In our last blog, we explored how aspiration and bold vision lay the groundwork for successful innovation ecosystems. But vision alone isn’t enough and building momentum requires bringing people, organisations, and ideas together in purposeful ways.
This blog focuses on KSF 2: Clusters and Partner Strategy – the engine that drives innovation forward. Clusters leverage regional strengths, while strategic partnerships connect stakeholders across sectors, disciplines, and industries. Together, they create powerful networks that fuel collaboration, accelerate knowledge sharing, and unlock new opportunities for growth.
To show how these strategies can reshape regions, we look at two standout examples. First, Kendall Square in the Boston-Cambridge Innovation Ecosystem reveals how intentional cluster development anchored by global institutions can turn a declining industrial area into one of the world’s leading hubs of innovation. Then, we examine SuperTech’s ProfTech roadmap in the West Midlands, which aims to unites FinTech, PropTech, and LegalTech into a unique cluster designed to amplify regional strengths and create long-term economic and social value.
These stories highlight how clusters and partner strategies are essential tools to move ecosystems from ambition to action, transforming isolated assets into connected engines of innovation.
The Role of Clusters and Partner Strategy
The success of innovation ecosystems hinges on creating clusters that tap into a region’s unique strengths, resources, and capabilities. To achieve this, local leaders must evaluate existing assets and then build or foster clusters that align with these foundational advantages.
Leaders consider two key areas when determining which cluster is best suited to a region. First, they should identify unique areas of competitive advantage that the region can pursue. Second, leaders must identify which institutions – such as universities, research centres, incubators, and major businesses – have the potential to act as anchor institutions. Anchor institutions can be key drivers of cluster growth. They attract other businesses to act as both collaborators and competitors, provide resources contributing to local development, and ultimately encourage an environment for innovation.
The location and proximity of stakeholders in ecosystems play an essential role in collaboration. Clusters are more effective when businesses, institutions, and organisations are physically close, enabling face-to-face interactions and knowledge spillover.
Another key dynamic is the power of cross-industry collaboration. Even clusters that focus on one particular sector can benefit from working with partners in seemingly unrelated industries as these interactions can lead to creative solutions and new ideas that wouldn’t emerge if stakeholders remained siloed.
A successful cluster strategy is defined by its ability to align stakeholders and ensure connectivity. Instead of duplicating efforts or competing for the same resources, organisations should collaborate, share insights, and build upon each other’s strengths.
In terms of identifying an ideal cluster approach, leaders often weigh two primary strategies. The first, the “right to win” approach, focuses on leveraging existing assets and strengths – whether that’s talent, infrastructure, or sector specialisation. The second, the “want to win” approach, builds on current trends or projected market growth to position a region for future success. Both strategies offer value, and the most effective clusters often use a hybrid of both, testing various propositions to see where interest and investment align.
Ultimately, the most successful ecosystems are those that thoughtfully create their clusters, fostering intentional connections and partnerships.
Case studies
To illustrate how clusters and strategic partnerships can unlock regional potential, we’ll explore two standout examples.
First is Kendall Square in the Boston-Cambridge Innovation Ecosystem, where deliberate cluster development and strong anchor institutions turned a declining industrial area into one of the world’s leading hubs for biotech and deep tech innovation.
Then, we examine the ProfTech Research & Innovation Roadmap in the West Midlands, which shows how an ambitious cluster strategy uniting FinTech, PropTech, and LegalTech can hopefully build a powerful supercluster and position the region for long-term economic and social impact.
Together, these case studies demonstrate that having a strategy for cluster and partner development is vital for creating a collaborative innovation ecosystem.
Boston – Cambridge Innovation Ecosystem: Kendall Square
Kendall Square in Cambridge, Massachusetts, is often called “the most innovative square mile on the planet.” Once a declining industrial district, it has transformed into one of the world’s most concentrated hubs for biotech, life sciences, and tech. Its success is no accident – it is the product of intentional cluster development, anchor institutions, and a powerful partnership strategy.
At the heart of Kendall Square’s growth is its proximity to the Massachusetts Institute of Technology (MIT), a globally recognised anchor institution. MIT has played a central role in shaping the district’s identity, attracting talent, and fostering research collaboration. This positioning created fertile ground for clusters in biotech and deep tech to flourish, supported by additional anchors like Harvard, NASA’s Electronics Research Centre (established in the 1960s), and pioneering companies like Biogen, founded in the 1970s.
