Critical mass

What is the importance of critical mass in innovation and regional development? I have thought about it, but have not been able to figure it out yet. Perhaps you can help.

In today's knowledge economy, products and services tend to become more complex. What we do in daily life isn't really more difficult than what our ancestors did, but the simple products with simple production methods are not the typical start-up business anymore in our country. Therefore, you need smart people and you need a good eco-system around you. Ideally you have intellectual resources, a university, and related companies. Look at Silicon Valley.

Perhaps we try to be good in everything, and lose the opportunity to be good in anything at all. Therefore the need to look at critical mass in certain areas of expertise. On the other hand, looking at a few successful start-ups, I must admit that some of them have been successful without there being any critical mass from the start. They just acquired the needed critical mass to do the job they needed to do. In that case, you need to be able to attract skilled people, if needed from all over the world.

Regional development is then not so much about creating critical mass, but about making the region famous and attractive for newcomers. (In the end, it may come down to the same, the critical mass emerging from integrating the newcomers, and the critical mass increasing the attractiveness for newcomers, a positive circle.) Offering good schools, good health care, easily accessible services, may then be more important than anything else.