Transcript FUNCTIONAL ECONOMIC AREAS, POLYCENTRICTY & ECONOMIC

FUNCTIONAL ECONOMIC AREAS,
POLYCENTRICTY & ECONOMIC
COMPETITIVENESS
Derek Whyte
Assistant Director, Regeneration
Preston City Council
[email protected]
01772 903401
Eurocities EDF Conference Preston 10th June 2010
Structure of Presentation
• Part 1: This is Lancashire – a Polycentric
City-Region
• Part 2: What are the characteristics of
Polycentricity?
• Part 3: The Role of Sub-Regional Cities –
Levering Agglomerative Growth
PART ONE: This is Lancashire…
• knowledge intensity within
principal urban areas
• strong economic role for main
/market towns
• important urban-rural
contribution
• advanced manufacturing
• tourism economy
• professional service activity
• polycentric geography within
an extensive rural sub-region
Lancashire – Five Functional Economic Areas (FEAs) –
high degree of economic self containment within each area
WITH DIFFERENT CHARACTERISTICS,
OPPORTUNITIES & CHALLENGES…
Three “Multi-Area Agreement” (MAA) areas.
Current Reality
• Lancashire is 2nd largest economy in NW of England – after
Manchester
• Strengths in advanced engineering, tourism, quality of life
• Good communications N/S and central links to Manchester
• Some gaps in offer in higher value advanced producer services
• 4 Universities, some clusters of high skills
• Decline of traditional manufacturing towns (textiles) and seaside
resort offer
• Most productive area is Centre/Mid Lancs – strong jobs growth, but
GVA increase not as high as might have been expected
• Suggests job creation still too much in low skill areas including
public sector
• Preston FEA has high levels of private sector jobs growth
• Need to raise entrepreneurship, innovation and enterprise across
the area
• Lack of economic integration & exchange between three main
blocks (5 FEAs)
PART TWO: The Characteristics of Polycentricty
• Polycentricity operates at various spatial levels:
– Intra-urban (or internal city structure) – see Peter Hall on London
– Inter-urban (or intra-regional) scale – central Lancashire
– Inter-regional (or intra-European) scale - ESDP/”Polygon”
• Polycentric Urban Region (PUR) defined as three or more
historically separate urban nodes with little hierarchical ranking and
in reasonable proximity (though definitions are contested!)
• Assumed association with enhanced economic performance and
assumed functional economic linkages
• But “association with” or “driver of” improved economic
competitiveness?
• And to what extent do differences in characteristics of cities matter –
how “path dependent” is the process?
Cities perform economically quite differently. A typology helps illuminate to
differences between cities and in the dynamics between them
Industrial – historically specialised in one or two dominant industries
due to location advantages (e.g. access to coal)
Heritage/tourism – attracts national/international visitors due to its
natural assets or history/heritage
University/knowledge – contains a leading university with capacity to
promote innovation and clusters of spin-off companies
City in large or capital city-region – benefits from its location within a
capital/large city-region with complementary knowledge-based sectors
to large city
Regional services – more diverse economy due to the supply of
employment, retail and other services to the wider region
Gateway – provides physical connections to the international economy
(e.g. port or airport)
Central Lancashire City Region’ –
is an excellent place to explore
differences in ‘place’
Why understanding flows are important - Central
Lancashire ‘City Region’ case study
Key: Cities with
characteristics of
Tourism/Heritage
To Glasgow
Regional Services
Industrial
Travel-to-work
M6
area
Rail
I
r
i
s
h
S
e
a
Blackpool
M55
Burnley
Preston
Blackburn
Note – brown arrows
indicate direction of
main travel-to-work
movements
M65
M61
To
Manchester
To London Airport
Greater Manchester
Challenges
•
Transition from industrial past
•
Tackling social inequality arising from
Preston faces many of the
challenges and opportunities of
other Regional Services Cities
economic restructuring
•
Bristol,
UK
Improving national and international
connectivity
Opportunities
•
Relatively diverse economy with
developing modern service industry
•
Rich asset base – e.g. university, city
centre, heritage
•
Destination rather than transit point
•
Advantages in attracting or retaining
Pécs,
Hungary
highly-skilled workforce
Source:
www.trendsettereurope.org
Dijon
Source: ww.riis.org
Challenges
•
Market - local, national or international?
