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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

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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
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
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
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

The Four Pillars of the Knowledge Economy

  • Institutional
  • Regime
  • Cultivates a flexible, adaptive market-based economy and creative entrepreneurial society
  • Enhances competitiveness through improved efficiency and innovation
  • Human
  • Capital
  • 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 knowledge economy future of uk and europe
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

South West Knowledge Economy 2000

Slide 4 of 28 – Headline Results

dti report some key issues
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





Knowledge Intensity

Advanced Centre

Primarily Employ.

(Jobs outnumber workers)


Over 1/3 KE businesses

Transforming Centre

¼ to 1/3 KE Businesses

Legacy Centre

¼ KE Businesses or less

Urban KW Community

Primarily Residential(Workers outnumber jobs)


>40% knowledge workers

Urban Periphery

<40% knowledge workers

Rural Transforming


>40% knowledge workers

Rural Periphery

<40% knowledge workers

Typology of Local Knowledge Economies


London Megalopolis

Urban Meltdown


Urban Renaissance

Super Sprawl


Counter-urbanization and Sprawl

Slide 9 of 16 – Focus on Sub-regions


The Skills Landscape: from the City to the Country

Slide 9 of 16 – Focus on Sub-regions


Rural Business Start-ups Highest Around Southern Cities

Slide 7 of 16 – Focus on Sub-regions