While the economy continues its slow but steady recovery, what can we do to support faster, yet sustainable growth? The answer may lie in the emergence of innovation economies. Although not the only answer, they can change the current trajectory of local, state, and federal economies, especially in communities of color. In addition, innovation economies will create a fundamental shift in our economic culture, from a singular focus on consumerism to a focus on production.
Innovation economies solidify technology, entrepreneurship, and new knowledge as the core of an economic model that is less vulnerable to fluctuations in fiscal and other policies. The goal is for innovation to catalyze growth and productivity—resulting in greater job creation and higher employment rates. That growth will generate additional tax revenue to support education and the development of the nation’s next innovators.
Three areas that signal opportunities in innovation economies are environment, energy, and transportation. Historically, people of color have been powerful advocates in the environmental justice movement that has ebbed and flowed over the last several decades. Their efforts have largely been fueled by their disproportionate exposure to toxic waste, vermin, run-off, and poor air quality, all of which lead to poor health and quality of life. Over the past decade and with the emergence of global warming data, there has been a clear link established between the environmental, energy, and transportation sectors, resulting in the “green economies” we see developing in many places throughout the country. Unfortunately, that development has not consistently benefitted communities most in need.
The success of innovation economies depends on our willingness to invest in small businesses, “green jobs,” K-12 education, and adult re-training. One example of this is in Massachusetts where the 2008 Green Economies Act seeks to cut greenhouse gases by 25 percent in the next decade, and by over 80 percent by 2050. In addition, it seeks to improve energy efficiency in communities and spur renewable energy development. As a result of the business opportunities created by the law, the Boston Energy Service Cooperative (BESC) has emerged to become the first minority-owned and operated weatherization company in Boston.
Companies like BESC require trained and educated employees ready to work and adjust to emerging innovations in the energy field. To ensure that the workforce in communities of color is ready to engage in innovation economies on the production side, we must provide competitive K-12 and post-secondary education opportunities, in addition to re-training workers who are experiencing joblessness due to failed industries and the recession.
State legislators have a number of policy tools available to them to make innovation economies a reality in under-resourced communities. By focusing policy to develop innovation-ready workers and creating environmentally friendly business opportunities, we can begin to engage all people in the economic future of our nation.
For decades, the focus in America has been on creating generations of consumers. Now is the time to invest in future generations of producers who will serve as the foundation for innovation economies in communities where it is least expected.
