Should Business Trends Drive The Need For Industry-Specific Parks?

Should Business Trends Drive The Need For Industry-Specific Parks?

3 août 2018

by Ian Smith

The obvious answer to the question above is “Yes”.  One has to look at the numerous industry-specific parks from around the globe.   These parks are the home of the most innovative companies that have spotted and exploited business trends in their respective sectors to provide new and unique products and services.   At the same time, entities that own land that the parks are built upon can benefit from the economic impact of successful industry-specific parks.   As a result, business cases for an increase amount of sector-specific parks can be generated.

Although the answer has a positive spin to it, trends should be examined closely to see if they are economically viable not only for the months ahead but for many years going into the future.  A perfect example to assess is he concept of a blockchain industry park.  

tn April 2018, the Hangzhou Blockchain Industrial Park opened its doors to aspiring blockchain and cryptocurrency firms.   Its objective is to be a thriving incubator in China for the new industry.

For the purposes of this blog post, key location factors for the Hangzhou Blockchain Industrial Park will be highlighted and discussed to illustrate the planning implications when considering industry-specific parked based on a current trend.
  1. Government Funding
Once the park in Hangzhou opened, funding was made available to companies that had an interest in operating in the hub.  There were six types of funding offered to help lure companies.  Funding from venture capital funding to Ph.D. living allowances was announced to bring “high-level talent” to the industrial park and improve the blockchain industry in the country.

Planning Implications: Understanding that research and development is at the core of some industry-specific industrial parks, funding must be made available to entice companies, especially start-ups.   Working along with various levels of government to supply the require capital to invest in order to support on-going research and development activities that assists in keeping all companies competitive.

      2.         Access To Affordable Energy

The park in Hangzhou aims to be home of ten projects dealing with the following aspects of blockchain industry:
  • Blockchain community engines
  • Digital asset trading services
  • Blockchain cloud computing services
  • Blockchain information
  • Platforms, digital asset quantification management platforms and other blockchain vertical domains
Needless to say that welcoming such activities requires accessing a sufficient amount of energy at a cost that is acceptable to companies in the park.

Planning Implications:  It is essential to work with the utility companies to prepare for the increase demand for energy to supply existing companies to operate and to anticipate the needs of future tenants in the park.  In June 2018, Hydro-Québec submitted a proposed framework to the Régie de l'énergie (the province of Québec’s economic regulation agency for electricity carriers and distributors).   The framework aims to set the conditions dealing with the sale of electricity to blockchain companies in Quebec.

    3.   Access To Skilled Labour

Specific funding for the blockchain industry park was allocated to attract skilled labour from in and around Hangzhou.   The blockchain Industry calls for a skilled labour force which must have experience in the following fields:
  • Solidity programming
  • Distribute ledgering
  • Cryptocurrency development
Planning Implications:  Opening an industry-specific park means having a group of companies that produce a select set of goods.   These companies often rely on their labour to be specialized in order to be efficient.  As a result, any initiative to establish an industry-specific park must bring with it access to skilled labour via existing companies, universities and colleges and training centers.

Identifying sustainable trends to substantiate decisions to open an industry specific park is an approach that should be taken for granted.  It is an initial step to planning how the park will be able to attract and retain the most suitable companies.  Once completed, owners of parks and the different levels of government must be in the best position to provide the elements to be successful for each company.  This may entail going beyond  what is offered to other companies to bring them into a general industrial park.

Need help attracting the right companies to your industrial park?  Contact one of our experts with a wealth of experience.  Call them TODAY!!!

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