**4. Urban patterns as cognitive infrastructure for successful S3**

Shifting from the regional towards the urban scale, the concepts of social innovation, entre‐ preneurial discovery and local embeddedness can be found in the recent theorisation of *innovative district*. Starting from a metropolitan centred perspective, the importance of the scale and related *metric* is a recurrent concept for understanding the assets of the place: "The next economy must have four characteristics: higher exports, to take advantage of rising global demand; low-carbon technology, to lead the clean-energy revolution; innovation, to spur growth through ideas and their deployment; and greater opportunity, to reverse the troubling, decades-long rise in inequality. Metros will take the lead on all four fronts. Our open, inno‐ vative economy increasingly craves proximity and extols integration, which allows knowledge to be transferred easily between, within, and across clusters, firms, workers, and supporting institutions. The vanguard of these megatrends is largely found not at the city of metropolitan scale (…) but in smaller enclaves, which are increasingly being called innovation districts" [37].

holding a high potential of unleashing context specific assets. A better awareness of the governance within place-based S3 could support the creation of effective network of stake‐ holders for the Community Local Led Development strategies implementation, an innovative approach in the ESRF and ESF programmes implementation drawn from the LEADER approach and not yet fully developed outside the rural contexts. Despite of their strong roots in a place-based approach, S3 are still far from being clearly spatial-led strategies. This may depend on the original conceptualisation of S3, developed from a spatial idea [35]. It can be therefore problematic to translate them into genuine place-based policies, reflecting a consis‐ tent social innovation based institutional framework, particularly in those regions, still lacking

In order to fill this gap, a research programme has been proposed and accepted for grant under the Horizon 2020 programme, namely MAPS-LED (Multidisciplinary Approach to Plan Smart specialisation strategies for Local Economic Development) [36]. This program, run by a consortium of 6 universities in EU and in the US aims in particular at connecting three important key-factors including: (1) Governance—both in cluster policies and in terms of embeddedness; (2) Localization—as spatial and place-based approach; (3) Territorial network —as innovative milieu supporting social innovation, also based on urban-rural links. The project is building a novel methodology to assess and exploit the potential of different clusters, networks and chains in shaping spatially-led S3 policies for local economic development through a spatial-led approach. After having explored the potential of S3 both through spatial planning (city-region and S3) and regional economy (cluster policy, territorial milieu and S3), the project will develop and test a tailored evaluative tool suitable to capture the socioeconomic spillovers of S3. By understanding how S3 can be translated and implemented into spatially-oriented local development policies, in line with the territorial agenda of Europe 2020 incorporating a place-based dimension, the expected results are: (1) to identify and examine S3 in terms of spatial, social and environmental factors; (2) to take into account local needs and opportunities driving regional policy interventions not only to emphasise "Key Enable Technologies", but also to empower local innovation process—tacit knowledge, embedded social networks, innovative milieu; (3) to build and test an evidence-based methodology for recognizing and assessing emerging and potential S3, corroborated by successful factors of

**4. Urban patterns as cognitive infrastructure for successful S3**

Shifting from the regional towards the urban scale, the concepts of social innovation, entre‐ preneurial discovery and local embeddedness can be found in the recent theorisation of *innovative district*. Starting from a metropolitan centred perspective, the importance of the scale and related *metric* is a recurrent concept for understanding the assets of the place: "The next economy must have four characteristics: higher exports, to take advantage of rising global demand; low-carbon technology, to lead the clean-energy revolution; innovation, to spur growth through ideas and their deployment; and greater opportunity, to reverse the troubling, decades-long rise in inequality. Metros will take the lead on all four fronts. Our open, inno‐

in clear and updated spatial frameworks.

186 Sustainable Urbanization

existing clusters [36].

The scale of the innovation districts is clear. They are walkable urban environments, typically featured following the current urban design tendency of creating vibrant spaces offering a variety of uses, shared places, and accessibility. If we look at an innovation district as the brain of an innovative cluster [38], it follows that urban patterns have to be treated as cognitive infrastructure of the collective knowledge production.

