Co-working spaces a key economic development tool for cities

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Linda Trim | Director | FutureSpacemail me


Cities all around the world are becoming job creating entrepreneurial hubs in their own right thanks to a rise in digital connectedness and spaces for like-minded people to work in stimulating environments. 

If cities want a chance at economic development they first need to focus on attracting and keeping good people. We need to figure out ways to make people happier, safer, healthier, more productive and able to function better as human beings. This is why cities need shared workspaces and co-working now more than ever.

Hubs of innovation

In a rapidly moving world, there is huge demand for innovation from disruptive ideas to build businesses, create jobs and attract talent. Innovation also tends to inspire further innovation as is evident in places like Silicon Valley. 

This virtuous cycle comes from the ability to look at a problem in a new way. And for this, nothing is better than the diversity of perspectives you get in a coworking space. Some of the most disruptive concepts and applications come from people outside the industry. For example Netflix, hosted a $1m Innovation Contest to improve their movie recommendation algorithm. 

A team comprised of researchers from the United States, Austria, Canada, and Israel took home the $1 Million prize for their matching algorithm that improved recommendations by 10%. 

That’s why it’s so important to have spaces where people of different backgrounds can interact.

It is not just entrepreneurs and small businesses who benefit. Large corporations are setting up satellite offices in co-working spaces too. They want to immerse their employees in a more progressive culture, where they can share ideas with people outside the company and industry. These new ideas may kick off a cycle of innovation within the corporation.

Corporations also look to hire and develop new talent within shared workspaces. They might even seek to acquire an entire startup if it makes sense. By setting up in co-working spaces, corporations give themselves access to ideas and talent they wouldn’t have otherwise.

Economic development tool

Shared workspaces have a direct and indirect impact on the 3 key economic development stakeholders: entrepreneurs, corporations and the cities themselves.

Entrepreneurs need a supportive ecosystem to thrive. An entrepreneur can often find these things in a co-working space and through the connections they make there. Shared workspaces therefore are an incubator for new businesses. 

New businesses create jobs and are economic engines for cities. Corporations grow by acquiring those new businesses, or partnering up with them to create breakthrough innovations. This collaboration creates more density, vibrancy and resources that help the cities thrive. 

The trend for mobile working is also driving the demand for co-working places as fewer companies around the world want people to come in to an office each day. 

These rapid changes carry serious consequences for cities as well as workers. Namely, how do we help workers feel connected when they can work from anywhere in the world? Cities that want to compete for talent need more co-working space.


 

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