The regions racing to become the “Silicon Valley” of an aging world

In 2018, when Inc. Magazine named Boston one of the country’s top places to start a business, it highlighted one significant reason: Boston is an innovation hub for products and services catering toward the aging population. The “longevity economy” represents a massive chunk of economic opportunity: As of 2020, the over-50 market contributed $45 trillion to global GDP, or 34 percent of the total, according to AARP and Economist Impact.

What makes Boston such a good place to do business in aging? One important factor, according to the Inc. story, was MIT — specifically, MIT’s AgeLab, a research organization devoted to creating a high quality of life for the world’s growing aging population.

Inspired by that claim, AgeLab Director Joseph Coughlin, AgeLab science writer and researcher Luke Yoquinto, and The Boston Globe organized a yearlong series of articles to explore what makes Boston such a fertile ground for businesses in the longevity economy — and what might make its soil even richer. The series, titled “The Longevity Hub,” had a big goal in mind: describing what would be necessary to transform Boston into the “Silicon Valley of aging.”

The articles from the Globe series stand as a primer on key issues related to the wants, needs, and economic capabilities of older people, not just in Boston but for any community with an aging population. Importantly, creating a business and research environment conducive to innovation on behalf of older users and customers would create the opportunity to serve national and global aging markets far larger than just Boston or New England.

But that project with the Globe raised a new question for the MIT AgeLab: What communities, Boston aside, were ahead of the curve in their support of aging innovation? More likely than Boston standing as the world’s lone longevity hub, there were doubtless many international communities that could be identified using similar terms. But where were they? And what makes them successful?

Now The MIT Press has published “Longevity Hubs: Regional Innovation for Global Aging,” an edited volume that collects the original articles from The Boston Globe series, as well as a set of new essays. In addition to AgeLab researchers Coughlin, Yoquinto, and Lisa D’Ambrosio, this work includes essays by members of the MIT community including Li-Huei Tsai, director of the Picower Institute for Learning and Memory; the author team of Rafi Segal (associate professor of architecture and urbanism) and Marisa Moràn Jahn (senior researcher at MIT Future Urban Collectives); as well as Elise Selinger, MIT’s director of residential renewal and renovation.

In addition to these Boston Globe articles, the book also includes a new collection of essays from an international set of contributors. These new essays highlight sites around the world that have developed a reputation for innovation in the longevity economy. 

The innovative activity described throughout the book may exemplify a phenomenon called clustering: when businesses within a given sector emerge or congregate close to one another geographically. On its face, industrial or innovation clustering is something that ought not to happen, since, when businesses get physically close to one another, rent and congestion costs increase — incentivizing their dispersal. For clustering to occur, then, additional mechanisms must be at play, outweighing these natural costs. One possible explanation, many researchers have theorized, is that clusters tend to occur where useful, tacit knowledge flows among organizations.

In the case of longevity hubs, the editors hypothesize that two sorts of tacit knowledge are being shared. First is the simple awareness that the older market is worth serving. Second is insight into how best to meet its needs — a trickier proposition than many would-be elder-market conquerors realize. An earlier book by Coughlin, “The Longevity Economy” (PublicAffairs, 2017), discusses a long history of failed attempts by companies to design products and services for older adults. Speaking to the longevity economy is not easy, but these international longevity hubs represent successful, ongoing efforts to address the needs of older consumers.   

The book’s opening chapters on the Greater Boston longevity hub encompass a swathe of sectors including biotech, health care, housing, transportation, and financial services. “Although life insurance is perhaps the clearest example of a financial services industry whose interests align with consumer longevity, it is far from the only one,” writes Brooks Tingle, president and CEO of John Hancock, in his entry. “Financial companies — especially those in Boston's increasingly longevity-aware business community — should dare to think big and join the effort to build a better old age.”

The book’s other contributions range far beyond Boston. They highlight, for example, Louisville, Kentucky, which is “the country’s largest hot spot for businesses specializing in aging care,” writes contributor and Humana CEO Bruce Broussard, in a chapter describing the city’s mix of massive health-care companies and smaller, nimbler startups. In Newcastle, in the U.K., a thriving biomedical industry laid the groundwork for a burst of innovation around the idea of aging as an economic opportunity, with initial funding from the public sector and academic research giving way to business development in the city. In Brazil’s São Paulo, meanwhile, in the absence of public funding from the national government, a grassroots network of academics, companies, and other institutions called Envelhecimento 2.0 is the main driver of aging innovation in the country.

“We are seeing a Cambrian explosion of efforts to provide a high quality of life for the world’s booming aging population,” says Coughlin. “And that explosion includes not just startups and companies, but also different regional economic approaches to taking the longevity dividend of living longer, and transforming it into an opportunity for everyone to live longer, better.”

By 2034, for the first time in history, older adults will outnumber children in the United States. That demographic shift represents an enormous societal challenge, and a grand economic opportunity. Greater Boston stands as a premier global longevity hub, but, as Coughlin and Yoquinto’s volume illustrates, there are potential competitors — and collaborators — popping up left and right. If and when innovation clusters befitting the title of “the Silicon Valley of longevity” do arise, it remains to be seen where they will appear first.

de MIT News https://ift.tt/fzLxj6Q