How is Regional Policy Made: A Critical Look at the Role of Think Tanks? Professor Peter Wells Sheffield Hallam University CURDS/ONE North East Regional Insights Seminar University of Newcastle 5 November, 2008

Overview  Think Tanks in the UK  Rise of Think Tank regional policy activity  Assessing Think Tanks Role in Regional Policy  Conclusions

What is a think tank? Essentially, think tanks seek to bridge the gap between knowledge and power … The role of think tanks is to link the two roles, that of policymaker and academic, by conducting in- depth analysis of certain issues and presenting this research in easy-to-read, condensed form for policy makers to absorb (McGann and Johnson 2005, p. 12).

Think Tanks in the United Kingdom  Wide definition: over 100 organisations spanning public policy, health policy, strategic/international relations and religion, and including political networks and forums  Narrow definition of active public policy research institutes: ~ 30 organisations Centre-LeftCentre/ Liberal Centre- Right and Right Institute for Public Policy Research (IPPR) Fabian Society The Smith Institute New Local Government Network ReformPolicy Exchange Adam Smith Institute Institute for Economic Affairs Independent, but politically engaged Social Market Foundation New Economics Foundation Work Foundation Demos

Rise of Think Tank activity and output on regional policy  Over 50 reports, pamphlets and working papers published since 2002: Work Foundation: 22 reports  Including 15 Ideopolis City Region Reports and 4 working papers IPPR/IPPR North: 14 reports  Including ones on Devolution, and Social Capital in the North East The Smith Institute 9 reports and pamphlets NLGN: 4 reports Policy Exchange: 3 reports  The Cities (un)limited series SMF: 2 reports Reform: 1 report NEF, Fabian Society, Demos, ASI and IEA: 0 reports.

A Typology of Think Tank Outputs 1. Agenda setting research  IPPR: A New Regional Policy for the UK (2003)  Policy Exchange: Cities (un)Limited (2007/8) 2. Position Papers  Reform: Whitehall’s Last Colonies  SMF: Economic Nationalism or Progressive Globalisation? 3. Agenda Reinforcing  Smith Institute: various edited volumes and pamphlets 4. Policy Development Programmes  IPPR North: Northern Economic Agenda Project  Work Foundation: Ideopolis: Knowledge City-Regions

Conceptual Coherence of Think Tank Outputs  Review focused on: Anatomy of the Regional Problem Timing Issues considered Evidence Policy recommendations  Reports considered IPPR (2003) A New Regional Policy for the UK Work Foundation (2006) Ideopolis: Knowledge City- Regions Policy Exchange (2007/8) Cities (un)limited reports

IPPR (2004): A New Regional Policy for the UK?  Anatomy of the regional problem: weak employment, output and productivity

IPPR (2004): A New Regional Policy for the UK?  Timing: influence of 2004 Spending Review, issues picked up through Northern Economic Agenda Project  Issues covered: The Scale of the Challenge Employment and regional policy The regional skills, education and training agenda Science, innovation and the regions Enterprise policy Public spending and investment Governance issues A modern regional economic policy  Evidence: top-down regional statistics (GVA, employment, skills etc) with wide ranging literature review  Policy recommendations: Territorial justice: proactive national regional policy required to reduce disparities Cross-cutting and multi-level government action required Progressive devolution of powers

Work Foundation (2006): Ideopolis: Knowledge City-Regions  Anatomy of the regional problem: lack of knowledge intensive businesses and employees

Work Foundation (2006): Ideopolis: Knowledge City-Regions  Timing: ongoing research projects conducted in sponsoring cities  Issues covered: Knowledge matters for success in globalisation and for national competitiveness, but of more importance is endogenous growth theory and that this permeates HMT positions on skills, innovation and enterprise  Increasing the volume of knowledge intensive activity is essential if developed economies are to remain prosperous  Knowledge intensity drives productivity growth  Cities matter to business in the knowledge economy: they are places that offer organisations access to highly skilled workers, affluent consumers and the opportunity to innovate and exchange ideas  Evidence: selective review of literature and strong use of economic development theories (NEG, EGT, agglomeration economies) use of composite indicators (e.g. tipping points for knowledge intensive occupations) Lesson drawing from success stories of cities achieving a ‘critical mass’  Policy recommendations: Broad definition of innovation (not just science and technology) Joined-up action and local control over key domains (planning, transport) Engage with universities as ‘key players’ Leadership at regional and local level matters

Policy Exchange (2007/8): Cities (un)limited reports  Anatomy of the regional problem: failure of urban policy to follow the market (labour/migration and capital)

Policy Exchange (2007/8): Cities (un)limited reports  Timing: three reports over 2007/08 (analysis of problem, review of practice and policy recommendations)  Issues covered: Starting point: persistent economic disparities between select towns and cities Focus: critique and ‘macro evaluation’ of UK urban policy Rationale/theory: (new) location theory of neo-classical economics, institutional analysis, agglomeration and firm location. Urban policy intervention leads to sub- optimal outcomes.  Evidence: Derived from a literature review with theoretical and methodological assumptions drawn out Evaluation considers a set of urban areas using limited data Focus on urban/neighbourhood policies. Selective lesson drawing  Policy recommendations: Expand London and select South East/East Anglia locations (Oxford, Cambridge … and Swindon). Focus on growth locations in the north (Leeds) Localise funding allocated previously to national programmes and give more power to elected members whilst increasing local accountability ‘Manage’ decline in the north A hidden agenda? reduce public spending through fiscal decentralisation

Conclusions  Political Dividing Line: Territorial Justice through a proactive regional policy vs Territorial Selection based on recent growth and deregulated planning  Audience National government and national party politics – dominant (national) institutional structures matter Almost silent on EU Regional Policy, technological change and globalisation  Documentary analysis – only a starting point Evaluating rationale and coherence… but Unclear how used by policy actors Cannot comment on other forms of think tank activity (workshops, informal networks etc)  Reports as organising narratives? Except for the Ideopolis reports, they did not construct heuristic devices Limited use of rhetorical imperatives

How is Regional Policy Made: A Critical Look at the Role of Think Tanks? Peter Wells Sheffield Hallam University CURDS/ONE North East Regional Insights Seminar University of Newcastle 5 November, 2008