Introduction
In "The Smartest Places on Earth," author Antoine Van Agtmael challenges our preconceptions about where innovation and cutting-edge technology are thriving in today's world. Contrary to popular belief, it's not always in the bustling metropolises or prestigious university towns that we find the brightest minds and most groundbreaking ideas. Instead, Van Agtmael argues that former industrial sites, once considered "rustbelts," are now emerging as the new epicenters of innovation and progress.
These areas, which the author dubs "brainbelts," are transforming from declining industrial zones into vibrant hubs of creativity, collaboration, and technological advancement. By combining the practical skills of experienced workers with the innovative thinking of academic institutions, these regions are tackling some of the world's most pressing problems and reshaping the global economic landscape.
The Rise of Brainbelts
From Rustbelts to Brainbelts
The concept of rustbelts is familiar to many – these are areas in the United States and Europe that were once thriving industrial centers but have since declined due to the offshoring of manufacturing to countries with cheaper labor costs. However, Van Agtmael introduces us to a new phenomenon: the transformation of these rustbelts into brainbelts.
Brainbelts are regions that have been revitalized through the creation of innovation hubs that bring together knowledgeable workers and smart manufacturing techniques. One prime example of this transformation is General Electric's decision to establish a new production facility in Batesville, Mississippi. Instead of moving production overseas, GE chose this location due to its proximity to Mississippi State University. This strategic move allowed researchers to work with cutting-edge materials to revolutionize aircraft engine production.
Competing with Emerging Markets
While emerging markets in Asia and other parts of the world still pose a significant competitive threat, the rise of brainbelts is leveling the playing field. Many Western industrial powerhouses that were once overwhelmed by the low-cost production model of East Asian countries are now finding new ways to compete through innovation and smart manufacturing.
This shift is causing concern for some Asian companies that have long dominated certain industries. For instance, the Taiwan-based Mediatek, a major player in designing chipsets for smartphones, has expressed worry about the increasing competitiveness of US firms like Qualcomm, which are making significant strides in research and development.
Key Characteristics of Brainbelts
Collaborative Ecosystems
One of the defining features of brainbelts is their collaborative ecosystem. At the core of these ecosystems is typically a research university, around which various other institutions orbit. These can include startups, established firms, community colleges, and local government authorities. The key to success is the close interconnection between these different entities.
A prime example of this collaborative ecosystem is the Hudson Tech Valley in Albany, NY. Centered around the State University of New York and Rensselaer Polytechnic Institute, this brainbelt includes manufacturing businesses and community colleges, all working together on semiconductor research crucial for computer technology.
Culture of Sharing
Another vital characteristic of brainbelts is their openness to sharing knowledge and expertise. Unlike traditional industrial models where information is closely guarded, brainbelts thrive on the free flow of ideas between sectors and disciplines. This culture of sharing allows for the undertaking of complex projects that define these innovative hubs.
Companies within brainbelts tend to be highly specialized, which minimizes direct competition and encourages collaboration. For instance, in Portland, Oregon, the Oregon Health & Science University partnered with Intel to process vast amounts of cancer patient data. The university had the data but lacked computing power, while Intel had the necessary computational resources. Their collaboration was mutually beneficial and exemplified the sharing culture of brainbelts.
Focused Effort
Unlike some regions that try to excel in multiple areas, brainbelts typically concentrate their efforts on one or two specific fields. This focused approach allows them to develop deep expertise and become leaders in their chosen areas. For example, the Hudson Tech Valley in Albany primarily works on semiconductors, while the life-science brainbelt in Zurich, Switzerland, focuses on biotechnology and biopharmaceuticals.
Smart Manufacturing
Brainbelts distinguish themselves from traditional manufacturing operations by embracing smart manufacturing techniques. Instead of prioritizing cost-cutting and worker efficiency, these innovative hubs emphasize customization and automation through technologies like 3D printing and robotics.
At America Makes in Youngstown, Ohio, 3D printing is used not only for rapid prototyping but also for real manufacturing. This technology enables the production of customized body parts in medicine and specialized components in industries like aerospace. Similarly, advanced robotics, such as the humanoid robot Baxter used by Rethink Robotics in Boston, are revolutionizing manufacturing processes by providing cheap and intelligent automation.
Case Study: Akron, Ohio
The story of Akron, Ohio, serves as a perfect illustration of how a former industrial powerhouse can transform into a thriving brainbelt. Once a major hub for the tire industry, Akron's strategic location made it an essential part of the automotive supply chain and a key railway center for grain transportation.
The Decline
However, Akron's prosperity began to wane in the mid-twentieth century as the city failed to recognize and adapt to the competitive threat from overseas manufacturers. The tire companies that had long been the backbone of Akron's economy became complacent and inward-looking, failing to notice the rise of powerful competitors in countries like China and Mexico.
By the time they realized the threat, it was too late. Akron's industrial sites were abandoned, and the city seemed destined to become another forgotten rustbelt.
The Revival
But Akron's story didn't end there. The city's revival came from an unexpected source – the brainpower that remained after the industries left. Many skilled workers who had previously been employed in the tire industry started their own firms. Meanwhile, the University of Akron, under the leadership of President Luis Proenza, began to reposition itself as a central force in the city's revitalization.