What is the rationale that creates value out of the proximity? Recent studies focus on the creation of successful groups of players capable of activating cooperation on the basis of the mutual trust [39]. Building on this concept, an extensive literature is blossoming in support of mutual trust and cooperation as triggers for successful social dynamics (for example [40]). What cluster potentially does is that it increases the roles of reputations by increasing the frequency of interaction and also how observable actions are. Therefore, innovative urban spaces, in order to be supportive for a specific kind of entrepreneurs, those who are willing to cooperate in producing shared knowledge, has to support density, accessibility, and also shared spaces that make good and cooperative actions *frequent and observable* [41].

**Figure 1.** MIT innovation cluster, March 2016 (Courtesy of the MIT).

The first attempt to corroborate this research hypothesis has been done through the investi‐ gation of the hidden mechanisms supporting the outstanding competitiveness of a US based innovative district, the Kendall Square in Cambridge, MA (**Figure 1**). The history of Kendall Square is intrinsically related with the presence of the Massachusetts Institute of Technology, which makes this case study, obviously, almost unique. However, because of this uniqueness, it can well explain how, even in an outstanding context in terms of innovation, still spatial factors play a significant role and are considered relevant both by public and private actors. Kendall Square is a former brownfield located in Cambridge (MA), opposite side of Charles River. It started in 1868 as an industrial district and consolidated this function with the opening of the first underground line nearby. The presence of the Massachusetts Institute of Technology dates back to 1916. Following the Second World War, the area entered an era of decline, which the Cambridge Redevelopment Authority (CRA), established in 1955, sought to reverse also through the clearance of 29 acres of land for the accommodation of NASA. Because of a change in the federal government strategies, the plan was no longer implemented, and the vacant land was partly redirected to the Department of Transportation. A shift in the approach to the redevelopment of the area, managed as a detached industrial estate, happened first with the implementation of the East Cambridge Riverfront Plan, then with the 2001 Citywide Rezoning. Walkability, quality of open spaces and mixed-use real estate became the norm in the area [42, 43]. Recent massive capital investments confirm the tendency to invest in the area with high quality interventions [44]. The importance of the urban structure as catalyst for local devel‐ opment is acknowledged both by public and private stakeholders [45, 46]. As emerges from the current planning documents (**Figure 2**), the connection between urban fabric and attrac‐ tiveness of the area for private companies is evident: "A dynamic public realm connecting diverse choices for living, working, learning, and playing to inspire continued success of Cambridge's sustainable, globally-significant innovation community" [47].

**Figure 2.** Kendall Square open spaces (Source: [42], p. 28).

Furthermore, recent studies on the companies' behaviour in this area proved how the cluster traditional policies based on subsidising "anchors" that—once settled down—would attract smaller companies, is now coupled by a bottom-up oriented perspective, in which a significant number of small, dynamic, highly innovative companies create the favourable ecosystem for attracting big companies, interested in having an interaction with young talents and possibly in incorporating smaller (and cheap) companies with higher potential for growth [48]. Therefore, public policy makers should also support the creation of a cluster of innovative and cutting-edge start-up companies, rather than seeking to attract a big one to make them follow. This creates the need for urban environments that are attractive, as Florida suggests, for young talents [49]. How much companies value the competitive advantage of being in this kind of environment is testified by what recently happened to a leading pharmaceutical company in the Kendall area. Biotech is one of the historical companies located in Kendall Square, founded by a MIT professor, Sharp, who at the time he launched the company, wanted to work close to his laboratory. Despite of its roots in the area, in recent years a controversial decision was made, to move the Biotech headquarters to the cheaper suburb of Weston. In a few years, this decision was questioned and the willingness to return to the area prevailed [50]. The reasons are clear: "Other biotech companies have come to the neighbourhood to take advantage of the healthy infrastructure in Cambridge and its vibrant bioscience community. While there were many individuals and organisations involved, MIT faculty members and administrators indeed played a major role in reviving Kendall Square, because they understood that in order to build a thriving bioscience programme, they would have to build a thriving community of talented people—at MIT and beyond" [51]. This view is shared by experts on cluster and industrial policies in the Massachusetts, who suggested that what brought Biotech back to the Kendall area was the "atmosphere" [52].

