The Geography of the Scottish Knowledge Economy Professor Mark Hepworth Local Futures Presentation to the East of Scotland European Partnership Seminar 3rd November 2004

The presentation The knowledge economy agenda The Scottish Enterprise report Policy discussion Successful knowledge economies deliver high earnings opportunities for all

North East: No place in the Premiership

South East: A third of the Premiership

Scotland: 3 out of 32 in the Premiership

The Knowledge Economy Agenda

Why the knowledge economy? Consensus on nature of 21st century economic development The global economy made it a zero option UK Government’s vision and organising idea – Innovation Report The Lisbon Summit – delivering the knowledge economy (2005 mid-point)

Definition and measurement Dynamics of growth and specialisation: knowledge-innovation-knowledge Policy – accelerate and widen out circle of innovation Present – globalisation, ICT and the ‘knowledge society’ Nobel prize winners

The Four Pillars of the KE

Distributed Policy Model   Skills Enterprise Innovation Infra-structure Competition National Regional Sub-regional Local

City-Regions in the Knowledge Economy KEY Northern Way Southern Way Midlands Way?

Economic Policy Context FEDS outlines the rationale for competitiveness in a global economy - knowledge driven growth Smart, Successful Scotland identifies four challenges to sustainable growth Productivity Entrepreneurship Learning and Skills Digital connections The Enterprise Network - promote global linkages, develop the business base, drive learning and skills Coordination and partnership approach

Planning framework Building Better Cities & Cities Review Cities are central to the Scottish economy The National Planning Framework Spatial planning frameworks and planning processes Infrastructure (transport, housing, broadband etc.) as part of economic policy

The Scottish Enterprise Report

Aims of the Study No geographical thinking in Scotland’s approach to the knowledge economy A baseline geographical analysis of the knowledge economy Spatial configurations for knowledge economy strategy Ways forward

REA for Scotland, 2002

REA for the South East, 2002

REA for the North West, 2002

Regional economic performance

Eastern Scotland   Highlands & Islands

North Eastern Scotland   South Western Scotland

The Geography of the BKE in Eastern Scotland   Fife Stirling Clackmannanshire West Lothian East Lothian Edinburgh City Midlothian Scottish Borders Dundee City Angus Perth & Kinross Falkirk

The Scottish knowledge economy is uneven at the sub-national level.

The State of the Cities Edinburgh Glasgow

Aberdeen   Dundee

The drivers generating the patterns Edinburgh outperforms all the Scottish cities in creating and attracting human capital.

Enterprising Cities

What’s driving performance in the business base?

1. Winners and losers? – the spatial dynamics of the Scottish knowledge economy Shifting patterns of growth favour the Central Belt, and the knowledge economy is being increasingly centralised especially in Edinburgh.

2. Do Scotland’s city-regions play the same role as the core cities in driving the knowledge economy?

3. Rural Scotland lags behind Rural England in the knowledge economy

4. The public sector is major player in the knowledge economy The business drivers are not firing outside of the three dominant cities – Edinburgh, Glasgow and Aberdeen.

Social divides in the knowledge economy Significant skills poverty in Glasgow and areas in the Central Belt will constrain participation in the knowledge economy (as is occurring in London).

Summary of analysis Scotland – unrealised potential as a nation-region knowledge economy Competitive big 3 cities – can this be maintained? Rural knowledge economy – lagging England Making the public sector a driver of the knowledge economy Quality businesses, quality private sector jobs Distributed policy model City regions – the Scotland Way?