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Manchester’s journey to innovation and growth
By Charles Leadbeater
Foreword Introduction: taking the city at its word Part 1: Setting a new level of ambition Part 2: The world is changing around you Part 3: The new innovation agenda Part 4: What has been achieved to date is not enough Part 5: Total innovation Part 6: People Part 7: A culture of innovation Conclusion: Original Modern, Again Endnotes 4 5 6 8 10 13 15 17 23 28 30
NESTA is the National Endowment for Science, Technology and the Arts. Our aim is to transform the UK’s capacity for innovation. We invest in early-stage companies, inform innovation policy and encourage a culture that helps innovation to flourish. NESTA’s Provocations are regular extended essays by leading thinkers that showcase thought-provoking work on innovation. The views are those of the author and do not necessarily represent those of NESTA. If you would like to comment on this Provocation please e-mail email@example.com
The UK’s cities face a stark challenge. Reinventing themselves to face increased global competition, seizing the opportunities of new industries and tackling persistent social issues would be a tough enough agenda at the best of times. But today, they must do this in the teeth of a severe recession that has accelerated the decline of established businesses and threatened the rise of new ones. Manchester offers an important example of how UK cities can harness innovation to thrive in the economy of the 21st century: in the last decade, it has grown in size and increased in prosperity. But as this report shows, its future prosperity depends on its ability to continue to innovate. What is more, this innovation will need to take new forms, including strengthening local networks, linking the creative sector to the wider economy, and tackling social challenges. NESTA has worked intensively in Manchester in recent years, and is proud to have supported many of the initiatives dedicated to keeping Manchester at the forefront of innovation, such as the Manchester Commission for the New Economy and the Manchester Independent Economic Review. This report draws on some of the insights gained from this work, and the lessons of NESTA’s work elsewhere in the UK, to offer a vision of what an innovative future for Manchester might look like. Jonathan Kestenbaum Chief Executive, NESTA September, 2009
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Introduction: taking the city at its word
Manchester’s aspiration, set out by its civic leaders, is to be an internationally renowned city of innovation. Manchester presents itself as the original modern city, with its own confident take on what it means to be cutting edge. Tom Bloxham, chair of the property development company Urban Splash and the Manchester International Festival, both representative of this aspiration to original modern thinking, says Manchester needs to become a city of ideas and creativity where it was once a home to cotton mills and warehouses. The strategy to make Greater Manchester the UK’s first fullyfledged city-region underlines the social dimension to this challenge: it has to work for all of the city’s residents, not just an elite. As the Greater Manchester Strategy ‘Prosperity for All’ puts it: “We will secure our place as one of Europe’s premier city-regions, synonymous with creativity, culture, sport and the commercial exploitation of a world-class knowledge base.”1 This report takes Manchester at its word and examines what would need to be done over the next decade and more for the city to make good this claim to be a distinctive, socially inclusive, entrepreneurial city of innovation. To do this, Manchester needs to build on the successes of the past decade, taking advantage of the confidence that has driven ten years of growth in the city. This new wave of innovation will, however, have to take new forms. Where much of Manchester’s success from the late nineties onwards has been based on physical renewal, property development and the burgeoning retail sector, the next ten years will require innovative thinking in new areas. The report highlights the importance of building economic and social networks within the city, and of taking advantage of Manchester’s enviable creative industries to encourage innovation across the economy. Manchester plays host to more businesses in the creative industries, in sectors from computer games and software to radio, television and advertising, than all northern cities put together. These businesses are a vital source of innovation for the whole of the economy. Likewise, it argues the case for using social innovation and new ways of delivering public services to tackle the challenges of education, skills and worklessness in the city. Manchester’s forward-looking governance structure, bringing together the ten local authorities that cover the city-region, offers a strong foundation for innovative social solutions. Combining the power of networks and ambitious innovation in the social and public spheres with Manchester’s inherent strengths offers a compelling and innovative vision for Manchester’s future.
