by Dr John H Howard of the Acton Institute

The Kennedy Company welcomes this well-researched article by Dr John H Howard, Director of the Acton Institute for Policy Research and Innovation into what makes innovation districts, precincts and hubs work. He casts doubt on the commonly-held view of an automatic link between proximity and prosperity, and in particular, the role played by serendipity where places are designed for chance collisions of information and talent.

Howard argues that the focus on serendipity masks the hidden prolonged hard work and deliberate action behind successful innovation precincts. Physical presence in one place is necessary, but far from sufficient, for effective social and economic impacts. Howard marshals the evidence for other vital factors:

• Recognition of shared interests able to be acted on.
• Rapport from building trust, alignment and confidence with the other participants.
• Commitment to joint action and follow through and continued engagement.
• Generous investment in the roles of brokers, intermediaries and system integrators.
• Inclusion of diverse participants as mission-critical for effective innovation precincts.

Howard draws out key implications for policy on innovation districts, precincts and hubs, together with insights on wider industry and innovation policy. 

He highlights , for example, the unresolved tension in innovation precinct strategies between innovation as control and innovation as openness. The former emphasizes competitive secrecy, risk management and returns on innovation investment to the firm, such as intellectual property  protection, security protocols and non-disclosure agreements. While open innovation favours user-centred innovation, learning by doing and permeability of boundaries between organisations, jobs and sectors.

So, the challenge of effective innovation districts, precincts and hubs remains a work in progress.

Read the full article here. Beyond Collisions: Towards A Theory of Serendipitous Interaction in Innovation Districts, Precincts and Hubs

John Howard is the author of The Handbook of Innovation Ecosystems: Placemaking, Economics, Business, and Governance (Amazon Publishing, 2025). Available as a Paperback and on Kindle

John can be contacted at john@actoninstitute.au