Regional Competitiveness and Uneven Development: Transforming the Strategies of Policymakers
Submitting Institution
Cardiff UniversityUnit of Assessment
Architecture, Built Environment and PlanningSummary Impact Type
PoliticalResearch Subject Area(s)
Economics: Applied Economics
Studies In Human Society: Human Geography, Policy and Administration
Summary of the impact
Research pertaining to the concept and theory of regional competitiveness
has permeated economic development policymaking in the UK and overseas.
Economic development policymaking has become increasingly devolved from
the national level to government decision-makers at the regional, city and
local level. This has required such policymakers to establish new
strategies, modes of assessment, and marketing plans to facilitate and
promote economic development. Cardiff's research has helped to transform
the perception, activities and strategies of decision-makers through the
provision of new concepts, methods and metrics for assessing regional
competitiveness. The research has equipped them with the tools required to
establish robust evidence-based policymaking within a knowledge economy.
Underpinning research
The initial research underpinning the impact stems from work undertaken
within the Centre for Advanced Studies at Cardiff University from
1997-2000 including an ESRC-funded study (value £103,000). Within the
study, Professor Robert Huggins (then Senior Research Associate) developed
new concepts, methodologies and measures to understand the competitiveness
of regions, cities and localities. At the time there were already a number
of established models for measuring competitiveness differences across
nations, but there was very little research on sub-national and
territorial differentials in competitiveness. Therefore, the research
offered a new means of both conceptualising and measuring geographic
uneven development.
The research undertaken at Cardiff established an innovative model for
benchmarking the economic performance of regions that went beyond the
traditional focus of examining certain indicators and regions in
isolation. Instead, the research provided the groundwork for a new form of
benchmarking that draws upon an integrated suite of indicators that are
comparative across regions. In particular, the regional competitiveness
framework developed at Cardiff provided a tool that moved beyond a focus
on single economic measures, such Gross Domestic Product per capita, that
fail to fully capture differences in the performance of economic systems
across regions, or the reasons underlying these differentials.
The competitiveness framework also provided a new means for classifying
regions, which in due course allowed policymakers and analysts to identify
`competitor' and `comparator' regions from where they may wish to seek and
transfer relevant policies and economic strategies. In this respect, the
research provided a basis for supporting the evolution in regional
policymaking from processes that are undertaken principally on an
intra-regional basis to one that integrates processes based on
inter-regional learning. The research, therefore, helped set a policy
agenda which recognises that whilst each region has a unique combination
of competitiveness requirements, economic integration and globalisation is
necessitating heightened interaction and linkage, resulting in the need
for regions to increasingly pool and consolidate their competitive
strengths as a means of eradicating their weaknesses.
The initial research undertaken by Huggins was formulated as the UK
Competitiveness Index, the first tool to provide a composite measure
of the competitiveness of the UK's regions, cities and localities. After
publishing the Index at Cardiff in 2000 - Huggins, R. (2000) An Index
of Competitiveness in the UK: Local, Regional and Global Analysis,
Centre for Advanced Studies, Cardiff University, Cardiff - Huggins left to
commercialise the research, updating the tool and developing world and
European versions. (see Background, section 4)
Huggins returned to academia in 2005 and to Cardiff, as Professor, in
2008. Overall, his research has established `regional competitiveness' as
a new theoretical lens through which to consider the uneven economic
development of places. However, as with many emerging concepts and
theories, it has become one of the most keenly contested constructs within
economic geography. Since his return to Cardiff, Huggins and colleagues
(including Dr Hiro Izushi, Aston University and Dr Piers Thompson, Cardiff
Metropolitan, then Nottingham Trent University) have contributed
significantly to these debates.
References to the research
Huggins, R. and Izushi, R. (2013) `Knowledge-based Development in Leading
Regions across the Globe: An Exploratory Analysis of the co-Evolution of
Resources, Capabilities and Outputs, Urban Studies, Vol. 50, No.
