The Smartest Places on Earth Summary

What if the key to solving the world's biggest challenges lay not in Silicon Valley but in the revitalized industrial sites of yesterday—now thriving centers of innovation?

1. From Rustbelts to Brainbelts

Regions once defined by their declining industries are emerging as innovation hubs. Former industrial areas in North America and Europe, often referred to as rustbelts, have been battered by economic stagnation. Offshoring manufacturing to low-cost countries such as China and Bangladesh turned cities like Akron, Ohio, into stories of industrial collapse.

However, these areas are transforming into brainbelts—places where manufacturing knowledge is combined with research from local universities and institutes. For example, General Electric (GE) chose Batesville, Mississippi, for a production facility because of its proximity to Mississippi State University. The two collaborated on advanced materials for manufacturing aircraft engines, igniting a comeback for the region through smart manufacturing.

This partnership model is allowing companies to rebuild without moving operations overseas, creating competition for emerging markets. Multinational companies, such as Taiwan’s Mediatek, are feeling the heat as startups and established manufacturers in brainbelt regions demonstrate advanced innovation and high-tech production capacity.

Examples

• GE’s collaboration with Mississippi State University on revolutionary aircraft engine materials
• Mediatek’s CFO expressing concerns over increased competition from US firms like Qualcomm
• The transformation of other rustbelt cities into centers for smart manufacturing innovation

2. Collaboration Powers Brainbelts

Brainbelts thrive on ecosystems of collaboration among universities, private companies, and governments. At their core lies a research university that serves as the heart of innovation. These interconnected networks foster the sharing of ideas and resources that fuel progress.

Take Hudson Tech Valley in Albany, New York. Anchored by powerful institutions like SUNY Albany and Rensselaer Polytechnic Institute, this brainbelt focuses on semiconductor research. Manufacturing businesses, startups, and community colleges enhance its strength and resources.

Another key example is the partnership between Oregon Health & Science University, which needed computational capacity for processing cancer research data, and Intel in Portland. The company offered its resources to the university, showing how cross-sector collaboration leads to mutual benefits—none of the collaborators directly compete with each other.

Examples

• Hudson Tech Valley’s semiconductor network led by SUNY Albany
• Oregon Health & Science University leveraging Intel’s computing power in cancer research
• Collaboration in diverse disciplines, from math to biology, within brainbelt ecosystems

3. Focused Expertise Drives Success

Brainbelts outperform competitors by focusing narrowly on specific industries or technologies. This strategy allows them to deepen expertise and push boundaries in a few areas rather than spreading resources across multiple sectors.

For example, Hudson Tech Valley is dedicated almost entirely to semiconductor advancements, while Zurich focuses on biotechnology and biopharmaceutical innovations. This specialization fosters growth in niche fields where participants can become global leaders.

Moreover, smart manufacturing technologies like 3-D printing and robotics enable brainbelts to lead in creating both customized products and automated systems. In Youngstown, Ohio, firms can quickly prototype or manufacture parts using advanced robotics like Baxter, a humanoid machine operating at a fraction of traditional costs.

Examples

• Zurich’s focused efforts on biotechnology make it a global leader
• 3-D printing in Youngstown supporting innovations in both aviation and medicine
• Hudson Tech Valley concentrating efforts on semiconductors like sensors and chips

4. The Revival of Akron: A Case Study

Akron, Ohio, demonstrates how a former rustbelt can become a thriving brainbelt. Once a hub of tire manufacturing due to its proximity to Detroit’s car industry, Akron fell into decline when it failed to adapt to fierce competition from overseas.

Despite its downfall, skilled workers and intellectual resources remained in Akron, paving the way for its recovery. By re-orienting its industrial focus towards polymer science and leveraging local expertise, Akron found success again. The University of Akron became a central driver in this transformation.

Companies like Akron Polymer Systems now capitalize on these changes. By working with polymers, the firm creates advanced materials used in solar cells and LCD screens, illustrating how industrial focus can lead to higher-value innovation.

