Companies working on new, emerging technologies tend to locate in large metropolitan areas, while companies focused on maturing technologies locate in less-populated areas.
That’s the conclusion of a report by Michael Orlando, executive and economist for the Denver branch of the Federal Reserve of Kansas City. Orlando was the keynote speaker at last week’s BioWest 2006 conference in Denver, a gathering of bioscience and medical-device professionals.
Innovation happens in areas with a strong knowledge base or a critical mass of professionals in various fields, he said. In these areas, people are able to collaborate easily, or sometimes to overhear conversations that can lead to new ideas.
“Innovation is a process of learning from others, and learning from others is facilitated by proximity,” Orlando said. “It’s important for you to be at the Starbucks.”
The report studied patent activity among cities, towns and various industries. For example, Douglas County “patents intensively” in areas such as light, thermal and electrical applications. Montrose, with 37,000 people, is “disproportionately patent intensive” in areas such as mechanical guns, metalworking, and measuring and testing.
Companies focused on more mature technologies also relocate to less-populated areas because the costs are cheaper than in big cities, Orlando said. If you’re producing buttons, you know where your clients are and where to get machinery fixed.
“Information (technology) and transportation can allow you to mitigate a smaller population,” Orlando said. “In more mature technology fields, innovation is incremental and more predictable.”
Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