•
Seasonal tourism and changing fashions
•
National and international connectivity
•
Lower skilled, part-time and seasonal
employment base
•
Diversifying economic base
Blackpool has many of the classic
characteristics of a heritage/tourism
centre, but is one where challenges
dominate
Opportunities
•
Heritage assets
•
Use existing heritage/tourism assets to
diversify into other service industries
•
Reinvention – “Back to the future” (Steve
Weaver, CE Blackpool Council)
•
National and international markets
Santiago de Compostela, Spain
Source www.spanish-living.com
Blackpool, UK Source:
Source: www.hotelnet.co.uk
Blackburn – is a
classic
industrial city
The east Lancashire economy is different to that of Preston. It is less
well connected and has weaker markets (e.g. housing, services and
retail). Blackburn has been a well run council for many years – but this
has left problems such as the need to renew their 1960s shopping
centre. Blackburn is seeking to build on its assets in advanced
manufacturing
Challenges
•
Moving from industrial specialism
•
Low skill base and weak
Thus both Blackburn and
Burnley face both challenges
and opportunities of other
industrial cities
entrepreneurial culture
•
Developing a knowledge-based
services economy often not an option
Opportunities
•
Work on the basics – local skills,
employment and entrepreneurial
Tampere,
Finland Source:
culture
•
www.pinguim.net
Find new niches that use local skill and
knowledge base
•
Develop quality of life and place assets
•
Seek a post-industrial future
Dortmund,
Germany
Source:
wm2006.deutschland.d
e
Blackburn
travelguide.info
Source: www.e-
Summing Up….
•
Place matters because: Economic and social assets interact differently in different
‘places’ affected by factors such as history, proximity to other places, connectivity to wider
markets, availability of knowledge assets, industrial structure and functionality of place
– This affects both the asset stocks (competitive strengths) and flow (economic and
social dynamism)
– It is important in addressing market failures and realising economic and social
potential
•
Lancashire is interesting because it does not have the conventional city region
characteristics. It has three distinct areas – Blackpool and the coastal area, Preston and
East Lancashire. Also, the main direction of flows (indication of functionality) are north
south not east west
•
But these places do have an interdependence with each other which is important for their
long term future. Medium-sized Cities like Preston and towns like Blackpool, Blackburn
and Burnley cannot succeed by operating on their own
PART THREE: Levering Agglomerative Growth
Network of
Travel to work
movements in
the North
Source: Roles and
Economic Functions of
the City Regions of the
North, The Northern Way
Labour market links – London and South East
Network of travel to
work movements in
the GSE
Source: Peter Hall/SEEDA,
2005
Map of Net Private Sector Job
Creation 1998-2008
Map of Percentage Private Sector
Job Growth 1998-2008
Do we see the world as ‘flat’ or ‘spiky’?
Because it might affect our view on how the
economic growth agenda should be delivered…..
The world is ‘flat’ national or local
institutional
solutions
The world is ‘spiky’ –
single ‘spike’ London
and South East
The world is ‘spiky’ – multiple
spikes – London,
Manchester, Glasgow etc
Private Sector Jobs Growth in English
Cities in Profile – 1998-2008
City links – GSE and North West
Blackpool
Blackburn
Burnley
Preston
Manchester
Chester
Cambridge
Milton
Keynes
London
TTW area
Reading
Towns and cities with higher
increasing return industrial
sectors
Towns and cities with lower
increasing return industrial sectors
Brighton
Hastings
Policy Implications
TTW area
Tyneside
Newcastle
Sunderland
Harrogate
Teeside
Bradford
Leeds
Kirklees
Barnsley
York
Wakefield
Doncaster
Hull
• Scale matters
• Internal - structural
• External - relationships
• Political Leadership
Milton
Keynes
Cambridge
Sheffield
Rotherham
London
Towns and cities (or parts of)
with higher increasing return
industrial sectors
Towns and cities with lower
increasing return industrial sectors
Reading
Brighton
Hastings
City A – Economic centre
City B – Neighbouring town / city
1. Independent
A
B
But…
City A
travel to
work area
City B travel to
work area
2. Isolated
A
• Housing quality
• Skills and Earnings
•Deprivation
• Also, connectivity and
possibly ‘quality of place’
establishing functional
economic linkages is key
B
Labour market patterns reflect
other factors:
• Industrial structure
Places are different …
City A – Economic centre
City B – Neighbouring town / city
3. Dependent
City A
travel to
work area
A
B
City B travel to
work area
4. Interdependent
A
B
City Relationships Families – Roles of different cities
Earnings
City
Relationships
Family: Labour
Market Links
Skills
Isolated
Sector
House prices
Deprivation
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Traditional
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Resident
Workplace
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Independent
Interdependent
Dependent
Policy Levers, depending on direction of travel
Concluding Hypothesis
•
Sustainable economic growth can be generated by strengthening the
economic links between economic centres and adjacent centres
•
Within as well as between city-regions
•
Solutions will vary in proportions as places and opportunities vary – cannot
“cut and paste” (A. Thierstein et al)
•
Drivers of change will include:
– Labour market links
– Transport (international, inter-city, functionality of place, geography)
– Skills
– Industrial composition
– Investment in Business clusters
– Supply chains
– Quality of place
•
Political leadership is vital to overcome barriers
•
Long term consistency is important