Examples

• Akron’s history as a center for tire companies like Goodyear
• The University of Akron driving its polymer science initiative
• Akron Polymer Systems creating cutting-edge materials for modern technology

5. Brainbelts Tackle Global Problems

Brainbelts play a critical role in addressing global challenges, such as climate change and food security. By advancing clean energy technologies, these regions are working toward sustainable solutions to reduce reliance on fossil fuels.

For example, North Carolina's Centennial Campus collaborates with utility companies and researchers to enhance energy grids for renewable integration. Consumers could become energy producers through solar panels, creating a decentralized and efficient energy system.

Brainbelts also contribute to feeding a growing global population. The Wageningen region in the Netherlands, with its agricultural university, leads in innovations like advanced greenhouse designs and automated farming equipment, helping meet future food demands effectively.

Examples

• Centennial Campus improving energy grid technologies
• Wageningen University’s breakthroughs in agricultural production
• Renewable technology innovations making distributed energy feasible for households

6. The Role of Technology in Brainbelts

In brainbelts, smart technologies like 3-D printing and robotics are making manufacturing more versatile and creative. These tools allow the development of prototypes and products tailored to specific needs.

For instance, advanced robotics at companies like Rethink Robotics in Boston demonstrate cost efficiency. Baxter, a humanoid robot, works tirelessly for a low operational cost. Such innovation also applies to industries ranging from manufacturing aircraft engine parts to creating custom medical implants.

Smart technologies are also used in education and skill-building, helping keep workers up to speed in cutting-edge industries. Community colleges around Hudson Tech Valley are prime examples, training workers in semiconductor-related technologies.

Examples

• Rethink Robotics’ Baxter demonstrating affordable automation
• Youngstown’s success in 3-D printing for aviation and medical uses
• Education programs integrating robotics and advanced manufacturing techniques

7. National Policies Can Support Brainbelts

National policies and funding are essential in helping brainbelts emerge and grow. Unlike established giants like Google or Amazon, brainbelts often operate in areas weighed down by outdated infrastructure and diminished industries.

In many cases, direct government intervention, in the form of innovation policies, has spurred growth in these regions. However, in countries like the United States, where such policies are not consistently applied, innovation depends heavily on private investments or one-off initiatives.

For sustainability, young brainbelts need sustained funding and policy guidelines. Support for cross-disciplinary projects can also attract smarter investments, benefiting regional economies and contributing globally.

Examples

• Lack of permanent US innovation policies compared to other nations
• Government and private funds enabling successful brainbelt projects
• Innovation in America Makes supported by various funding efforts

8. Local Specialization Strengthens Regional Economies

Brainbelts gain an edge through local expertise tied to the community. This not only boosts the local economy but also ensures sustainable growth through reinvestment in education and infrastructure.

For example, Akron focused heavily on polymers and was able to compete globally in the field. Innovative regions like Wageningen in agriculture similarly maximize local knowledge and skills, ensuring long-term economic development.

Specialization also allows brainbelts to build a reputation as centers for excellence, attracting employees, researchers, and investments from all over the globe.

Examples

• Wageningen’s widespread recognition for agricultural innovation
• Akron’s polymer-focused industrial comeback
• Communities reinvesting in technical training and STEM education

9. Collaboration Across Borders

Brainbelts often cross international boundaries in their efforts. By collaborating with industries and universities worldwide, they raise the quality of innovation while opening new markets.

For instance, Zurich partners with firms across Europe to grow its biotechnology capabilities. Wageningen collaborates with global agricultural firms, creating products for an international market.

These global partnerships enhance creativity and lead to products and solutions with universal appeal, making brainbelts indispensable on the world stage.

Examples

• Zurich’s cross-European biotech partnerships
• Wageningen’s collaboration with global food producers
• Cross-border innovation promoting renewable energy and efficiency

Takeaways

1. Revitalized industrial areas can learn from Akron’s model by focusing on key strengths like advanced materials or emerging sectors such as renewable energy.
2. Policymakers should establish consistent national innovation guidelines to encourage investment and funding in brainbelt initiatives.
3. Companies and researchers should actively seek cross-disciplinary or international collaborations to maximize creativity and expand their market potential.