Why cities that want to compete for talent need more coworking space

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Linda Trim, director at FutureSpace, a coworking joint venture between Investec Property and Giant Leap, said: “If cities want a chance at economic development they first need to focus on attracting and keeping good people. We need to figure out ways to make people happier, safer, healthier, more productive and able to function better as human beings. This is why cities need shared workspaces and coworking now more than ever.”

Shared workspaces are hubs of innovation

In a rapidly moving world, there is huge demand for innovation from disruptive ideas to build businesses, create jobs and attract talent. Innovation also tends to inspire further innovation as is evident in places like Silicon Valley.

“This virtuous cycle comes from the ability to look at a problem in a new way. And for this, nothing is better than the diversity of perspectives you get in a coworking space. Some of the most disruptive concepts and applications come from people outside the industry. For example Netflix, hosted a $1m Innovation Contest to improve their movie recommendation algorithm.

A team comprised of researchers from the United States, Austria, Canada, and Israel took home the $1m prize for their matching algorithm that improved recommendations by 10%.

“That’s why it’s so important to have spaces where people of different backgrounds can interact.”

But it’s not just entrepreneurs and small businesses who benefit. Large corporations are setting up satellite offices in coworking spaces too. They want to immerse their employees in a more progressive culture, where they can share ideas with people outside the company and industry. These new ideas may kick off a cycle of innovation within the corporation.

“Corporations also look to hire and develop new talent within shared workspaces. They might even seek to acquire an entire startup if it makes sense. By setting up in coworking spaces, corporations give themselves access to ideas and talent they wouldn’t have otherwise.

Shared workspaces as an economic development tool

Shared workspaces have a direct and indirect impact on the three key economic development stakeholders: entrepreneurs, corporations and the cities themselves.

“Entrepreneurs need a supportive ecosystem to thrive. An entrepreneur can often find these things in a coworking space and through the connections they make there. Shared workspaces therefore are an incubator for new businesses,” said Trim.

New businesses create jobs and are economic engines for cities. Corporations grow by acquiring those new businesses, or partnering up with them to create breakthrough innovations. This collaboration creates more density, vibrancy and resources that help the cities thrive.

Trim added the trend for mobile working was also driving the demand for coworking places as fewer companies around the world want people to come in to an office each day.

“These rapid changes carry serious consequences for cities as well as workers. Namely, how do we help workers feel connected when they can work from anywhere in the world? Cities that want to compete for talent need more coworking space.”