Industrial and Regional Policy for Restructuring
Submitting Institution
Coventry UniversityUnit of Assessment
Business and Management StudiesSummary Impact Type
PoliticalResearch Subject Area(s)
Economics: Applied Economics
Studies In Human Society: Policy and Administration
Summary of the impact
This case study focuses on research into how sectors such as automotive
and clothing are restructuring themselves, the consequences for
communities, and the implications for industrial and regional policy
responses. Impact has been achieved through: directly informing and
shaping government policy and strategy; recommendations applied by
government organisations and agencies; and through direct benefit to
organisations and communities. Three linked areas where impact is
evidenced are highlighted: industrial policy for traditional and emerging
sectors; policy for funding and developing sub-regional economic
development structures; and policy for dealing with economic shocks.
Underpinning research
The research underpinning this case study encompasses a portfolio of
projects funded by EU and research council grants, commissions from
various levels of government and from the private sector. It has been
multi-disciplinary and collaborative, with academic, industrial and public
sector partners, and has been disseminated through a variety of channels.
The initial research was undertaken by Professor Clark (retired, 2006) via
the European Union's ERDF RETEX II programme [£25,000, 1996-1998] that
highlighted the fragile state of the Clothing industry in Coventry. In
1998 Berkeley was awarded a transnational grant [ESF ADAPT;
£242,000] to assess the extent of the clothing sector's decline and change
across Europe and, through working with industry and other key
stakeholders, develop and implement a strategy for increasing the
competiveness of the region's clothing industry. Berkeley (and
Tully) subsequently provided a comparative analysis of firms' behaviour in
the clothing manufacturing and automotive sectors funded through the EU
5th Framework programme (with University of Oxford). This highlighted how
firms both within (automotive) and without (clothing) defined policy
clusters display similar behavioural characteristics (1).
Jarvis and Berkeley were commissioned by Coventry City
Council in 2008 to map for the first time the scope and scale of creative
industries highlighting particular areas of strength, opportunities for
growth and recommendations for policy makers. Findings were disseminated
through events and the media, with academic contributions critically
assessing the assumption that creativity and economic development are
intrinsically linked (2). Jarvis and Berkeley were
subsequently commissioned to provide research on economic opportunities
for other emerging, transformational sectors: environmental technologies
and low carbon vehicles.
More recently, research has focused on the implications of restructuring
in the automotive sector on business, economy and society. On the impact
of restructuring, a significant body of research has been undertaken on
the impact of plant closure on workers and their families. Specifically,
ESRC funded research led by Bailey (moved to Aston, October 2013) examined
the economic and social impact of the closure of MG Rover's Longbridge
plant and the subsequent policy responses (3). This extended earlier
research to provide a unique three-wave longitudinal survey. Research has
been widely disseminated (4,5) and its impact was highlighted by the
Academy of Social Sciences in its first `Making the Case for Social
Sciences' report. In terms of the impact of restructuring on business and
the economy several linked projects are noteworthy. First, a commission
from MG Cars Ltd to produce a growth strategy to penetrate EU markets that
drew lessons from earlier experiences of Japanese and Korean manufacturers
in the UK. Second, membership of the CABLED consortium (Berkeley);
a flagship low carbon vehicle demonstrator project in the West Midlands
region. This involved implementing criteria through which potential
drivers of low carbon vehicles could be selected by participating
manufacturers, the provision of a hydrogen fuel station on the
University's campus, and a survey and analysis of drivers' experiences
with recharging. Third, an evaluation of the West Midlands Regional
Development Agency's `Taskforce' response to the 2008-09 economic
recession (Bailey and Berkeley), which targeted support at the
region's automotive sector. Findings from this project evidenced the
effectiveness and value for money of modest but `intelligent'
interventions in mitigating the impact of recession. In particular, the
evidence-led, partnership approach adopted by the Taskforce was found to
be particularly valuable and a model for future intervention. This in turn
led to: a commission from the Department of Business, Innovation and
Skills (BIS) (in conjunction with SQW Consulting) to research economic
shocks and to develop a practical framework to inform government
decision-making on what to do in the event of shocks; and further research
funded by the Audit Commission looking at local authority responses to
recession. The latter resulted in reports for the Commission and an edited
volume (6). Finally, expertise has been developed internationally via two
research projects funded through EU DISTRICT+; and more broadly through
research in a Framework 7 project that focuses on industrial policy as
part of the transition to a new, sustainable growth path in the EU.
