
Forgotten rustbelts are becoming "brainbelts" - innovation hubs where industrial skills meet academic research. From Akron to Eindhoven, this book reveals how collaborative ecosystems are revitalizing economies worldwide, challenging the notion that manufacturing regions are destined for decline.
Antoine van Agtmael and Fred Bakker, authors of The Smartest Places on Earth: Why Rustbelts Are the Emerging Hotspots of Global Innovation, combine decades of expertise in global economics and financial journalism to explore regional revitalization.
Van Agtmael, who coined the term “emerging markets,” is a seasoned economic strategist with leadership roles at the World Bank, International Finance Corporation, and Brookings Institution. His prior work, The Emerging Markets Century, established him as a visionary in global market trends.
Bakker, an award-winning financial journalist and former CEO of Het Financieele Dagblad, brings sharp analysis of monetary systems and innovation ecosystems. Their book reframes post-industrial cities like Akron and Eindhoven as “brainbelts” thriving through collaborative “brainsharing” between academia, industry, and government.
Van Agtmael’s advisory roles with the Council on Foreign Relations and NPR Foundation, alongside Bakker’s media influence, underscore their authority on economic transitions. Featured on platforms like the Diane Rehm Show, their research has shaped conversations at institutions like Yale and the Brookings Institution, where the book was celebrated as a blueprint for 21st-century competitiveness.
The Smartest Places on Earth explores how former industrial hubs like Akron and Dresden have transformed into innovation hotspots called "brainbelts." These regions combine academic research, technical expertise, and collaborative networks to solve global challenges through smart manufacturing and advanced technologies, shifting the competitive edge from cheap labor to intellectual capital.
This book is ideal for business leaders, policymakers, and tech enthusiasts interested in economic revitalization. It offers insights for those exploring regional innovation strategies, collaborative business models, or the future of advanced manufacturing in Western economies.
Brainbelts are revitalized industrial regions that leverage partnerships between universities, startups, and corporations to drive cutting-edge innovation. Examples include Albany’s nanotechnology cluster and Eindhoven’s tech ecosystem, which focus on smart materials, AI, and sustainable solutions.
Akron, once a declining rubber industry hub, rebounded by specializing in polymer research through collaborations with the University of Akron and companies like Goodyear. It exemplifies how traditional manufacturing cities can pivot to high-value innovation.
Van Agtmael emphasizes "brainsharing"—collaborative networks where academia, industry, and government co-develop solutions. This model contrasts with siloed R&D, enabling faster commercialization of ideas like Dresden’s semiconductor advancements.
Critics argue the authors oversimplify the viability of brainbelts in smaller cities and underaddress challenges like funding gaps or corporate monopolies. However, the book’s case studies provide actionable blueprints for economic renewal.
Unlike The Rise of the Creative Class (focused on urban talent), this book highlights industrial reinvention through applied research. It aligns with The Second Machine Age but emphasizes regional collaboration over broad tech trends.
With AI and automation reshaping industries, the book’s framework for combining technical expertise with academic innovation offers a roadmap for cities adapting to post-pandemic supply chain shifts and green technology demands.
“The global competitive advantage is shifting from cheap to smart.” This underscores the transition from cost-driven manufacturing to brainbelt-led innovation in aging industrial regions.
Fred Bakker, a former editor-in-chief of Het Financieele Dagblad (Dutch Financial Times), contributed his expertise in financial journalism and European economic trends to the book.
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지식을 흥미롭고 예시가 풍부한 인사이트로 전환
핵심 아이디어를 빠르게 캡처하여 신속하게 학습
재미있고 매력적인 방식으로 책을 즐기세요
After decades of obsession with making things cheap, the future would focus on making things smart.
Effective brainpower sharing requires the right balance of focus and openness.
Brainbelts create distinctive environments that magnetize talent and businesses.
The awakening typically occurs when frustration reaches a tipping point or a new player arrives.
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Something unexpected is happening in places we've written off. Akron, Ohio. Pittsburgh, Pennsylvania. Eindhoven, Netherlands. These former industrial powerhouses-once symbols of economic decline-are experiencing remarkable revivals. But not through government bailouts or attempts to resurrect old industries. Instead, they're transforming through collaborative innovation ecosystems that Antoine van Agtmael and Fred Bakker call "brainbelts." The conventional wisdom that manufacturing would continue fleeing America and Europe for cheaper shores began cracking around 2012. During a business trip to Asia, van Agtmael was startled when a Taiwanese executive expressed fear of American competition-a complete reversal after decades of Western businesses feeling threatened by Asian manufacturers. The executive admitted, "We're being squeezed" by American R&D capabilities that were "so far ahead." What's happening? After decades of obsession with making things cheap, the future now belongs to making things smart. Pittsburgh exemplifies this transformation. Once a steel powerhouse with over 1,000 factories, the city suffered devastating decline from 1945-1985. Today, healthcare and education drive its revival, with tech giants like Google and Uber establishing operations next to Carnegie Mellon's renowned robotics center. The pattern repeats across numerous regions-in Akron, 1,000 startups now employ more people than the four big tire companies did during manufacturing's heyday. The future belongs not to those who produce cheaply, but to those who innovate smartly.
