Building Communities Where People Want to Live and Do Business: A Systems Approach to Jurisdictional Competitiveness

By: Sarah Mostowich, Head of Innovation at NorthGuide

Picture this: your community or region as a magnet for talent, ideas, and investment. A place where businesses thrive, people want to live, and opportunities feel endless. That's what a strong innovation ecosystem can do. In my role at NorthGuide, I see ecosystems as living networks – designed with intention, built on a set of unique strengths, and focused on delivering results that matter.

Having studied systems design engineering at the University of Waterloo and worked in corporate innovation, I've learned that the most successful products share a common trait: they're built with people in mind. The same principle applies when building thriving communities and regions.

Just as user-centered design creates products people want to use, strategic ecosystem building creates places where people want to live and do business – driving economic growth, attracting global talent, and creating prosperity that benefits everyone who calls your jurisdiction home.

The Power of Innovation Ecosystems

Innovation ecosystems are living networks that connect talent, companies, institutions, and capital in ways that spark creativity and drive growth. When designed thoughtfully, they become engines of economic prosperity that benefit entire regions and industries.

Think of your jurisdiction like a product: to succeed, it needs to offer compelling value to its "users" – the talent, companies, and investors you want to attract. By building a strong innovation ecosystem, you create an environment where these stakeholders naturally want to be, making you globally competitive in ways that matter.

Success with innovation ecosystems activation requires six essential ingredients:

1. Strong academic institutions, research centers, and industry associations provide the knowledge infrastructure that powers innovation
2. Access to capital through venture funding, angel investors, and government programs turns promising ideas into market-changing solutions
3. Educational institutions and reskilling programs develop talent for industry – creating career growth pathways that build the workforce you need
4. A collaborative culture enables constructive partnerships between public, private, and academic sectors
5. Dedicated infrastructure including co-working spaces, incubators, and accelerators creates environments where connections form and ideas flourish
6. Diversity of thought and experience strengthens innovation and builds resilience through different perspectives

Building Your Competitive Edge: A Three-Step Approach

While learning from global innovation leaders can provide valuable insights, creating a standout jurisdiction isn't about copying the blueprint of another community – it's about understanding and amplifying what makes your region unique. Here's how we turn that principle into action:

Step 1: Understanding Your Ecosystem's DNA

We start with a thorough assessment of your current ecosystem, mapping your unique assets and understanding how they connect. Fresh eyes play a crucial role in this discovery process, helping reveal opportunities you might not expect. We often find that what outsiders consider most compelling about a jurisdiction differs from what locals might highlight – after all, when you're immersed in an ecosystem, it's easy to overlook extraordinary features that have become everyday to you.

The key is identifying the distinctive advantages that can set your jurisdiction apart. Maybe it's your geographical location, your cultural assets, your traditional business strengths, or your research specialties. These become the foundation for your competitive strategy.

Consider Kelowna, British Columbia, which has turned its lifestyle appeal into an economic driver. Instead of competing head-on with major tech hubs, Kelowna has created a distinct value proposition: world-class opportunities in wine tech, agriculture and agrifood technology, and forestry innovation, all while offering the ultimate work-life balance with lakes, mountains, and vineyards at your doorstep. Kelowna is attracting talent and companies that want to solve global challenges while prioritizing quality of life outside of work.

Step 2: Crafting Your Story and Vision

With a clear picture of your strengths, we bring stakeholders together to create a compelling vision for your ecosystem's future. This isn't just about marketing – it's about building a narrative that resonates with the people and organizations you want to attract, and is true to who you are as a community.

Your ecosystem's story should highlight real successes, showcase genuine partnerships, and paint an exciting picture of what's possible. When we help jurisdictions develop their narrative, we focus on authenticity. The best stories don't just tell – they show through tangible examples and clear opportunities.

Consider how Estonia transformed its story from a former Soviet state to Europe's digital pioneer. Estonia didn't just tell people they were innovative – they showed it by becoming the first country to hold digital elections, offer e-residency, and provide 99% of government services online. But what makes Estonia’s narrative especially powerful is how they connect every success to future opportunity. When showcasing how a digital-first approach helped create companies like Skype and Wise, they're not just celebrating past wins – they're signaling to tech entrepreneurs worldwide that Estonia is where digital innovation thrives.

Step 3: Turning Your Vision into Reality

This is where we bring everything together through strategic programming and smart policy design. Based on your unique strengths and vision, we help you implement tools that drive real results. For example:

• Regulatory sandboxes can give innovators room to experiment while managing risk. We've helped jurisdictions use these to attract startups in key industries like fintech, health tech, and clean energy.
• Tax incentives and grants, when strategically designed, help de-risk investments and encourage R&D in your target sectors. The key is aligning these tools with your ecosystem's natural strengths.
• Talent programs make it easier for skilled people to choose your jurisdiction as their home. This might mean specialized visa schemes, educational partnerships, or reskilling initiatives that build on your existing workforce strengths.

Building for Long-Term Success

Creating a competitive jurisdiction through ecosystem building is a journey that requires patience and persistence. But when you get the fundamentals right, something powerful happens. Success creates momentum – talent is attracted because people see opportunity, companies choose your location for its resources and connections, and capital follows because investors recognize real potential.

The key is taking a systems approach – understanding how all the pieces fit together and how changes in one area ripple through the whole. When you get the system right, you create more than just a place where innovation can happen. You build a community where people and organizations actively choose to be part of something bigger than themselves.

That's the real power of jurisdictional competitiveness – creating environments where success becomes not just possible, but inevitable.

Every thriving innovation ecosystem has its own secret sauce – unique ingredients that set it apart. We'd love to hear what's working in your jurisdiction or what challenges you're facing as you build for the future. If you’re interested in learning more about how to make your jurisdiction more competitive, give us a call.