5, 1030-1048. DOI 10.1177/0042098012458002
Huggins, R. and Thompson, P. (2013) `Competitiveness and the
post-regional political economy', Local Economy, Vol. 28, No. 7-8, 881 -
890. DOI: 10.1177/0269094213500884.
Huggins, R. and Thompson, P. (2012) `Well-Being and Competitiveness: Are
the Two Linked at the Local Level?', Cambridge Journal of Regions,
Economy and Society, Vol. 5, No 1, 5, 45-60. DOI
10.1093/cjres/rsr017
Huggins, R. (2000) `An Index of Competitiveness in the UK: Local,
Regional and Global Analysis', in Lloyd-Reason, L. and Wall, S. (eds.) Dimensions
of Competitiveness: Issues and Policies, Cheltenham, Edward Elgar.
(available from HEI on request)
Huggins, R. (1997) `Regional Competitive Specialization: Development
Agency Sector Initiatives in Wales', Area, Vol. 29, No. 3,
241-252. (available from HEI on request)
Huggins, R. (1997) `Competitiveness and the Global Region: The Role of
Networking', in Simmie, J. (ed.) Innovation, Networks and Learning
Regions?, London, Jessica Kingsley. (available from HEI on request)
Details of the impact
All three versions of the Index - UK, European and World - are in
widespread use among policymakers seeking to develop and assess regional
economic strategies.
Background to impact
In 2000, Huggins established a consultancy, Robert Huggins Associates, to
commercialise his research and to introduce more products and services.
The UK Competitiveness Index was updated at various points in time, with
each update made available through a publicly available report and
accompanying spreadsheets. Huggins, with Izushi then developed models to
examine regional competitiveness from an international perspective. In
2002, the results of one project were formulated as the World
Knowledge Competitiveness Index, with the underlying model designed
as an integrated and overall benchmark of the knowledge capacity,
capability and sustainability regions across the globe, and the extent to
which this knowledge is translated into economic value and transferred
into the wealth of the citizens of these regions. As with the UK level
index, this tool has also been further developed, refined and expanded,
with each new version made publicly available through a report and
accompanying spreadsheets. The third model developed by Robert Huggins
Associates focused on examining the competitiveness of Europe's regions
and nations. This led to the establishment of the European
Competitiveness Index, whereby competitiveness is defined as the
capability of an economy to maintain increasing standards of living for
those who participate in it by attracting and maintaining firms with
stable or rising market shares in an activity.
Impact on UK and international policymaking
Since 2008, the research has been disseminated to a policymaker audience
principally through reports containing the concepts, methodologies and
metrics of the UK Competitiveness Index, European
Competitiveness Index and World Knowledge Competitiveness Index.
During this period, the reports have been downloaded from a bespoke
website (www.cforic.org) 50,722 times (as of 25th October
2013). The research has also been disseminated via the media, reaching a
wide range of audiences, including regional, national and supranational
(principally European Commission) policymakers. For instance, the Financial
Times published significant articles in 2008 (3 September) and 2010
(19 April). Other dissemination has occurred through presentations of the
research to policymaker audiences, notably the Global Competitiveness
Forum in Riyadh, Saudi Arabia (January, 2009), attended by policymakers
and industry representatives.
In the UK, the research - especially that disseminated through the UK
Competitiveness Index - has transformed the way a large number of
regional and local authorities: (1) assess the economic performance of the
places within their jurisdiction; (2) develop strategies and targets to
improve the economic performance of these places; and (3) market and
promote these places, particularly with regard to the attraction of
investment. This is evidenced by the fact that since 2008 the research has
appeared in the policy documentation of at least 80 regional or local
authorities (or stakeholder partnerships) in the UK. For example, in 2009,
authorities in Manchester adopted the research as a key means of
developing a new strategic enterprise framework for the city, in
particular for establishing a rationale for focusing intervention on a
particular range of activities [1]. In York, the York Economic Partnership
(YEP), involving the local authority and other stakeholders, utilised the
research in their 2011 documentation outlining the future economic
strategy for the city. In particular, YEP used the research to provide a
better understanding of the performance of the city and the strategic
actions required to facilitate improvement [2]. This led to YEP developing
what they termed a `new approach' to strategic development involving
multiple organisations from across the city-region.
