The term “innovation economy” was coined by economist Joseph Schumpeter in the 1942 book, Capitalism, Socialism and Democracy. In the book, Schumpeter argued that innovation drives economic growth and that economies that can innovate more quickly will be more successful in the long run.
Economists such as Robert Solow and Paul Romer further developed Schumpeter’s ideas. For example, Solow argued that technological progress drives economic growth, while Romer argued that the accumulation of knowledge drives economic growth.
In recent years, the innovation economy has become a more critical focus of economic policy. As a result, governments around the world are investing in research and development, education, and infrastructure to create more innovative economies.
The Black Innovation Alliance’s role in the Innovation Economy
The innovation economy is dynamic and ever-changing, and Black people have every right to contribute and participate in it. We already do and have for centuries.
Black ingenuity is a significant source of new technology, and the Black Innovation Alliance fosters that ingenuity by providing a rich ecosystem for Black Innovation Support Organizations to thrive.
What is a Black Innovation Support Organization?
Black Innovator Support Organizations have arisen to support the growth of Black businesses and help them gain access to resources. This is because Black entrepreneurs face a unique system of barriers.
Due to poor representation in policymaking and historically racist governmental practices, Black entrepreneurs have been denied access to capital and start-up funding since the inception of America. And while people of color make up 39% of the U.S. population, they receive access to less than 5% of Fortune 100 contracts and less than 2% of government contracts.
Without equal and sustained access to capital, the growth of Black businesses is left up to entrepreneurs. And unfortunately, sometimes, the tools and support necessary to keep the business growing are lost in the isolation of starting a business.
That’s why BIA is so important. The Black Innovation Alliance is an organization and an ecosystem that supports Black entrepreneurs and Black Innovation Support Organizations. We foster an ecosystem of information, opportunities, and skill-sharing between Black businesses.
Different types of Black Innovation Support Organizations include:
- Black-owned accelerators and incubators
- Associations that hold physical or virtual space for Black founders, creatives, and technologists
- Black-owned co-working organizations
- Black-owned media and skill-building organizations
- Research institutes
- Small and medium-sized (SME) Black business support organizations
- VC firms and Angel Networks
- And other Black ecosystem-building organizations.
BIA’s work to support BISOs ensures that a critical mass of Black entrepreneurs have access to the tools, funding, and institutions needed for any enterprise to exist, compete and grow.
Why do we need a Black Innovation Ecosystem?
The Innovation Economy has its own special characteristics and traits, including:
- Knowledge as a key resource.
- Innovation driven by entrepreneurship.
- Recognition of global ideas and progress.
Historic racism in the United States and worldwide necessitates an ecosystem dedicated to seeing Black people and their businesses sustain and thrive.
BIA procures funding and resources for our member organizations and provides the means for our ecosystem to overcome obstacles and grow their businesses so that we can begin to close the racial wealth gap, reach greater levels of Black participation in the Innovation Economy, and strive for an equal future in our world.
Schumpeter may have started with the right idea, but the Black Innovation Alliance is ready to grow and nurture the Black Innovation economy in ways that we’ve never seen before. By focusing on capacity building, research, advocacy, and narrative change, we don’t aren’t just shaping our future but creating it based on data, technology, collaboration, and of course, innovation.
Join us as we grow the world’s most extensive Black Innovation Ecosystem
The Black Innovation Alliance has more than 115 members across the United States and is always searching for more Black innovators to add to our ecosystem.
If you think your business is a Black Innovation Support Organization (or if you know it!), sign up to join us.
Ready to support our movement? Find out how you can partner with us to achieve our goals.
And to stay informed on the latest opportunities for funding, connecting, and building with the world’s most extensive Black Innovation support system, sign up to receive one of our newsletters.
