Innovation districts must establish a foundational level of digital infrastructure, such as high-speed fibre and wireless networks, to support their users. High-speed fibre High-speed fibre is the backbone of modern digital infrastructure and a core element in the innovation district value proposition, enabling rapid data transmission essential for cloud computing, real- time collaboration and industry 4.0 applications. It supports the significant bandwidth requirements of emerging technologies and ensures reliable connectivity for businesses and tenants. Wireless networks Similarly, 5G networks provide the low latency and high-speed data transmission that can serve as the communications infrastructure for a dense network of smart city and IoT applications. When 6G arrives60 (in 2030 at the earliest, for the United Kingdom) it will offer data rates reaching terabits per second – at least 100 times faster than 5G. This ultra-low latency, high-bandwidth environment will further boost the development and uptake of AI applications, while bringing down costs and increasing energy efficiency. Given the substantial capital expenditure in digital infrastructure, along with ongoing operational expenses and the need to integrate with existing assets, innovation districts should consider the following: –The possibility of securing private sector investment for enhanced security and control. –Designing for significant, scaled-up IoT and deployment of edge computing,61 to capitalize on low-latency benefits. –How to establish robust cybersecurity frameworks. –How to co-ordinate with municipal planning to speed-up permitting and share infrastructure. Digital connectivity investment models There are significant upfront infrastructure investments associated with digital connectivity, given the physical infrastructure maintenance and regulatory hurdles to consider. As such, the prevailing investment model for digital connectivity combines multiple partners and factors: –Public sector for planning and regulatory support. –Integration of connectivity into real estate developments. –Private sector capital and expertise. –Academic institutions providing research and development capacity. The promoters of CENTRAL TECH, a 27,000 ft2 innovation hub in Liverpool’s Knowledge Quarter, understood the draw of unrivalled digital connectivity and internet infrastructure (see Innovation District Spotlight 8). They signed up to a long-term partnership with LCR Connect (a joint venture between the Liverpool City Region Combined Authority and the private sector ITS Technology Group) to create a public-private model capable of delivering affordable world-class connectivity. Doing so delivers gigabit-capable fibre network to tenants working in digital and engineering sectors, while enabling LCR Connect to expand the network to 345 km2, helping to address the region’s digital divide.4.2 Foundations: connectivity, assets and infrastructure Innovation Ecosystems: A Toolkit of Principles and Best Practice 36

Innovation Ecosystems 2025