IDEAS home Printed from https://ideas.repec.org/a/oup/cjrecs/v12y2019i3p445-466..html
   My bibliography  Save this article

Industrial strategy and the UK regions: sectorally narrow and spatially blind

Author

Listed:
  • Steve Fothergill
  • Tony Gore
  • Peter Wells

Abstract

The UK government’s new Industrial Strategy could have a significant impact on the country’s regions and localities. However, this has received little attention to date. The analysis presented here examines the existing location of the sectors targeted by the first phase of the Industrial Strategy Challenge Fund and the location of the R&D laboratories likely to be first in line for funding. In focusing on an extremely narrow range of sectors, the Fund is likely to have limited impact on the UK’s persistent regional inequalities. The activities eligible for support account for relatively little of manufacturing or the rest of the economy and the basis of this targeting and its potential distributional consequences are spatially blind. As such, it runs the risk of widening regional divides in prosperity.

Suggested Citation

  • Steve Fothergill & Tony Gore & Peter Wells, 2019. "Industrial strategy and the UK regions: sectorally narrow and spatially blind," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 12(3), pages 445-466.
  • Handle: RePEc:oup:cjrecs:v:12:y:2019:i:3:p:445-466.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/cjres/rsz016
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    2. Pierre Philippe Combes & Gilles Duranton & Henry G. Overman, 2005. "Agglomeration and the adjustment of the spatial economy§," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 311-349, August.
    3. Faggio, Giulia & Overman, Henry, 2014. "The effect of public sector employment on local labour markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 91-107.
    4. Paul Hildreth & David Bailey, 2013. "The economics behind the move to ‘localism’ in England," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 233-249.
    5. Lee, Neil & Clarke, Stephen, 2019. "Do low-skilled workers gain from high-tech employment growth? High-technology multipliers, employment and wages in Britain," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    6. Paul Hildreth & David Bailey, 2014. "Place-based economic development strategy in England: Filling the missing space," Local Economy, London South Bank University, vol. 29(4-5), pages 363-377, June.
    7. Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012. "The Case For Regional Development Intervention: Place‐Based Versus Place‐Neutral Approaches," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 134-152, February.
    8. Philip McCann & Raquel Ortega-Argil�s, 2015. "Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1291-1302, August.
    9. Dani Rodrik, 2014. "Green industrial policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 30(3), pages 469-491.
    10. Neil Lee, 2019. "Inclusive Growth in cities: a sympathetic critique," Regional Studies, Taylor & Francis Journals, vol. 53(3), pages 424-434, March.
    11. David Audretsch & Marcel Hülsbeck & Erik Lehmann, 2012. "Regional competitiveness, university spillovers, and entrepreneurial activity," Small Business Economics, Springer, vol. 39(3), pages 587-601, October.
    12. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
    13. Antonio Andreoni & Ha-Joon Chang, 2016. "Industrial policy and the future of manufacturing," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 491-502, December.
    14. Mariana Mazzucato, 2016. "From market fixing to market-creating: a new framework for innovation policy," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 140-156, February.
    15. Alexander Vogel & Joachim Wagner, 2016. "Higher Productivity in Importing German Manufacturing Firms: Self-selection, Learning from Importing or Both?," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 4, pages 139-174, World Scientific Publishing Co. Pte. Ltd..
    16. Joseph E. Stiglitz & Justin Yifu Lin & Célestin Monga, 2013. "Introduction: The Rejuvenation of Industrial Policy," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, pages 1-15, Palgrave Macmillan.
    17. Andy Pike & David Marlow & Anja McCarthy & Peter O’Brien & John Tomaney, 2015. "Editor's choice Local institutions and local economic development: the Local Enterprise Partnerships in England, 2010–," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 185-204.
    18. Marino, Marianna & Lhuillery, Stephane & Parrotta, Pierpaolo & Sala, Davide, 2016. "Additionality or crowding-out? An overall evaluation of public R&D subsidy on private R&D expenditure," Research Policy, Elsevier, vol. 45(9), pages 1715-1730.
    19. Andy Pike & Stuart Dawley & John Tomaney, 2010. "Resilience, adaptation and adaptability," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(1), pages 59-70.
    20. Robert Huggins & Andrew Johnston & Rebecca Steffenson, 2008. "Universities, knowledge networks and regional policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(2), pages 321-340.
    21. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    22. David Bailey & Christos Pitelis & Philip R Tomlinson, 2018. "A place-based developmental regional industrial strategy for sustainable capture of co-created value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(6), pages 1521-1542.
    23. Michael Kitson & Jonathan Michie, 2014. "The Deindustrial Revolution: The Rise & Fall of UK Manufacturing, 1870-2010," Working Papers wp459, Centre for Business Research, University of Cambridge.
    24. Ewald Engelen & Julie Froud & Sukhdev Johal & Angelo Salento & Karel Williams, 2017. "The grounded city: from competitivity to the foundational economy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 407-423.