Public-private cooperation played a key role in Kendall’s transformation. Initiatives like the East Cambridge Riverfront Plan promoted mixed-use redevelopment, improving connectivity and liveability. Global firms including Google, Microsoft, Amazon, and Meta were drawn to the district’s dense network of innovators and access to talent. The Cambridge Innovation Centre (CIC), founded by MIT graduate Tim Rowe in 1999, demonstrated the power of shared space in accelerating entrepreneurial growth.
The layout of Kendall Square reinforces innovation through proximity. Research from MIT found collaboration increases with physical closeness, and Kendall’s walkable layout enables constant interaction. Entrepreneurs and researchers’ cross paths daily in buildings like One Broadway and 245 Main – hubs that together have attracted over $14 billion in venture capital.
Kendall Square also played a vital role during the COVID-19 pandemic, with companies like Moderna leading global vaccine development. It stands as a leading example of how clusters, when anchored by strong institutions and designed for connection, can deliver lasting global impact.
SuperTech: ProfTech Research & Innovation Roadmap 2024-33
SuperTech in the West Midlands is a pioneering example of cluster strategy in action, uniting the region’s strengths in FinTech, PropTech, and LegalTech to create a cross-sector ProfTech supercluster. This initiative builds on the West Midlands’ established advantages, including a £15.3 billion tech sector growing at around 10% annually and a Business, Professional, and Financial Services sector worth £28.5 billion, employing 182,000 people as of 2022. ProfTech alone is valued at £1.2 billion in 2024 and is projected to grow by 2.3% annually to reach £1.5 billion GVA by 2033.
SuperTech’s 10-year roadmap, co-authored by Whitecap Consulting, sets a clear, actionable agenda structured around four strategic themes: Productivity, Open Data, Sustainability, and Inclusion & Wellness. These themes offer a framework for cross-sector collaboration, focusing on “golden threads” that stakeholders across the region are prioritising and that align strongly with national and global trends.
The strategy was created through extensive engagement with over 50 organisations, including workshops, in-depth interviews, and roundtables, ensuring alignment between industry, academia, and government. While SuperTech will lead and facilitate the roadmap’s implementation, active participation from a broad range of stakeholders is essential to deliver the research and innovation actions outlined.
By positioning the West Midlands as a unified ProfTech hub, SuperTech demonstrates how intentional cluster development and strategic partnerships can transform existing regional strengths. This collaborative approach is designed to unlock economic, environmental, and societal value for the West Midlands, while supporting an innovation ecosystem aligned with national priorities such as the UK’s Modern Industrial Strategy.
Three Key Takeaways
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Clusters aren’t accidental. The success of places like Kendall Square shows the power of intentional cluster development, rooted in anchor institutions and supported by public-private cooperation
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Partnerships unlock scale and creativity. Cross-industry collaboration and strategic alliances are vital to overcoming silos and fostering innovation across sectors.
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Lessons from leaders: Kendall Square shows how clustering around strengths can transforms local economies, while SuperTech highlights how regions can unite multiple sectors into a single, powerful ecosystem by having a clear strategy to follow.
Next in the Series: Capital and Funding
Our next blog will explore how innovation ecosystems thrive by securing the right capital and funding strategies that support businesses from concept to scale, connecting entrepreneurs with the resources they need to grow and succeed.
- Blog 1: An Introduction to Innovation Ecosystems
- Blog 2: Aspiration and Bold Vision
- Blog 3: Clusters and Partner Strategy
- Blog 4: Capital and Funding
- Blog 5: Talent and Community Building
- Blog 6: Real Estate, Infrastructure and Place Making
- Blog 7: Diversity, Equality and Inclusion
At Whitecap, we support organisations in building and enhancing innovation ecosystems. In addition to working directly with clients, we conduct research and analysis to inform strategic decision-making and thought leadership. If you need support with a project or are looking to develop an innovation ecosystem, get in touch.
References
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Building innovation ecosystems: Accelerating tech hub growth – McKinsey, 2023: https://www.mckinsey.com/industries/public-sector/our-insights/building-innovation-ecosystems-accelerating-tech-hub-growth
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What is Kendall Square? – Kendall Square, 2023: https://kendallsquare.org/wp-content/uploads/Kendall-Timeline.pdf
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ProfTech Research & Innovation Roadmap 2024-33 – SuperTech & Whitecap Consulting, 2024: https://www.whitecapconsulting.co.uk/wp-content/uploads/2024/05/SuperTech-ProfTech-RI-Roadmap-2024-33.pdf