{"id":1577,"date":"2017-05-10T20:04:53","date_gmt":"2017-05-11T00:04:53","guid":{"rendered":"http:\/\/mcnair.bakerinstitute.org\/blog\/?p=1577"},"modified":"2020-10-15T11:56:21","modified_gmt":"2020-10-15T15:56:21","slug":"research-parks-innovation-districts","status":"publish","type":"post","link":"https:\/\/www.edegan.com\/articles\/research-parks-innovation-districts\/","title":{"rendered":"Development of Research Parks and Innovation Districts in Houston"},"content":{"rendered":"<p>On May 4, Houston Mayor Sylvester Turner stated his support for building\u00a0a <a href=\"http:\/\/www.bizjournals.com\/houston\/news\/2017\/05\/04\/mayor-sylvester-turner-throws-support-behind-data.html\">data science center<\/a>. The next day, he endorsed\u00a0plans for an <a href=\"http:\/\/www.bizjournals.com\/houston\/news\/2017\/05\/05\/mayor-sylvester-turner-outlines-plans-for-tech.html?ana=e_me_set1&amp;s=newsletter&amp;ed=2017-05-05&amp;u=f0%2FM8GDFx3sP3qp5QF4W6Q0edf03c4&amp;t=1493992734&amp;j=78101281\">Innovation District<\/a>. How would these types of development promote entrepreneurship, innovation and economic growth in Houston?<\/p>\n<h3>The Basics<\/h3>\n<p>What are Research Parks, like the proposed data science center, and Innovation Districts?<\/p>\n<p>Research Parks promote research, technological development and commercialization by creating a high density of universities and research institutions within a small area. By placing many innovative researchers and developers in close proximity, Research Parks <a href=\"http:\/\/www.aurp.net\/what-is-a-research-park\">encourage growth<\/a> of new companies and collaboration across fields, driving technology-based economic development.<\/p>\n<p>The <a href=\"https:\/\/www.brookings.edu\/innovation-districts\/\">Brookings Institution<\/a> defines Innovation Districts as dense areas that bring together research institutions, high-growth firms and startups through thoughtfully designed and resource-rich commercial and residential spaces.<\/p>\n<p>Research Parks and Innovation Districts slightly <a href=\"http:\/\/archive.onearth.org\/blog\/brownfields-versus-greenfields\">differ in their implementation<\/a>, but both spaces aim to accomplish similar goals; they want to create physical hubs for innovation and entrepreneurial\u00a0development. Typically, developers build Research Parks on new land, cultivating previously undeveloped space. Innovation Districts, however, use old land. This land was previously developed but is no longer in use.<\/p>\n<figure id=\"attachment_1579\" aria-describedby=\"caption-attachment-1579\" style=\"width: 400px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1579\" src=\"http:\/\/mcnair.bakerinstitute.org\/blog\/wp-content\/uploads\/2017\/05\/8666949245_ce1e6918cd_z-400x267.jpg\" alt=\"Attribution: ShareAlike 2.0 Generic (CC BY-SA 2.0)\" width=\"400\" height=\"267\" srcset=\"https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/8666949245_ce1e6918cd_z-400x267.jpg 400w, https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/8666949245_ce1e6918cd_z.jpg 640w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><figcaption id=\"caption-attachment-1579\" class=\"wp-caption-text\">Silicon Valley is a well-known\u00a0Innovation District.<\/figcaption><\/figure>\n<p>Both Research Parks and Innovation Districts are generative and can be helpful in stimulating local economies. <a href=\"http:\/\/www.stanfordresearchpark.com\/\">Stanford Research Park<\/a>\u00a0in Palo Alto and <a href=\"https:\/\/www.durham-nc.com\/maps-info\/districts\/research-triangle-park\/\">Research Triangle Park<\/a> in Raleigh-Durham are some of the most well-known examples\u00a0in the United States. Research Triangle Park is the <a href=\"http:\/\/durhamchamber.org\/economic-development\/economic-profile\">largest in the country<\/a> and one of the largest in the world. Stanford Research Park played a key role in the <a href=\"http:\/\/www.paloaltohistory.org\/stanford-research-park.php\">creation of Silicon Valley<\/a>.<\/p>\n<p>Successful Innovation Districts include <a href=\"https:\/\/www.kendallsq.org\">Kendall Square<\/a> in Cambridge, Massachusetts,\u00a0<a href=\"https:\/\/www.discoverslu.com\">South Lake Union<\/a> in Seattle and Over-the-Rhine in <a href=\"http:\/\/mcnair.bakerinstitute.org\/blog\/a-tale-of-untapped-potential-cincinnati\/\">Cincinnati<\/a>.<\/p>\n<h3>What Makes These Areas Special?<\/h3>\n<p>Research Parks and Innovation Districts are highly productive areas. Innovation leads to new ideas and job creation. According to the <a href=\"http:\/\/www.aurp.net\/assets\/documents\/FinalBattelle.pdf\">Association of University Research Parks<\/a>, each job in a Research Park generates approximately 2.57 additional\u00a0jobs. Thus, the\u00a0more than 300,000 Research Park\u00a0employees in the United States\u00a0lead to\u00a0700,000 additional\u00a0jobs.<\/p>\n<p>Innovation Districts can also produce strong results. By placing many innovators in close proximity to one another, they facilitate collaborative interactions. As Innovation Districts vary greatly in size and productivity, an accurate estimate for job creation is unavailable.