    25. Roper, Stephen & Love, James H., 2002. "Innovation and export performance: evidence from the UK and German manufacturing plants," Research Policy, Elsevier, vol. 31(7), pages 1087-1102, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marta Gancarczyk & Marta Najda-Janoszka & Jacek Gancarczyk & Robert Hassink, 2021. "Exploring Regional Innovation Policies and Regional Industrial Transformation from a Co-Evolutionary Perspective: The Case of Małopolska, Poland," PEGIS geo-disc-2021_03, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    2. Andrew Johnston & Peter Wells, 2020. "Assessing the role of universities in a place-based Industrial Strategy: Evidence from the UK," Local Economy, London South Bank University, vol. 35(4), pages 384-402, June.
    3. Alexander Nurse & Olivier Sykes, 2020. "Place-based vs. place blind? – Where do England’s new local industrial strategies fit in the ‘levelling up’ agenda?," Local Economy, London South Bank University, vol. 35(4), pages 277-296, June.
    4. Francesca Froy & Andrew Jones, 2020. "Special Edition on place-based industrial strategies," Local Economy, London South Bank University, vol. 35(4), pages 271-276, June.
    5. Peter Sunley & Jack L Harris & Andy Pike & Richard Harris & Ron Martin & Emil Evenhuis, 2022. "Industrial policies, strategy and the UK’s Levelling Up agenda," Local Economy, London South Bank University, vol. 37(5), pages 403-418, August.
    6. Mikhail Martynovich & Teis Hansen & Karl-Johan Lundquist, 2023. "Can foundational economy save regions in crisis?," Journal of Economic Geography, Oxford University Press, vol. 23(3), pages 577-599.
    7. Penny Mealy & Diane Coyle, 2022. "To them that hath: economic complexity and local industrial strategy in the UK," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(2), pages 358-377, April.
    8. Birgitte Nygaard & Teis Hansen, 2020. "Local development through the foundational economy? Priority-setting in Danish municipalities," Local Economy, London South Bank University, vol. 35(8), pages 768-786, December.
    9. Mikhail Martynovich & Teis Hansen & Karl-Johan Lundquist, 2023. "Can foundational economy save regions in crisis?," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 577-599.
    10. Yu.G. Myslyakova, 2021. "Fundamentals of Economic Genetics in Models of Evolution and Revitalization of Old Industrial Regions," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 20(3), pages 489-523.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrew Johnston & Peter Wells, 2020. "Assessing the role of universities in a place-based Industrial Strategy: Evidence from the UK," Local Economy, London South Bank University, vol. 35(4), pages 384-402, June.
    2. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    3. Robert Huggins & Hiro Izushi, 2013. "Knowledge-based Development in Leading Regions across the Globe: An Exploratory Analysis of the co-Evolution of Resources, Capabilities and Outputs," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 1030-1048, April.
    4. Matthew Thompson & Vicky Nowak & Alan Southern & Jackie Davies & Peter Furmedge, 2020. "Re-grounding the city with Polanyi: From urban entrepreneurialism to entrepreneurial municipalism," Environment and Planning A, , vol. 52(6), pages 1171-1194, September.
    5. Clara Turner & Marco R Di Tommaso & Chiara Pollio & Karen Chapple, 2020. "Who will win the electric vehicle race? The role of place-based assets and policy," Local Economy, London South Bank University, vol. 35(4), pages 337-362, June.
    6. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre.
    7. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    8. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    9. Marco Bellandi & Silvia Lombardi & Erica Santini, 2020. "Traditional manufacturing areas and the emergence of product-service systems: the case of Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(2), pages 311-331, June.
    10. David Morris & Enrico Vanino & Carlo Corradini, 2020. "Effect of regional skill gaps and skill shortages on firm productivity," Environment and Planning A, , vol. 52(5), pages 933-952, August.
    11. Malgorzata Sztorc & Dorota Milek, 2022. "Modern Business Services as a Strategy for the Development of Smart Specializations," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 433-462.
    12. Ferrannini, Andrea & Barbieri, Elisa & Biggeri, Mario & Di Tommaso, Marco R., 2021. "Industrial policy for sustainable human development in the post-Covid19 era," World Development, Elsevier, vol. 137(C).
    13. Marra, Mita & Alfano, Vincenzo & Celentano, Roberto Michele, 2022. "Assessing university-business collaborations for moderate innovators: Implications for university-led innovation policy evaluation," Evaluation and Program Planning, Elsevier, vol. 95(C).
    14. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre.
    15. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
    16. Andrés Rodríguez-Pose & Fabrice Comptour, 2010. "Do clusters generate greater innovation and growth? An analysis of European regions," Working Papers 2010-15, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    17. Emil Evenhuis, 2017. "Institutional change in cities and regions: a path dependency approach," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 509-526.
    18. Paola Perez-Aleman & Flavia Chaves Alves, 2017. "Reinventing industrial policy at the frontier: catalysing learning and innovation in Brazil," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 151-171.
    19. Jason P. Brown & Dayton M. Lambert & Raymond J. G. M. Florax, 2013. "The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006," Economic Geography, Clark University, vol. 89(3), pages 203-226, July.
    20. Suarsana, Laura & Schneider, Tina & Warsewa, Günter, 2023. "Do regional innovation strategies meet societal challenges? A comparative analysis across regions in Belgium, Germany, Netherlands and Finland," Schriftenreihe Institut Arbeit und Wirtschaft 40/2023, Institut Arbeit und Wirtschaft (IAW), Universität Bremen und Arbeitnehmerkammer Bremen.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cjrecs:v:12:y:2019:i:3:p:445-466.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/cjres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.