it can well explain how, even in an outstanding context in terms of innovation, still spatial factors play a significant role and are considered relevant both by public and private actors. Kendall Square is a former brownfield located in Cambridge (MA), opposite side of Charles River. It started in 1868 as an industrial district and consolidated this function with the opening of the first underground line nearby. The presence of the Massachusetts Institute of Technology dates back to 1916. Following the Second World War, the area entered an era of decline, which the Cambridge Redevelopment Authority (CRA), established in 1955, sought to reverse also through the clearance of 29 acres of land for the accommodation of NASA. Because of a change in the federal government strategies, the plan was no longer implemented, and the vacant land was partly redirected to the Department of Transportation. A shift in the approach to the redevelopment of the area, managed as a detached industrial estate, happened first with the implementation of the East Cambridge Riverfront Plan, then with the 2001 Citywide Rezoning. Walkability, quality of open spaces and mixed-use real estate became the norm in the area [42, 43]. Recent massive capital investments confirm the tendency to invest in the area with high quality interventions [44]. The importance of the urban structure as catalyst for local devel‐ opment is acknowledged both by public and private stakeholders [45, 46]. As emerges from the current planning documents (**Figure 2**), the connection between urban fabric and attrac‐ tiveness of the area for private companies is evident: "A dynamic public realm connecting diverse choices for living, working, learning, and playing to inspire continued success of

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Cambridge's sustainable, globally-significant innovation community" [47].

**Figure 2.** Kendall Square open spaces (Source: [42], p. 28).

**Figure 3.** Open spaces and public services around the Kendall Square area (author's picture).

**Figure 4.** Companies located in the Kendall's immediate surroundings: Akamai (author's picture).

Private companies perceive the economic benefit of being localised in an innovative district, and are willing to pay the extra costs associated with a more expensive location in order to get extra benefits in return, including the well-being (and related increase of productivity) of their employees and the opportunity to benefit from the powerful network of informal and multi-disciplinary connections, made possible by the specific features of the urban fabric (**Figures 3**–**12**).

**Figure 5.** Companies located in the Kendall's immediate surroundings: Biogen (author's picture).

Smart Specialisation Strategies as Drivers for (Smart) Sustainable Urban Development http://dx.doi.org/10.5772/64598 191

**Figure 6.** Restaurants, coffee shops, in the Kendall's surrounding (author's picture).

Private companies perceive the economic benefit of being localised in an innovative district, and are willing to pay the extra costs associated with a more expensive location in order to get extra benefits in return, including the well-being (and related increase of productivity) of their employees and the opportunity to benefit from the powerful network of informal and multi-disciplinary connections, made possible by the specific features of the urban fabric

**Figure 4.** Companies located in the Kendall's immediate surroundings: Akamai (author's picture).

**Figure 5.** Companies located in the Kendall's immediate surroundings: Biogen (author's picture).

(**Figures 3**–**12**).

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**Figure 7.** Amenities in the Kendall's immediate surroundings (author's picture).

**Figure 8.** Companies located in the Kendall's immediate surroundings: Genzine (author's picture).

**Figure 9.** Companies located in heart of Kendall: Microsoft (author's picture).

Smart Specialisation Strategies as Drivers for (Smart) Sustainable Urban Development http://dx.doi.org/10.5772/64598 193

**Figure 10.** Bike sharing facilities in Kendall (author's picture).

**Figure 8.** Companies located in the Kendall's immediate surroundings: Genzine (author's picture).

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**Figure 9.** Companies located in heart of Kendall: Microsoft (author's picture).

