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Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto ISRN Eighth Annual Meeting Kingbridge Centre King City May 4, 2006

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Page 1: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Social Dynamics of Economic Performance: Innovation and

Creativity in City-Regions

Meric S. Gertler

University of Toronto

ISRN Eighth Annual MeetingKingbridge Centre

King CityMay 4, 2006

Page 2: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

From Clusters to City-Regions:Primary Research Question

How do local social characteristics and processes in city-regions shape their economic vitality and dynamism as centres of innovation and creativity?

Page 3: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

3 Dimensions

• Social learning dynamics & knowledge flows between economic actors

• Social dimensions of talent attraction and retention (quality of place, including diversity, openness, inclusion)

• Social nature of civic engagement and governance processes

Page 4: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme I: Social Dynamics of Innovation

• Primary H: the economic and creativity performance (ECP) of city-regions depends on– Strength of local knowledge circulation within

clusters– Strength of local knowledge circulation between

clusters (local knowledge diversity)– Strength of knowledge-based linkages between

local and non-local actors (geographical knowledge diversity)

Page 5: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme I: Quantitative Analysis

• Use Indicators database to explore relationship between ECP and

– Diversity of internal economic structure– Relative strength of local K linkages– Relative strength of external K linkages– [K in disembodied and embodied forms]

• Use StatCan (SIEID) innovation survey data for similar analysis

Page 6: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme I: Qualitative Analysis

• Structured interviews with: – Managers, entrepreneurs– Economic development organizations– Educational/research organizations

• Deeper understanding of processes by which K is circulated

– Mobility of skilled workers, managers, entrepreneurs– Role of economic diversity, mix– Alternative ways of organizing production (e.g. projects)– Formal and informal modes of interaction

Page 7: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme I: Network Analysis?

• H: ECP of city-regions depends on structure (density, diversity) of local networks (strong/weak ties; local/non-local ties; heterogeneity/diversity of actors belonging to networks)

• Objectives: – Compare strength, structure of social network ties w/in and b/w

local industry clusters– Identify key actors who link multiple clusters within the city-region– Identify, understand role played by key intermediary

organizations: local tech associations, research alliances, chamber of commerce, social service agencies, unions

– Link network structure, diversity to ECP?• Challenge:

– how to characterize social networks in LARGE cities?– qualitative alternatives to quantitative (SNA) approach?

Page 8: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme II: Social Foundations of Talent Attraction and Retention

• Primary H: ECP of city-regions depends on quality of place characteristics:– Cultural dynamism– Social diversity– Openness/tolerance– Social inclusion/cohesion

Page 9: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme II: Quantitative Analysis

• Use Indicators database to explore relationship between ECP and QoP, with some new wrinkles:

– Measures of social inclusion/exclusion– New measures of diversity (beyond foreign-born)– Large vs. mid-size, smaller urban centres?

• Objectives:– Is it possible to pursue a talent-based ED

strategy while enhancing social inclusion?– Do ‘big city’ relationships hold in S, M cities?

Page 10: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme II: Qualitative Analysis

• Structured interviews with: – creative &/or highly educated workers– employers of creative &/or highly educated workers– intermediary organizations

• Objectives: – to substantiate, deepen quantitative analysis (impact of

key local social characteristics on talent A&R)– explore motivations of creative &/or highly educated

workers, their employers– identify institutions, policies, practices that

facilitate/discourage integration of talented newcomers, enable full participation by socially disadvantaged

Page 11: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme III: Inclusive Communities and Civic Engagement

• Primary H: ECP of city-regions depends on:– Their ability to generate effective new

forms of associative governance, collaborative leadership

– Social inclusiveness of new governance forms

Page 12: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Theme III: Qualitative Analysis

• Structured interviews with: – Civic leaders (in business, government, CBOs)– Reps of key minority groups, socially disadvantaged– Employers in K-intensive, creative industries

• Objectives: – To determine effectiveness of local governance

mechanisms in promoting economic success of the city-region

– To document degree of openness of governance structures to newcomers, outsiders

– Identify factors that differentiate between ‘successful’ and ‘less successful’ city-regions

Page 13: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Methodology

• Quantitative: cluster/city-region database (140 CMAs and CAs in Canada)

• Qualitative: 15 project study city-regions• Minimum number of interviews (target):

• 25 per theme per city-region

Page 14: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Project Study City-Regions

1M+ 250K-999K 100K-249K

Montréal Halifax St. John’s

Toronto Québec City Saint John

Vancouver Hamilton Trois-Rivières

Ottawa-Gatineau

Kitchener-Waterloo

Kingston

Calgary London Saskatoon

Page 15: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Strategy for selecting K-intensive, creative sectors: 4-step plan

1. Identify sectors with LQ>>1 (employment, estab)2. Co-specialization patterns? (identify parallel

specializations; compare to national cluster models; judgement)

3. Identify sectors with high K-intensity, creativity-intensity

• % K occupations, % creative occupations• % high educational attainment

4. Identify fast-growing sectors• employment, establishment data (new firm formation)

Page 16: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Project Milestones

• SSHRC requires us to specify these for each co-investigator

• Typical forms:– # interviews completed– Papers presented, published– Events (e.g. local conferences)

Page 17: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Contracts

• Individual agreements between project directors and each co-investigator

• Specify milestones for each project study on a quarterly basis

• Subsequent instalments of $ depend on adherence to milestones (with appropriate allowances for ‘surprises’, unforeseen circumstances)

Page 18: Innovation Systems Research Network Social Dynamics of Economic Performance: Innovation and Creativity in City-Regions Meric S. Gertler University of Toronto

Innovation Systems Research Network

Questions?