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Smart Productivity Securing Sustainable Development in the English Regions 12993EEDA 27/6/06 10:05 Pm Page 2 12993EEDA 27/6/06 10:05 pm Page 1 Smart Productivity Securing Sustainable Development in the English Regions 12993EEDA 27/6/06 10:05 pm Page 2 In just one year, the nine regional development agencies have: Created/safeguarded 100,000 jobs Brought in £754 million from private sector investment Enabled 200,000 people to receive training opportunities Brought 1,000 hectares of brownfield back into use Helped start up 7,500 enterprises These figures refer to 12 month period 2004/05. 2 SMART PRODUCTIVITY – SECURING SUSTAINABLE DEVELOPMENT IN THE ENGLISH REGIONS 12993EEDA 27/6/06 10:05 pm Page 3 CONTENTS FOREWORDS 4 INNOVATION 20 Richard Ellis I Chairman, East of England Development Agency Photovoltaics I One NorthEast John Healey I Financial Secretary to the Treasury Centres of Industrial Collaboration I Yorkshire Forward Ian Pearson I Defra, Minister of State, Climate Change and Composites Centres I South West of England Regional the Environment Development Agency/South East England Development Margaret Hodge I DTI, Minister of State for Industry and Agency/Northwest Regional Development Agency the Regions Centre for Sustainable Engineering I East of England Development Agency ENTERPRISE 6 Exmoor Sustainable Development Fund I South West of England Deliciouslyorkshire I Yorkshire Forward Regional Development Agency Renewables East I East of England Development Agency One Green Route I One NorthEast SKILLS 25 Mayor’s Green Procurement Code I London Development Agency Careers Northwest I Northwest Regional Development Agency Local Alchemy I East Midlands Development Agency COMPETITION 10 Bordesley Centre I Advantage West Midlands enhance I London Development Agency Regional higher education I East of England Development Agency ENWORKS I Northwest Regional Development Agency Diversity Works I London Development Agency Sustainable Business Partnerships I South East England Development Agency MEASURING SMART PRODUCTIVITY 30 National Industrial Symbiosis Programme I JOINT WindSupply I Advantage West Midlands INVESTMENT 15 Kielder district heating I One NorthEast Temple Quarter I South West of England Regional Development Agency Biomass I Advantage West Midlands Transport I Yorkshire Forward/East Midlands Development Agency/South East England Development Agency blueprint I East Midlands Development Agency SMART PRODUCTIVITY – SECURING SUSTAINABLE DEVELOPMENT IN THE ENGLISH REGIONS 3 12993EEDA 3/7/06 5:12 pm Page 4 FOREWORD Getting ‘smart’ While our 2004 publication, Building on the traditional a number of renewable initiatives purpose’ advice package rather Smart Growth, demonstrated that approach to improving labour including on the world’s first than regarded as an optional extra Regional Development Agencies productivity, ‘smart productivity’ 20MW Wave Hub, supported by the – something I, and the Financial (RDAs) are contributing to (a term coined for this report) South West of England Regional Secretary to the Treasury, sustainable development, recognises that longterm gains Development Agency, which has John Healey, hope to start to Smart Productivity, an initiative rather than short term fixes, the recently secured the first three address through the taskforce undertaken in partnership with flow of resources, and the ability of companies to use its facilities after on business energy efficiency. Defra, aims to bring together an innovation to get more from less it is installed in 2008. Progress is evidence base of RDA are critical if we are serious about needed to ensure that regional I hope you will agree that this interventions which support both increasing economic growth in line economic performance indicators report shows some encouraging regional economic growth and with sustainable development better capture the full range of work which demonstrates the sustainable development principles. In terms of resources, a sustainable development foresight of the RDAs in ‘doing principles at the same time. good example of this is underlined outcomes/outputs and strategic things differently’ and of the here in the East of England where added value. On page 30 we have dedication of the individuals The case studies have been it has been estimated that included some tools which could involved in delivering these grouped around the five drivers £229 million a year could be added be more widely used and initiatives on the ground. of productivity: enterprise, to our region’s economy through developed to support our Although we still have a long competition, investment, the improved use of resources by investment decisons. journey to make towards having a innovation and skills which also our businesses: a sum which low carbon economy, I am hopeful reflect the four priorities of