The brainbelt model creates ecosystems where universities, corporations, startups, and government agencies unite their expertise to solve complex challenges. The Oregon Health & Science University and Intel partnership demonstrates this approach - OHSU used Intel's computing power for cancer research while Intel explored new applications, their collaboration beginning before formal agreements. Success stems from three elements: the need for diverse expertise, focused collaboration without competition, and physical spaces that encourage interaction. Innovation districts and shared workspaces enable spontaneous collaboration among varied talents. These ecosystems generate virtuous cycles of growth: startups thrive, spin-offs emerge, and global players invest, while experienced mentors provide crucial guidance. Successful brainbelts often emerge in regions with dormant but preserved expertise, typically reviving when local frustration catalyzes unified action under strong leadership.
The manufacturing revolution emphasizes customization, localization, and quality through advanced robotics, 3D printing, and the Internet of Things - moving beyond traditional mass production's focus on low costs. Modern "smart factories" are highly automated, compact facilities operating 24/7 where system operators, designers, and researchers collaborate. The entire supply chain integrates into a unified information system, with advanced materials and monitoring eliminating waste and defects. Humanoid robots like Baxter exemplify this shift. Using cameras, sonar, and sensors to interact with its environment, this versatile 5'10" robot costs just $3 per hour to operate, making automation accessible to smaller companies. As robot costs decrease and global wages rise, local production becomes more viable. Nike already uses robots for Olympic shoes and envisions 3D-scanned custom footwear. 3D printing has advanced from prototyping to production, while IoT sensors enable predictive maintenance and performance optimization - what GE's chief economist calls "a marriage between minds and machines" rivaling the Industrial Revolution.
Behind every successful brainbelt stands a connector - individuals or organizations who unite academia, industry, and government in unprecedented collaboration. Albany's transformation into a semiconductor hub was driven by Alain Kaloyeros at SUNY Poly's $20 billion NanoTech Complex. After joining in 1988, he built a cutting-edge research campus and established the Global 450 Consortium, bringing competitors like Intel, IBM, Samsung, and TSMC together to develop next-generation silicon wafers. Kaloyeros succeeded by highlighting three advantages: enhanced brainsharing, university-based collaboration avoiding antitrust issues, and the ability to tackle larger challenges. Before his 2016 resignation, he had transformed Albany into a semiconductor center where 3,500 industry scientists work alongside faculty. In Eindhoven, change began when Philips Electronics kept its research facility while ending manufacturing. In 2002, CEO Gerard Kleisterlee transformed it into an open innovation center with a half-billion euro investment. Support from university and city leaders created an ecosystem that drew global talent and companies like ASML, now the leader in chip manufacturing equipment. These connectors succeed through vision and relationships - seeing possibilities others miss while uniting diverse stakeholders around shared goals.
Akron exemplifies how legacy industries can drive innovation. After major tire manufacturers moved overseas, the city reinvented itself through skilled workers who launched companies based on their rubber and steel expertise. The "Akron Model," initiated by Luis Proenza, transformed the University of Akron into an economic catalyst. Its polymer science program became the nation's largest, and a new research foundation allowed professors to commercialize their innovations. Companies like Timken invested millions in university partnerships, helping Ohio become America's polymer capital with 1,300 companies employing 88,000 people. North Carolina underwent a similar transformation from America's third-poorest state. The Research Triangle Park, uniting Duke, UNC, and NC State universities, attracted IBM in 1965 - a pivotal moment. Today, the region thrives as a brainbelt of advanced manufacturing and education. Former industrial sites house innovation centers, and the Research Triangle Park hosts eighty startups across five incubators, most being small enterprises.
The life sciences sector exemplifies brainsharing at its best, with cross-boundary collaborations driving medical innovation. Minneapolis emerged as a life sciences hub through a network centered around Medtronic, sparked by surgeon C. Walton Lillehei's collaboration with engineer Earl Bakken. After losing a patient to a power failure, they developed the first portable pacemaker - an innovation that established Minneapolis as a medical device powerhouse. Portland's transformation from rustbelt to bioscience hub began with Nike cofounder Phil Knight's $100 million gift to the Knight Cancer Institute. His subsequent $500 million matching pledge in 2013 accelerated Portland's growth into a $4 billion bioscience industry employing 15,000 people. The OHSU-Intel partnership exemplifies this evolution: Intel provides rapid, affordable DNA analysis while OHSU supplies patient data for developing healthcare chips. This collaboration enables personalized medicine through massive data analysis that neither party could achieve alone.
The brainbelt model addresses challenges like climate change and food security through smart products developed via brainsharing across diverse perspectives. The Netherlands exemplifies this approach. Despite being 0.5% of America's size, it's the world's second-largest food exporter, achieved through collaboration between Wageningen University, farmers, and industry. Their "closed-circuit greenhouses" store heat in aquifers and generate 9% of Holland's electricity. Innovation needs consistent funding across stages. While government funds basic research ($75 billion annually in the U.S.), private companies handle applied research. Government funding has launched transformative innovations - from Google's initial $4.5 million NSF grant to the internet, jet engines, and GPS. The primary challenge is finding skilled workers, with America facing a projected 5 million worker shortage in technical fields by 2020. Community colleges have become essential by providing industry-aligned specialized training. Success belongs to regions that choose collaboration over competition. The brainbelt model, powered by shared intelligence and brainpower, transforms former industrial areas into hubs of innovation and prosperity.