It’s not an “innovation precinct” unless it does this one thing

Naming an innovation precinct is easy. Building one that actually works, less so.

From a public policy perspective, global best practice is quite consistent. Innovation precincts deliver value when economic, physical and networking assets are deliberately aligned to create an innovation ecosystem that can scale and grow over time.

In practice, many precincts get two out of three.

Economic assets are there. Universities, firms, startups, institutions. Physical assets follow through public and private owned buildings, streets, and public realm investment.

But networking assets are often under-developed.

Networking assets are the relationships between actors such as individuals, firms and institutions. An innovation precinct only delivers economic value when it actively strengthens and enables these connections. When precincts cultivate a strong sense of place, they create conditions where creativity, entrepreneurship and collaboration are more likely to emerge.

This ensures public investment can accelerate and advance ideas by reducing friction between ideas, skills, and industry.

Where innovation precincts struggle, the issues are usually structural rather than conceptual.

Infrastructure is delivered ahead of purpose. Activation is treated as a short-term program rather than an ongoing capability. Governance is fragmented across agencies and partners, with limited clarity about accountability for system-level outcomes.

The precincts that perform well start with a clearer question. What economic role is this place meant to play within the wider system? And how can it facilitate rather than duplicate or inhibit activity in the precinct?

22@Barcelona demonstrates this. One of the most well-known innovation precincts in the world, 22@Barcelona in Spain accommodates a range of businesses and ventures focused on information and communications technology, medtech and energy.  Built on a former industrial area, the precinct consists of repurposed historic industrial structures, including repurposed industrial buildings and reserved smokestacks, integrated with contemporary architecture. Not only is it anchored by tenants such as Meta, Amazon and Microsoft, it also accommodates housing, restaurants, hotels, and parks.

Initially a government initiative, 22@Barcelona now operates under its own social governance network dedicated solely to community engagement, creativity, and placemaking. They bring precinct members together through focused thematic groups to co-create initiatives and joint projects. Backed by strong onboarding and regular idea forums, the precinct facilitates active networking.

For innovation precincts, connection is the real infrastructure.

When governments invest early in these networking assets and enable community ownership, precincts can thrive. Without them, even the best precincts will struggle to deliver lasting economic outcomes.