the UK would require considerably more English RDAs would welcome the we are getting closer to removing sustainable development strategy: effort to achieve through business opportunity to work alongside the the barriers preventing us from sustainable consumption and growth alone. government to continue to improve making faster progress. production; climate change and the evidence base on ‘smart energy; natural resource The scope of the work showcased productivity’, enabling better protection and environmental is wide, although strong support alignment with the RDAs’ public enhancement; and sustainable for the renewable energy sector service agreements. We need to communities. Introductions to reflects the expected sector also be mindful of getting ‘smart’ each of the economic drivers growth rate of 25% over the next in terms of delivery of business aim to define ‘smart productivity’ five years. Since the publication of advice, ensuring that sustainable Richard Ellis and suggest ways in which it Smart Growth, I am delighted to development-related issues Chairman, East of England could be measured. see progress has been made on become part of an efficient ‘fit for Development Agency 4 SMART PRODUCTIVITY – SECURING SUSTAINABLE DEVELOPMENT IN THE ENGLISH REGIONS 12993EEDA 3/7/06 7:48 pm Page 5 FOREWORD Achieving a sustainable economy In April 2006, the Government published Securing the Regions’ Futures, We welcome this publication. The case studies it includes contribute to our approach to strengthening delivery of sustainable development in the a growing evidence base about the way in which sustainable productivity English regions. It echoed the Government’s ambition, as set out in the can be pursued. This is not an easy task and we will work across UK sustainable development strategy, to achieve a sustainable economy, government and with Regional Development Agencies to continue to not as an end in itself but as a means of creating a strong, healthy and improve the evidence base on ‘smart productivity’. just society which lives within environmental limits. We hope that the case studies shown here will inspire further innovation Under Securing the Regions’ Futures, we committed to work with in every region in order to maximise investment in ‘smart productivity’. the Regional Development Agencies (RDAs) in order to publish Smart Productivity. This document follows an earlier publication called Smart Growth and so represents a further step in the progress being made to achieve a sustainable economy. As part of reinforcing economic stability and long-term success, the Government is committed to enhancing the economic performance of all nations and regions in the UK through tackling market failures in the five drivers of productivity – enterprise, competition, investment, innovation and skills. ‘Smart productivity’ is sustainable productivity – it adds to rather than depletes the country’s environmental and social capital over the long-term. Our economic prosperity depends on these assets and as a society we are becoming increasingly aware of the pressures on them. Regional Development Agencies have a leading role to play in fostering and investing in ‘smart productivity’. This publication highlights some excellent practical examples of RDA-funded projects which, in line with regional economic strategies, generate economic value whilst also delivering a range of environmental and social benefits. We face some profound challenges over the next decade: increasing John Healey Ian Pearson Margaret Hodge demographic change and globalisation, climate and environmental Financial Secretary to the Minister of State Minister of State for change as well as far-reaching changes in technology. These challenges Treasury Climate Change and Industry and the Regions demand innovation and new ways of working. None more so than the way the Environment we can harness enterprise, competition, investment, innovation and skills as drivers for more resource-efficient, productive businesses and a better quality of life overall. SMART PRODUCTIVITY – SECURING SUSTAINABLE DEVELOPMENT IN THE ENGLISH REGIONS 5 12993EEDA 3/7/06 8:57 pm Page 6 ENTERPRISE Enterprise requires a ‘can-do’ attitude, plus the skills to apply East of England Development Agency it to business opportunities. Enterprise is measured by the number of VAT registrations: how many entrepreneurs turn their idea into business reality. Blown and grown Smart enterprise could be measured to reflect the number of new company start-ups that contribute to protecting natural The East of England is uniquely including wind, wave and tidal positioned to develop energy technologies. The East of England resources or integrate social principles. technologies from ‘blown and grown’ Development Agency is contributing sources. Its long shallow coastline
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