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Part 1: Setting a new level of ambition
As the groundbreaking Manchester Independent Economic Review shows, Manchester is well on the way to becoming the UK’s second city. Manchester’s impressive physical reconstruction since the IRA bomb of 1996 has given the city the opportunity to break a savage cycle of economic and social disinvestment. GVA has grown 5.8 per cent per annum between 1995 and 2004.2 It has added 32,100 to its population between 1997 and 2007, created over 50,000 jobs3 and attracted £2 billion in private investment.4 The city-region is a viable base for a mass of skilled, knowledge-based jobs, in a diversified economy with strengths in life sciences and digital media, legal and business services. The local manufacturing sector is nothing if not hardy. Manchester is home to world-class organisations in sport and academia, high and popular culture. The city is recognised as one the best conference and business centres in Europe. People are voting with their feet, as evidenced by the rise in the city’s population. Manchester is the main city outside London with the potential to increase its long-term growth rate. There is much to build upon. It is a sign of Manchester’s recent achievements that it must adopt different yardsticks to measure its future efforts. Manchester must widen its horizons beyond a parochial competition with Leeds, Birmingham and Liverpool. Instead it must compare itself with successful second cities around the world: Melbourne, Barcelona, Lyon, Osaka, Shanghai. By that measure Manchester still has a long way to go. Perhaps the most instructive comparison is with Milan, also home to two worldrenowned football teams. Milan is an ancient international financial centre, set within one of the most successful economic regions in Europe, home to some of Italy’s largest industrial companies as well as about 750,000 small, highly networked, export oriented, innovative small businesses.5 However, Milan is in the top ten European cities according to GDP per capita, while Manchester is only the 25th.6 Lombardy is also home to a mass of social and public policy innovation. The region has 5,200 voluntary associations, social cooperatives and non-profit organisations, the highest concentration in Italy. The regional government finances family associations to create services to support families and it provides individual budgets for older people to commission their own care. It recently followed a Swedish policy in funding parents to find non-state forms of schooling, creating a more diversified education system. Lombardy’s health system is one of the most effective in Europe: patients travel from all over Italy to be treated in the region’s hospitals. Milan is at the heart of a region that has a well-developed recipe for economic, social
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and public policy innovation. Manchester still falls short of Milan’s standard and the city still lags many cities against which it would seek to be compared, measured on GDP per capita.7 Closing the gap with places like Milan will require new thinking and rapid learning in practice. The future has to be Manchester’s focus, rather than its inspirational Victorian past. The recipe that has propelled Manchester’s renewal over the past decade is unlikely to be as effective in the decade to come. The emphasis has to shift from physical infrastructure and buildings, to people and culture, from inputs to outcomes. The Manchester economy can draw on a reservoir of skills but it is neither productive nor entrepreneurial enough: it creates smaller businesses at a much lower rate than the UK as a whole and London in particular. Making more productive and entrepreneurial use of Manchester’s assets and skills will depend on how they are connected and combined. Manchester’s pockets of excellence and entrepreneurship are too often isolated and disconnected. The city’s recent success has been built on a highly successful public-private collaboration especially focused on the city centre’s physical renewal. That collaboration will have to take new forms to take Manchester forward. Before focusing on what Manchester should do, it’s worth setting out why it will not be enough to rely on what has been achieved to date. If Manchester just sustains the pace of innovation of the last decade it will at best maintain its position.
The city-region has to accelerate and deepen innovation to move ahead.8
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Part 2: The world is changing around you
Manchester did better than most in riding the boom of the last decade, making lasting improvements to its infrastructure, physical fabric and, as important, to its sense of selfconfidence. Yet Manchester’s economy is built on ever-shifting foundations, and not just because the recession will leave property and retailing subdued. Virtually every sector that the Manchester economy relies upon faces far-reaching restructuring that will lead to uncertainty over future investment and strategy. Financial services, which account for a sixth of employment in the city-region, and which have provided much of Manchester’s growth in skilled jobs, are facing a period of painful retrenchment, with tighter regulation and lower growth. Manchester is redeveloping its strength in media through the Media City initiative at Salford Quays and the Sharp project, which together should take employment in creative, cultural and media industries over the 100,000 mark. NESTA research shows that Manchester is a nationally significant hub for several creative sectors, including Architecture, Advertising, Software, Computer Games and Electronic Publishing, and Radio and TV. New research has demonstrated that this cluster is nationally distinctive and includes a different and wider range of creative services than other cities in the North of England. Manchester punches well above its weight in the creative industries. Although the city hosts 3 per cent of all businesses in Britain, it has 7 per cent of all advertising firms, 6 per cent of all radio and television companies, 4 per cent of software and computer game companies, and 4 per cent of architecture firms. In fields like advertising, software, radio and television, Manchester has more creative businesses than other northern cities put together.9 Its strength in Knowledge Intensive Business Services like consultancy, legal and professional services mirrors its importance in the creative industries.10 Together, these industries employ 6 per cent of Manchester’s workforce.11 Yet Media City will start up just as most media businesses are searching, with varying degrees of desperation, for new business models in the face of a recession-induced slump in advertising and the disruptions the web has brought to media business models. The life sciences industry, which employs about 200,000 in the cityregion and is central to its creation of value, faces tighter regulation of prices and quality; more intense competition from low-cost sources of supply; disruptive and uncertain genetic technologies; costly R&D pipelines that have become less productive. All over the world pharmaceutical companies are restructuring how they innovate and where they produce; established
