McKinsey and Company’s Innovation Clusters Heat Map

McKinsey and Company has partnered with the World Economic Forum to produce a map of innovation clusters by market location.

From McKinsey and Company:

…in times of economic turbulence, innovation remains the most important differentiator separating economic winners from also-rans.

Global Innovation Heat Map

Global Innovation Heat Map

The McKinsey report places innovation clusters into four categories: Dynamic oceans, Silent lakes, Hot springs and Shrinking pools.

More from McKinsey about their report:

…we have examined the evolution of hundreds of such clusters around the world and analyzed over 700 variables, including those driving innovation (business environment, government and regulation, human capital, infrastructure, and local demand) along with proxies for innovation output (for example, economic value added, journal publications, patent applications) to identify trends among the success stories. In the process, we have found patterns that suggest the critical ingredients required to grow, nurture, and sustain innovation hubs.

Not without surprise, Silicon Valley is the largest Dynamic ocean of innovation in the world.

Financial engineering and marketing advantage excluded, I am convinced all new profits are fueled in part by technological advancements.

From where I sit in Oklahoma and for some time, it has looked like the majority of America’s innovations (technological advancements) and the world’s for that matter – have originated from Northern California (Silicon Valley & San Francisco).

Thus for any business to capture new profits from within its market  – and again barring financial engineering and marketing advantage – the profit seeking business must embrace technological innovation – innovations more than likely developed in Silicon Valley.

Coincidentally, the combination of these factors were what lead to my decision to become a Google Adwords Professional long ago.


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