Press Releases
Intelligent and focussed intervention required by the next government to avoid low growth and high unemployment
Friday, 09 April 2010
Christine George
Under embargo until: Friday 9 April 2010
A new paper from The Work Foundation published today (Friday 9 April) sets out a detailed vision of how to make the UK a world leader in key areas by 2020. Outlining what the UK economy should look like within a decade, it also details how this recovery could be achieved.
Report author Ian Brinkley said, “Without intelligent and focussed intervention, we will at best see a pale shadow of what could have been and at worst, an economy still racked with economic imbalances that condemn it to continued low growth and high unemployment. We urgently need to build on our current strengths in the economy and exploit areas where the UK already has distinct advantages.”
The report argues that there are four key areas for growth over the next decade that should determine the priorities for action by the next government:
· the “manu-services” sector which integrates technologically advanced manufacturing with high value services;
· low carbon goods and services, including the implementation of existing technologies, the expansion of advanced manufacturing processes, and the development of new and existing services;
· the creative and cultural sector bound together through “expressive value” or copyright-able activity;
· High tech and high value added networked and intermediary services.
Brinkley claimed, “The challenge is to rebuild an economic model around investment and innovation with little direct public money. We need low-cost solutions, the right frameworks to encourage long-term private investment, and to concentrate public resources on fewer strategic institutions so that it does the most good in critical areas.”
Executive vice chair Will Hutton added, “Despite the urgency and scale of these challenges, little attention is being given to them. Instead, the pre-Election debate is dominated by talk of public spending cuts and tax rises. This publication helps address that balance. There are no more easy pickings off the back of a credit boom. Britain is going to have to self-consciously create a national innovation ‘eco-system’ that will use productive entrepreneurship, innovation and investment as the basis for economic prosperity. Successful companies will be those who use innovation to create products and processes, creating new markets and reputations for themselves.”
A key group of activities is what The Work Foundation has called “manu-services” – where high value added knowledge based services are integrated with high value added manufacturing. In the US, around 60% of manufacturing companies have adopted the manu-services model while in China it is just 1%. The UK sits between the two: roughly 25% of manufacturing companies offered both services and manufactured goods in 2004.
Brinkley concluded, “Policy makers need to demonstrate a clear vision which acknowledges UK based manu-services are critical to the country’s success. Manu-services should enjoy the same prestige as the City did before the financial crisis. Anyone who doubts this should take a look at what’s currently driving the US economy. In the first quarter of this year, the US manufacturing sector gained 45,000 jobs while those in financial activities shed 60,000.”
Ends
Notes to editors
The author Ian Brinkley is available for interviews and briefings.
Innovation, Creativity and Entrepreneurship by Ian Brinkley is available from the media team and on publication at www.theworkfoundation.com.
Views represented in the document represent those of the author and are not necessarily those of organisations that may be sponsoring the programme.
The Work Foundation is the leading independent authority on work and its future. It aims to improve the quality of working life and the effectiveness of organisations by equipping leaders, policymakers and opinion-formers with evidence, advice, new thinking and networks.
Media enquiries:
Christine George 020 7976 3554 or cgeorge@theworkfoundation.com
Nasreen Memon 020 7976 3507 or 07825 527 036