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organisational models are being challenged and rethought. Pipeline models of innovation are being replaced by more open, networked, international approaches. Public services, which account for more than 40 per cent of the regional economy, will be under more intense pressure to reform and innovate as central government squeezes spending to pay off its debts. Manufacturing, which employs about 185,000 people, almost 12 per cent of the region’s workforce, will continue to be subject to near-continual restructuring. The lesson is that any region that stands still and loses touch with the needs of its businesses will fall behind. Manchester may well be able to respond to each and all of these challenges. But to do so will require more innovation, creativity and improvisation, across the public and private sectors. There is no room for complacency. Even the most successful innovation systems are adapting in the face of change to avoid becoming rigid and inward-looking.12
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Part 3: The new innovation agenda
Manchester’s efforts to promote innovation will not be enough in the future because innovation is being organised in new ways. Manchester needs to lead with an innovation strategy based on an understanding of innovation that is tailored for the times. If Manchester’s leaders rely on approaches to innovation fashioned more than a decade ago they will be out of kilter with developing corporate strategies. Innovation is traditionally regarded as a process that involves special people working in special places – scientists, designers, inventors and researchers – who transmit their ideas down a pipeline to a waiting audience of consumers. To get more innovation, a city or a company needs more and better special people working in more and better special places: R&D labs, creative quarters, studios. This approach was crystallised for cities by Richard Florida in his account of the rise of the creative class, the bohemians who would help create the culture that would in turn make a city attractive to service sector knowledge workers. On this score Manchester has done well, especially compared to other English cities, attracting knowledge-based industries and jobs around a revived inner city core, whose population has grown by 300 per cent since 1990.13 Manchester has worldclass centres of knowledge where very special people do special things: labs in the University of Manchester; the Daresbury campus; AstraZeneca’s life sciences activity in Macclesfield; Shell’s facility in Wythenshaw; world-class centres of excellence in football and cycling. Yet developments both in the theory and practice of innovation cast doubt on whether the ‘special-people-in-specialplaces’ model will be enough to make a city successful in future, especially one that aspires to prosperity for all. Innovation is rarely linear and sequential. Ideas usually develop through a highly collaborative and interactive process, involving exchanges between inventors, developers, commercial companies and users. In science most research is highly collaborative and cross-disciplinary. In creative and culture industries new products are often developed through collaboration between designers and manufacturers, retailers and consumers. Collaboration will become ever more critical to innovation, and collaboration across sectors – between people with different skills – will become especially important. That collaboration will be increasingly international in scope. A city that seeks to make its name for innovation has to be good at attracting talent, absorbing ideas, making connections and seeking out partners. It must be highly connected to flows of people and ideas that circulate around the world. High-performing
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firms in terms of innovation and sales growth are more likely to be engaged in international knowledge sourcing than their under-performing counterparts. High-performing firms also purchase a larger percentage of the purchased inputs for innovation activities from overseas sources, and also act as a more frequent source of knowledge for companies outside the UK. Sourcing international knowledge and engaging in a process of continuous innovation enables small firms to stay ahead of the competition.14 To be out of those flows is to be in an innovation backwater. Innovation hot spots in India and China will play a growing role. Finland, which in the 1980s pioneered the development of a tightly connected, state-led national innovation system, is now trying to adopt more open and networked approaches to innovation. While Manchester has several institutions with impressive international brands, among them the football clubs and the university, as well as its own international airport, on other counts Manchester is still too parochial. The more internationally connected an organisation is the more likely it is to learn and innovate, setting itself high standards and drawing in ideas from more sources. In the 19th century, Manchester was at the heart of innovation by being a trading centre, connected to Hamburg, Boston and Bombay.15 Today, Manchester’s firms are less internationally connected than in comparable cityregions. Those firms in sectors that are better connected to places outside the region, such as engineering and textiles, creative and digital media and ICT, show a lack of links with the local economy that
makes it harder for innovation to spread across their supply chains.16 Innovation does not always come from boffins and the supply side. Demand plays a critical role in innovation, especially in services, cultural and creative industries, pulling through new ideas. Sophisticated and lead consumers, with demands ahead of the rest of the market, are vital to spur innovation. Firms often innovate only because their most adventurous consumers alert them to new opportunities, adapting or modifying products, exploring new uses. Where Manchester has avid and demanding consumers – football and popular music – it has produced great products. Manchester’s strength in the 19th century was not just built on its production of cotton but its position as a marketplace, connected to sophisticated demand as well as capable supply.17 It will be increasingly difficult for a city to lead in innovation unless it has access to innovation-hungry, venturesome consumers. Innovation can be social and public as well as technological and commercial. Not all innovation involves a new technology; it can involve the new application of an old technology: the rediscovery of trams is a prime example. Not all innovation is driven by profit: social innovation to find new approaches to ageing, education, welfare and climate change will be vital to cities in years to come. Cities that fail to address their social challenges fail economically too. Consider the decline of New York City in the 1970s and its rise again in the 1990s, a journey that had
