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PROBLEMS WITH REGIONAL DEVELOPMENT PLANNING THE CASE OF CLUSTERS

PROBLEMS WITH REGIONAL DEVELOPMENT PLANNING THE CASE OF CLUSTERS. 1. INTRODUCTION. INITIALLY, THIS PAPER TAKES A LONG VIEW, BEGINNING IN THE 1930s. REGIONAL POLICY BEGAN IN 1934 DURING THE GREAT DEPRESSION WITH THE SPECIAL AREAS ACT.

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PROBLEMS WITH REGIONAL DEVELOPMENT PLANNING THE CASE OF CLUSTERS

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  1. PROBLEMS WITH REGIONAL DEVELOPMENT PLANNING THE CASE OF CLUSTERS

  2. 1. INTRODUCTION

  3. INITIALLY, THIS PAPER TAKES A LONG VIEW, BEGINNING IN THE 1930s • REGIONAL POLICY BEGAN IN 1934 DURING THE GREAT DEPRESSION WITH THE SPECIAL AREAS ACT

  4. PROSPEROUS UK AREAS WERE ENDURING INCREASING LAND, LABOUR AND TRANSPORT COSTS. REDISTRIBUTION OF INDUSTRY WOULD BOTH EASE CONGESTION AND UNEMPLOYMENT

  5. POST 2ND WORLD WAR, INDUSTRY ASSUMED NOT SUBJECT TO LOCATION TIES (I.E “FOOTLOOSE”) HOWEVER, THIS APPROACH WRONG - RELOCATING SOME CLUSTERED FIRMS CAUSED FAILURE E.G. WEST MIDLANDS CAR PRODUCTION

  6. UNTIL 1979, UK GOVERNMENT POLICY ON REGIONAL DEVELOPMENT HAD A BI-PARTISAN POLITICAL HISTORY POST 1979, REGIONAL POLICY ABANDONED UNTIL 1997 AND RETURN OF NEW LABOUR.

  7. GENERALLY, THE PAPER CONCLUDES THAT, OVER THE PERIOD 1934 TO 1997, THE ATTITUDE OF SUCCESSIVE GOVERNMENTS TO REGIONAL PLANNING BEEN INCONSISTENT AND SHORT-TERMIST

  8. SINCE 1997, CLUSTER POLICY HAS BEEN A MAJOR PLANK OF NEW LABOUR’S REGIONAL POLICY UNDER LORD SAINSBURY

  9. HOWEVER, FOR CLUSTER POLICY TO BE EFFECTIVE, WE MUST KNOW HOW CLUSTERS OCCUR NATURALLY BEFORE WE SEEK TO REPLICATE THEM

  10. 2. INDUSTRIAL CLUSTERTYPES

  11. THREE TYPES OF CLUSTER ARE CONSIDERED HERE IN TERMS OF THEIR POTENTIAL FOR REPLICATION

  12. THE VERTICALLY DISINTEGRATED CLUSTER

  13. COMPETITIVE CLUSTERS

  14. NON-INTERACTED CLUSTERS

  15. 3. PROBLEMS WITH CLUSTER CREATION DURING INDUSTRIAL POLICY DELIVERY AT THE REGIONAL LEVEL

  16. ACTUAL REGIONAL DEVELOPMENT AGENCIES MUST CONFRONT VARIED CLUSTER TYPES WHEN THEY APPLY CLUSTER POLICY AT A REGIONAL LEVEL – FOURTYPES OF CLUSTER DISCUSSED

  17. 1. NEW (UNASSISTED)- AIR TRAN. 1991- 2001 EMP. 2,079 – 5,058 2. NEW (ASSISTED)- BIOSCIENCES 1991- 2001 EMP. N/A 3. MATURE - AEROSPACE 1991- 2001 EMP. 23,998 – 32,036 4. RATIONALISING - TEXTILES 1991- 2001 EMP. 43,780 – 29,359

  18. 4. POLITICS AND CLUSTER DEVELOPMENT

  19. PROBLEMS OF SECTORAL FOCUS

  20. PROBLEMS OF INTEGRATION

  21. THE POLITICS OF “CARROT” WITHOUT A “STICK”

  22. 5. CONCLUSIONS • CLUSTERS TAKE A LONG TIME TO DEVELOP (I.E. UP TO 50) YEARS) • CLUSTERS DEVELOPMENT REQUIRES FOCUS

  23. CONCLUSIONS (CONTINUED) • CLUSTERS SHOULD BE CO-ORDINATED WITH INDUSTRIAL POLICY AT BOTH NATIONAL AND REGIONAL LEVELS • THE DOMINANCE OF LONDON AND SOUTH EAST IS INCONSISTENT WITH REGIONAL CLUSTER POLICY

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