<\/p>\n<h4>Key Factors: The Capital Stack<\/h4>\n<p>Layered financial tools known as a \u201c<a href=\"https:\/\/www.crowdstreet.com\/education\/article\/understanding-capital-stack\/\">capital stack<\/a>\u201d are necessary to promote the development Research Parks and Innovation Districts. For a capital stack that attracts investors, an area must have access to multiple types of equity, incentives and debt to provide flexibility to developers and innovators.<\/p>\n<p>Developers may be able to secure planning grants through the <a href=\"https:\/\/www.eda.gov\/funding-opportunities\/\">U.S. Economic Development Administration<\/a> to create the Research Park or Innovation District. These are \u201cdesigned to leverage existing regional assets and support the implementation of economic development strategies that advance new ideas and creative approaches to advance economic prosperity in distressed communities.\u201d Even though\u00a0Innovation Districts are built on\u00a0previously developed land, the government still issues planning grants because they\u00a0\u201cadvance new ideas and creative approaches to advance economic prosperity in distressed communities.\u201d<\/p>\n<p><a href=\"http:\/\/www.sifma.org\/issues\/tax\/tax-credit-bonds\/overview\/\">Tax credit bonds<\/a>\u00a0are also common debt instruments. Instead of taking on loans, municipal\u00a0governments sell bonds, which provide tax credits in lieu of interest payments. Some examples are <a href=\"http:\/\/www.investopedia.com\/terms\/b\/build-america-bonds-babs.asp\">Build America Bonds<\/a>, <a href=\"https:\/\/www.irs.gov\/tax-exempt-bonds\/build-america-bonds-and-recovery-zone-economic-development-bonds-faqs\">Recovery Zone Economic Bonds<\/a> and <a href=\"https:\/\/energy.gov\/savings\/clean-renewable-energy-bonds-crebs\">Clean Renewable Energy Bonds<\/a>.<\/p>\n<p>Equity is also an important necessity. Investment can be incentivized from a variety of sources, like <a href=\"https:\/\/www.cdfifund.gov\/programs-training\/Programs\/new-markets-tax-credit\/Pages\/default.aspx?utm_source=HUD+Exchange+Mailing+List&amp;utm_campaign=b64b94e191-Promise_Zones_Update_10_27_2015&amp;utm_medium=email&amp;utm_term=0_f32b935a5f-b64b94e191-19340809\">New Market Tax Credits<\/a>. These give tax credits to investors who make equity investments in Community Development Entities in\u00a0developing and low-income communities. Housing and Urban Development community development grants and state or federal tax relief programs can also incentivize investment.<\/p>\n<h4>Key Factors: Social Factors<\/h4>\n<p>The final piece of the puzzle to create a Research Park or Innovation District is social organization. In order to facilitate collaboration and innovation, physical, intellectual and social resources need to be readily accessible.<\/p>\n<p><a href=\"https:\/\/www.brookings.edu\/essay\/rise-of-innovation-districts\/\">Networking assets<\/a>\u2014\u201cthe relationships between actors\u2014such as individuals, firms and institutions\u2014that have the potential to generate, sharpen and accelerate the advancement of ideas\u201d\u2014are essential for the development of Innovation Districts.\u00a0The lines of communication between developers, researchers and sources of funding must be open and easily accessible. This synergy is enhanced in Innovation Districts\u00a0through the close\u00a0proximity of ecosystem participants\u00a0and\u00a0access to shared meeting and collaboration spaces.<\/p>\n<h4>The Potential for Research Parks and Innovation Districts in Houston<\/h4>\n<p>Many cities have developed Innovation Districts in effort to grow local entrepreneurship and innovation. Turner&#8217;s announcement of the planned\u00a0Innovation District\u00a0earlier this month\u00a0mentioned the <a href=\"http:\/\/www.bizjournals.com\/houston\/news\/2017\/05\/05\/mayor-sylvester-turner-outlines-plans-for-tech.html?ana=e_me_set1&amp;s=newsletter&amp;ed=2017-05-05&amp;u=f0%2FM8GDFx3sP3qp5QF4W6Q0edf03c4&amp;t=1493992734&amp;j=78101281\">40,000 jobs<\/a> created by Chicago\u2019s efforts to spur innovation. Turner noted, \u201cIt is now time for us to be more competitive, to further diversify and expand our economy. What Chicago can do, Houston can do better.\u201d<\/p>\n<p>In 2015, the University of Texas <a href=\"http:\/\/www.houstonchronicle.com\/news\/houston-texas\/houston\/article\/UT-sets-its-sights-on-Houston-6614101.php\">bought 332 acres of land<\/a> in southwest\u00a0Houston with the hopes of developing it into a small Research Park. However, in March 2017, UT Chancellor William McRaven <a href=\"http:\/\/www.houstonchronicle.com\/news\/houston-texas\/houston\/article\/UT-s-abandoned-Houston-land-deal-might-have-11037897.php\">canceled<\/a> the site\u2019s plans for development. The <a href=\"http:\/\/www.houstonchronicle.com\/news\/houston-texas\/houston\/article\/UT-regent-nominees-decry-university-s-planned-10887427.php\">Houston Chronicle<\/a> cites timing and lack of transparency as the main causes for the cancellation.