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stark economic consequences for the city, but which was rooted in the failure of the city as a safe, civil place in the 1970s, and the reestablishment of liveability in the 1990s. In sum, innovation does not just come down a pipeline from specially talented and knowledgeable people working in special places. More often than not it emerges from collaboration, increasingly from international networks, often across disciplines, frequently involving consumers and producers. Innovation that makes a difference to people’s lives applies not just to new technologies but also to relatively low-tech public services, such as education and health. Innovation can be social as well as commercial. All this means a city’s social networks and how it organises collaboration is vital to innovation. This is not a new insight. Piore and Sabel focused on flexible specialisation in the networks of Northern Italy. AnnaLee Saxenian highlighted the adaptive networks of Silicon Valley which are open to immigrants and outsiders. Michael Porter long ago pointed to the centrality of clusters of complementary companies resting on shared resources. Richard Florida built on this in his analysis of the tolerant social dynamics underlying growth in cities attracting the creative class. Meanwhile Robert Putnam, in Bowling Alone, bemoaned the loss of social capital in modern cities, making them anonymous and threatening places. Successful cities and regions depend on networks that allow for diverse, decentralised, independent players to connect and collaborate, drawing
in new partners and resources from outside. Cities need good ingredients that are well connected and combined to produce innovation. An innovative city needs to provide a platform for creative collaboration. Many companies – Intel and Procter & Gamble among them – are following a similar approach. The recent history of the mobile phone exemplifies this shift from pipeline to platform models of innovation. Nokia rose to leadership in the mobile phone industry in the 1980s from a national base in Finland and became a highly efficient, flexible mass manufacturer of handsets. Yet within two decades the leading edge of innovation in mobile devices shifted to Apple thanks to its open approach to mobile phone application development. The iPhone is not just a device but a platform on which thousands of third parties have developed phone applications. This has multiplied the ways an iPhone can be used making it more valuable. Manchester needs to be at the forefront of this move towards more open, networked, collaborative and social approaches to innovation.
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Part 4: What has been achieved to date is not enough
Much has been achieved in Manchester in the past decade. Yet even that has not fundamentally changed the outlook for hundreds of thousands of people in the city-region, particularly those in the north of the city and in an inner ring between the city core and its outlying suburbs. This social deficit – the people still left behind by the restructuring of the 1970s and 1980s – also explains much of the productivity and entrepreneurship gap between Manchester and places with which it aspires to be compared. Manchester could be thought of as divided into thirds. Some of Manchester is world-class: the football clubs and the cycling arena; parts of the University of Manchester; the Hallé and other parts of the cultural offer, including the recently established International Festival; aspects of popular music and culture; some of the architecture, new and old. Developments in the pipeline – Media City, the Sharp Project, plans for the Corridor and the developments at Sport City – promise more to come. There is still too little of this quality and it is too disconnected: it seems to exist in pockets. But there is more to Manchester that is top class than is recognised outside the city. Much of Manchester has got a lot better in the last decade. Life has improved especially for those in work. This is evident in the city’s thriving retail centres, the new housing, hotels and food outlets that have sprung up and Manchester’s evident diversity. Yet much of this retail and property development is no more than one would expect of a city of Manchester’s size. Bringing another Zara to Manchester will change very little. Too much of Manchester is still in a pretty dire position. Scenes of social, physical and economic dereliction and disinvestment are still too common, just a short walk from the city core, a stone’s throw beyond eye-catching new developments. The scale of these social challenges was laid bare in the MIER: 420,000 adults lack basic skills in reading and writing; more than 100,000 are still claiming long-term unemployment benefit at the end of a long boom; 150,000 people in the city-region are workless due to ill health. Manchester cannot be a world-class city while carrying these social deficits. Eating away at these deficits is imperative on grounds of social equity and productivity. Manchester is carrying too many people who are not productively employed. The city will not close the productivity gap with its peers unless it also closes the gap in economic participation between the more prosperous south of the city and the poorest north. In the last decade that gap has grown.18 As the MIER put it: “The sooner Manchester succeeds more in raising skills and improving education, the lower the personal costs of worklessness, the
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greater the labour market attachment, and the better the changes of breaking the stubborn cycle of intergenerational deprivation in parts of the city.”19 The MIER report on labour market and skills concluded there was a: “deepening polarisation between the high skilled elements of the city-regional workforce and residents lacking formal qualifications.” Cities are poised between the dangers of rapid growth – which stretches the social fabric, pumps up property prices and threatens to overrun older infrastructures for transport and business – and a cycle of decline in which people, businesses and jobs leave, setting off a downward spiral of economic and social disinvestment. In Manchester these processes are at work in the different parts of the city at the same time. It is vital city leaders be honest with the city about these challenges. Innovation is often only driven by a sense of crisis that compels people to act, ignore common practice, improvise and share resources. The connection between innovation and crisis is especially strong in the public sector where other incentives to innovate are often weak. Much of what has been achieved in Manchester over the last 13 years came in the wake of the crisis of the IRA bomb that devastated the city centre. Creative use of crisis to bring about change is a hallmark of good leaders. Manchester should not shy from the social challenges it faces. On the contrary it needs to face them squarely to make the case for radical social innovation that will change aspiration and skills, people
and culture. These social deficits do not just need to be faced, they need to be used to force more radical and effective solutions.
