1. New Economy of the East of Scotland ESEP Seminar Dundee College 28th October 2003

2. Today’s programme 10.30 Welcome: Gordon McLaren 10.40 Presentation: John Lord 11.20 Commentary: Ron Botham 11.45 Break 12.00 Focus groups 12.45 Feedback and discussion 13.15 Closing remarks: Gordon McLaren 13.30 Lunch

3. ESEP labour market service launched January 2002 labour market information service for ESEP and its partners principal output - major annual report:  www.esep.co.uk ad hoc reports and services:  ERDF/ESF-funded community development projects  strategic sector profiles autumn seminars

4. East of Scotland Programme Area

5. What do we mean by the new economy? it’s a flag of convenience term we’re looking for evidence of: –clusters (present and emerging) –competitiveness –wealth creation –innovation –adjustment how is the ESEP area contributing? –role of the eligible areas

6. Focus on 6 key sectors electronics / opto-electronics creative industries forest products food and drink tourism and culture biotechnology

7. Disaggregated by 8 areas Scotland East of Scotland Programme Area City of Edinburgh City of Aberdeen City of Dundee South of the Forth (West Lothian, Midlothian, East Lothian) North of the Forth (Stirling, Falkirk, Clackmannanshire, Fife) North of Tay (Perth & Kinross, Angus, Aberdeenshire, Moray)

8. We’ll take a look at… business stock industry structure the key sectors wages occupational structure

9. VAT registered businesses per 10,000 population (2001)

10. Change in VAT registered businesses 1997-2002 (%)

11. Scotland: employment trends + LQs

12. ESEP area: employment trends + LQs

13. Aberdeen: employment trends + LQs

14. Dundee: employment trends + LQs

15. Edinburgh: employment trends + LQs

16. South of Forth: employment trends + LQs

17. North of Forth: employment trends + LQs

18. North of Tay: employment trends + LQs

19. Electronics / opto-electronics employee jobs as % of total area jobs, 2001

20. Electronics/opto-electronics, change in employee jobs 1995-2001 (%)

21. Creative industries employee jobs as % of total area jobs, 2001

22. Creative industries, change in employee jobs 1995-2001 (%)

23. Forest products employee jobs as % of total area jobs, 2001

24. Forest products, change in employee jobs 1995-2001 (%)

25. Food and drink employee jobs as % of total area jobs, 2001

26. Food and drink, change in employee jobs 1995-2001 (%)

27. Tourism and culture employee jobs as % of total area jobs, 2001

28. Tourism and culture, change in employee jobs 1995-2001 (%)

29. Biotechnology employee jobs as % of total area jobs, 2001

33. Biotechnology, change in employee jobs 1995-2001 (%)

34. 0% 5% 10% 15% 20% 25% 30% 35% Aberdeen City Aberdeenshire Angus Clackmannanshire Dundee City East Lothian Edinburgh, City of Falkirk Fife Midlothian Moray Perthshire & Kinross Stirling West Lothian Source: Annual Business Inquiry/ Annual Employee Survey % of total ESEP sector employee jobs Distribution of biotechnology employment by council area (2001)

35. 5 star science/technology research in East of Scotland HEIs Dundee –clinical lab sciences, biological sciences, Edinburgh –hospital-based clinical, pure maths, computer science, electrical/electronic engineering Heriot-Watt –Mineral and mining engineering

36. ESEP area: high LQs oil/gas extraction (12.6) oil/gas services (12.4) pulp/paper/board (5.1) fish processing (4.6) fishing/fish farm (4.4) forestry/logging (3.7) semi conductors (2.9) shipbuilding/repair (2.8) beverages (2.5) farming animals (2.5) computer mfg (2.2) measuring instruments (2.2) museum activities (2.1) sawmilling (1.9) technical testing (1.9) radio & tv activities (1.9) hotels (1.8) growing crops (1.7) optical instruments (1.7) research (1.3)

37. Aberdeen high LQs for: –oil extraction (81.0) and services (70.9) –technical testing/analysis (10.5) –fish processing (7.0) –pulp/paper/board (6.3) –industrial process control equipment (5.4) –special purpose machinery (4.0) –architecture/engineering activities (3.6) –forestry/logging (3.6) –shipbuilding and repair (3.1) –mechanical power machinery (2.7) –higher education (1.5) –research (1.4)

