Description
Jobs Underpin Recovery. Discuss The Big Picture
“Jobs Underpin Recovery”. Discuss
The Big Picture?
Stuart Gulliver
• Economic performance is central to the success of
the city economy
• Sustainable city recovery is fundamentally about
job growth and incomes
By ‘Jobs’ we can mean 3 things
• the quantity of jobs (in ‘survival’ period this is a priority)
• the quality of jobs (pay levels, skill levels)
• job direction (“Glasgow jobs for Glasgow people”)
Job Growth comes about because of 4 rates of change
- a sort of ‘Corporate demography’
• birth rate of business
• death rate of business
• growth rate of existing businesses (and institutions)
• migration rate of existing business (and institutions)
3 Models of Job Generation pursued by cities
over last 30 years
I II III
‘Survivalism’
Get any job you can
‘Re-structuring’
Economic self-
improvement
‘Post-Industrial’
Seeking competitiveness
in the global economy
Indigenous business,
small business,
technology sectors,
risk capital
Focus
Both indigenous
and exogenous
Chasing FDI
Get ‘basics’ right,
connectivity, talent,
amenity, networks
E-Zones, tax breaks,
sector parks, business
services
Deep subsidy, low
costs, skills available
Approach
Particular Approaches to Job Generation
- & the growth of ‘fadism’
i) Foreign Direct Investment (FDI)
• USA, J apan. ‘Branch plant’ & later subsidiary
entrepreneurship. ‘Silicon Glen’
ii) Technology Sectors
• Electronics, Health Care, Advanced Engineering, Financial
Services, Oil & Gas, Tourism
iii) ‘Picking Winners’
SDA had an investment capability
iv) New firm formation and small business development
Motivated by U.S. research by Birch
v) Commercialisation and Technology Transfer
vi) Clusters
What are Glasgow’s competitor cities up to in
early 90’s?
1989 Analysis: Glasgow in bottom half of 3rd
Division of 4 Division system
1990/91 Visits: Hamburg, Munich, Copenhagen
Lyon, Barcelona, Monpellier,
Marseille, Rotterdam,
Amsterdam, Milan
Our Competitors - 4 themes emerging
1. Get the basics right and do them really well
•external connectivity
•human capital
•quality of built environment / amenity
2. Universities & research centres as key institutions
3. Focussed business development
•SME Support systems
•promotion of entrepreneurialism
4. Appropriate Development Mechanisms
The Glasgow Approach
• What isamenable to change at the city level?
Macro factors affect 80% of what happens at city
level
• Strategy of “rowing, steering and cheering”
• Difficulty of identifying which economic activities
will be key at the city level in the future
1. External Connectivity
Route development, “Use it or lose it campaign”
2. Other supply side activity
• creation of modern, attractive business locations & sites
• quality of labour market
• access to investment funds, venture capital
3. Universities designated as a Key Industry
4. Focused Business Development
5. Strategic Marketing
6. Implementation - delivery focus; making Glasgow an
easy place to invest in
Jobs Come Late in the Cycle
Stages of City Turnaround
Decline
Survival
Stabilise
Revival
Transformation
Re-position Re-invent
Turnaround Life Cycle - Jobs come late in the cycle
City
Performance
Stage 1
‘Survival’
Stage 2
‘Revival’
Stage 3
‘Re-position’
Time
• City turnaround takes a generation - 25 years
• Need for ‘Pacing Devices’
• 1988 Glasgow Garden Festival
• 1990 European City of Culture
• 1996 Festival of the Visual Arts
• 1999 UK City of Architecture & Design
doc_219710587.pdf
Jobs Underpin Recovery. Discuss The Big Picture
“Jobs Underpin Recovery”. Discuss
The Big Picture?
Stuart Gulliver
• Economic performance is central to the success of
the city economy
• Sustainable city recovery is fundamentally about
job growth and incomes
By ‘Jobs’ we can mean 3 things
• the quantity of jobs (in ‘survival’ period this is a priority)
• the quality of jobs (pay levels, skill levels)
• job direction (“Glasgow jobs for Glasgow people”)
Job Growth comes about because of 4 rates of change
- a sort of ‘Corporate demography’
• birth rate of business
• death rate of business
• growth rate of existing businesses (and institutions)
• migration rate of existing business (and institutions)
3 Models of Job Generation pursued by cities
over last 30 years
I II III
‘Survivalism’
Get any job you can
‘Re-structuring’
Economic self-
improvement
‘Post-Industrial’
Seeking competitiveness
in the global economy
Indigenous business,
small business,
technology sectors,
risk capital
Focus
Both indigenous
and exogenous
Chasing FDI
Get ‘basics’ right,
connectivity, talent,
amenity, networks
E-Zones, tax breaks,
sector parks, business
services
Deep subsidy, low
costs, skills available
Approach
Particular Approaches to Job Generation
- & the growth of ‘fadism’
i) Foreign Direct Investment (FDI)
• USA, J apan. ‘Branch plant’ & later subsidiary
entrepreneurship. ‘Silicon Glen’
ii) Technology Sectors
• Electronics, Health Care, Advanced Engineering, Financial
Services, Oil & Gas, Tourism
iii) ‘Picking Winners’
SDA had an investment capability
iv) New firm formation and small business development
Motivated by U.S. research by Birch
v) Commercialisation and Technology Transfer
vi) Clusters
What are Glasgow’s competitor cities up to in
early 90’s?
1989 Analysis: Glasgow in bottom half of 3rd
Division of 4 Division system
1990/91 Visits: Hamburg, Munich, Copenhagen
Lyon, Barcelona, Monpellier,
Marseille, Rotterdam,
Amsterdam, Milan
Our Competitors - 4 themes emerging
1. Get the basics right and do them really well
•external connectivity
•human capital
•quality of built environment / amenity
2. Universities & research centres as key institutions
3. Focussed business development
•SME Support systems
•promotion of entrepreneurialism
4. Appropriate Development Mechanisms
The Glasgow Approach
• What isamenable to change at the city level?
Macro factors affect 80% of what happens at city
level
• Strategy of “rowing, steering and cheering”
• Difficulty of identifying which economic activities
will be key at the city level in the future
1. External Connectivity
Route development, “Use it or lose it campaign”
2. Other supply side activity
• creation of modern, attractive business locations & sites
• quality of labour market
• access to investment funds, venture capital
3. Universities designated as a Key Industry
4. Focused Business Development
5. Strategic Marketing
6. Implementation - delivery focus; making Glasgow an
easy place to invest in
Jobs Come Late in the Cycle
Stages of City Turnaround
Decline
Survival
Stabilise
Revival
Transformation
Re-position Re-invent
Turnaround Life Cycle - Jobs come late in the cycle
City
Performance
Stage 1
‘Survival’
Stage 2
‘Revival’
Stage 3
‘Re-position’
Time
• City turnaround takes a generation - 25 years
• Need for ‘Pacing Devices’
• 1988 Glasgow Garden Festival
• 1990 European City of Culture
• 1996 Festival of the Visual Arts
• 1999 UK City of Architecture & Design
doc_219710587.pdf