For those involved at a strategic level in economic development, place making as a tool is not new but its time is certainly now in view of the significant transformation towards a knowledge based economy which is taking place. The most important component of this transformation is a much greater reliance on intellectual capital and its application based on significant advances in communication and other technologies and the management of data. The importance of place making is that it plays a much more significant role in current decisions affecting economic development than ever before. As investment and people are now more mobile than ever before, so does the consideration of the quality of a place become much more important.
Quality places retain and attract skilled and talented people. Talented people like places with natural, community, social, leisure, creative and cultural activities for themselves and their families and therefore, combining this with effective professional networks, access to resources and opportunities is even more attractive to the entrepreneur inclined to exploit intellectual capital. Investment decisions are made by people in terms of their time, talent or money based upon an assessment of the anticipated benefit or return. Investment decisions are also made by institutions and businesses according to their own interests and balance sheet objectives but even these interests are increasingly being directly influenced by place.
Determining what a place based strategy should focus on starts with identifying what key assets, services and growth opportunities does the location provide which shape day to day life and economic opportunities. There is a series of challenging questions to be answered – are the basic and hopefully higher level elements of living, working and developing the community firmly established? Are the various forms of infrastructure adequate or a real factor in supporting a competitive commercial environment? Is there evidence of an enviable comparable quality of life to recognised successful locations? If not then why would someone consider investing their time, knowledge and expertise or money (including persuading others) in your location with the associated risks connected with each of the shortcomings? Why would anyone wish to invest in a place that cannot demonstrate a will to invest in itself?
Charles Landry emphasises the importance of place to the economy, where places need to be “distinctive”, have a recognisable “variety” of people, business, culture, buildings and “flow” where people can choose their own pace and path. The physical and cultural characteristics of the place are most clearly linked to the attraction of talent, business and investment.
The principles and benefits are not complicated but the execution of an effective place based approach has inherent challenges in view of the complexity necessary. In terms of the knowledge economy, are smaller and medium sized cities better placed to rise to these challenges? There are key characteristics which are so similar to the “Ideopolis” concept promulgated over the last decade in that ideally an economically successful city based economy comprises of the following aspects:
- high levels of economic success and knowledge based activity;
- a diverse industry base including distinctive specialist niches;one or more high level research and education based institutions that have a mutually beneficial relationship with businesses; strong communications infrastructure;
- a variety of good transport links with and to other cities with multi-modal options;
- public and private sector institutions working together;
- Strategies to ensure all communities benefit from the economic success.
To illustrate this discussion, the wider Exeter economy has much of this approach established. Its economic performance pre-, during and the signs post- recession are of a place making approach with credible examples of success. Some aspects are in need of further investment and its most recently approved economic development strategy certainly embraces this approach as fundamental to making its transition to a knowledge economy. Following this approach has resulted in independent studies identifying the city as outperforming larger cities within the UK and confirms its beneficial regional economic impact. The creation of high value employment opportunities, attracting and retaining highly skilled workers and graduates and capitalising on existing strengths and assets are especially important as the city continues to strengthen its economy.
Encouragingly, Exeter is outperforming the South West and England in terms of the % increase in qualifications amongst workers in the area over the last 10 years. There are key drivers to establishing a successful knowledge economy inextricably linked to place making which the new economic development strategy for Exeter is based upon:
- creating the physical requirements having the architecture and accommodation that businesses and workers require;
- building on what’s there – recognising the city’s existing strengths and weaknesses and playing to these;
- ‘smart specialisation’ – focussing on the range of economic specialisms for which there are credible opportunities, particularly in sectors related to big data, climate change mitigation, health, water science and agri-tech;
- attracting and retaining high skill organisations – organisations that rely on productivity through high quality jobs and highly skilled people;
- an acclaimed education sector – linking closely with the city and businesses;
- distinctive ‘knowledge city’ offer – for businesses and people who are considering investing, working and living in the city, supported by a diverse cultural offer;
- maintaining and improving strong connectivity within and outside the city economic area with major economic hubs;
- strong leadership – around an economic vision supported by proactive networks and partnerships;
- a business friendly and pro-growth local administration.
It is crucial that support is provided to create the right environment for entrepreneurship and technology transfer and to retain and attract talent to those smaller and medium sized places which can offer as much of a complete if not more affordable package to secure growth in investment and employment away from the massive metropolitan areas. It’s not about spreading the jam thinly but focussing on the value for money return such locations really do offer.
Just maybe the more localised approach through the LEPs will enable this to happen.
Please see Exeter the place on this linked video – www.exeter.gov.uk/index.aspx?articleid=13847
Assistant Director Economy
Exeter City Council