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Regional Innovation, Industrial Policy and UK Interregional Challenges

Author

Listed:
  • Philip McCann

    (University of Manchester)

  • Raquel Ortega-Argilés

    (University of Manchester)

Abstract

This paper examines the challenges associated with fostering regional innovation via place-based innovation policies in a context where a country previously had little or no real place-based thinking or policy-framing. The UK displays a combination of both high interregional inequalities and a highly centralisation and top-down governance system. For many years national policy was based on the assumption that knowledge spillover effects from the London economy would naturally diffuse through-out the country, whereas recently there has emerged a realisation that this has not happened. Instead, devolution-related governance reforms are required to foster regional development, but the over-centralisation of the system itself militates against this. Here we discuss the economic development and governance-reform challenges associated with a shift towards more devolved policy making in a setting of good institutions which are ill-designed for the challenge.

Suggested Citation

  • Philip McCann & Raquel Ortega-Argilés, 2022. "Regional Innovation, Industrial Policy and UK Interregional Challenges," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 83-100, December.
    • Handle: RePEc:hpe:journl:y:2022:v:243:i:4:p:83-100
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    References listed on IDEAS

    as
    1. Paul Jackson & Jochen Runde & Philip Dobson & Nancy Richter, 2016. "Identifying mechanisms influencing the emergence and success of innovation within national economies: a realist approach," Policy Sciences, Springer;Society of Policy Sciences, vol. 49(3), pages 233-256, September.
    2. Philip McCann & Raquel Ortega-Argilés, 2016. "Smart specialisation, entrepreneurship and SMEs: issues and challenges for a results-oriented EU regional policy," Small Business Economics, Springer, vol. 46(4), pages 537-552, April.
    3. Philip McCann, 2020. "Perceptions of regional inequality and the geography of discontent: insights from the UK," Regional Studies, Taylor & Francis Journals, vol. 54(2), pages 256-267, February.
    4. Stephen Gibbons & Stephan Heblich & Ted Pinchbeck, 2018. "The spatial impacts of a massive rail disinvestment program: the Beeching axe," CEP Discussion Papers dp1563, Centre for Economic Performance, LSE.
    5. Philip McCann & Raquel Ortega-Argilés, 2013. "Modern regional innovation policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 187-216.
    6. Mark Thissen & Frank van Oort & Philip McCann & Raquel Ortega-Argilés & Trond Husby, 2020. "The Implications of Brexit for UK and EU Regional Competitiveness," Economic Geography, Taylor & Francis Journals, vol. 96(5), pages 397-421, October.
    7. Paolo Veneri & Fabrice Murtin, 2019. "Where are the highest living standards? Measuring well-being and inclusiveness in OECD regions," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 657-666, May.
    8. McCann, Philip, 2013. "Modern Urban and Regional Economics," OUP Catalogue, Oxford University Press, edition 2, number 9780199582006.
    9. Bart Los & Philip McCann & John Springford & Mark Thissen, 2017. "The mismatch between local voting and the local economic consequences of Brexit," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 786-799, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation; Regions; Policy; Governance;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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