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The geography of key sectors in the South East

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  • Papa, Javier
  • et., al.

Abstract

According to M. Porter there are three broad types of industries – local industries, resource dependent industries and traded industries – each of which has a distinctive spatial pattern. Traded industries are those that sell their products and services across regions and often to other countries. They tend to be spatially concentrated, reflecting the location of specialist demand, skilled labour, technological infrastructure, supply chains and other competitive factors. SEEDA’s focus is on a group of six traded industries, which it has designated as priority sectors: Financial and Professional services; ICT, Software and Digital Media; Advanced Engineering and Marine; Aerospace and Defence; Pharmaceuticals, Life Sciences and Healthcare; Environment and Energy. According to ONS data there are 128,000 businesses in the South East in the six priority sectors – 18% of the UK total for these sectors. Aerospace and Defence and ICT, Software and Digital Media have the highest share of the UK market. Within the South East, the Financial and Professional Services sector accounts for almost half of the region’s businesses within the priority sectors, while ICT, Software and Digital Media accounts for around one third. In 2007 the six priority sectors contributed £65.9 billion to the South East economy or 42% of total GVA. Over the decade 1997-2007, total GVA in the six priority sectors in the South East expanded by around 4.7% per year – above the regional average of 4%. Output in the six priority sectors in the South East, taken together, is expected to contract at a faster rate than the regional average in 2009 (-6.5%), although over the decade 2010-2020, GVA in these sectors is expected to expand at a faster rate than the regional average (3.3% per year, compared to 2.7%). In 2007 there were 1.53 million people employed in the six priority sectors in the South East, or 35% of total regional employment. Over the decade 1997-2007, total employment in the six priority sectors in the region expanded by around 0.7% per year – below the South East average of 1.1% per year. Employment in the priority sectors, taken together, is expected to contract at a faster rate than the regional average in 2009 (-2.1%), but over the decade 2010- 2020, employment in these sectors is expected to expand at a slightly faster rate than the regional average (0.9% per year compared to 0.8%).

Suggested Citation

  • Papa, Javier & et., al., 2010. "The geography of key sectors in the South East," MPRA Paper 116709, University Library of Munich, Germany, revised Apr 2010.
    • Handle: RePEc:pra:mprapa:116709
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    File URL: https://mpra.ub.uni-muenchen.de/116709/1/Priority_Sectors_Apr_2010.pdf
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    References listed on IDEAS

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    1. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    2. Scott, Allen J. (ed.), 2001. "Global City-Regions: Trends, Theory, Policy," OUP Catalogue, Oxford University Press, number 9780198297994.
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    Keywords

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    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)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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