How do you measure success in terms of collective cyber innovation? Is it the development of countless market-ready solutions or maybe it's a broader environment of startup growth?
When you dive deeply into the elements that turn barren fields of ideas into a fruitful harvest of innovative products the factors can seem limitless.
In practice, the creation of a dynamic innovation ecosystem can be one of the most significant drivers in pushing numerous companies towards tangible cyber innovation.
Now you just have to move to one of these hubs, drink the Kool-Aid, and boom, cyber innovation just appears at your fingertips.
We’ll not exactly. Understanding the equation that facilitates a cyber innovation hub is essential to integrate into the ecosystem. From promoting government investment in innovation, aligning with higher education to ensure a pipeline of talent, and creating channels of communication with investors and VCs the formula for trapping cyber innovation in a bottle is more like alchemy than science.
Marcella Simons puts it more succinctly. “The great thing about innovation hubs is that they are vital to foster ideas, collaborate, and learn fast. Stimulating innovation, moreover, they provide a ‘safe’ space for people to experiment, make mistakes and explore new ideas.”
What is the recipe?
Wouldn't it be nice if cyber innovation was a simple recipe? You follow the instructions, double-check the measurements, and then innovation here we come. Unfortunately, creating an ecosystem ripe for cyber innovation isn't a precise recipe but more a never-ending process of adjustment and integration of new resources, ideas, and capital streams to produce that elusive elixir.
With this said, there are some constant factors that can consistently promote growth and encourage cyber innovation across startups, established businesses, and higher education. These include:
Development of government initiatives supporting cyber innovation
Proximity to university’s with established STEM programs & incubator programs
Accessibility to Venture capital at early stages to build POC
Network of cyber startups, dedicated professionals, and intellectual capital
Mentorship initiatives and early-stage grant programs/ R&D
The implantation of these factors, according to Brookings, helps build the foundation of innovation districts.
The innovation ecosystems focus a “strong emphasis on micro-geography within wider industrial clusters noting that “clusters are geographic concentrations of interconnected businesses, suppliers, and associated institutions. They can contain anchor institutions, small firms, start-ups, business incubators, and accelerators.”
Government support vs startup centric
The relationship between government support and startup-driven innovation is sort of like the chicken and the egg. Who initiates the push? Is it government directives and funding that drive companies or, should the startup community organically generate its ideas and then double back for broader support?
While the minutia may be dizzying, the integral exchange of government programs, innovation authorities, early-stage incubators, and the startups destined to fulfill their cyber dreams can't be discounted. Only through establishing a cohesive exchange between these parts can the roots of an innovation ecosystem be formed.
The complexity of balancing government grants, early-stage pre-seed investments, and the internal desires of founders and key stakeholders can be a tangible burden. In hubs that have been able to effectively navigate this push and pull- think San Fransisco, Tel Aviv, or London- the outcomes have been beyond fruitful.
From consistent investment and the development of innovative market-ready solutions to creating the funnel of talent and ideas to pursue the next big thing, the rewards to the cyber innovation ecosystem can scale market saturation and boost visibility globally.
Ben Franklin once said ‘there's nothing assured in life but death and taxes.’ Even in innovation, if all the cards are dealt in your favor, there's no assurance you can trap lightning in a bottle. However, with the right blend of government support and public sector foresight, the opportunity to drive cyber innovation can be a more attainable endeavor.
VC, Cyber investment, and promoting innovation
Much like how government financing and early-stage innovation investment can supercharge the trajectory of a startup, the same applies to the role of VC in the innovation equation. Venture Capital can act as a catalyst to facilitate growth and streamline the development process of new solutions.
Where government programs and initiatives can serve as a more firm structure to enable early stage scale-up and the increase in R&D, VC can provide essential bursts of capital to push for innovation, especially when other resources are tapped or are on more hard timetables.
For many startups attempting to channel the innovation ecosystem foreign investment, VC and VC-supported incubators can be the solution. Additionally, the relationships formed by investment firms can serve as a bridge to larger market segments and critical partnerships in the future.
Who has figured out the special sauce?
From Copenhagen to Madrid, Tel Aviv to Tokyo, many cities have created that perfect blend of factors to support dynamic and economically prosperous cyber innovation hubs.
Mixing broad government support, vast fields of intellectual capital, innovative university programs, and VC investment, these cities have figured out the special sauce for promoting a truly holistic cyber innovation ecosystem.
By carefully mixing strategic government programming and higher education, funding opportunities, and mentorship, these regional innovation centers have formed the ideal mix needed to promote cyber innovation and export it to foreign markets.
Can you capture lightning in a bottle?
These hubs neither formed in a vacuum nor developed overnight. After decades of deeply rooted investment, government-startup interplay, and a host of global economic factors, these centers have facilitated the resources and course infrastructure essential to supporting cyber innovation and exporting it to the global marketplace. But can we take the lessons of established innovation ecosystems and scale them to new domains, new sectors, and new fields of view?