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European Regions in the Knowledge Economy. Mark Hepworth Local Futures Group. Presentation to South West Employment and Skills Research Forum 2 nd July 2003, Taunton. The ERKE Programme - Syndicate. Scotland – S.Executive, S.Enterprise & Highlands and Islands North East – ONE - PowerPoint PPT Presentation
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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
Transforming Centres
Industrial Legacy Centres
Urban Knowledge Workers Communities
Urban Legacy Communities
Rural Transforming Communities
Rural Periphery Communities
Urban Meltdown
Urban Renaissance
Advanced Centres
Transforming Centres
Industrial Legacy Centres
Urban Knowledge Workers Communities
Urban Legacy Communities
Rural Transforming Communities
Rural Periphery Communities
Advanced Centres
Transforming Centres
Industrial Legacy Centres
Urban Knowledge Workers Communities
Urban Legacy Communities
Rural Transforming Communities
Rural Periphery Communities
Super Sprawl
Slide 9 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
Slide 9 of 16 – Focus on Sub-regions
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
Slide 7 of 16 – Focus on Sub-regions
Rural Business Start-ups Highest Around Southern Cities
www.localfutures.com
www.localfutures.com
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