References to the research
1. Tully, J. and Berkeley, N. (2004) Visualising the Operating
Behaviour of SMEs in Sector and Cluster: Evidence from the West Midlands,
Local Economy, 19(1), 38-54. (IF 0.621; citations 10) Submitted to
RAE 2008 in UoA31.
2. Jarvis, D., Lambie, H. & Berkeley, N. (2009)
`Creative Industries and Urban Regeneration', Journal of Urban
Regeneration and Renewal, 2(4), 364-374. (IF 0.421)
3. Bailey, D., Chapain, C., Mahdon, M., & Fauth, B, (2008) Life
after Longbridge: Three Years on. Pathways to Re-employment in a
Restructuring Economy. London: The Work Foundation.
4. Bailey, D., Clarke, I., & de Ruyter, A. (2010) Private
equity and the flight of the phoenix four- the collapse of MG Rover in the
UK, Cambridge Journal of Regions, Economy and Society,
3(3),367-382. (IF 1.764; citations 4)
5. Bailey, D., Chapain, C., & de Ruyter, A. (2012) Employment
outcomes and plant closure in a post-industrial city: an analysis of the
labour market status of MG Rover workers three years on, Urban
Studies, 49(7), 1595-1612 (IF 1.493)
6. Bailey, D. & Chapain, C (2011) The Recession and
Beyond: Local and Regional Responses to the Downturn London:
Routledge.
Key Funding
• Industrial Adaptation for sector-based co-operative networks. Berkeley,
N. with Steuer N, Clark D. and Smith-Canham, J. ESF ADAPT programme.
1998-2000. £242,000. Grant won competitively through peer-review; project
subject to European Court of Auditors report.
• The Economic and Social Impact of the Demise of Rover at
Longbridge: A Longitudinal and Holistic Approach to Economic
Restructuring. Bailey, D. with Chapain, Bentley (B'ham), de
Ruyter (Glasgow Caldeonian) and Hall (UWE)). ESRC (RES-000-22-2478);
2006-2009; £100,000 Rated Outstanding (2010).
• Coventry & Birmingham Low Emission vehicle Demonstrator project
(CABLED); Berkeley, N. Technology Strategy Board. 2009-2012.
£166,000.
• Evaluation of the West Midlands Taskforce. Bailey, D.
and Berkeley, N. Advantage West Midlands. 2009-10. £22,000.
• Welfare, Wealth, Work for Europe (www for Europe). Bailey,
D. EU Framework Programme 7 (FP7). 2012-2016. £146,000. Partner with 32
other partners across the EU.
Details of the impact
A significant number of published outputs and activities linked to this
research have been cited and referenced and have received widespread
publicity in the UK and international media, including TV, radio and the
written press. Berkeley has been interviewed for BBC Radio 4's
Costing the Earth programme. Bailey has been interviewed for documentary
programmes, including BBC Radio 4's File on Four and You and Yours; BBC's
Inside Out (RDAs and LEPs); BBC Radio 4's Analysis (MG Rover); and the
BBC's Money Programme (Toyota). In addition, Bailey's blogs at Reuters and
The Birmingham Post are widely cited, and he is also a columnist for the
Birmingham Post and Coventry Telegraph. This media engagement strategy has
been deliberately designed to profile and position our research, and to
shape debates in the areas highlighted.