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Part 5: Total innovation
Manchester needs a distinctive innovation strategy, not one that mimics or follows other cities which are busy building science parks, cultural quarters and business hubs. Manchester’s innovation strategy is neither clear nor future-focused enough. As Manchester Business School concluded, comparing the city to Pittsburgh and Oresund in Scandanavia: “In Manchester…the message about where the city-region seeks to go in terms of innovation and what it is focusing upon is more obtuse – one has to dig to find (often not necessarily successfully, and as far as Manchester goes, one often finds more about innovation milestones of the past than innovation strategies for the future).” Manchester should pioneer a Total Innovation strategy, to develop innovation from many sources and apply innovation to many sectors and products. Manchester would be the first city in the world to openly adopt such a comprehensive open innovation strategy. It would be leading the field. Elements of such a strategy are taking shape in the work of the Commission on the New Economy, Manchester Knowledge Capital (M:KC) and the Manchester City Region Innovation Prospectus. Manchester should be known for its distinctive and sophisticated approach to innovation. Innovation is essential to virtually every aspect of a city’s life, from the way its businesses create new products and services, to the way it houses and transports people and collects their waste. A successful city needs innovation from many sources, applied to many aspects of its life: total innovation. Cities have always been centres of learning, the first home to libraries and universities, museums and galleries. Cities provide some of the key ingredients for cultural creativity: diversity, density and proximity. Yet cities have to be creative about more than culture and business. The density and scale of cities pose significant innovation challenges, to create mass forms of housing, transport, health, utilities, waste disposal, education. That is why cities created new shared institutions – fire services and postal systems. Cities require continual social and political creativity to address the problems that cities throw up as they grow, mutate and decline. The density of cities is both the source of their greatest challenges and their solutions which emerge from the accelerated development and sharing of new ideas that density and diversity bring. Many cities are struggling to raise educational attainments, reduce welfare dependency, regenerate hollowed-out neighbourhoods and make cities safe and secure years after first addressing these issues. Complex challenges are emerging which defy easy solutions, from climate change to caring for a growing elderly population.
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These challenges are only going to become more intense with migration into growing cities and away from declining ones; the different demands of an ageing population and young singles; changing patterns of employment and family life; the need to shift to more environmentally sustainable forms of energy and transport. These social challenges have traditionally been tasks for specialists – planners, architects and engineers – to think through and propose solutions. Increasingly the wider innovation challenges that cities face require a more distributed, social creativity, which often involves a combination of top-down investment in new infrastructures, for example for energy, transport or waste recycling, combined with mass changes in behaviour – using electricity, mass transit, household recycling. Manchester has some of the ingredients it needs to be an internationally successful city, known for innovation. But it needs more high quality ingredients and it needs to make better use of them. Achieving that will require as much change in the decade to come as in the decade just gone and it will mean doing things differently, again. The approach that sustained Manchester through the last decade – a public-private partnership focused on physical renewal, property and retail – will deliver diminishing returns in the decade to come. The focus has to shift from buildings and physical infrastructure to people and culture. As this effort will take time to bear fruit it is vital Manchester’s civic leaders – from politics, business, public service, academia and civil society – share a common, long-
term agenda. Stability and perseverance will be vital. The crisis of economic decline that Manchester faced in the 1970s and 1980s, and the devastation of the bomb in the 1990s, provided the city with a clear agenda for renewal. It was clear what needed to be done. As Manchester has become more successful, and the challenges more difficult and less tractable, more work needs to be done to build and rebuild a consensus for change. The prime focus should be on the talent and capabilities available to Manchester, both inside and outside the city-region. After the 1996 bomb, a new master plan was drawn up for the city centre and a public-private vehicle created to make it a reality. What would be the equivalent of a similarly ambitious plan to develop Manchester’s people and capabilities? By culture we do not mean Manchester’s offer of art and music, but the wider sense of people’s values, especially their aspirations and ambitions, how they get things done, and especially, how they collaborate. Many of the ingredients of an innovation strategy focused on people and culture are already set out in the strategy for Manchester to become a city-region, which is based on the analysis of the MIER. The collaborative governance arrangements that bring together the ten councils in the city-region create a huge opportunity for Manchester to innovate ambitiously and at scale. What follows are suggestions for what should be in that agenda for the next ten years.
