plans that incorporated unique mindsets and embraced risk to become impactful innovators.

A successful innovation ecosystem also has major economic ramifications. Close links to business interests, not only bring highly established Fortune 500 companies into these districts, but attract entrepreneurs trying to breathe life into start-ups. The 2008 financial circumstances resulted in a call to realign higher education practices. While the growth of university-driven innovation districts stalled, the economic rebound that ensued fueled a tremendous expansion. This book affords distinct insights into the operational aspects of the entrepreneurial university.

Most recently, the COVID-19 global pandemic will likely have similar implications. Already facing pressures from demographic transitions, the spread of the virus caused academic leaders to face monumental challenges. The spring of 2020 brought major upheaval as instruction shifted abruptly to remote delivery. Billions of dollars were returned to students and families because of interrupted services, and future operations became uncertain with budget cuts and enrollment declines. Outside of the hospitality industry, health care and education proved to be the second-hardest hit sectors of the economy.

Like previous downturns, higher education will recover following a few years of adjustments. However, innovation districts will fare much better and experience a more rapid ascent largely for two reasons. First, compared with the pre-2008 crisis, a more robust technology cluster infrastructure is currently in place. This will support long-term growth. Second, innovation districts have been formulated around technological innovation, a direction which will remain vital to future economic prosperity. Research activity in these settings is already contributing to the fight against the COVID-19 pandemic by aiding vaccine research and other health care needs. The post-coronavirus downturn will reveal growth opportunities as technology start-ups will once again become central to economic recovery.

Within this larger perspective, this study draws from six cases. The first four involve research-intensive universities that are located in major metropolitan regions and serve as anchors of innovation districts. The remaining two are regional comprehensives in medium-sized cities that are increasingly playing a critical role in the promotion of similar strategies. Regarding the research universities, the conceptualization and execution of these projects, as well as the potential implications for higher education and urban change, can be significant. The mission and scope of the two comprehensive universities are different from the previous four since their location presents distinct challenges. How do these two institutions, without the research clout and resources of the previous cases, participate with their communities to further innovation and urban growth? This type of analysis diversifies the list of cases and offers insights that can prove beneficial to universities and cities across the country that either are contemplating similar projects, are in the early planning stages, or have already entered the process of pursuing innovation districts in their cities.