The key to Akron's transformation was its focus on polymer science, an area in which many local residents already had expertise. This field was expanding into new materials science, opening up exciting possibilities for innovation and growth.
One success story from Akron's revival is Akron Polymer Systems, a company that develops films for LCD screens used in solar cells and other applications. By building on existing skills and knowledge in the community, Akron managed to reinvent itself as a brainbelt focused on advanced materials and polymer science.
Brainbelts Tackling Global Challenges
Climate Change
One of the most pressing issues facing humanity is climate change, and brainbelts are at the forefront of developing solutions to this global threat. Many of these innovation hubs are focusing on developing new, affordable sources of renewable energy.
For example, the Centennial Campus in North Carolina is home to ABB, a company collaborating with university researchers to improve components of the electrical grid. Their work could lead to a smarter energy grid where consumers can produce, store, and even sell their own energy using technologies like home solar panels.
Food Security
Another critical challenge that brainbelts are addressing is the need to feed the growing global population, expected to reach 9 billion by 2050. To meet this enormous demand, agricultural innovations in areas such as greenhouse design and automated milking are essential.
The brainbelt surrounding Wageningen in the Netherlands is a prime example of how these innovation hubs are tackling food security issues. The agricultural university there has partnered with farmers' organizations and companies to boost productivity and efficiency in Dutch agriculture. As a result of this collaboration, the Netherlands, despite its small size, now accounts for an impressive 7.5 percent of all global food exports.
Supporting Brainbelts
While brainbelts have immense potential, they often need support to reach their full capacity. Unlike established tech giants like Apple, Google, and Amazon, which have vast resources at their disposal, brainbelts are often burdened by the legacy of past industrial decline, including abandoned buildings and outdated infrastructure.
National Innovation Policies
One way to support brainbelts is through national innovation policies and guidelines. These policies can serve as motivators for innovation and provide crucial support for emerging brainbelts. While many countries have such policies in place, not all do. The United States, for example, has funded various innovation initiatives over the years but lacks standing guidelines to support these expenditures consistently.
Continued Funding
Another crucial factor in the success of brainbelts is continued funding. While there are many potential funding sources, including national governments and private companies, the allocation of these resources is not always optimal. In the US technology sector, for instance, many investors pour money into established giants like Google and Apple but fail to invest in the cross-disciplinary and innovative projects that are the lifeblood of brainbelts.
The Global Impact of Brainbelts
The rise of brainbelts is gradually shifting the power dynamics in the global marketplace. These former industrial sites in the West, which were once decimated by the low-cost production methods of Eastern firms, are now rebuilding themselves through the innovative use of shared brainpower.
This transformation is not just about economic revival; it's about creating solutions to some of the world's most pressing problems. From developing renewable energy technologies to revolutionizing food production, brainbelts are at the forefront of innovation that matters.
Moreover, the collaborative model of brainbelts offers a new paradigm for innovation. By bringing together diverse stakeholders – from academic researchers to experienced industrial workers, from startups to established corporations – brainbelts are creating ecosystems where ideas can flourish and be rapidly translated into practical applications.
Lessons from Brainbelts
The success of brainbelts offers several important lessons for policymakers, business leaders, and communities looking to foster innovation and economic growth:
Leverage existing strengths: Successful brainbelts often build on the existing skills and knowledge in their communities. Akron's transformation from a tire manufacturing hub to a center for polymer science is a perfect example of this approach.
Foster collaboration: The power of brainbelts lies in their ability to bring together diverse stakeholders and encourage knowledge sharing. Creating platforms and spaces for collaboration is crucial.
Focus on specific areas: Rather than trying to excel in multiple fields, successful brainbelts tend to concentrate on one or two areas where they can develop deep expertise.
Embrace smart manufacturing: The integration of advanced technologies like 3D printing and robotics is a key feature of brainbelts, allowing for customization and efficiency in manufacturing.
Connect education and industry: Strong links between educational institutions and businesses are essential for fostering innovation and ensuring a skilled workforce.
Support through policy and funding: While brainbelts can emerge organically, they often benefit from supportive policies and consistent funding to reach their full potential.
Conclusion
"The Smartest Places on Earth" challenges our perceptions about where innovation happens and offers a hopeful vision for the future of former industrial regions. By highlighting the transformation of rustbelts into brainbelts, Van Agtmael shows how these areas are not just reclaiming their economic vitality but are becoming crucial centers for solving global challenges.
The book underscores the importance of collaboration, focused effort, and smart manufacturing in driving innovation. It also emphasizes the need for supportive policies and funding to nurture these emerging hubs of creativity and technological advancement.
As we face increasingly complex global issues, from climate change to food security, the model of brainbelts offers a powerful approach to problem-solving. By bringing together diverse expertise, fostering a culture of sharing, and focusing on specific challenges, these smart places are shaping the future of innovation and industry.
The rise of brainbelts represents more than just an economic shift; it's a reimagining of how we approach innovation and problem-solving in the 21st century. As these smart places continue to evolve and multiply, they offer hope for sustainable economic growth, technological advancement, and solutions to some of humanity's most pressing challenges.