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Cambridgeshire and Peterborough Local Industrial Strategy

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Cambridgeshire and Peterborough Local Industrial Strategy Cambridgeshire and Peterborough Local Industrial Strategy A Partner in the Oxford-Cambridge Arc July 2019 XXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXX 2 Contents Foreword 4 Executive summary 6 Priorities for Cambridgeshire and Peterborough 13 Oxford-Cambridge Arc: economic context 18 Evidence summary 24 The five foundations of productivity Ideas 38 People 46 Infrastructure 54 Business environment 60 Places 66 Priorities across the Oxford-Cambridge Arc 74 Implementation and evaluation 82 3 Industrial Strategy Cambridgeshire and Peterborough Local Industrial Strategy Foreword Cambridge is the UK’s driving force for human discovery. From Francis Crick’s role in the Cambridgeshire and Peterborough discovery of the structure of DNA, is comprised of three different Fred Sanger’s work to understand subeconomies – Greater Cambridge, how to sequence it, and ultimately Greater Peterborough and The to the Sanger Institute's role in Fens. Each is unique, facing its own sequencing one third of the human opportunities and challenges. Success genome, as part of the International for business in each will take a different Human Genome Project, Cambridge form, while the overall goal – an has led our understanding of the inclusive, prosperous, and productive nature of humanity itself. Cambridge economy – is the same. To achieve still produces more patents than the this, many different sectors will need nearest four UK cities put together, and to flourish, creating opportunities its University’s academics and alumni for entrepreneurs and employees. have produced more Nobel laureates The success of the Oxford-Cambridge than any other institution globally. It is Arc is also dependent on an economy the combination of Cambridge’s global in Cambridgeshire and Peterborough leadership in academic discovery, which continues to grow, creating and sectors such as life sciences and further demand for employment and digital, together with Peterborough’s housing. Partners across the Arc rich heritage in manufacturing, and are collaborating to ensure the Arc The Fens’ potential for agri-tech, that delivers on its transformative economic provide the building blocks to make potential for the UK as a whole. Cambridgeshire and Peterborough the UK’s fastest growing and most The mandate to deliver all of this is innovative economy outside London. set out in the Devolution Deal signed between central government and local Cambridgeshire and Peterborough partners. Through the establishment is an international hub of innovative of a Combined Authority with devolved business. It is leading in research in powers, local partners set out a fields as diverse as artificial intelligence commitment that ‘Cambridgeshire and agri-tech. It generates £23.7bn 1 and Peterborough will enhance its of national output and has seen position as a global leader in knowledge employment levels growing by 3.3 2 and innovation, further developing per cent over the last six years its key sectors including life sciences, 4 information and communication technologies, creative and digital industries, clean tech, high-value engineering and agri-business’3. This Local Industrial Strategy sets out an evidence-based plan to support industry across the area in delivering Rt Hon Greg Clark MP these goals. The foundation for it is Secretary of State for Business, the Cambridgeshire and Peterborough Energy and Industrial Strategy Independent Economic Review – a thorough review of all the available economic evidence for the area chaired by an experienced and expert panel, bringing in new research on business clusters and growth. This review set out a series of key recommendations, many of which are reiterated and James Palmer developed upon in this document. Mayor of Cambridgeshire By creating the conditions for business & Peterborough to thrive, Cambridgeshire and Peterborough can achieve its goals of doubling economic output and building an inclusive economy. This strategy combines bold ambition with clear actions that will directly support firms to grow, become more productive, and increase their international reach. Prof Aamir Khalid Chairman of The Business Board 5 Industrial Strategy Cambridgeshire and Peterborough Local Industrial Strategy Executive summary Cambridgeshire and Peterborough are determined to make their economy work for all of the area’s communities. The full economic potential of `` Working together collaboratively the region can only be realised across all of the foundations by identifying diverse strengths – of productivity to ensure that from Peterborough’s rapid growth, the implementation of the Cambridge’s global research four Local Industrial Strategies strengths, and