The Government should seize the opportunities of Manchester’s growing technology sector by investing to build a new innovation district in the city, according to a new report by Centre for Cities.
As part of last month’s Autumn Statement, Chancellor Jeremy Hunt announced plans to make Britain the “world’s next Silicon Valley” with ambitions to “build clusters for new growth industries”.
In a report published in partnership with HSBC UK, entitled: At the Frontier: The geography of the UK’s new economy, Centre for Cities calls on the Government to combine these ambitions with the levelling up agenda and prioritise building these high-tech clusters in Manchester, Birmingham, and Glasgow – the three cities initially chosen as “innovation accelerators” in last February’s Levelling Up White Paper.
Ministers should properly fund these plans by creating a £14.5 billion growth package for these three cities over ten years. This could mostly be made up of existing earmarked spending and would go towards funding infrastructure upgrades, improving public transport, and boosting research and development (R&D) to help make each place more attractive to emerging advanced tech industries.
Manchester shows great potential as an innovation hub and is already home to around 42 per cent of the 3,332 new economy firms in the North West. Investing to further increase its appeal to these emerging industries would significantly improve the city’s productivity, driving economic growth and creating more high-skilled jobs.
Delivering innovation districts in Birmingham, Glasgow, and Manchester should be the first step in the creation of a new industrial strategy that looks at how places can cater for a range of emerging industries, in contrast to recent plans that have only focused on the development of specific sectors.
Centre for Cities Chief Executive Andrew Carter said:
“As a city that was at the centre of the Industrial Revolution, Manchester is no stranger to seizing the opportunities of innovation and technological progress. It continues to show great potential more than 200 years on and is already developing as a key hub for advanced tech firms in the North West.
“However, given its size, Manchester should be playing a larger role in the national economy than it currently does. The Government should therefore build on Manchester’s great potential and deliver the investments it needs in skills, regeneration, and infrastructure to attract more cutting-edge businesses and reclaim its historic place as a city at the forefront of innovation.”
Ian Stuart, Chief Executive Officer at HSBC UK said:
“New economy businesses are a driving force for innovation and we must support cities across the UK to facilitate their growth.
“At HSBC UK we have been supporting new companies to realise their growth ambitions through our landmark £15bn SME fund and our £250m Growth Lending facility, but financing is only one part of the equation. Partnerships between private and public sectors will be key to ensuring these high growth companies can access the finance, expertise, and infrastructure they need as we develop the UK’s economy.”
Cllr Bev Craig, Leader of Manchester City Council and GMCA Portfolio Lead for Economy and Business, said:
“This report recognises the enormous potential for innovation-led growth in the UK’s regional cities, in Greater Manchester and especially Manchester city centre, as existing clusters of tech and innovation businesses expand and take advantage of a central location.
“Our city-region is already home to pioneering research and facilities, as well as a large pool of talent – match these with the right powers and investment and we can contribute significantly to levelling up and sustainable economic growth.
“Its recommendations echo our call for the Innovation Accelerator to be a catalyst for developing a world-class innovation ecosystem in Manchester and Greater Manchester, in keeping with our vision of economic growth which benefits everyone.”
