Last week, UKTI announced the new arrangements to support foreign investment. “UK Trade & Investment yesterday signed a contract that will deliver new national inward investment arrangements. The new arrangements will take over the delivery of inward investment support from the Regional Development Agencies in England.”
The three year contract, which is worth £13.15 million for 2011/12 has been awarded to PA Consulting Group in partnership with the British Chambers of Commerce and OCO Consulting.
The coalition government wish to execute FDI policy with a national agenda. It can make little sense to some in Whitehall to have different regions and sub regions competing for the same international projects with the same taxpayer money.
But there is a real danger in developing the national agenda which can lead to an over simplification of activity and this is clearly demonstrated by the statement by the CEO of OCO one of the partners in the FDI programme.
On the OCO website, Mark O'Connell, CEO of OCO offers a view as to what the critical success factors will be for a sustained and successful approach to investment promotion for the UK. He says,
“What could be interesting would be to rid the UK of the shackles of territories altogether and move towards a sector based approach. A recent project which OCO completed on behalf of UKTI – the UK’s Interactive Map – demonstrates the regional centres of excellence for different sectors.
He goes on to say “It neatly highlights that it would be possible to carve up responsibilities in a more meaningful way, with areas like the Midlands leading on Manufacturing, London leading on Financial Services and the North West on Aviation. The area charged with sector responsibility would be able to pitch the relevant region for the project and know the relevant attributes of a region (or not, as is often the case).”
This is a very dangerous over simplification which flies in the face of OCO’s own research. The UK’s Interactive map demonstrates the high business density and “centres of excellence” within Greater Manchester in ten of the eleven key areas plotted. Advanced Engineering, Business and Professional Services, Financial Services, Creative and Media, Energy, Environment, Food, ICT, Life Sciences and Transportation. Greater Manchester is a centre of excellence in all ten.
So why should manufacturing projects be directed to Birmingham and Financial Services to London and what of intra regional investment and relocation?
MIDAS work hard to bring new investment projects into the City region from elsewhere in the UK. Inward Investment policy needs sub regional engagement and MIDAS has a great role to play in Foreign Direct Investment AND UK relocation projects.
The formulation of policy is too important to be condensed into soundbites from the CEO of OCO, sub regional organisations still have a key role to play.
Sign up today and "subscribe" for e-mail notification of updates.
The views expressed are my own and in no way reflect pro.manchester policy. In no way should the comments be considered as investment advice or guidelines or reflect political bias. UK Economics news and analysis : no politics, no dogma, no polemics, just facts. JKA is a visiting professor at MMU Business School, an economist and specialist in Corporate Strategy, educated at LSE, London Business School with a PhD from Manchester Metropolitan University.
Comments