Innovation precincts series

This 3-report series looks at how innovation precincts help grow jobs, attract investment and support the NSW economy. It brings together global lessons to help government, business, institutions, and precinct leaders create places that succeed.

Each report in this 3-part series focuses on a different part of what makes a strong precinct:

what makes innovation precincts work 
how anchor institutions like universities and hospitals add value 
how precincts build skilled, inclusive workforces.

Together, they offer practical guidance a roadmap for growing NSW’s innovation precincts.

Report 1: NSW Innovation Precincts – Lessons from international experience

This 2018 report shares what NSW can learn from innovation precincts around the world. It shows how the right mix of people, places and planning can drive results – and what to avoid.

Key insights

• The economic value of innovation precincts
  
  These areas show higher productivity, better job outcomes and resilience in tough economic times. They also make better use of government spending on big assets and infrastructure.
   
• Seven global success factors 
  
  Successful innovation precincts around the world tend to share these key ingredients:
  
  1. clear market demand 
  2. local competitive strengths 
  3. strong collaboration between stakeholders 
  4. the right infrastructure 
  5. a vibrant and inclusive environment (including local amenity) 
  6. a culture of enterprise and innovation 
  7. strong leadership and a clear vision.
   
• Common barriers to success
  
  Innovation precincts are complex. Without the right mix of economic conditions, partners and local support, they may struggle to deliver results.

Report 2: The role of anchors

This 2022 report looks at how anchor organisations help make precincts work. Anchors can be universities, hospitals or major employers. The report shows how they attract talent, support new business and grow the local economy. Lessons are taken from more than 30 case studies.

Key insights

• NSW already has anchor strengths
  
  Many NSW organisations already act with an “anchor mindset,” supporting innovation and collaboration across sectors. Anchors can:
  
  - create new jobs 
  - encourage suppliers to innovate 
  - attract capital and talent 
  - connect small businesses to global markets 
  - accelerate investment in research and development (R&D), infrastructure, public space, and shared amenities.
   
• Opportunities to grow the ecosystem
  
  There is still room to attract new anchors, and to better support those already here. This will strengthen NSW’s precincts.

Report 3: Workforce development in innovation precincts

This 2023 report looks at how precincts can build the workforces they need to grow, succeed and be sustainable. It includes lessons from 25 precincts around the world, plus 10 steps NSW can take. It offers practical advice for policymakers, businesses and education providers.

Watch the summary video

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Video transcript

NSW Innovation and Productivity Council report: Workforce Development in Innovation Precincts

The council's report draws on experiences from around the world to explain why Innovation precincts should focus on Workforce Development.
So Workforce will attract industry and industry will attract the workforce.
They are interdependent concepts and it's important that, to get both right, we're deliberate about how we create and design our precincts.
We have so much to offer in New South Wales and by steering together in the one direction we will create a competitive edge for both talent and businesses.
The innovation economy is becoming more place sensitive, but also more talent sensitive.
That means that places, precincts around New South Wales have got to think much more proactively and intentionally about how they build the talent of the future, how they attract and retain people the next five, ten, twenty years.
The Council is working on innovation precincts because the New South Wales economy will rely more on them over coming years, both for income growth and real wages growth.
We know that technology enabled industries from fintech, to agriculture, to cybersecurity, will benefit from clustering together.

Key insights

• Strong precincts need strong workforces
  
  Precincts can’t succeed with buildings and technology alone. They also need skilled people to build businesses, facilitate collaboration, support communities and drive change.
  
  The report explores governance, program design and delivery models to help build more effective, inclusive workforce strategies across NSW.
   
• There are three ways to build workforce strength
  
  The report outlines three connected focus areas:
  
  - workforce supply – that builds the skills base, talent mix and career pathways 
  - workforce relationships and enterprise capacity – that creates the networks and know-how to convert ideas into growth businesses 
  - localised workforce benefits – for surrounding communities.