Member Article

North East 'more competitive'

The North East is one of the UK’s most improved regions in terms of competitiveness, according to a report released today. The UK Competitiveness index shows that along with Northern Ireland, Wales, and Yorkshire, the North East has made a better increase on the previous year’s results than London and the South East.

The report, a measure of the competitiveness of UK regions, has been running annually since 2000. It has been compiled by the Work Foundation, who say the figures are the first sign that the traditional North-South economic divide is closing.

The North East’s most noticeable improvement was investment by businesses in research and development, where the region has jumped 134% on the previous figures. The Work Foundation described this as “a key indicator of future innovation.” The North East also ranked third in the list of top investors in higher education, just behind Scotland and London.

Dr Robert Huggins, who devised and compiled the UK Competitiveness Index, said: “For as long as most of us can remember, the story of the UK’s economic performance has been a tale of two nations – the go-ahead London and south east region and the north and west of the country stuck in the doldrums of post-industrial blight. This year’s UK Competitiveness Index represents the first signs that a new chapter is about to be written. “The signs are that, with patience, strategic development through devolved institutions and regional development agencies is starting to make a difference. Targeted regional investment appears to reduce unemployment and lift regional competitiveness.”

Ian Brinkley, director of The Work Foundation’s knowledge economy programme, said: “There are very positive signs here that the gap in regional economic performance is starting to close and regional policy decisions are beginning to pay dividends. Yet a little caution is needed because the index reflects only one year’s data. “Evidence from other sources continues to show that city-regions with the highest proportions of knowledge based business tend, over the long term, to do best.”

To find out more about the Competitiveness Index, visit the Work Foundation’s website.

This was posted in Bdaily's Members' News section by Ruth Mitchell .