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To them that hath: economic complexity and local industrial strategy in the UK

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Listed:
  • Penny Mealy

    (University of Cambridge
    Oxford Martin School
    Smith School for Enterprise and the Environment (SSEE))

  • Diane Coyle

    (University of Cambridge)

Abstract

Divergent economic performance in many countries has led to renewed interest in place-based policies, such as the UK’s local industrial strategies at the level of Combined Authorities or Local Economic Partnerships. However, an analysis of employment data using methods from the economic complexity literature demonstrates great heterogeneity in industrial strengths and future growth opportunities within those jurisdictions, raising challenges in designing common policies suited to all sub-geographies. Moreover, the ‘related’ industries into which low-complexity, low-wage local authorities could potentially diversify are also low-wage. Incremental policies building on existing local capacities are therefore likely to amplify divergence between prospering and left-behind areas.

Suggested Citation

  • Penny Mealy & Diane Coyle, 2022. "To them that hath: economic complexity and local industrial strategy in the UK," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(2), pages 358-377, April.
    • Handle: RePEc:kap:itaxpf:v:29:y:2022:i:2:d:10.1007_s10797-021-09667-0
    DOI: 10.1007/s10797-021-09667-0
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    2. Richard Crisp & David Waite & Anne Green & Ceri Hughes & Ruth Lupton & Danny MacKinnon & Andy Pike, 2024. "‘Beyond GDP’ in cities: Assessing alternative approaches to urban economic development," Urban Studies, Urban Studies Journal Limited, vol. 61(7), pages 1209-1229, May.
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