The Fens’ innovative maximises the economic potential micro and agricultural businesses of the wider Arc region. and working to tie them together. `` Harnessing the collective strength This Local Industrial Strategy sets out of the Arc’s research base – driving how Cambridgeshire and Peterborough greater collaboration on science and will maximise the economy’s research; developing a network of strengths and remove barriers that ‘living labs’ to trial and commercialise remain to ensure the economy is fit new technologies; and growing for tomorrow’s world. It supports the role of the Arc as a global the aims of the National Industrial research and innovation hub. Strategy by boosting productivity in `` Bringing employers and skills Cambridgeshire and Peterborough. providers together to understand the The interventions within are based current and future skills needs, and on a highly credible, independent planning provision to meet them. evidence base, and are specifically and carefully designed to achieve growth. `` Maximising the economic benefits of new transport, energy and digital This strategy is one of a family of four infrastructure within the Arc. linked strategies covering the Oxford- Cambridge Arc (‘the Arc’), with the `` Developing an improved business other strategies covering Oxfordshire, support and finance programme for Buckinghamshire and the South high growth companies, a shared East Midlands. It therefore includes approach to commercial premises a summary of the wider economic and an Internationalisation Delivery context and identifies those priorities Plan to encourage greater trade within each Local Industrial Strategy and inward investment in the Arc. which can be developed at scale across the Arc, complementing the specific Cambridgeshire and Peterborough strategic objectives which sit at the heart of this strategy. This includes: 6 `` Taking a Natural Capital Planning In the short-term, the Combined approach to development within Authority will work to raise productivity the Arc, embodying Government’s per hour to above the UK average 25 Year Environment Plan and by 2024. Through applying a contributing to the Clean Growth natural capital and ecosystem Grand Challenge Mission to halve the services approach local partners energy use of new buildings by 2030. will ensure this is matched by a Together, the strategies reflect the world-class natural environment. close collaboration and partnership As the Cambridgeshire and working between Local Enterprise Peterborough Independent Economic Partnerships (LEPs) across the region. Review (CPIER) established, it is really three sub-economies. The largest Today’s picture and most international is Greater The Cambridgeshire and Peterborough Cambridge, characterised by high economy is thriving, contributing levels of output and skills, a rich mix of £22bn to the UK. The economy biomedical, pharmaceutical, artificial has outperformed the UK in overall intelligence and other technology growth since 2009, and growth companies underpinned by two leading in employment has significantly universities, one of which is amongst outpaced official figures. The area is the greatest in the world. In the north, an internationally recognised centre Greater Peterborough is important both for artificial intelligence, life sciences, as the largest city and, consistently food production and advanced over the last decade, one of the fastest manufacturing. Cambridge is a growing in the country. It is an area global leader in innovation and the with an important manufacturing commercialisation of new ideas. Local history and existing base. It is also partners’ ambition is to continue to home to a growing range of service, build an industrial ecosystem that financial and professional companies is globally known for tackling the which – with a new 38 minute rail biggest challenges facing society, and connection to London – are set to in so doing to nearly double gross expand further through government value added (GVA) over 25 years. and corporate relocations out of the capital. The Fens, a largely rural area, has a diverse range of market towns; much of the best farmland in the UK; and world-class agricultural production. 7 Industrial Strategy Cambridgeshire and Peterborough Local Industrial Strategy It is a rural economy but one which is Ambitions for tomorrow also home to highly successful, niche This Local Industrial Strategy sets out manufacturing and service companies. three priorities for the Cambridgeshire This Local Industrial Strategy will tailor and Peterborough economy: and mix interventions to the needs of each of these specific sub-economies. `` Improve the long-term capacity for growth in Greater Cambridge Major opportunities exist in the by supporting the foundations of area. The opportunity is to grow productivity. This will support the further,
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