Science, technology and innovation (STI) parks are designated areas that foster innovation, technological development and economic growth by concentrating resources, expertise and infrastructure to promote innovation.

By bringing together a combination of universities, research institutions, technology firms, government entities, incubators and accelerators, and industry in a single geographic area that offers an intentionally collaborative ecosystem, STI parks play a critical role in supporting national systems of innovation by bridging technological and industrial gaps, enhancing competitiveness and facilitating sustainable development.

Clustering is a core feature of STI parks. Clustering refers to the spatial and functional agglomeration of interconnected businesses, research organisations and service providers that collaborate to enhance productivity, innovation and competitiveness.

In simple terms, this means strategically locating similar or complementary entities close together to create a dynamic ecosystem that maximises collaboration, innovation and regional economic development through technological advancement. This phenomenon, rooted in Alfred Marshall's concept of agglomeration economies, leverages proximity to create economies of scale, knowledge spillovers and inter-firm linkages, often referred to as "Marshall's Trinity".

In STI parks, clustering is used to create a synergistic environment where proximity; shared resources, services, facilities and amenities; access to talent and expertise, and collaborative networks all combine to create commercialisation pathways for new technologies, generate new intellectual property and entrepreneurial ventures, provide incubation programming, mentorship, and coaching to support the success of start-up and spin-out ventures, and amplify innovation.

STI parks serve as modern versions of industrial clusters to drive industrial development. By fostering thematic co-location and value-chain integration, these parks create environments that enable innovation to thrive, allowing regions to compete effectively in the global knowledge economy.

In STI parks, clustering also facilitates deeper integration within industrial value chains, helping companies, especially small and medium-sized enterprises (SMEs), to overcome challenges related to resource constraints, market access and technology capabilities.

Through clustering, STI parks provide a platform for collective action, value-added services, specialised infrastructure and targeted policy interventions, thereby creating favourable conditions for entrepreneurship, innovation and sustainable development.

This technical note highlights the transformative potential of STI parks when they are designed and managed effectively.

As developing countries navigate technological disruptions and competitive pressures, clustering within STI parks offers a proven pathway to innovation-led growth, provided stakeholders act decisively to create enabling environments.

Drawing on existing analytical work and good practices, it provides evidence-based guidance for policymakers, regional planners and innovation-ecosystem stakeholders.

Report by the United Nations Conference on Trade & Development