<\/p>\n<p>However, there may still be potential for a Research Park in Houston. Mayor Turner also expressed support for the proposed data science center, urging the University of Houston to take the lead. The Chairman of the University of Houston Board of Regents, <a href=\"http:\/\/www.bizjournals.com\/houston\/news\/2017\/05\/04\/mayor-sylvester-turner-throws-support-behind-data.html\">Tilman Fertitta<\/a>, has spoken positively about this idea, mentioning excitement about the prospect of collaborating with Rice University, Texas Southern University, Texas A&amp;M University and the University of Texas through the development of a data hub.<\/p>\n<p>Bill Gropp, the acting director of the National Center for Supercomputing Applications, recently stated that there is <a href=\"http:\/\/www.houstonchronicle.com\/news\/houston-texas\/houston\/article\/UT-s-abandoned-Houston-land-deal-might-have-11037897.php\">far more demand<\/a> for Research Parks than there is supply. It is clear that the development of a Research Park or Innovation District would stimulate the economy and create jobs. If Houston wants to take advantage of these opportunities, the time to act is now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 4, Houston Mayor Sylvester Turner stated his support for building\u00a0a data science center. The next day, he endorsed\u00a0plans for an Innovation District. How would these types of development promote entrepreneurship, innovation and economic growth in Houston? The Basics What are Research Parks, like the proposed data science center, and Innovation Districts? Research Parks&hellip;<\/p>\n","protected":false},"author":10,"featured_media":1582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[422,150],"tags":[281,295,296,294,297,118,104,26,123,271,37,292,18,16,31,291,121,181,293,298,299],"class_list":["post-1577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mcnair","category-startup-ecosystems","tag-co-working","tag-data","tag-data-center","tag-data-science","tag-data-science-center","tag-entrepreneurial-ecosystem","tag-entrepreneurs","tag-entrepreneurship","tag-government","tag-houston","tag-innovation","tag-innovation-district","tag-policy","tag-regulation","tag-research","tag-research-park","tag-rice","tag-startup","tag-sylvester-turner","tag-university-of-houston","tag-university-of-texas"],"featured_image_urls_v2":{"full":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park-200x150.png",200,150,true],"medium":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park-400x267.png",400,267,true],"medium_large":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"large":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park-1024x683.png",800,534,true],"1536x1536":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"2048x2048":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"post-thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"twentytwenty-fullscreen":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",1147,765,false],"yarpp-thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/05\/Aerial_View_of_the_University_of_Illinois_Research_Park.png",120,80,false]},"post_excerpt_stackable_v2":"<p>On May 4, Houston Mayor Sylvester Turner stated his support for building\u00a0a data science center. The next day, he endorsed\u00a0plans for an Innovation District. How would these types of development promote entrepreneurship, innovation and economic growth in Houston? The Basics What are Research Parks, like the proposed data science center, and Innovation Districts? Research Parks promote research, technological development and commercialization by creating a high density of universities and research institutions within a small area. By placing many innovative researchers and developers in close proximity, Research Parks encourage growth of new companies and collaboration across fields, driving technology-based economic development.&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/www.edegan.com\/articles\/category\/mcnair\/\" rel=\"category tag\">McNair Center<\/a>, <a href=\"https:\/\/www.edegan.com\/articles\/category\/startup-ecosystems\/\" rel=\"category tag\">Startup Ecosystems<\/a>","author_info_v2":{"name":"Taylor Jacobe","url":"https:\/\/www.edegan.com\/articles\/author\/taylor-jacobe\/"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Development of Research Parks and Innovation Districts in Houston - Ed Egan<\/title>\n<meta name=\"description\" content=\"With Mayor Sylvester Turner&#039;s recent support for Innovation Districts and Research Parks, the McNair Center investigates these types of areas.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.edegan.com\/articles\/research-parks-innovation-districts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Development of Research Parks and Innovation Districts in Houston - 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