The influence of the research has permeated across both urban and rural
places. For example, Somerset County Council utilised the researchers'
work within their own 2010 commissioned documentation relating
specifically to the economic competitiveness of the local authority area
[3]. This resulted in concrete recommendations being proposed as to how
the local public sector can best support improvements to economic
competitiveness in Somerset. Also in 2008, the research became an integral
feature of the impact analysis of the European Social Fund Objective One
Programme for Cornwall and the Isles of Scilly, with it acting as an
important assessment measure of the extent to which funding impacted on
the region's underlying economic performance [4]. As a result, a number of
recommendations were established, including one that addressed the low
participation in the knowledge economy through investments in Convergence
Programmes.
Within the UK, the research has also influenced national level
policymaking. In 2010, the UK Commission for Employment and Skills (UKCES)
reviewed the research team's work on regional competitiveness
differentials to better understand the geography of UK competitiveness,
and the associated implications in terms of developing a policy agenda to
raise employment and skill levels in the UK [5]. In March 2011, the UK
government announced the establishment of a £100m Growth and Innovation
Fund to boost investment in skills and training as means of directly
addressing the competitiveness issues raised by the UKCES.
The research - principally that disseminated through the World
Knowledge Competitiveness Index and the European Competitiveness
Index - has had an international policy impact. In 2010, the
European Commission designed and published its first EU Regional
Competitiveness Index. This EC-led work drew significantly on the concepts
and methodologies originally developed by the researchers, as highlighted
by significant references to their work in the Commission's publication
[6]. Similarly, policymakers in overseas locations have incorporated the
research into their deliberations and actions. For instance, city
authorities in Grand Rapids, USA utilised the concepts and measures
relating to `knowledge competitiveness' to provide a fuller understanding
of the economic evolution of the city and its future prospects (2008) [7].
Other examples of international policy impact can also be cited. In 2008,
the city of Helsinki drew upon the research to formulate a vision for the
city, which resulted in activities to increase internationalisation and
integration into the global economy [8]. In Ireland, the national
development agency - Forfás - integrated the methodology and measures
provided by the European Competitiveness Index within a comprehensive
competitiveness benchmarking framework [9].
At the international level, the research has influenced agendas beyond
regional and local development. In 2009, the work of the researchers
formed part of the deliberations of the International Institute for
Sustainable Development - a not-for-profit policy research institute - in
their formulation of a `responsible competitiveness' agenda [10]. In
addition, Huggins was asked in 2011 to join a team advising the General
Secretariat of the Executive Council of Abu Dhabi on the development of
methodologies for examining the competitiveness of the emirate in relation
to innovation. This led to the creation of `The Competitiveness Office of
Abu Dhabi' by the Department for Economic Development in Abu Dhabi.
Huggins has also advised the Competitiveness Office on developing a
`Regional Competitiveness Index for Abu Dhabi'.
Since 2008, Huggins has acted as an advisor or consultant on
competitiveness issues to the following organisations: East of England
Development Agency (2008); One North East (North East England Development
Agency) (2009); Greater Merseyside Partnership (2009); UK Government
Department for Environment, Food and Rural Affairs (2010/11); British
Chambers of Commerce (2012); Regional Australia Institute (2012); and
Chambers of Commerce in Colombia (2012).
Sources to corroborate the impact
[1] Association of Greater Manchester Authorities/Manchester Commission
for Economic Development, Employment and Skills (2009) The Manchester
Strategic Enterprise Framework 2009-2011. http://pdf.edocr.com/1011a0a4c7184fd6f69b58aeee79c7582c6e55cc.pdf
confirms the use of the UK Competitiveness Index research in the
formulation of the Manchester Strategic Enterprise Framework (see
references to the research on page 26).