Informing and shaping national policy debates
Our research is informing and shaping national policy debates in three
areas: industrial policy for traditional and emerging sectors; policy for
funding and developing sub-regional economic development structures; and
policy for dealing with economic shocks. This includes a number of
advisory roles, including (Bailey) as Specialist Advisor to the House of
Commons Select Committee on the West Midlands in its inquiry into the
Impact of the Recession on West Midlands Business (2009). Research has
also been used in evidence presented to a number of parliamentary
inquiries and public consultations, such as: the 2012 Transport Committee
inquiry: Plugged-in Vehicles, Plugged-in Policy (a); the Business
Innovation and Skills Select Committee inquiry into Local Enterprise
Partnerships (2011); the Takeover Panel Inquiry into the Kraft Takeover of
Cadbury (2011); the 2012 All Party Parliamentary Group (APPG) on Local
Growth, LEPs, and Enterprise Zones (in conjunction with the Regional
Studies Association (RSA)); the APPG on Rebalancing the British Economy
(2012); and to the APPG on the West Midlands (2013). As an example of
impact, following written evidence to the Transport Committee Inquiry on
electric vehicles Berkeley provided oral evidence that was
subsequently used by the Committee in their press release to accompany the
report into its findings. This stimulated national political and media
debate on the effectiveness of the policy, with Berkeley's views
being sought for radio and newspaper interviews. Mark Egan, Secretariat of
Transport Select Committee, notes that Berkeley directly informed
policy debate with an "engaging style and has helped [us] prepare
persuasive and credible arguments to lead well-informed discussions".
He stated that "without the work of Coventry University the inquiry
would have been less striking and would not have had such clear
recommendations and thus less impact on the media and as a result impact
on parliament".
Other prominent roles have included: the UK academic lead on the European
Automotive Skills Council (Begley, 2012-) and membership of the Coventry
and Warwickshire Local Enterprise Partnership Executive Delivery Board (Berkeley,
2011-). In this role Berkeley also contributes to the analytics
division, fundamental for underpinning LEP strategy and action plans. The
Wilson Review of University-Business collaboration (2012) makes specific
reference through a case study to the active involvement of Coventry
University in driving the LEP agenda (b).
Influencing policy and practice
Research has directly influenced and informed policy and practice. For
example, the clothing industry strategy (Berkeley) was implemented
locally by Coventry's Clothing Partnership in 2000. Regionally, in
November 2009, Advantage West Midlands published a sector profile and
action plan for the clothing industry informed by a "significant
programme of research undertaken by Coventry Business School, Coventry
University" (c). The creative industries research (Jarvis and
Berkeley) has, as noted by Graham Simpson of Coventry City Council
had a "direct impact on the development of inter-agency structures
intended to underpin the growth of the sector"; and provided the
evidence that funding should be strategically "directed into the gaming
and software sector". Moreover as a result of the research on the
environmental technologies sector, Simpson notes that the Renewable Energy
Technology Alliance was established in 2011 to provide commercial
opportunities through public-private partnership funding to create jobs
and investment in the region.
Simultaneously, Unit research on the response to the MG Rover collapse
highlighted the need for `permanent capacity' to deal with shocks and was
cited in several Select Committee inquiries. When Regional Taskforces were
set up in response to the 2008-09 recession, they were modelled on the
work of MG Rover Taskforce. Research on the need for a supportive
industrial policy for the automotive sector also saw Bailey taking a
leading, national role in pressing the case for support for the automotive
sector over 2008-9, including a `scrappage' scheme to support demand. Ian
Austin (Regional Minister for West Midlands at the time) stated that
Bailey was able to detail exactly what was happening in the sector and
this evidence was used to argue for the scrappage scheme which the
Government subsequently introduced in 2009. More recently his critique of
Local Enterprise Partnerships (LEPs) has been widely cited in policy
debates. The government has responded by providing additional resources
for the operation of LEPs.