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Part 6: People
Manchester needs to be the place where the education and welfare systems of the future are created. That means more than tinkering or improving the current systems. It means setting out to create new, more effective systems for supporting families, engaging young people, creating opportunities for learning, unlocking creativity and raising people’s participation in useful work. There is a growing consensus that the mass industrial era education and welfare systems largely put in place following the Second World War, extensively reformed since then, are out of kilter with their times. It is not just that they do not work as effectively as they could; they may be doing the wrong job: hitting the targets but somehow still missing the point. Manchester should lead the creation of new approaches to education, family support, and welfare, as elements of an integrated strategy to develop its people. Every two years the Manchester International Festival stages a series of world cultural premiers. What if every other year Manchester also premiered a set of new public services, a festival of public service innovation, drawing in inspired social entrepreneurs and innovators from around the world to showcase new ways to learn and care, treat illness and combat climate change? The MIER shows the city-region has a strong skills base compared with similar UK cities. The core Manchester economy pulls in skills from across the region. Yet the city-region economy is not as productive as it should be. A quarter of the £4 billion prosperity gap between Manchester and the South East is due to the toll of worklessness, which is in turn linked to low educational attainment. Manchester needs a comprehensive and aggressive strategy first to develop its own people and second to attract and retain talent. Homegrown It is widely recognised that life-chances are strongly influenced before children start attending school. Critical social and emotional, language and numeracy skills are developed in the earliest years. Too many children in Manchester reach school with under-developed capacities to learn and interact with other people creatively and considerately. That is why Manchester needs a new approach offer to its families, an offer which probably would combine intensive, personalised support for some; stronger peer-to-peer networks for others; life coaching, parenting and leadership skills; and access where appropriate to counselling and advice. The highest cost cases where investment is most needed will be in chaotic families, often where lone mothers cope with several children by several fathers. The
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children of these families are more likely to fail at school, get in trouble with the police and themselves to become parents at an early age. Traditional arms-length social services are invariably unable to do much to really change the way these families live. To do so would require an intensive approach to family development in which families with children at high risk of school drop-out and low attainment are provided with intensive mentoring and support to change their aspirations and behaviour. This would mean an upfront investment in intensive support to prevent longer-term costs later down the track. Such a programme would focus on investment in early years services, working alongside families, to prevent problems developing as children grow up. Evidence from similar programmes in Dundee and Swindon, for example, show that effectively targeted up-front investment in family support can significantly reduce the need for costly social services interventions later in life. Manchester should put family development at the core of a new welfare state that improves life chances by changing lives. To be true to its claim to be the original modern city Manchester should set out to create an original modern education system. This would mean going beyond improving schools, which is the urgent, essential and immediate priority. It would also mean seeking to complement schools with learning opportunities at home and in the community; reforming education with new curricula, forms of assessment, technologies for learning and school organisation; providing alternatives to school, so that children in Manchester
have the widest array of opportunities to learn where, how and what motivates them. In short Manchester should seek to lead an educational revolution, not just an improvement programme. The modern school can trace its roots back to innovations in Prussia in the mid19th century and in the Victorian school systems designed by social innovators such as Lancaster and Bell. The grammar of schooling, the way that schools are designed, lessons conducted, exams sat, timetables organised, has proven remarkably persistent ever since. However with the advent of new technologies and the need for skills of collaboration, problem solving and risk taking, there is a huge opportunity for Manchester to become one of the places where the education system of the 21st century is created. Manchester is engaged in a sustained effort to improve educational attendance and attainment. More than 30 schools are being rebuilt or refurbished. Seven specialist academies are being created that promise to bring with them an injection of new ideas. The Manchester education system is improving albeit from a low base. The task of improving the schools Manchester has is still a daunting one. Studies of school improvement show that class sizes, the age of school buildings, the presence of computers are all less important than some simple factors which all come down to people: whether good people can be recruited into teaching, trained well, motivated by the right incentives, managed well and provided with the right environment and support to work in effectively. To sustain
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improvement in its schools, Manchester has to become the best place in the UK for good teachers to want to teach. However as well as improving schools, Manchester needs an educational strategy that includes three other ingredients. First, it must develop the skills and talents of today’s young people to face the unpredictable and challenging world of tomorrow; a world where the ability to develop new ideas and create opportunities from uncertainty will be crucial. This will require a range of skills such as creativity, self-belief, the confidence to challenge received wisdom and leadership. Providing a broad range of learning experiences in schools to help deliver these aptitudes is vital; but there is also scope outside of school by enabling young people to make use of the many institutions and establishments in Manchester. Piloting ways of doing this with different schools and academies will provide useful models for other schools in the city to emulate. Current engagement in education by business and the wider community is, on the whole, sporadic and young people are not gaining the necessary exposure to emergent aspects of the economy, such as the digital and creative industries, to appreciate some of the requirements of the future world of work. Whilst, for example, culture and creativity already play a role in complementing learning at school, they could play an even more significant role. An original modern approach to culture would focus on people as participants
