Manchester Independent Economic Review MIER is Independent process

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Manchester Independent Economic Review

Manchester Independent Economic Review

MIER is… • Independent process basic on empirical evidence • Comprehensive literature review •

MIER is… • Independent process basic on empirical evidence • Comprehensive literature review • Detailed economic baseline • A series of reports – Investment – Understanding thick markets, skills and talent – Daresbury – Sustainable communities – Innovation, connectivity and trade – The case for “Agglomeration” • The Review

Manchester is… a single functional economy • Single effective Travel to Work Area •

Manchester is… a single functional economy • Single effective Travel to Work Area • Single significant labour pool, of 3. 2 m residents and 5 m within 1 hr travel • Single economy of £ 50 bn economy • Integrated road, rail, motorway network

Changing global context • Game-changing economic downturn • Uncertain fiscal, monetary, regulatory interventions •

Changing global context • Game-changing economic downturn • Uncertain fiscal, monetary, regulatory interventions • New waves of creative destruction • Opportunity to reconsider conventional approaches • Review sets out difficult choices driving long term sustainable economic growth • And help to navigate short term challenges

Investment – Getting FDI into Mcr is a “good thing” – Investment is largely

Investment – Getting FDI into Mcr is a “good thing” – Investment is largely by big/R&D intensive domestic firms, probably because of pool of skilled labour/talent – Positive “spillovers” not sectoral, but from supply chains – Overly high reliance on G 7 and debt-based finance So… – More FDI needed, will take opportunism, new sources – Policy focus to attract large domestic firms’ investment – Networking should focus not on sectors but supply chains

Skills – MCR has high concentration of knowledge sector workers, and best attraction and

Skills – MCR has high concentration of knowledge sector workers, and best attraction and retention of “talent” outside London. . . –. . . however, no more than to be expected for our size, and no “tipping point”, so brain drain to London/SE still very strong – High-level of skills not matched by productivity – Main issue: high-value jobs. Where they exist, skills found/ attracted – Broadly, Manchester city dominates knowledge-based industries; evidence of highly-skilled workers concentrating

So… Skills / 2 – Focus on highly-skilled jobs to retain/attract brightest, as best

So… Skills / 2 – Focus on highly-skilled jobs to retain/attract brightest, as best guarantor of long-term prosperity – Demand supply can be scaled up in tandem – Need to incentivise MCR firms to up their skills requirements. . . –. . . and to remove blockers of upward educational mobility, build ladders of opportunity, release talent – Improve transport access to key employment centres – Accept that the highly-skilled increasingly want to live in certain places and that coalescence increases productivity

Daresbury – Daresbury not yet one of UK’s two “big science” facilities – Current

Daresbury – Daresbury not yet one of UK’s two “big science” facilities – Current operation/management structures un-coordinated – Daresbury risks losing current partnerships, esp. Universities – Benefits of research activity need spreading beyond campus So… – Gvt needs “walk the walk” of UK di-polar big science model – Will not do so unless new overall operating structure – Daresbury needs to become major asset for MCR

Sustainable communities – Economic growth benefited all parts MCR, but impact uneven – Reductions

Sustainable communities – Economic growth benefited all parts MCR, but impact uneven – Reductions in worklessness not driven by most deprived areas – Where neighbourhoods have improved, may be displacement – Formula for improving most deprived areas includes growing skills (to L 3), less social housing and proximity to ec growth – Access to entry-level jobs key factor in improvement – Educational disparities and housing key factors in embedding deprivation

Sustainable communities/ 2 So… – Policy needs better understanding of challenged area trajectory, i.

Sustainable communities/ 2 So… – Policy needs better understanding of challenged area trajectory, i. e. gentrifier, escalator, transit or isolate – If gentrifier, leave well alone, concentrate on displacement – Escalator/transit, focus: housing, transport, entry-level jobs – Isolate areas need coordinated, multiple interventions & lterm commitment (>10 yrs) to policy; and less soc housing – Worklessness symptom not cause: the need is to address education, skills and access to jobs. . . –. . . through attracting entry-level jobs to population and/or improving transport access to jobs – Incentivise full policy integration, esp housing, worklessness

Innovation, connectivity & trade – MCR firms not globally-engaged, too inward-facing – Many links

Innovation, connectivity & trade – MCR firms not globally-engaged, too inward-facing – Many links to London/SE, as strong as to North – No good understanding of how MCR innovation works – To “exchange”, firms/people need to trust each other; sector -based networking doesn’t achieve this – Large number of firms have no linkages within MCR – Some aspects of universities’ modus operandi incentivise secrecy (spin-offs). Incentivise to act as low-secrecy collaborative spaces

Innovation, connectivity & trade So… – Need to engineer stickiness to MCR into bright

Innovation, connectivity & trade So… – Need to engineer stickiness to MCR into bright young firms – Bring firms with international linkages into MCR “society” – (re)Create social market: like-minded leaders meet, interact – Opportunity cost of sectoral networking activity: cut across – Need exposure to international competition – International activities should shift esp. to emerging mkts – Mechanism/brand to promote “Mcr plc” to world

MIER’s main message: “agglomeration” – MCR has scale and density so bigger potential. .

MIER’s main message: “agglomeration” – MCR has scale and density so bigger potential. . . –. . . but punches below its weight due to low productivity – Agglomeration is the spatial clustering of the skilled, jobs, amenities, icons, influence. . . – …and what can drive MCR’s long-term economic growth – Need is for laser-like policy focus on: - driving up productivity - increasing agglomeration benefits - reducing agglomeration costs – Nurture and grow strategic urban assets, incl. in particular the airport, universities

The “Review” recommends: – Emphasis on high skills and basic skills – Focus on

The “Review” recommends: – Emphasis on high skills and basic skills – Focus on early years experience in deprived areas – Make housing and planning policy more responsive to market demands – Ensure viability of Manchester Airport – Transport: focus on productivity and realistic traffic management

The “Review” recommends: – Move quickly to unified regime for planning, regeneration & neighbourhood

The “Review” recommends: – Move quickly to unified regime for planning, regeneration & neighbourhood renewal – Prioritise location of key science/non-traded (quasi) public sector investment – Move on from sector-based clustering policy – Develop more robust city region governance able to take big decisions

The “Review” recommends: – Develop objective pan-GM systems for evaluating policy, programmes & projects

The “Review” recommends: – Develop objective pan-GM systems for evaluating policy, programmes & projects – Explore potential for delegation and devolution – Empower private sector more – Recommendations of individual reports