Why innovation alone won't save small towns | Marlise Horvath Schneider | TEDxNuremberg

Key Concepts

• Rust Belt & Appalachia: Regions experiencing economic decline due to de-industrialization and energy transitions.
• Innovation Policy: Government strategies to promote innovation and economic growth, often focused on creating “Silicon Valley” style hubs.
• Triple Helix Model: A model of innovation involving university, government, and industry collaboration.
• Quadruple Helix Model: An extension of the Triple Helix, adding society/community as a key stakeholder.
• Chip War: Geopolitical competition for dominance in semiconductor technology.
• Semiconductors/Microchips: Essential components of modern technology, driving current investment in regions like Upstate New York.
• Tech Valley: The attempted transformation of Upstate New York into a technology hub.
• Brain Drain: The emigration of skilled workers from a region.
• Psychology of Demise: A feeling of hopelessness and lack of future prospects among residents of declining regions.

The Paradox of Progress: Innovation Policy and the Future of Lost Regions

This talk explores the complex relationship between innovation policy, regional development, and the lived experiences of people in historically disadvantaged areas, specifically focusing on Upstate New York. The speaker, a native of Cherry Valley, NY, currently a PhD student at the Technical University of Munich, frames her research within the context of her personal journey and the challenges facing her hometown.

Upstate New York: A Region in Decline

The speaker begins by painting a picture of Upstate New York – a beautiful but economically struggling region. Cherry Valley, population 1,200, exemplifies this struggle. Despite its natural beauty and strong community, Upstate New York is characterized by poverty (50% of school children live below the poverty line), depopulation (graduating classes shrinking from 41 to 33), unemployment, and an opioid crisis. Politicians have historically dismissed the region, referring to it as “the other New York” and even suggesting residents relocate. This has fostered a “psychology of demise” among residents, a lack of hope for the future. The region sits at the intersection of the Rust Belt and Appalachia, both areas impacted by de-industrialization and economic hardship. The Rust Belt, defined as cities across the Midwest decimated by globalization, and Appalachia, a mountain range facing similar challenges due to energy transitions and coal mining declines, share common struggles with poverty and low educational attainment.

The Microchip Resurgence & the "Chip War"

Paradoxically, Upstate New York is experiencing a surge in investment related to semiconductor manufacturing. Headlines proclaim an “America’s microchip resurgence” with billions of dollars flowing into the region. This is driven by the global “Chip War” – a geopolitical competition for control of semiconductor technology, crucial for everything from smartphones to defense systems. Semiconductors, or microchips, are the fundamental building blocks of modern digital devices. The US CHIPS and Science Act of 2022, allocating $54 billion, aims to “reshore” microchip manufacturing and revitalize regions like the Rust Belt through federal funding and partnerships between companies and local universities.

The Limitations of the Triple Helix Model

The speaker explains that the dominant model for fostering innovation is the “Triple Helix” – collaboration between university, government, and industry. However, she argues that this model, as implemented in Upstate New York, has not translated into widespread benefits for the community. For 40 years, Upstate New York has attempted to transform into “Tech Valley,” establishing SUNY Polytechnic Institute and attracting semiconductor firms. While these efforts have created some economic activity, they haven’t addressed the underlying social and economic issues facing residents. The speaker observes a stark contrast between the futuristic, multi-billion dollar semiconductor fabrication facilities and the struggling Main Streets of Upstate New York cities.

Disconnect Between Investment and Community Needs

Through interviews with residents, community activists, government officials, and industry professionals, the speaker discovered a significant disconnect. While semiconductor companies are building advanced facilities, Upstate New Yorkers are grappling with basic needs like affordable housing, healthcare, education, and public transportation. They don’t see how “Tech Valley” addresses these problems. Community activists are working to improve quality of life through events and public art, but lack the necessary funding. The speaker highlights the feeling of isolation and exclusion experienced by many residents, despite the massive investment happening around them.

Towards a Quadruple Helix: A New Approach to Innovation Policy

The speaker proposes a shift towards a “Quadruple Helix” model, which incorporates society as a crucial stakeholder alongside university, government, and industry. She outlines three key strategies:

1. Elevation: Changing the narrative surrounding Rust Belt regions. Instead of framing residents as needing innovation for their futures, recognizing their inherent worth and deservingness of investment. As she states, “they need to be told that they are worth so much that they deserve this Innovation policy that they deserve a future.”
2. Engagement: Actively involving Upstate New Yorkers in the conversation about their future. This includes town halls, community forums, and incorporating local voices into policy decisions.
3. Education: Increasing awareness about microchips, the semiconductor industry, and the opportunities it presents. Drawing inspiration from imec in Belgium, she suggests tours of fabrication facilities and incorporating semiconductor education into K-12 curricula.

She points out that semiconductor companies, receiving billions in government funding, could also sponsor community events and initiatives, fostering greater engagement and appreciation.

Conclusion: Policy for the People

The speaker concludes by emphasizing that policy should serve the people, particularly those in historically disadvantaged regions. She argues that policymakers and economists often focus on long-term projections, while those living in poverty are concerned with their immediate future. Her motivation for this research stems from her deep connection to Upstate New York and her desire to create a brighter future for her niece and nephew, a future where they have the opportunity to stay and thrive in their home. She believes that by embracing the Quadruple Helix model, regions can achieve truly sustainable and equitable innovation.