Delivering the Lisbon Agenda in Preston

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1 Delivering the Lisbon Agenda in Preston Presentation to the Hubs for Growth Conference 4 th February 2009

2 Overview Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

3 Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

4 The Lisbon Agenda Generating stronger, sustainable economic growth achieving this goal requires a significant increase in emphasis on competitiveness, innovation and knowledge-intensive activities Creating more and better jobs a stronger economy will drive higher quality job creation in the EU and policies that promote social inclusion will facilitate faster economic growth by increasing the effective labour pool

5 The UK Response Priority 1: Promoting Innovation & Knowledge Transfer Priority 2: Stimulating Enterprise & Supporting Successful Businesses Priority 3: Ensuring Sustainable Development, Production & Consumption Priority 4: Building Sustainable Communities.

6 The North West Response (2i) Priority 1 Stimulating Enterprise and Supporting Growth in Target Sectors and Markets 205m of ERDF provides business support and funds financial instruments which help improve the competitiveness of the region s businesses, especially in high value target sectors also supports work with the region s businesses in all sectors to improve resource efficiency and reduce their carbon footprint

7 The North West Response (2ii) Priority 2 Exploiting Innovation and Knowledge 205m of ERDF aims to make full use of the region s knowledge base in Higher Education Institutes, research institutes and private sector firms encourages the exploitation of this knowledge and innovation amongst all firms

8 The North West Response (2iii) Priority 3 Creating the Conditions for Sustainable Growth 157m of ERDF need for some underpinning investment in infrastructure in the region to support the development of successful economies supports investment in strategically significant sites and premises and, in Merseyside, access to and exploitation of key transport gateways

9 The North West Response (2iv) Priority 4 Growing and Accessing Employment 159m of ERDF a need to ensure that economic successes are shared and that economic exclusion is tackled focused on creating employment which is accessible to areas of disadvantage and to help residents in these areas access economic opportunity, as employees or in self-employment.

10 Lisbon in the North of England

11 Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

12 Some Definitions (1) one in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth. It is not simply about pushing back the frontiers of knowledge; it is also about the more effective use and exploitation of all types of knowledge in all manner of economic activity Department of Trade and Industry (1998) Our Competitive Future, Building the Knowledge Driven Economy HM Gov

13 Some Definitions (2) the knowledge society is a larger concept than just an increased commitment to R&D. It covers every aspect of the contemporary economy where knowledge is at the heart of value added from high tech manufacturing and ICTs through knowledge intensive services to the overtly creative industries such as media and architecture High Level Group / Wim Kok (November 2004) Facing the challenge: The Lisbon Strategy for Growth and Employment. European Union

14 Some Definitions (3) the share of national income and employment produced by innovating organisations combining ICT and highly skilled labour to exploit global scientific, technological and creative knowledge networks. Ian Brinkley (2006) Investigating the Social and Economic Implications of a Changing Economy. The Work Foundation

15 Some Definitions (4) the difference between manual working (with hands) and knowledge working (with head) Drucker, P (1969) The Age of Discontinuity: Guidelines to Our Changing Society

16 Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

17 This is Lancashire distinctive and unique industrious population premier economic assets advanced manufacturing tourism economy professional service activity polycentric geography within an extensive rural sub-region

18 Lancashire s Knowledge Economy knowledge intensity within principal urban areas strong economic role for main / market towns important urban-rural contribution Source: GVA Grimley/Beta Model 2006

19 How Competitive is Lancashire? Knowledge Economy Competitive Index: GDP economic activity/ unemployment human resources in science and technology patent applications employment in high / medium manufacturing employment in knowledge intensive industries relative importance of service sector employment share high technology in total manufacturing

20 Competitiveness Index Ranking Source: GVA Grimley 2006

21 Competitiveness Index Ranking Source: GVA Grimley 2006

22 Competitiveness Index Ranking Source: GVA Grimley 2006

23 How Competitive is Lancashire? the headline indicators show a relatively competitive offering high tech manufacturing distinguishes the economy a significant drag in the manufacturing sector relative weakness in the service economy and the knowledge intensity associated with this employment low entrepreneurial activity (self-employment and patents) manufacturing employment haemorrhaging, but crucially service sector isn t at present making good the deficits structural challenges in Lancashire persist impeding competitiveness and consequently, growth

