Implementing Inclusive Growth in the Be’er Sheva Innovation District

Summary

The establishment of the Innovation District in Be’er Sheva was accompanied by the desire of its founders to maximize its positive effects for the benefit of the city and its surroundings. From the very beginning of its planning, the founding partners understood that in order to leverage the advantages of the Innovation District, it was necessary to implement principles of inclusive growth. This report establishes this insight, anchors it empirically, and offers a strategic outline for implementing a systematic policy of inclusive growth that will support the realization of the vision of the district’s founders.

In this report, inclusive growth is “a policy aimed at ensuring sustainable and stable economic prosperity for the entire public” and emphasizes that it is based on three principles:

• Dependence between well-being and inclusive growth – There is a mutual dependence between the socio-economic well-being of the entire population and stable and sustainable growth in GDP.
• Well-being is multidimensional – the meaning of socio-economic well-being cannot be reduced to one index or another, no matter how central (such as the Gini index), because it is multidimensional and extends across different areas of life.
• Implementation requires multidimensional policies – inclusive growth can only occur through targeted, holistic, and integrative policies that operate across multiple dimensions.

These principles require an inclusive growth policy to touch upon a variety of areas of life that on the surface are not directly related to GDP growth itself, but it is now clear that without them, it is not possible to ensure stable growth over time, such as investing in informal education or encouraging the establishment of small businesses in areas that are not of interest to the district.

The report shows that inclusive growth is not a ‘nice to have’, but must be a built-in part of the district’s ongoing economic policy in order to ensure the realization of its research and business vision and to ensure its contribution to the city’s economy.

Based on a review of similar cases around the world, the report concludes that without a systematic policy of inclusive growth, the district could bring with it real damage to the fabric of life in the neighborhoods adjacent to the district – from gentrification to loss of employment opportunities – or damage to the business and research activities of the district itself – either due to growing alienation on the part of the local population, and even of the workers themselves, or due to a severe shortage of workers with the required skills.

In other words, without an inclusive growth strategy, the district could become a locomotive without carriages. In the longer term, activity in the district itself could also be harmed as a result.

The existing conditions in Beer Sheva may intensify the risks in the short and long term:

Short-term risks:

• Increased opportunities and wages only for a specific sector of the population
• Will lead to increased wage inequality in the city
• May increase pressure on apartment prices and prices of small commercial space
• Raises concerns about gentrification in nearby neighborhoods
• May cause alienation and may distance the local community from opportunity

Long-term risks:

• Will not contribute to the income level in the city
• Will not maximize the value chain potential for the city and its residents
• Will not fulfill the potential for promoting the city and the community in the long term
• The district will not succeed in attracting high-tech and biotech companies as its planners expect

In accordance with the conclusions emerging from the professional literature and interviews conducted with senior executives in innovation districts around the world, the report proposes four intervention strategies:

• Infrastructure: All urban spaces that can be used to promote a more inclusive and equitable community.
• Projects: Under this heading, we bring together under one roof all projects aimed at strengthening the community, employment, entrepreneurship and education through direct intervention in the community and target audiences.
• Governance: This concept is used to describe the mechanisms implemented to enhance, strengthen, and maintain a policy of inclusive growth in the district.
• Leadership: By leadership we mean a public commitment by institutions, companies, and other stakeholders in the district to inclusive growth.

Each of the intervention strategies also addresses indirect and direct processes and the relevant local dimension. In this way, we anticipate that an array will be created that ensures the correct implementation of the principles of inclusive growth: the prosperity of the innovation district as an integral part of the prosperity of the city and its surroundings.

Summary and recommendations for the “By Design” Comprehensive District:

An inclusive growth policy begins with a strategic decision with clear, multi-year goals and the willingness of all stakeholders to commit to the process. (The report offers an illustrative example of a holistic strategy set for Be’er Sheva) and we recommend developing an intervention plan based on the following principles:

1. Locality – adapting intervention to the needs and culture in the area.
2. Holistic strategy – implementing all four intervention strategies in an integrative manner.
3. A multidimensional and integrative strategy – implementing the four levels of intervention.
4. Implementing practical principles of diversity and inclusion – start early, ensure everyone is in the same boat.
5. Develop a comprehensive growth strategy based on a large number of different intervention programs, so that a holistic whole is created that addresses both the short term (direct intervention) and the long term (process intervention), and in accordance with the needs and goals of the district and its founding partners.