Local Economic Assessments: Our Experience to Date

1. Local Economic Assessments: Our Experience to Date Presentation by Dr. Nicholas J.O. Miles, GHK Thursday the 29th of January Newcastle University

2. Structure of the Presentation • Why we think that they are important • How we approached the task of completing an LEA • Outputs, Outcomes and Opportunities • (Possible ) Lessons from our Experience (Case Studies -Wolverhampton Local Economic Assessment December 2008; Tendring [Essex] and Toronto, Canada).

3. Local Economic Assessment: Releasing the Power of (local) Place? • “There is widespread recognition of the importance of regional, city and sub-regional specialisation to economic competitiveness. Comparative advantage is based on a number of factors including: • place-specific increasing returns to scale; • positive externalities generated by co-located activities; and • increasing recognition of importance of region and city differentiation in production, and lifestyle factors.” • Source: Planning and Optimal Geographical Levels for Economic Decision Making – the Sub-Regional Role. UK Gov (BERA) March 2008

4. The Power of Place “Economic competencies are best built and integrated at the local level; Preferably at the lowest level of a viable functional economic area, be that a city-region, a city or even a Local Authority. Which one is chosen is an empirical issue; evidence is required”

5. The Power of Place

6. LEAs.......are of increasing importance! (perhaps more so today than ever before) For its region For the Local Authority

7. .........and perhaps critical for: • Fundamental to INTERVENTION – economic development • Important tool of engagement (and collaboration – creating a ‘communality of interests’) • Input to effective governance (‘institutional recomposition’) • A step towards / required for effective LAA – MAA – city-regions etc • Required for IRS etc • Needed in order to construct any form of EFFECTIVE ‘ask’ to RDA / central government / PPPs – vital underpinning re funding strategy – what is the most (cost) effective way to use (very) limited resources

8. HOW - Structured? (sectors, clusters..etc) • HOW - Works? (drivers; actors; reach...etc) • HOW - Positioned*? (Benchmarking..etc) • WHAT - Prospects? (SWOT/challenges/scenarios ) UNDERSTANDING (Local Economic Assessment) • Effective Support - LOCAL ECONOMY: • Direct: • Planning and regeneration (LDF...etc) • Procurement • Local lead markets • Indirect (support and nurture) • For profit sector • Non for profit / social economy • Effective - ‘GOVERNANCE’: • Local partnerships (LPS - PPPs...etc) • Cross LA working (LAA; MAA; City regions) • Regional co-ordination (IRS etc) • Cross national networking • ‘Institutional re-composition’ (LAA; • MAA; City regions; PPPs; [Triple Helix]..... ..etc) VISION / STRATEGY IMPLEMENTATION Leadership Partnership Engagement MONITOR / EVALUATE * In regional, national and international markets / value networks

9. BUT....Need a (Theoretical–Practical) Framework • Avoid ‘aimless’ collection of data – goes without saying (!?) • Search for drivers of change – and corresponding policy leverage • Need a way to ASSESS the local economy • Need a ‘yardstick’ – a common yardstick (issue of consistency within e.g. IRS framework) • Start with an understanding of economic change • The logic of value creation + the character of competition HAS CHANGED

10. Start with an Issues of (let’s take just three): • Globalisation: and the decomposition of production • Sunderland - Nissan • Wolverhampton – Goodrich / United Technologies • Tendring – Dormitory for the bankers! Farmers coping with CAP! • Convergence: and the rise of new forms of wealth creation • Emerging technologies are at the interface of trad disciplines + businesses. • Distinction between manufacturing and services - blurred • Commoditisation of activities: and the importance of HVA skills • Corresponding heightening in importance of analytic skills and tacit interactions • Design - creativity – knowledge soaked economy • Importance of innovation and building local innovation ecosystems • How does it stake up? Does if possess the competencies needed by today’s successful businesses (and social economy?)

