KNOWLEDGE-INTENSIVE BUSINESS SERVICES

The Work Foundation - Public as well as private sector spending drives knowledge economy success in cities all over the UK

"Our new analysis clearly shows that the UK is much more than a tale of two types of city, North and South: inequalities, challenges and successes are scattered throughout the regions of England.’

The report stresses the vital role that public expenditure plays in supporting certain cities across the UK in developing their ‘knowledge’ economies. Cities in both the North and South including Doncaster, Plymouth, Stoke and Hastings rely almost exclusively on the state for generating high value ‘knowledge jobs’ with less than one quarter of knowledge jobs in private businesses. The report argues that in light of the recent Comprehensive Spending Review and a shrinking public purse, cities need to do more to co-ordinate efforts in the public and private sectors to maximise the development of the regional ‘knowledge’ economy.

The Work Foundation’s new analysis of the 56 major English cities compares high value ‘knowledge intensive’ employment in both public and private sectors against economic indicators.

The report finds:

* Though the ‘knowledge’ economy is growing throughout the UK, there has been little overall change to the regional disparities in economic competitiveness.

* Cities that have more ‘knowledge intensive’ jobs in the public sector tend to be less competitive than those where most ‘knowledge’ jobs are provided by private sector businesses.

* The picture is much more chequered than received wisdom about the ‘North / South’ divide suggests. High levels of public sector investment in Leeds and Manchester have pushed up regional salaries and skills, they have attracted thriving private sector ‘knowledge industries’ and increasing regional productivity. Conversely, some places in the South, such as Hastings continue to struggle to attract interest from ‘knowledge intensive’ private sector businesses.

* Though winning private sector investment is key, the public sector does have a huge role to play in creating conditions for success, driving up skills and generating demand. High levels of ‘knowledge intensive’ employment in the public sector can have a role in encouraging new ‘knowledge intensive’ private enterprise to develop...."

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# posted by Ian Miles @ 8:35 AM

NBR Special Reports
see the report

The Measure of a Nation: Quantifying Innovative Strength through Improved Service Sector Metrics

John M. Graham

No. 11, February 2007

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# posted by Ian Miles @ 7:07 AM

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