38. Dundee high LQs for: –publishing (3.8) –higher education (3.8) –manufacture of computers (2.9) –museum activities (2.8) –manufacture tvs/radios (2.3) –mechanical power machinery (1.9) –veneer sheets/plywood (1.6) –bars (1.4)

39. Edinburgh High LQs for: –auxiliary to financial intermediation (4.5) –museum activities (4.2) –insurance and pension funding (4.0) –measuring instruments (3.9) –recorded media (3.7) –monetary intermediation (3.4) –office machinery repair/mfr (2.7) –beverages (2.6) –pharmaceuticals (2.5) –higher education (2.3) –other financial intermediation (1.7) –other computer related (1.5) –hotels (1.5) –research (1.4)

40. South of the Forth High LQs for: –manufacture of semi-conductors (17.3) –optical instruments (11.8) –manufacture of computers (7.4) –radio and tv activities (7.3) –beverages (4.5) –research (3.8) –pulp/paper/board (3.5) –growing crops (2.8) –meat production (2.7) –agricultural services (2.5) –photographic activities (1.9) –hardware consultancy (1.5) –hotels (1.5)

41. North of the Forth high LQs for: –pulp/paper/board (9.9) –shipbuilding/repair (7.2) –manufacture of computers (4.2) –veneer sheets/plywood (3.5) –manufacture of semi-conductors (3.2) –measuring instruments (2.6) –farming animals (2.5) –radio and tv activities (2.4) –beverages (2.3) –hotels (2.3) –processing fruit & veg (2.2) –mechanical power machinery (1.7) –database activities (1.6) –insurance and pension funding (1.6)

42. North of the Tay High LQs for: –fishing (27.8) –fish processing (27.1) –oil and gas services (12.8) –forestry and logging (12.1) –growing crops (9.3) –farming animals (7.1) –sawmilling (6.3) –pulp/paper/board (5.6) –beverages (5.2) –agricultural services (3.9) –meat production (3.7) –builders carpentry (3.3) –hotels (2.7)

43. Gross weekly full-time earnings, (£), 1999/2002

44. Workforce by occupation type,(%) 2001

45. Occupational mix by council area

46. New Economy of the East of Scotland ESEP Seminar Dundee College 28th October 2003

47. The new (or not so new) economy: - a real world perspective Ron Botham Training & Employment Research Unit

48. What we can learn from Soviet cuisine Russian national dish: PIRMINI Kazakh national dish: BEESHBARMACK Uzbeck national dish: MANTI ask what each is made of, and the answer is…

49. …“the same” - just like the “new economy” lots of words that mean the same thing the new economy is a: –super buzzphrase encompassing the knowledge driven economy, the digital economy, the service economy, the global economy…the weightless (or dematerialised) economy (Philpott, 2001) or how about: –Innovation systems, industrial milieu, the learning region, the intelligent region, associative consensual economies… they all mean that innovation has become the most important economic driver

50. Supposed features of the new economy essentially IT/internet driven: –is biotech the new new economy? it means the end of: –place/distance –paper –hierarchy and organisation –the office

51. …the new economy rewrites economic laws network connections create exponential growth the end of scarcity –value increases with plenty increasing not diminishing returns externalities, clusters and networks are key ultimately, demand curves slope upwards

52. This has strategic implications it’s about empowerment, delegation, decentralisation, flat structures –but not inevitably or always it’s about innovation and continual change, not efficiency –but many industries depend on stability and efficiency it’s about bits, not atoms –but you can’t move products down the wire it’s a gift economy with zero prices –sometimes, but in all industries?

53. How new or different is this? Marshall (C19th) emphasised clusters and knowledge in the industrial revolution it’s about product and process innovation anything can be part of the new economy oil and gas is high tech/knowledge-based –but also about resource and capital don’t pursue it dogmatically –Tees Valley is writing off bulk chemicals (the “old economy”) and going for digital media

54. Some concluding thoughts it doesn’t matter if an industry is “new” –is it – or could it be – competitive? biotech is at a very early stage –many years to achieve big job impacts the future evolves from the past –exploit what you have including electronics don’t accept the hype –there’s much in the new economy –but we need real knowledge/analytical skills

55. New Economy of the East of Scotland ESEP Seminar The Space, Dundee College 28th October 2003