Innovation-Based Economic Development, or IBED, is but the latest name for what has become a growing focus in the economic development community. Since the 1990's terms such as cluster development, "New Economy" and tech-based economic development have all been used to describe elements of what is now recognized and referred to as the larger subject IBED. What IBED adds and gives greater focus on are the concepts and issues related to the promotion and support of innovation and entrepreneurship and their roles in the economy.
Innovation is one of the three central ingredients, along with labor and capital, in increasing productivity which leads to the overall growth of an economy producing a higher standard living. Of the three, innovation has been identified in recent studies as contributing the most in today’s economy to an overall increase in productivity. For nearly any organization engaged in economic development, providing support for innovation to both existing businesses and for the development and attraction of new businesses should be a key element in the organization’s economic development strategy.
A critical driver supporting the development of many innovations and their successful adoption in the market place, and thus the economy, is entrepreneurship. A new technology or innovation is not a business, it however will likely be a critical element in providing a business with its competitive advantage in the marketplace. See: Tech-Company Development for more on this subject from the perspective of the individual company.
On the right are links to additional information about IBED and entrepreneurship. These links include information on recent studies, examples of IBED in practice along with additional non-profit, state and federal resources for assistance.
