Economic Support

Municipalities promote local economic development by servicing the needs of local businesses and supporting the growth of new ones. These supports can take many forms, from sympathetic zoning measures to nurturing and engaging with local business groups.

Applications and Solutions

Innovation Hubs

Innovation Hubs are a dynamic incubator space where support services can be gathered to help start-ups access necessary guidance and services to achieve business goals. This includes strategic development and solutions through technology trends, innovation management, industry-specific insights, financing advice and networking opportunities. The hubs can curate and host entrepreneurs from different industries and develop unique programs that build local and international networks, attract talent, and create jobs.

Technologies

Workspace – Physical space with access to high-speed internet and workspaces are used to develop and experiment with products and meet with people. Where hubs are associated with universities, the hubs may use other facilities such as 3D printers, labs, and other technical equipment.

Anchor-plus Model – This describes a geographic model of innovation hubs found in downtowns and midtowns of central cities where large-scale mixed-use development is centered around major anchor institutions. These areas often house related firms and companies involved in the commercialization of innovation.

Re-imagined urban areas Model – This model describes urban areas where industrial districts have undergone a physical and economic transformation, often in proximity to downtowns and supplemented with anchor companies and institutions.

Urbanized science park Model – These hubs are traditionally located in suburban areas that are urbanizing through increased mixed-use areas with new facilities.

Professional services – Start-ups regularly require professional services such as legal and accounting advice. These services can be provided through partnerships with private firms, in-house services, and universities.

Networking and Mentorship – Peer networking and mentorship opportunity and events promote collaboration and peer support that can also permit proactive and reactive intervention by mentors depending on the start-up program.

Public-Private Partnerships – Cooperative arrangements between public and private sectors can be used to pool resources such as money, personnel, and infrastructure to achieve joint objectives. These partnerships can take various forms such as collaborative innovation hubs with public-private funding and joint investments in technology testing.

Early-stage Programs – These programs are designed to assist entrepreneurs at the early stages of building a start-up to solidify business foundations by refining their business ideas. This includes workshops, mentorship, market research and analysis, and providing work and networking opportunities. Innovation hubs that have these programs may also be called an incubator.

Accelerator Program – Accelerator programs are usually structured with a set timeframe and can be designed for different stages of the startup process, from early-stage exploration phase to growth and scaling. Scale-up Programs – Scale-up programs apply to companies that have already validated its product within a marketplace and is primarily focused on growth. This can include services for marketing, talent development, and market access.

Finance Programs – Innovation hubs can offer financing through introductions to investors, pitches for pre-determined monetary prizes, and direct access to finance. Direct access is most common and is often given in return for equity or sometimes a percentage of future revenue.

Managing Liability Issues

Intellectual Property Issues

Issues.

⚠️ Intellectual property (IP) issues may arise from the different range of investment and personal involvements from different entities such as governments, universities, major corporations and angel investors.

Managing Issues.

✅ Licensing agreements. Negotiations for licensing or other contractual use agreements regarding the ownership of innovation results can be made where R&D equipment, facilities or human resources are provided for by different public and private entities.

✅ Confidentiality agreements. Where startups develop novel products and services with other entities at innovation hubs, agreements should be in place to ensure that the intellectual property is confidential throughout the patent, trademark or copyright process.

✅ Contractual allocation of liability. The allocation of liability arising from the app should be negotiated between the municipality, institutions and other private entities and assigned to any appropriate parties.

✅ Carefully review intellectual property issues.

Employment Issues

Issues.

⚠️ Innovation hubs may give rise to employment law issues where the relationship between the hub and certain individuals are unclear. For example, innovation hubs often have many mentors that repeatedly participate in mentoring incoming start-ups. Such relationships should be clarified to define the scope of the relationship as it may have implications on employee rights and minimum requirements.

Managing Issues.

✅ Employment contracts and other like relationship agreements should be drafted and reviewed by legal counsel to ensure compliance with the applicable statute of the province or territory.