Use and application of research by agencies and organisations
Impact is also evidenced by the way that research has been used and
applied. For example, in its investigation into the performance of
Regional Development Agencies in 2010, the National Audit Office cited the
evaluation of the West Midlands Regional Taskforce in its independent
supplementary review of the work of Advantage West Midlands (d), whilst
several other submissions to Select Committee Inquiries have cited the
Unit's work on MG Rover (for example: the House of Commons Transport
Select Committee Inquiry into Bombardier in late 2011). A wide range of
other organisations have benefited from this research and its findings,
including: the All Party Parliamentary Group (APPG) on the West Midlands (Berkeley
presented a keynote on the future of the West Midlands economy); the APPG
on Rebalancing the British Economy; Advantage West Midlands in its
submission to the West Midlands Select Committee's Inquiry into the Impact
of the Recession on West Midlands Business; the Department of Business,
Innovation and Skills (with SQW) to develop a practical framework to
inform government policy on response to shocks; the Dell Taskforce, set up
to deal with Dell's downsizing in Ireland; the LDV Taskforce set up by
Birmingham City Council; representatives of the Gothenburg Business Region
who sought to draw upon the MG Rover experience in light of concerns over
the future of Saab in Sweden (Bailey made presentations in Birmingham and
Gothenburg); the CBI in terms of what can be learned for the automotive
industry generally; and Deloitte, where Bailey gave the Deloitte
Manufacturing Dinner speeches in 2009 and 2010, and presented at the
Deloitte Business School on Manufacturing, drawing on the MG Rover work.
Bailey's work is also widely cited in high profile industry reports — such
as the 2012 Society of Motor Manufacturers and Traders (SMMT) / KPMG
report: An Assessment of Supply Chain Opportunities in the UK Auto
Sector (e), and the broader UK Manufacturing Supply Chain
Insight report (f) by Barclays, which featured a detailed commentary
by Bailey. Both reports received widespread media coverage. Mike Baunton,
Acting Chief Executive of the SMMT notes that "investment in higher
level apprenticeships to build the skills base by enhancing practical
skills and experience has resulted in part from the author's (Bailey's)
reports on the UK market and the gap in the supply base which argue for
the skills and labour force which are needed to underpin the industry
and which has informed public debate", adding that Bailey provides "an
independent voice between industry and politics" which "brings
credibility to the debate". His research has also been picked up by
think tanks such as Civitas (g).
Use and application of research by beneficiaries
Our research has also been used and applied by beneficiaries. For example,
the MG Rover research stimulated the setting up of the 'Retooled' website
by ex-workers, featuring webcasts of their redundancy experiences, in the
hope that this would help other workers in similar situations (h). The
site explicitly thanked the project for stimulating the idea. Retooled was
a pilot supported by Arts Council England and Birmingham City Council as
part of 'Say Hello', a programme of projects attempting to break new
ground for participatory work around digital media.
Sources to corroborate the impact
(a) House of Commons Transport Committee: Plugged-in vehicles, plugged-in
policy?
http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtran/239/239.pdf
(b) Wilson Review of Business-University Collaboration http://tinyurl.com/pxnd64t
(c) Advantage West Midlands Textile & Clothing Industries in the West
Midlands Sector Profile
http://tinyurl.com/pf8q7w3
(d) National Audit Office Independent Supplementary Review of Regional
Development Agencies http://www.nao.org.uk/publications/1011/rda_reviews.aspx
(e) Society of Motor Manufacturers and Traders and KPMG Report
http://www.smmt.co.uk/2012/09/capturing-opportunity-an-assessment-of-uk-automotive-
supply-chain-opportunities/
(f) Barclays UK Manufacturing Supply Chain Insight
http://www.barclayscorporate.com/content/dam/corppublic/corporate/Documents/research/m
anufacturing-report.pdf
(g) see Tristram Hunt MP (ed), Rebalancing the British Economy. London:
Civitas. 2013
(h) MG Rover workers re-tooled website: http://retooled.co.uk/about-the-project/research/