M4 CorridorM4 Corridor

Roy ChanRoy ChanKay KwanKay KwanJacky SunJacky SunSandy WongSandy WongDavid NgDavid Ng

Background InformationBackground Information

Area of development for Hi-Tech industry along the Area of development for Hi-Tech industry along the M4 Motorway spanning from London to Bristol M4 Motorway spanning from London to Bristol (South Wales). (South Wales).

Area adjacent to the M4 motorway. It's eastern end Area adjacent to the M4 motorway. It's eastern end in particular is home to a large number of in particular is home to a large number of businesses, particularly in Berkshire and the Thames businesses, particularly in Berkshire and the Thames Valley.Valley.

The M4 corridor is possibly Europe's premier The M4 corridor is possibly Europe's premier business location, and home to many of the world's business location, and home to many of the world's leading multinational companies, as well as playing leading multinational companies, as well as playing host the vast majority of the UK's technology sector.host the vast majority of the UK's technology sector.

Map of M4 corridor (1)Map of M4 corridor (1)

Map of M4 corridor (2)Map of M4 corridor (2)

Location CharacteristicsLocation Characteristics

Links with universities and research organizations.Links with universities and research organizations. Office and factory space is cheaper than in LondonOffice and factory space is cheaper than in London Easy access to the whole country via the motorway Easy access to the whole country via the motorway

network network Good rail access along the M4 corridor Good rail access along the M4 corridor a high quality of life and attractive countryside that a high quality of life and attractive countryside that

helps to recruit and retain staff helps to recruit and retain staff Heathrow Airport provides links to Europe and the rest Heathrow Airport provides links to Europe and the rest

of the worldof the world

Industries dominated in M4 Industries dominated in M4 Corridor Corridor

(HI-TECH/Sunrise* INDUSTRIES)(HI-TECH/Sunrise* INDUSTRIES)

Cisco Microsoft Cisco Microsoft

Honda MCIHonda MCI

Hewlett Vodafone Hewlett Vodafone

Packard Packard

Examples:Examples:

*Sunrise industries means industries which have a high technology base.

Characteristics of these Characteristics of these industries industries

A research and development-intensive A research and development-intensive industryindustry

Human resources are an relatively Human resources are an relatively important locational factor important locational factor

A high value-added industryA high value-added industry A footloose industryA footloose industry Serve the global marketServe the global market Transnational and multi-point production Transnational and multi-point production

TransportationTransportation

LabourLabour

MarketMarket

InstitutionInstitution

EntrepreneurEntrepreneur

LandLandPowerresources

Powerresources

Raw materials

Raw materials

LocationalFactor of

M4 Corridor

LocationalFactor of

M4 Corridor

Transportational FactorTransportational Factor

High accessibility attract professionals came High accessibility attract professionals came from different parts of the world. from different parts of the world.

Examples:Examples: The proximity of the M4 and mainline railways.The proximity of the M4 and mainline railways. The presence of The presence of Heathrow Airport.Heathrow Airport.

Good transport links with Good transport links with other business area. other business area. For example, London.For example, London.

Labour FactorLabour Factor

Labour quality is much important than Labour quality is much important than labour quantity in these industries.labour quantity in these industries.

Need a large numbers of skilled labour.Need a large numbers of skilled labour. A skilled labour force due to the proximity A skilled labour force due to the proximity

of universities and research institutes. of universities and research institutes. (University Graduates)(University Graduates)

Need scientists and engineer to carry out Need scientists and engineer to carry out research and development projectresearch and development project

Institutional factorInstitutional factor

Existence of government and other research Existence of government and other research centers. (Example: Government paid £180 centers. (Example: Government paid £180 Million in subsidies to LG)Million in subsidies to LG)

Nearness to universities with expertise and Nearness to universities with expertise and research facilities available. A science park is research facilities available. A science park is located near to a university so that high-tech located near to a university so that high-tech firm can closely with that campus.firm can closely with that campus.

Cambridge, Oxford Universities and Thanes Cambridge, Oxford Universities and Thanes Valley University as research centers.Valley University as research centers.

Land factorLand factor

Space for building on Space for building on ‘Greenfield’ sites ‘Greenfield’ sites (Suburbs)and attractively-(Suburbs)and attractively-planned business parks planned business parks

An attractive, pleasant An attractive, pleasant environment in M4 corridor. environment in M4 corridor. Map of M4 corridor (1) names Map of M4 corridor (1) names the Cotswold, Mendips, the Cotswold, Mendips, Chilterns and Marlborough Chilterns and Marlborough Downs, which provide a Downs, which provide a convenient base for living convenient base for living near London.near London.

An “Attractive countryside” An “Attractive countryside” should feature so prominently should feature so prominently as a selling point of the M4 as a selling point of the M4 corridor.corridor. The Mosaic apartments, High Street Slough, along M4 corridor.

Raw-material FactorRaw-material Factor

The cost of raw materials is little.The cost of raw materials is little. It is a labour intensive industry, requiring It is a labour intensive industry, requiring

mainly in research and development on mainly in research and development on design and improving a product.design and improving a product.

Raw materials is relatively unimportant.Raw materials is relatively unimportant.

Energy FactorEnergy Factor

The cost of power resources is little.The cost of power resources is little. It is not a power oriented industry.It is not a power oriented industry. Energy is relatively unimportant.Energy is relatively unimportant.

Entrepreneur FactorEntrepreneur Factor

A large sum of money is invested in A large sum of money is invested in research and development project.research and development project.

A large sum of money is need to pay for A large sum of money is need to pay for the high salary of the skilled labour.the high salary of the skilled labour.

A large and venture capital is needed.A large and venture capital is needed. Important to find an investors who are Important to find an investors who are

willing to take the risk.willing to take the risk.

Market FactorMarket Factor

Due to globalization, firms and countries Due to globalization, firms and countries all over the world have become more all over the world have become more inter-related. (TNCs)inter-related. (TNCs)

Product can be sold to different parts of Product can be sold to different parts of the world.the world.

Market become less important as the Market become less important as the market become globalize.market become globalize.

Industrial agglomerationIndustrial agglomeration

The proximity of other associated industries The proximity of other associated industries with which ideas and information can be with which ideas and information can be exchanged.exchanged.

Sharing maintenance and supportive services, Sharing maintenance and supportive services, e.g. connecting roads and build up a pool of e.g. connecting roads and build up a pool of highly skilled labour.highly skilled labour.

When industries cluster together, it helps to When industries cluster together, it helps to reduce production cost and increase their reduce production cost and increase their competitiveness in markets.competitiveness in markets.

Future development Future development

South Wales is still a significant industrial South Wales is still a significant industrial heartland of the UK. One site of note on the M4 heartland of the UK. One site of note on the M4 Corridor is Port Talbot Steelworks - the largest Corridor is Port Talbot Steelworks - the largest steel producer in the UK and one of the biggest steel producer in the UK and one of the biggest steel producers in Europe.steel producers in Europe.

In the future, the M4 corridor will still be the In the future, the M4 corridor will still be the main IT industrial area of Britain, providing a main IT industrial area of Britain, providing a place for research and development, to be a place for research and development, to be a ‘Silicon Valley” in Europe.‘Silicon Valley” in Europe.