UK Cities Intelligence: issue 2

UK Cities Intelligence: A Comprehensive Overview of Innovation and Growth

Introduction:

The second edition of Arup's UK Cities Intelligence explores the pivotal role of innovation in driving economic growth and shaping dynamic places. This document emphasizes the synergy between research, collaboration, and creativity, highlighting how these elements are crucial in unlocking innovative solutions and enhancing productivity.

Key Findings:

1. Productivity and Innovation Nexus: The UK Government defines innovation as "the creation and application of new knowledge to improve the world". Over the 2000s, innovation accounted for approximately 50% of labor productivity growth, underscoring its significance in economic advancement.

2. UK Investment in Innovation: Despite a 2.9% of GDP investment in research and development (R&D), the UK lags behind major economies like the USA, Germany, and South Korea. The government aims to invest strategically in five high-potential sectors—advanced manufacturing, digital and tech, life sciences, creative industries, and green industries—to foster growth.

3. Growth of Knowledge Economy: The UK’s knowledge-intensive sectors have seen substantial growth, adding nearly two million jobs over a decade, beyond traditional city centers. Business and technology parks, particularly suburban ones, have proven attractive, accounting for a significant portion of the economy.

4. Innovation Districts: These areas, intentionally designed to promote collaboration between anchor institutions (universities, hospitals, research bodies), new workspaces, and vibrant public spaces, serve as catalysts for innovation and economic growth. They facilitate the exchange of ideas and enhance access to talent, accelerating product and service commercialization.

5. Policy and Development: Various government initiatives, including Scotland Can Do, the Innovation Districts initiative, Test Bed evaluations, the UK Research and Development Roadmap, and the UK Innovation Strategy, aim to leverage the country’s R&D capabilities to support businesses and enhance competitiveness.

6. Innovation District Typology: Innovation districts can manifest in various forms, including city center expansions, new urban quarters, and out-of-town technology parks. Each type leverages unique local assets and challenges to foster innovation, often through strategic public-private partnerships and investments in infrastructure and connectivity.

Conclusion:

Arup’s UK Cities Intelligence underscores the critical role of innovation in shaping effective long-term change for both people and places. By focusing on productive innovation districts, enhancing public realm and space diversity, and fostering collaborative networks, the UK can drive more productive growth, improve living standards, and remain competitive in the global economy.