Identifying the right metrics is a challenging issue in economic development. The field has long relied on “jobs, jobs, jobs” to tell the story of economic development success, maybe adding in tallies of capital investment. But these traditional measures no longer tell the full story. They often fail to show whether people and communities are genuinely better off as a result of economic development efforts.
Economic developers need new ways to demonstrate the impact of their work on their communities.
Introducing “Industries of Ideas” (IofI)
That is why I am intrigued by the Industries of Ideas (IofI) initiative. The project aims to measure how research and technology investments influence local economies and labor markets. Specifically, IofI is:
A prototype system for measuring the effects of research investments in emerging technologies on regional firms and jobs by focusing on the people who are trained in research and the skills they carry into the workforce
This means looking beyond innovation metrics like patents and research papers. Instead, the initiative focuses on following the people to see how research activity affects businesses, workers, and regional economies at the local level.
By tracking where trained researchers and skilled workers go, employers and jobs in emerging industries can be identified. According to the Institute for Research on Innovation & Science at the University of Michigan, the project will identify businesses that employ people with deep skills in emerging technology areas and create new indicators that can provide early signals about future workorce and economic impacts.
It will do so by developing data and tools to explain “complex pathways of impact” from students, vendors, discoveries, technology and expertise associated with the research investments. Prototype dashboards will also be developed in coordination with academic, state and federal stakeholders, incorporating new measures conveying the workforce and economic impact of research investments.
Why This Matters
Last month, a conference of key stakeholders explored practical use cases for this data. Discussions focused on how the Industries of Ideas approach could provide forward looking information to understand how R&D investments can affect business growth, workforce development, and education. Participants also considered how IofI data could support supply and demand forecasts, guide workforce training investments, and inform economic development strategies.
The hoped-for result is transparent and trusted information about how investments in critical technologies tie back to jobs and skills so that states, individuals and businesses can better prepare for a rapidly changing technological landscape.
This article draws on the following sources to explain IofI. I encourage you to access each for more information:
NSF Award for Industries of Ideas
Institute for Research on Innovation & Science
The image accompanying this article was generated by AI.
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