European Regions in the Knowledge Economy

European Regions in the Knowledge Economy

Mark Hepworth

Local Futures Group

Presentation to South West Employment and Skills Research Forum

2nd July 2003, Taunton

The ERKE Programme - Syndicate Scotland – S.Executive, S.Enterprise & Highlands and Islands North East – ONE East Midlands – EMDA London Borough of Camden – C.E.O, Regeneration & e-

Government Merseyside – MDDA and NWDA Nottinghamshire – County, City, LSC Black Country – Consortium

Outputs: Mapping & Measuring Analysis (CD, REA), Thematic Study and European Benchmarking Analysis

ERKE web Site

Thematic Studies

Scotland – University-SME links North East – Rural Knowledge Economy (FRESA) East Midlands – Distributed Policy (FRESA) London Borough of Camden – Social Exclusion

and Strategic Framework Merseyside – Broadband and ICT ‘pillars’ Nottinghamshire – SME support infrastructure Black Country – Business Architecture and

Strategic Framework

Interest in 2003-4 – Year 2

Scotland – A Distributed KE Strategy for Scotland (nationwide)

Black Country – FE and HE in the KE (European fieldwork)

East Midlands – The Golden Triangle of Cities Nottinghamshire – Culture and the KE

Expressions of interest: SEEDA/Surrey/Kent; ONE

Parallel work: LGA, DTI and DEFRA

Local Futures Approach Applying a geographical lens over public policy Think Tank – The Geography of the Knowledge

Economy Regional Economic Architecture (REA) with the

RDA ‘syndicate’ = DTI Report Distributed Policy European Regions in the Knowledge Economy

(ERKE) LGA Collaboration – the New Economic Localism

InstitutionalRegime

•Cultivates a flexible, adaptive market-based economy and creative entrepreneurial society

•Enhances competitiveness through improved efficiency and innovation

HumanCapital

•A well educated and entrepreneurial population

•Able to create and use new knowledge

ICT Infrastructure

•Underpins the efficiency and functions of economic and social activities

Innovation Systems

•A system that can readily adapt, assimilate and create new knowledge

•Comprised of firms, universities, research centres, think tanks and other organizations

Adapted from OECD

The Four Pillars of the Knowledge Economy

The Knowledge Economy – Future of UK and Europe Human capital powers the knowledge economy =

employment and skills shifts to the CENTRE of economic development, community (NR) and regeneration

A distributed policy approach = add INCLUSION to competitiveness and LAYER policies from national through regional to sub-regional and local levels

Why do skills and employment strategies MATTER?

Local Futures is in tune with new Government thinking …….

Modern economic policy: has to be based on local initiatives and local solutions

Treasury-ODPM - devolution in economic policy-making (forthcoming Skills Strategy)

Local authorities to look at employment and skills, innovation and clusters and incentives (BR) to boost entrepreneurship/SME development

Partnerships between local actors – LSC, LA, RDA and providers (FE/HE)

Local Futures – LGA partnership project on the KE

The LONDON Knowledge Economy 2000

South West Knowledge Economy 2000

Slide 4 of 28 – Headline Results

DTI Report – Some Key Issues

The Role of the Public Sector Business Drivers outside London The graduate labour pool and under-

employment Social polarisation Brain drain Cluster and anti-cluster policies ICT fixation

A Knowledge Economy Perspective on the Labour Market

“Reservoirs of Human Capital”

- An atomistic abstract market where the issue is connecting individual employers with workers

“Communities of Social Capital”

- An organised market where the issue is connecting institutions and stakeholder communities

Typology of Local Knowledge Economies

Primarily Employ.

(Jobs outnumber workers)

Advanced Centre

Transforming Centre

Legacy Centre

Urban KW Community

Urban Periphery

Rural Transforming

Rural Periphery

Primarily Residential(

Workers outnumber

jobs)

Urban

Urban

Rural

Over 1/3 KE businesses

¼ KE Businesses or less

¼ to 1/3 KE Businesses

Typologies Function Rural/Urban Knowledge Intensity

>40% knowledge workers

<40% knowledge workers

>40% knowledge workers

<40% knowledge workers

The Geography of the Knowledge Economy in Britain

London Megalopolis

Advanced Centres

Transforming Centres

Industrial Legacy Centres

Urban Knowledge Workers Communities

Urban Legacy Communities

Rural Transforming Communities

Rural Periphery Communities

Advanced Centres







Urban Meltdown

Urban Renaissance

Advanced Centres







Advanced Centres







Super Sprawl

of 16 – Focus on Sub-regions

Counter-urbanization and Sprawl

-150,000

-100,000

-50,000

-

50,000

100,000

150,000

200,000

250,000

10% MostDense

2nd Decile 3rd Decile 4th Decile 5th Decile 6th Decile 7th Decile 8th Decile 9th Decile 10% LeastDense

Local Authorities Grouped by Total Density (Jobs+Population/Square Km)

Pop

ulat

ion

chan

ge 1

991-

2001

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jobs

and

Pop

ulat

ion

per

Squ

are

Km

Total Density Population Change


The Skills Landscape: from the City to the Country

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

10% MostDense

2nd Decile 3rd Decile 4th Decile 5th Decile 6th Decile 7th Decile 8th Decile 9th Decile 10% LeastDense

Local Authorities Grouped by Total Density (Jobs+Population/Square Km)

% o

f w

orki

ng a

ge p

opul

atio

n (q

ualif

icat

ions

)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jobs

and

Pop

ulat

ion

per

Squ

are

Km

Total Density NVQ4+ NVQ3 NVQ2 NVQ1 + no quals


Rural Business Start-ups Highest Around Southern Cities

www.localfutures.com

European Regions in the Knowledge Economy

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