GHC Thematic Report: Could Cleveland Be the Next Silicon Valley?

On Monday of last week, Ohio Gov. Mike DeWine announced an exciting new partnership between the area’s top health systems and several state agencies designed to drive innovation and employment opportunities in the state. 

The Cleveland Innovation District, which will be bolstered by a $565 million initial investment by the state of Ohio, the Cleveland Clinic, and JobsOhio, marks the latest advance in the rise of innovation districts across the U.S.

A significant portion of the investment will fund the new Global Center for Pathogen Research & Human Health, which aims to bring 10,000 health care and information technology jobs to the region over the next 10 years, spurring the creation of another 10,000 jobs in other fields.

According to Gov. DeWine, the expected output over 10 years will create $3 billion in economic impact in Cleveland—a projection that is certain to lead to market stimulation in workforce housing and real estate.

In recent years, the phrase “innovation district” has become very trendy in technology and biotech circles. The districts are often established to attract entrepreneurs and startups that work toward the shared goal of creating jobs and redeveloping a city that could benefit from economic development.

Generally, innovation districts outline a physical area for collaboration and investment, combining existing buildings and potential future assets in new offices, storefronts, venture labs, and other physical spaces.

The Cleveland Innovation District will be Ohio’s second such district, following the similar program launched in March 2020 in Cincinnati. 

In both Ohio cities, the districts are anchored by support from local universities and hospital systems—a common feature of innovation districts at the national level.

For instance, when Cincinnati’s Innovation District was established, it began in partnership between Wright State, Xavier University, Cincinnati State, University of Cincinnati (UC), and the University of Dayton to boost the number of STEM graduates, startups, and new talent in the area.

Among the other 100+ innovation districts outside of Ohio, these partnerships between cities and the universities within them have created thriving ecosystems for development, especially in terms of available real estate.

All across the United States – from Atlanta’s Tech Square to Pittsburgh’s Innovation District to Winston-Salem’s Innovation Quarter – these fast-growing innovation hubs are widely based in physical space, with a large part of the investment coming from real estate development.

In Cleveland, the project will take a slightly different approach, as there won’t be one central area in the city where all of the activity will happen. Rather, the innovation district will stem from Cleveland Clinic’s main campus, infusing new talent into the city limits that will result in a greater demand for workforce housing close to downtown.

By bolstering education and workforce development, particularly in the fields of engineering, technology, and science, the district’s partners will be in a great position to foster startup companies, much like Silicon Valley in its early days.

The combined effort will establish Ohio nationally, and globally, as a go-to place for innovation with the talent that makes it happen. 

As Gov. Dewine stated, “This is telling the world, ‘This is the place to come.’”