in culture, creators of it as well as an audience for it. As Manchester’s cultural strategy puts it, the aim should be to “make the people of Manchester proud participants and architects of the city’s cultural life, broadening and deepening the opportunities for cultural expression and participation among citizens”. Schools should offer opportunities for cultural institutions to provide learning experiences that will engage young people in the creative process and, in doing so, enable them to develop a broad range of skills as well as give them insights into the role of culture to the future economy. NESTA through the Manchester Innovation Investment Fund and with Manchester City Council is piloting a new schools programme that could provide one such model. The idiscover programme will work with pupils in five schools across Manchester, supporting and stretching their learning through a range of experiences provided by outside partners, such as Manchester’s cultural institutions, the universities, businesses and voluntary organisations. Critically, the pupils will have the power, through a voucher scheme, to purchase these experiences based on their own aspirations, which NESTA will help them develop. Second, Manchester should play a leading role in reforming schools, changing how they operate. The developing Manchester curriculum, which has a greater stress on vernacular, social and emotional skills, is one focus for this. There is a growing acceptance that even when schools are doing a good job they are often not
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teaching children the kinds of skills they will need in a world that increasingly expects creativity and curiosity, entrepreneurship and collaboration. The grip of the national curriculum, the exam system and national league tables, means that no city has yet developed its own distinctive education system, based on its own curriculum. Manchester should be pushing to be allowed to do so. Finally, Manchester needs to lead the way in providing alternatives to school as places to learn. Schools are 19th century creations, akin to mills for learning. New technologies now allow learning to take place in many places and at different times. Children are increasingly adept at using these technologies creatively to learn from one another and to create their own content. If Manchester wants to be known as original and modern as far as education is concerned it should seize the opportunity to create alternatives to school as centres for learning. These might be more community or workplacebased, using new technologies in new ways. In many thousands of Manchester families no-one has worked for several generations. To address this Manchester needs to imagine remaking the welfare state. The welfare state emerged to help people cope with risks of temporary unemployment and illness in the context of an economy delivering full, male employment. The welfare state focuses on assessing people’s needs, assessing disadvantage and providing them
with assistance in the form of money or services by way of compensation or support. However a welfare state initially designed to help people through temporary periods of ill health or bouts of unemployment now provides longterm support for many thousands of people and their main source of income. This is both a lost opportunity for those individuals to earn higher incomes and a loss for society, which suffers lower productivity and output. It creates a cycle of dependency on services and state transfers. It does little to build mutual support, self-help and long-term independence. Too often traditional welfare services process social problems without really attacking them. A modern welfare state would help people to change their lives to become more productive, engaged and to live independently. The best outcome would not be an improved public service but people less dependent upon public services. That would mean a welfare state that treated spending as investment designed to build up people’s capabilities to live and work independently. The current system, however, almost rewards people for long-term dependency: the more needy they prove themselves, the more support they will get. A new approach would focus on building up mutual, work-based, self-help solutions in society, rather than relying largely on professionals and institutions to deliver services to recipients. It would seek to change peoples lives rather than process social problems.
20 Original Modern Manchester’s journey to innovation and growth
Manchester should aim to be the place where a new kind of welfare state is created first, one that focuses on building up capabilities, self-help and work rather than maintaining dependency on highcost services. Outsiders Making more of Manchester’s homegrown talent will be vital but it will not be enough. Innovative cities and the organisations they support have to be part of global flows of people and ideas that bring to a city new ways of working, contacts, opportunities and skills. An innovative city needs to be open and attractive to outside talent, able to absorb, adapt and reuse ideas gathered from elsewhere.20 Increasingly young knowledge workers are circulating between several international centres before settling in one to start a family. Innovation hotspots in India and China are increasingly tightly linked to Silicon Valley and Boston in the US, in part through well-organised diaspora networks such as The Indus Entrepreneur.21 These internationally mobile, highly skilled people bring higher incomes, skills, contacts and sophisticated demand to the city, all of which help drive innovation. Innovators are inveterate borrowers. Manchester does relatively well in borrowing people and ideas from elsewhere. Manchester does well in attracting undergraduates and retaining many once they have graduated, at least compared to other provincial cities. It still performs poorly in attracting and retaining
talent compared to London and the South East. Manchester needs to excel at adroitly borrowing ideas and people from elsewhere. That means the city needs a deliberate strategy for engaging with talent that lies beyond the city. The Economic Development Board in Singapore, for example, has set out to build up Singapore’s presence in biotechnology by deliberately recruiting researchers from Europe and the US, often focusing on people in their late 20s to 30s who are not yet well established in academic institutions. Manchester should have a similarly sophisticated strategy that would have the following main components: • A variety of Manchester institutions actively attract talent from beyond the city. The health service operates in global labour markets for doctors and nurses. The universities rely on foreign students for income and need to attract the best academics from around the world to work in their labs and lecture theatres. The region’s leading football clubs routinely recruit talent internationally. The Festival has brought internationally renowned artists to the region. A first step would be to gather together expertise from all organisations that depend on attracting talent to create a shared assessment of Manchester’s strengths and weaknesses. The MIER highlighted the importance of good schools, including the need for international schools, relevant housing and high quality lifestyle, leisure and cultural offers.