24 What do we mean by Preston?

25 Travel to Work Patterns Source: GVA Grimley 2006

26 Housing Markets Source: GVA Grimley 2006

27 Functional Economies Source: GVA Grimley 2006

28 So what do we mean by Preston? functional economy contained within the local authority districts of Preston, South Ribble, Chorley workforce of 193,000 employment growth 17% between 1990 and 2005 contributes 5bn GVA to the economy GVA growth 27% between 1990 and 2005 unique and distinctive spatial and economic geography sensible to plan at this level

29 Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

30 Three Critical Questions what are the key ingredients that make successful cities work? what are the drivers and/or barriers to knowledge based economic growth in Preston? to what extent does Preston have a distinctive offer for knowledge intensive businesses and workers who are considering investing, working and living in the area?

31 Six Key Ingredients (1) developing a physical basis for the knowledge city high-quality architecture and accommodation exists utilising a diverse range of economic specialisations in which the city can excel encouraging high skill organisations which rely on highly qualified and skilled workers to increase productivity

32 Six Key Ingredients (2) providing a strong education sector locally embedded into the economy and community diverse cultural and leisure facilities to encourage business and workers to invest, work, and live in a city with a strong offer ensuring excellent levels of communications infrastructure, enabling connectivity within, and beyond, the city-region and internationally by road, air and rail

33 How does Preston measure up? Source: GVA Grimley/Beta Model 2006/2009

34 Preston s Knowledge Base Source: GVA Grimley/Beta Model 2006/2009

35 North West Knowledge Base Source: GVA Grimley/Beta Model 2006/2009

36 Preston s Knowledge Base Source: GVA Grimley/Beta Model 2006/2009

37 The North West s Three Cities Source: GVA Grimley/Beta Model 2006/2009

38 Why Preston? connectivity the main advantage why businesses located in Preston significant attachment to the locality amongst business community a very insular economy trading patterns and supply chains are very localised good spread of sectors ensures its resilience very little inward investment permeates economy despite the current economic downturn, prospects for growth amongst business community are positive

39 Why Preston?

40 Why Preston?

41 Why Preston?

42 Why Preston?

43 Why Preston?

44 Why Preston?

45 Make No Little Plans City Centre Commercial Quarter economic growth constrained by supply and quality of offices Provision of high quality space in a nationally recognised commercial quarter Developer interest evident Outputs : business formation, job creation, GVA growth, commercial floorspace

46 Make No Little Plans Tithebarn Regeneration Retail destination for Lancashire Mixed use retail led : primary anchor store, leisure, office and residential Double retail floor space in Preston 500m private investment Planning application 2006, start on site 2008, completion 2012 Outputs : job creation, up-skilling, visitor spend

47 Make No Little Plans Preston Docklands Unique setting for city regional festivals and events Highest quality design : iconic buildings and spaces Water related business and leisure uses Docklands city neighbourhood

48 Make No Little Plans New Central Park High quality city riverside amenity 21 st century city regional park and sustainable community

49 Delivering Lisbon in the Northwest of England What do we mean by the Knowledge Economy? What do we mean by Preston? How does Preston measure-up in Delivering Lisbon? Delivering the Lisbon Agenda in Preston: Key Challenges

50 Key Challenges Development and Regeneration delivery of an improved Preston City Centre, through delivery of the Tithebarn Redevelopment and Commercial Quarter in particular remains key to Preston International Image and marketing it is important that Preston capitalises on its many positive attributes and publicise these to improve its share of Northwest FDI, and help create a perception shift among other investors Maintaining the competitiveness of indigenous sectors Preston s competitive economic and sectoral offering is its strength protecting this position is an imperative Improved and targeted business support encourage entrepreneurship and enterprise growth and work with existing businesses seeking to grow has the potential to boost the economic performance Attracting the right skills this is about attracting and retaining higher skilled workers, that many businesses find in short supply, as well as providing the right conditions to retain graduates

51 Contacts Iain Jenkinson Director GVA Grimley Ltd 81 Fountain Street Manchester M2 2EE

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