Innovation—it’s a word that gets tossed around in boardrooms and startup pitches, but what does it actually mean for your neighborhood, your city, or your hometown? In Innovation in Real Places: Strategies for Prosperity in an Unforgiving World, Dan Breznitz takes us on a fascinating journey, redefining innovation and showing us how it can spark real progress where it matters most—on the ground, in the places we call home.
This isn’t your typical business book full of buzzwords and empty promises. It’s a refreshingly practical guide that offers new ways to think about economic growth and development. Whether you’re a policymaker, a local entrepreneur, or just someone curious about how your community can thrive in a rapidly changing world, this book delivers insights you don’t want to miss.
Why Read This Book?
You’ve probably heard that innovation is the secret to prosperity. But Breznitz challenges the conventional wisdom that only flashy tech startups or Silicon Valley-style ecosystems count as innovation. Instead, he argues for a more inclusive and place-based approach.
The book is packed with insights on how communities can stop trying to mimic the global innovation hotspots and instead focus on their unique strengths. Think about the small-town factory that modernizes its processes, or the mid-sized city that invests in skilled trades rather than chasing the next app-based startup trend.
Breznitz makes a strong case that innovation isn’t just about “new inventions”; it’s about adopting and adapting what already exists to fit local needs. It’s an eye-opener for anyone who wants to move beyond the one-size-fits-all narrative of economic growth.
The Innovation Myths: Debunking What We Think We Know
When you hear the word innovation, what comes to mind? For many, it’s images of Silicon Valley’s shiny tech offices or groundbreaking inventions like the smartphone. Dan Breznitz starts his book by dismantling this narrow view. He argues that innovation isn’t just about creating something entirely new. It’s also about adopting existing ideas, adapting them to suit your needs, and scaling them to broader markets.
Take Shenzhen, China, for example. This city didn’t become a global manufacturing hub by inventing new gadgets. Instead, it mastered the art of rapid prototyping, production, and improvement. It took existing technologies, refined them, and delivered them to market faster than anyone else. Breznitz calls this “production-based innovation,” and it’s proof that you don’t need to be an inventor to innovate.
This section also critiques the obsession with “unicorn startups.” Communities around the world often invest heavily in replicating Silicon Valley, pouring money into tech incubators or chasing venture capital. Unfortunately, many of these efforts fail because they ignore local context.
Why it matters: Breznitz redefines innovation in a way that feels empowering. Instead of aspiring to become the next tech hub, your community can focus on solving problems and excelling in areas where it already has expertise.
Building Local Prosperity: Focusing on What You Do Best
How does a community go from stagnation to thriving prosperity? According to Breznitz, it starts with looking inward. Every place has unique assets—whether it’s skilled labor, natural resources, or cultural identity—and the key is to build on those strengths.
One of the standout examples in this section is Emilia-Romagna, a region in northern Italy. Known for its luxury car manufacturers like Ferrari and Lamborghini, the area didn’t achieve success by chasing new industries. Instead, it doubled down on its traditional craftsmanship and built cooperative business networks. Small manufacturers collaborated to innovate in their niches, creating a globally competitive ecosystem.
Breznitz emphasizes that this approach isn’t limited to flashy industries. A mid-sized town with a strong manufacturing base can innovate by adopting greener technologies or upskilling its workforce. A rural community can boost its economy by modernizing its agricultural practices or expanding local tourism.
What’s crucial, he notes, is the role of partnerships. Public institutions, private businesses, and educational organizations must work together to create an environment where innovation thrives. This might mean investing in vocational training, building shared infrastructure, or creating platforms for businesses to collaborate.
Why it matters: Prosperity isn’t about starting over; it’s about building smarter. Communities that understand their strengths and work collaboratively have a much better chance of achieving sustainable growth.
The Pitfalls of Copycat Strategies: Why Imitation Rarely Works
Here’s the harsh truth: trying to copy Silicon Valley—or any other global success story—almost never works. Breznitz dedicates an entire section to explaining why.
Communities often waste time and money on what he calls “innovation theater.” Think of initiatives like tech parks with flashy office spaces but no real tenants, or programs that aim to attract high-profile startups without nurturing local talent. These efforts may generate headlines, but they rarely deliver long-term benefits.
For instance, Breznitz highlights the experience of many second-tier cities in North America. They invested heavily in building incubators and attracting venture capital, hoping to kickstart a tech boom. But without the dense networks, talent pools, and cultural norms of established tech hubs, most of these efforts fizzled out.
He argues that instead of chasing what works elsewhere, communities should focus on their own realities. What industries already exist locally? What skills do people in the area have? What markets are nearby? By answering these questions, places can craft strategies that align with their unique strengths.
Why it matters: This section is a wake-up call for leaders. It’s a reminder that innovation isn’t about copying others; it’s about creating something that works for your specific context.
