1. UK Industrial Strategy: Place is the new black
March 2018

2. Mind the widening gap
Source: ONS International Comparisons of Productivity, ONS Labour Productivity Introduction

3. Many factors contribute to the widening gap
Our Industrial Strategy is built on 5 foundations:
Raise total R&D investment to 2.4 per cent of GDP by 2027
Increase the rate of R&D tax credit to 12 per cent
£725m in new Industrial Strategy Challenge fund programmes
Technical education system rivalling the best in the world
Additional £406m in maths, digital and technical education
New National Retraining scheme
Increase National Productivity Investment Fund to £31bn
Support electric vehicles through £500m additional investment
Over £1bn public investment in digital infrastructure
Launch and roll out Sector Deals
Drive over £20bn investment in innovative and high potential businesses, including a new £2.5bn Investment Fund
Review of how to improve the productivity of small businesses
Agree Local Industrial Strategies building on local strengths
New £1.7bn Transforming Cities fund for intra-city transport
Provide £42m to pilot a Teacher Development premium

4. Gearing to resolve Grand Challenges
Grand Challenges give a mission for foundations to mobilise to deliver
Growing the AI & Data-driven Economy
We will put the UK at the forefront of the artificial intelligence (AI) and data revolution
Four Grand Challenges areas were identified using five key criteria:
critical to the future global economy
existing UK strengths
clear market opportunities to boost productivity
coordination and market failures
societal benefits to be realised
Clean growth
We will maximise the advantages for UK industry from the global shift to clean growth
Ageing society
We will harness the power of innovation to help meet the needs of an ageing society
The Future of Mobility
We will become a world leader in the way people, goods and services move
For further information or to submit ideas contact:
The independent Industrial Strategy Council will assess our progress and make recommendations to Government.

5. What’s place got to do with it?
GVA per hour worked 2016
TOP
£43
BOTTOM
£23
MEDIAN
£30
AVERAGE
£33
Gross Value Added per head by Local Enterprise Partnership, 2014
Population weighted Gross Value Added per head by Local Enterprise Partnership, 2014
Source: ONS, Map produced by the Statistical Analysis Team, Analysis Directorate

6. Dispersion or distortion?
Martin R. et al. (2015) Spatially Rebalancing the UK Economy

7. Place is the new Black
UK productivity relies on the better performing areas to continue to grow but while the bottom performers continue to drift, efforts at the top have to grow exponentially
Why does activity not flow from the rich London and the South East to other areas?
Innovation
Connectivity
Skills access
Business environment/Finance
All foundations of the industrial strategy have a place element in them

8. Place-Based Policies
Strength in Places fund - to build on science and innovation assets
Transforming Cities fund – for intra-city transport
Currently takes longer to travel from Hull to Liverpool (110 miles) than from London to Paris (285 miles)
Cultural Development fund to make places attractive to live and work
These ought to complement /compensate nationally based initiatives
Sector Deals
Industrial Strategy Challenge Fund (creative clusters)
STEM skills

9. Bespoke is the new Smart
Agree Local Industrial Strategies to
Zoom into the specific needs of the place and proposes solutions accordingly
Bring together national and local parts of the national industrial strategy
Reform institutions (LEP) to ensure accountability and transparency
Deliver locally through collaboration and partnership:
Combined Authorities
CAMKOX Corridor

10. Mission is possible
Reforms intend to prepare local institutions for future funding plans
There are good case studies of modular changes leading to radical transformation
Coventry and Warwickshire
Lancashire
At least limit acceleration of dispersion, at best reduce regional disparity