[2] York Economic Partnership (2011) Reaching Further: York Economic
Strategy 2011-2015. York: York Economic Partnership and City of York
Council.
http://www1.hays.co.uk/jobs/cyc/DOCS/City-of-York-Draft-Economic-Strategy-2011-2015.pdf
confirms the use of the UK Competitiveness Index research in the
formulation of the York Economic Strategy (see references to the research
on pages 5, 8, 10 and 23).
[3] Somerset County Council (2010) Somerset Competitiveness: Draft
Final Report. Exeter: Roger Tym and Partners.
http://www.somerset.gov.uk/irj/go/km/docs/CouncilDocuments/SCC/Documents/Community/Economy%20and%20Europe/Policy%20theme%20-%20Competitiveness.pdf
confirms the use of the UK Competitiveness Index research in the
review of the Somerset economy (see references to the research on pages 1,
2 and 3).
[4] South West Observatory (2008) Impact Analysis: ESF Objective One
Programme, Cornwall and the Isles of Scilly Volume 1: Findings and
Recommendations Report. Bristol: Government Office South West and
the South West Regional Development Agency.
http://www.marchmont.ac.uk/Documents/Projects/objective-1_cornwall/findings.pdf
confirms the use of the UK Competitiveness Index research in the
impact analysis of the ESF Objective One programme in Cornwall and the
Isles of Scilly (references to the research on pages 13, 16 and 17).
[5] UK Commission for Employment and Skills (2010) Ambition 2020: World
Class Skills and Jobs for the UK. South Yorkshire and London: UKCES.
http://www.ukces.org.uk/assets/ukces/docs/publications/ambition-2020-the-2010-report.pdf
confirms the use of the UK Competitiveness Index research in the
UKCES review (see references to the research on pages 20 and 21).
[6] Annoni, P. and Kozovska, K. (2010) EU Regional Competitiveness
Index 2010. Luxembourg: Publications Office of the European Union.
http://publications.jrc.ec.europa.eu/repository/handle/111111111/13666
confirms the use of the research in the formulation of the EU Regional
Competitiveness Index 2010 (see, for example, references to the
research on pages 2, 4, 16, 22, 23 and 253).
[7] City of Grand Rapids (2008) Grand Rapids, Michigan: Community
Triple Bottom Line Indicator Report. Grand Rapids: City of Grand
Rapids.
http://grcity.us/enterprise-services/Documents/11686_TBLFinal.pdf
confirms the use of the World Knowledge Competitiveness Index
research in the Grand Rapids economic review (see reference to the
research on page 21).
[8] City of Helsinki (2008) Helsinki's International Strategy 2008.
Helsinki: City of Helsinki Administration Centre
http://www.hel2.fi/ajankohtaista/Halke/Kv_strategia_en.pdf
confirms the use of the research in the formulation of the Helsinki
International Strategy (see pages 6 and 8).
[9] Forfás/National Competitiveness Council (2008) Review of
International Assessments of Ireland's Competitiveness. Dublin:
Forfás/National Competitiveness Council.
http://www.forfas.ie/media/ncc071220_international_competitiveness_review1.pdf
confirms the use of the European Competitiveness Index research in
Ireland's economic review (see references to the research on first page of
the report and pages iv, 1, 2, 3, 4, 5, 23, 24, and 25).
[10] International Institute for Sustainable Development (2009) Towards
Sustainable Outsourcing: A Responsible Competitiveness Agenda for
IT-Enabled Services. Winnipeg, Manitoba, Canada: International
Institute for Sustainable Development.
http://www.accountability.org/images/content/0/9/099/ITES_RC%20agenda%20for%20sustainable
%20outsourcing(2).pdf
confirms the use of the World Knowledge Competitiveness Index
research by the International Institute for Sustainable Development (see,
for example, page 13).