11. Useful categories to use in a LEA? • Successful businesses • Creative diversity • Business leaders • Labour market skill sets Talent • DYNAMIC: • Wealth producing • Knowledge producing • (universities / colleges / innovation ‘ecosystem’) • STATIC: • Connectivity (transportation) • Built environment • Cultural ‘Objects’ • Role of: • key actors • PPPs • LSPs • Triple Helix Assets Governance • Responsibility Assignment Competencies A combination category - Places are the source of ‘competencies’ What is a place competent to do? Is the place noted for product creation? (e.g. Wolverhampton – Goodrich) Are its firms located in secure / defensible positions in global value networks? How could the area be branded?

12. Business is changing – fast and furious – changing the way that wealth is generated – place is a variable – how can it respond? Leveraging external collaborations

15. Also - Need to be (constructively) challenging: • Asking the hard and challenging questions • Getting people to think differently; highlighting hidden opportunities • ‘Wood for trees – trees for wood’ issue • Combing external and internal viewpoints: “The core evidence base made a difference to how we think in Knowsley, but the evidence has to be challenged. You have to have local knowledge input or it’s useless” (Tim Dugdill, Chair of Knowsley Economic Partnership) • Co-develop the Assessment with the Local Authority • Use it as a mechanism to focus / tighten up interventions

16. Wolverhampton CITYWEST MIDLANDS

18. Scorecard

21. What’s happening in Wolverhampton And why is it getting worse?

22. Conclusions.......beyond the LEA? • Pathways to employment (not clear at present): • Schools / University – building aspirations +skills + competencies (but slow at present) • A focus on attracting offices and building retail outlets– need1-2 high technology platforms? • Pathways to high end jobs as well as entry level jobs - required • Pathways to innovation (even more opaque): • University? The WT High Technology Corridor? Existing Firms? New Firms? • Environment does not encourage (sufficient) adoption and structural adaption? • Little collaboration with adjacent LAs – whither the Birmingham city region? • Aerospace – Centre of Excellence on I54 site (missed) opportunity? • Computer games and Creative industries – languishing (Californian GRAB!)? • Local lead markets / procurement – opportunity not exploited. Need a bold Move • Pathways to regeneration – sorted? But credit crunch MAY throttle plans! • Pathways to effective governance – sorted? But Triple Helix in infancy! Need push on all fronts – otherwise regeneration interventions underutilised /compromised without pathways to employment and innovation etc. Need to align core strategies and think about Plan B if physical regeneration focus compromised

23. Possible Lessons - Wolverhampton • A duty and a requirement - or an opportunity to look at matters afresh? • Surprise expressed at some of the figure and their interpretation • Stimulated discussion re e.g. ‘employability’ • Raised concerned about existing focus of development strategy • Thrown into high relief debate ‘regeneration v economic development’ • Also debate about where to look for economic partners – the Black Country or to the north and west (was Birmingham a blessing or a blight – what would make it a blessing? Should we work with Coventry – e.g. re aerospace centre of excellence?) • Certainly provide ‘evidence’ – basis of strategy • Stand aside or get involved? • Secondary data tells an incomplete story (sometimes leads to misunderstanding) • Survey of / engagement with business vital • Brainstorming with key stakeholders crucial • Creating the ‘narrative’ (shared narrative for the LA and its place in the wider region) • Benchmark – Why against failure! Find the best? Debate!

24. TENDRING DISTRICT, ESSEX COUNTY

29. Possible Lessons – Tendring • Generated discussion about: • the ‘role’ of the District • working with big brother adjacent areas – Colchester / Ipswich – Possible MAA (got Colchester involved at one stage!) • (Physical) regeneration v economic development – input to their LDF • The Future ( we ended up running a few scenarios – lifted horizons) • Became a narrative with which to frame a series of disparate projects • Helped the stakeholders think about and effectively construct their ‘ask’ to funders

30. Thank you for your Attention Local Economic Assessments Releasing the Power of Place Nicholas.Miles@ghkint.com