Why BioNTech Didn't Need a EU Megacity: How Remote EU Areas Fuel Innovation

It's often assumed that breakthrough innovation only happens in the bustling labs and dynamic ecosystems of the world's largest cities. Urban agglomerations are seen as the primary "innovation machines," attracting talent, hosting top research institutions, and fostering constant knowledge exchange through physical proximity. This makes it seem like firms located outside these hubs are inherently disadvantaged and less capable of innovation.But is that always the case? This episode challenges that conventional wisdom by exploring how innovation can and does thrive far from the traditional innovation centres. We take inspiration from examples like the ground-breaking BioNTech mRNA vaccine, developed in Mainz, a city far smaller than Europe's major metropolises.Drawing on recent research, we delve into how companies in less densely populated and more remote areas overcome the "tyranny of distance" to innovate successfully. The key? Connectivity, understood as the capacity to establish knowledge linkages with the outside world. By fostering purpose-built distant relationships with external firms, research centres, universities, consultants, and other actors, firms in these areas can access the new knowledge and ideas they may lack locally. These external connections serve as a vital substitute or complement for the limited capacity to generate cutting-edge knowledge internally in some remote regions.We'll discuss how seeking extra-local and extra-regional knowledge helps break local "lock-in", diversify knowledge sources, and push firms out of their comfort zones. We also explore the nuance that connectivity isn't just about physical links like broadband; it's crucially about "soft connectivity", encompassing cognitive, organisational, social, and institutional proximity that enables knowledge flow and absorption.However, simply being connected isn't a silver bullet. We'll also highlight the essential role of local conditions, such as skilled human capital and robust institutions, in enabling firms to effectively absorb and transform external knowledge into innovation.Join us as we uncover the strategies and factors that enable innovation beyond the city, demonstrating the vital potential of Europe's less-developed regions and the targeted policies needed to unlock it.