Real-World Success Stories: Innovation That’s Rooted, Not Rented
After laying out the theory, Breznitz gets to the good stuff—real places that are actually doing innovation right. These aren’t just Silicon Valley wannabes. They’re cities and regions that leaned into their own strengths and built something sustainable.
Take Shenzhen, China, for example. It didn’t become a tech powerhouse by inventing new things, but by being incredibly fast and efficient at improving and producing existing ones. Then there’s Eindhoven, Netherlands, which rebounded after losing big industry by building a collaborative network between small firms, universities, and government. No single tech giant—just a tight-knit ecosystem.
In Emilia-Romagna, Italy, small manufacturers embraced their craftsmanship roots and formed business cooperatives to stay globally competitive. And in Waterloo, Canada, a strong local university created a steady pipeline of talent that stayed in the region to build real, grounded innovation from the inside out.
Why it matters: These stories prove that real innovation doesn’t need to be flashy. It just needs to be authentic. When communities work with what they have—and invest in people, networks, and trust—they can build thriving, resilient economies that last.
What Policymakers Can Do: Creating Conditions for Long-Term Growth
The final section is a call to action for policymakers and community leaders. Breznitz outlines practical steps they can take to ensure that innovation leads to prosperity for everyone—not just a select few.
First, he stresses the importance of education and skill development. Communities can’t innovate without a capable workforce, so investing in training programs is essential. This doesn’t mean everyone needs to become a coder; it means preparing people for the jobs of the future, whether in advanced manufacturing, renewable energy, or creative industries.
Second, he highlights the need for infrastructure investments. Innovation ecosystems thrive when they have the physical and digital tools to succeed. This might mean upgrading transportation networks, expanding high-speed internet access, or building shared workspaces.
Third, Breznitz warns against “quick fixes.” Too often, leaders look for easy wins, like subsidizing large corporations to relocate. While these deals might bring jobs in the short term, they rarely create lasting economic resilience. Instead, he advocates for policies that support local businesses, encourage collaboration, and foster entrepreneurship.
Finally, he calls for inclusive innovation. Growth should benefit everyone in the community—not just the elite. This requires careful planning to ensure that opportunities are accessible, wages are fair, and investments reach underserved areas.
Why it matters: Policymakers hold the keys to long-term prosperity, but their decisions need to be informed by what actually works. Breznitz’s recommendations offer a roadmap for creating policies that lead to real, lasting change.
Real-Life Examples
Breznitz doesn’t just talk the talk—he brings real-life examples that make his ideas come alive.
- Eindhoven, Netherlands: Once known for its declining manufacturing sector, this city reinvented itself by focusing on design and collaboration. Today, Eindhoven is a global leader in high-tech innovation, but its success stems from its ability to connect small firms with research institutions, not from chasing the latest trends.
- Shenzhen, China: This former fishing village transformed into a global manufacturing powerhouse, not by inventing new products but by excelling in rapid prototyping and production. Shenzhen’s story proves that copying and improving on existing ideas can be just as valuable as creating something entirely new.
- Emilia-Romagna, Italy: This Italian region leaned into its traditional strengths—think artisanal food and luxury car manufacturing. By investing in local clusters and cooperative business models, it’s managed to stay competitive while maintaining its cultural identity.
Each story is a reminder that innovation is less about flashy tech and more about figuring out what your community does best—and doubling down on it.
What Makes This Book Different?
Breznitz doesn’t sugarcoat the challenges. He acknowledges that creating prosperity in “an unforgiving world” requires hard choices and sustained effort. But his optimism shines through as he shows how even struggling communities can create pathways to growth by embracing their unique circumstances.
The book also highlights the pitfalls of trying to replicate success stories. Not every town can be Silicon Valley—and that’s okay. By focusing on localized strategies, Breznitz offers a framework that works for real places with real people.
5 powerful quotes from Innovation in Real Places by Dan Breznitz
1. “Innovation is not a product. It’s a process.”
Breznitz reminds us that innovation isn’t just about making the next iPhone—it’s about constantly improving, adapting, and evolving. Communities don’t need to invent; they need to progress.
2. “Trying to become the next Silicon Valley is a recipe for failure.”
Chasing the tech dream without considering local realities often leads to wasted resources and frustration. Success comes from crafting your own path—not copying someone else’s.
3. “The best innovation systems are deeply embedded in their local context.”
Whether it’s cultural, industrial, or geographic—real innovation thrives when it grows from a place’s unique DNA.
4. “We need to stop measuring success by how many startups raise venture capital and start measuring it by how many people live better lives.”
This one hits hard. Innovation should be about people, not just profits or press releases. Breznitz brings the conversation back to what really matters: human well-being.
5. “Prosperity doesn’t come from tech alone—it comes from smart choices, shared values, and sustained collaboration.”
At its core, this book is a call to action: not just to innovate, but to do it together, with intention and integrity.