**Figure 11.** Transit station, bicycles, pedestrians: a walkable environment (author's picture).

**Figure 12.** Large sidewalks, benches, bus stops: a pedestrian friendly place (author's picture).

**Figure 13.** Concierge in the Kendall Square CIC building (author's picture).

Besides the urban pattern encouraging knowledge and innovation building, Kendall Square also includes key-hotspots for informal decision making and cross-clustering, such as the Cambridge Innovation Centre, CIC [53]. The CIC is not an incubator neither an accelerator, it is a private entrepreneurial activity based on renting shared and flexible office spaces designed with an innovative rationale. It currently hosts over 700 companies across two buildings, located in Kendall Square and in downtown Boston, about 500 of which are start-ups. The

Kendall Square building includes the Venture Café, a sister non-profit with the mission of bringing together entrepreneurs, venture capitals and the greater Boston start-up community. The field work conducted in the Kendall Square CIC (**Figures 13**–**16**), complemented by interviews with CIC Relationship Managers [54, 55], proved the exceptional level of services provided to the companies hosted. The quality of the concierge, of the reception desks at each floor and of the complimentary meeting rooms and working spaces is outstanding. Flexible and high quality spaces are offered for a reasonable cost, since prices range from \$425 to \$1500/ person/month all included (stocked kitchens, conference rooms, Internet, printing & copying, phones, high-end furniture, operational & technical support and concierge). However, it is the style of management of the spaces that really makes the difference in conceptual terms. Each floor is equipped with a common kitchen, offering free food that varies on each floor in order to encourage people to move around the building. Cross-fertilisation of innovative ideas is considered the major asset offered to the hosted companies that are mixed across the floors and not clustered by sector. Collaboration complements cross-fertilisation, since companies looking for specialised services might find them within the CIC itself, resting on the assistance of the Relationship Managers, whose presence is ensured at all floors. It is the personal knowledge of the Relationship Managers with the individual company that orients the potential advice. The institutionalised role of a facilitator is a concrete example of coupling proximity with the opportunity of experiencing frequent and observable interactions. Further informal interviews with local stakeholders [45, 46, 56] confirmed the extraordinary role played by the CIC in building a favourable physical ecosystem, spurring innovation and supporting start-ups creation. Also, the CIC allowed some large companies, such as Google, to temporarily settle down in the area of Kendall Square prior to making the final decision of moving there with the entire headquarters.

**Figure 12.** Large sidewalks, benches, bus stops: a pedestrian friendly place (author's picture).

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**Figure 13.** Concierge in the Kendall Square CIC building (author's picture).

Besides the urban pattern encouraging knowledge and innovation building, Kendall Square also includes key-hotspots for informal decision making and cross-clustering, such as the Cambridge Innovation Centre, CIC [53]. The CIC is not an incubator neither an accelerator, it is a private entrepreneurial activity based on renting shared and flexible office spaces designed with an innovative rationale. It currently hosts over 700 companies across two buildings, located in Kendall Square and in downtown Boston, about 500 of which are start-ups. The

**Figure 14.** Complimentary meeting rooms in the Kendall Square CIC building (author's picture).

**Figure 15.** Complimentary shared spaces (author's picture).

**Figure 16.** Venture Café (author's picture).

In conclusion, it is essential to complement S3 implementation with spatial interventions of the built environment that may facilitate the construction of a *physical ecosystem* supportive of innovation. These spaces include: shared spaces and private small businesses facilitating interaction, both informal and formal, both specialised and multi-disciplinary; public services and facilities that allow preserving uniqueness and inclusiveness. Furthermore, the spatial pattern has to be supportive of a walkable environment, offering effective transit and public transport facilities. The economic benefit for the private companies located in such areas is proved by the empirical findings from the case study, although not yet quantified.

Further research development includes the effort to quantify with monetary proxy the extra benefits above mentioned, incorporating in the assessment the public services and facilities in the area. This goal will be achieved by spatialising clusters first, then companies at the urban scale, then mapping the network of spaces that are supportive of social innovation and entrepreneurial discovery.
