11 January 2008
Public sector spending is playing a vital role in developing the 'knowledge economies' of many English cities, according to the Work Foundation.
The think-tank's analysis of 56 major cities compared levels of 'knowledge-intensive employment' — a key factor in the UK's economic growth — across the public and private sectors.
It found that some cities — including Doncaster, Plymouth and Stoke — rely almost exclusively on the state to generate jobs in these industries, which are based on high levels of education and technology.
The report, Cities and the role of the public sector in the knowledge economy, says that high public sector investment in cities such as Leeds and Manchester have boosted regional salaries and skill levels, attracted private sector knowledge industries and increased regional productivity.
Report author Naomi Clayton said the findings ran counter to the view that areas with high public sector employment contribute least to the economy. 'The important thing is how cities manage the benefits of public sector investment and capitalise on institutions like universities.'
PFjan2008
