0.2 21st century economic development  (Page 13/13)

Economics

In essence, for a region and cluster to prosper and maximise impacts of its resources it cannot swim against the tide and must harness opportunities to reinvent enterprises operating in declining sectors and support new firms in emerging sectors. A region must have and intelligent, patient and informed funding infrastructure. So often early stage funding is either absent or very difficult to access. The concept of building value in ideas or enterprises is little understood and hardly ever taught to Science, Technology, Engineering and Maths (STEM) students (Abbey and Lane 2005). This establishes a chasm between the entrepreneur and the source of finance one failing to understand why the financier cannot see how brilliant the idea is and other failing to explain to the inventor why a return on investment has to be calculated and convincingly articulated. The key performance indicators, kpi’s used must be meaningful, so often for example patents filed are used as a metric when all practitioners know that the majority of patents lead to no value and represent a major financial burden. The interplay between economic benefit and the technical knowledge generators is key and must interface using the language of value generated.

Governance

Above we described the models of planned versus spontaneous clusters and how a common factor in successful regions is the good governance that facilitates rather than micromanages development. This chimes with supporting the ethos of collaborative, open global and multidisciplinary working, embedding a culture described above. Governance is key to agenda. It is the governance process that sets, protects, sustains and refreshes the vision, mission and core values. It the governance that defines the kpi’s and monitors progress against plan holding the executive to account. More importantly still it is the governance that allows the executive to deliver, protecting it form the ‘short-termism’ an influence so often embedded in the political system due to the priorities imposed by the need to be re-elected. Good governance facilitates partnership and collaboration and mitigates against vision drift.

Science

The generation and development of new knowledge and opportunities is vital to spawn new enterprise through commercialization of academic output, attraction of inward investment and retention of talent. As will be discussed in the next chapter the increasing complexity of science and innovation requires greater multidisciplinary working often requiring collaboration on a global scale. Drilling down into any opportunity in emerging technologies demonstrates a convergence of scientific and technological disciplines, and commercial acumen. There is a need for pockets of ‘world class’ science within the cluster, but also a need to recognise limitations, identify weaknesses and to be prepared to work with others in open, collaborative, multidisciplinary and global partnership.

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