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(How) does productivity matter in the foundational economy?

Author

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  • Julie Froud

    (University of Manchester, UK)

  • Colin Haslam
  • Sukhdev Johal

    (Queen Mary University of London, UK)

  • Karel Williams

Abstract

Academics and policy makers have increasingly recognised the importance of mundane economic activities – variously termed foundational or everyday. The foundational or everyday economy is now featuring in local industrial strategy and economic action plans, because the desirable high-tech sectors on the ‘frontier’ cannot diffuse prosperity within and between regions. This article aims to distinguish between several different approaches to the foundational or everyday economy and argues that a constructive approach needs to break with the preoccupation about improving productivity. This argument is developed in three stages. First, we distinguish between a social approach and a more technical economic approach to delimiting this other mundane economy; the defining feature of the foundational in the social approach is contribution to wellbeing and in the technical economic approach it is low productivity. The second section presents and explores productivity evidence on output per worker hour across a range of foundational activities and by region. Drawing out the implications of observed diversity and heterogeneity, the third section develops an argument about how productivity has limited relevance as measure and target in foundational activities.

Suggested Citation

  • Julie Froud & Colin Haslam & Sukhdev Johal & Karel Williams, 2020. "(How) does productivity matter in the foundational economy?," Local Economy, London South Bank University, vol. 35(4), pages 316-336, June.
  • Handle: RePEc:sae:loceco:v:35:y:2020:i:4:p:316-336
    DOI: 10.1177/0269094220956952
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Laura Reynolds & Dylan Henderson & Chen Xu & Laura Norris, 2021. "Digitalisation and the foundational economy: A digital opportunity or a digital divide for less-developed regions?," Local Economy, London South Bank University, vol. 36(6), pages 451-467, September.
    5. Richard Bärnthaler & Andreas Novy & Leonhard Plank, 2021. "The Foundational Economy as a Cornerstone for a Social–Ecological Transformation," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    6. Butzin, Anna & Flögel, Franz, 2022. "High-tech left behind? Lessons from the Ruhr cybersecurity ecosystem for approaches to develop "left behind" places," IAT Discussion Papers 22/04, Institut Arbeit und Technik (IAT), Westfälische Hochschule, University of Applied Sciences.
    7. 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.

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