Original Modern Manchester’s journey to innovation and growth 21
• As important as attracting talent is the ability to retain it so that talented people make more than a passing investment in the city, whether that’s as a graduate student, a lawyer or a nurse. The key to this lies in the civic and associational life of the city. People might move to a city for work but what keeps them there will be their relationships and friends, clubs and networks. The Innovation Investment Fund’s Manchester Masters pilot initiative is inspired by the graduate development programmes of the world’s most successful companies. It offers ten hand-selected graduates from universities within the Manchester City Region a salaried opportunity to sample marketing roles across different businesses over the course of the year. • It is inevitable, and in some ways a good thing, for talent to flow between places rather than remain in one place. Manchester should only bemoan a brain drain of talent if it permanently loses touch with it. Many of the immigrant networks that are so vital to Silicon Valley keep people connected to their home base in India and China even while they are in the US. Manchester has some of these networks. The University of Manchester has an alumni network which keeps it in touch with former students. The football clubs have an international fan base. Other Manchester institutions could learn more from these examples to do better at keeping in contact with former Mancunians, to potentially draw them back to the city.
• Manchester needs to be as easy to connect to as plugging a USB drive into a computer. The more easily connected Manchester is to London through rail, road, air and broadband the more successful it will be. Manchester should use its relationship with London to its advantage, not as an outpost of the greater London economy but as a complement and alternative to it. Manchester needs a distinctive strategy, not a go-it-alone one. The city must further develop its connections to other European, US and Asian business centres to develop its standing as an international centre for innovation. International surveys show that Manchester’s reputation outside the UK is still coloured by its industrial decline. Manchester will become more creative and productive the more it can connect with people in other centres of innovation.
22 Original Modern Manchester’s journey to innovation and growth
Part 7: A culture of innovation
Innovative places allow capable and talented people to combine and collaborate easily, to rapidly create and share ideas, turning them into business and products, constantly learning from both success and failure, whether their own or their peers’. How a city allows those combinations to come about is much to do with its physical infrastructure: places to meet and work, talk and debate and how easy it is to move around. Creative places are usually densely packed but people are also able to move around. As a result people make unexpected connections, find partners with skills and assets that are complementary to their own. They learn fast from one another because they live and work so closely together. When the American writer William Empson was asked where creativity came from, he replied “overcrowding”, by which he meant dense connections between diverse people. Much of the creative life of a city relies on intangible, social and cultural features that are hard to plan and manage. Indeed active and deliberate management of these aspects of a city’s life may be counterproductive, creating a bland, predictable and frozen culture that produces few surprises. Manchester’s past success was a product of its dissenting, boisterous, cosmopolitan, commercial and entrepreneurial culture. It was the ambitions people had, their practical approach to commerce and the way they did things that made Manchester distinctive and famous. As Engels remarked: France had politics; Germany philosophy; England had practicality and nowhere was more practical than Manchester.22 In parts of the city the sense of ambition that coursed through Manchester in the 19th century lives on. Yet as the MIER makes clear much of the city-region still punches below its weight. For a city of its size, with its skills and resources, Manchester should be more productive, entrepreneurial and innovative, and as a consequence richer. Culture and outlook are part of the explanation for why Manchester fails to punch above or at its weight. To make progress Manchester should focus on two aspects of this cultural challenge: generating higher aspirations and deepening and extending collaboration. Manchester’s renewal has been driven by the ambitions of its leaders to reverse the city’s decline and put the city back on the international map. That ambition flows through what has changed for the better in Manchester in the past decade, from the continued rise of the university to the new buildings in the town centre. To be true to its slogan – ‘original modern’ – Manchester needs the self-confidence to challenge orthodoxy and set itself high standards. Too much of the city falls short because it lacks the confidence to fulfil ambitions to be among the best in the world. The
Original Modern Manchester’s journey to innovation and growth 23
legacy of decline and depression still hangs over derelict buildings, sub-standard housing and people who feel marginalised and written off. Too much of Manchester is just getting by as best it can. The high ambitions of a relatively small elite will not be enough to carry the city through. High ambitions need to be more widely spread, across all parts and walks of life in the city-region. A first step towards that would be to better understand where ambitions are already high and how this has been achieved in football, cycling, the Manchester International Festival (MIF), the rise of Factory records and the best departments in the University. In particular the way the MIF has spread a sense of excitement and confidence through the city, galvanising the cultural sector to higher ambitions and drawing people to the city, is a model that could be adapted in other sectors. The MIF model seems to involve several factors: • An avowedly anti-parochial focus to set Manchester’s standards by the best in the world. • The introduction of catalytic outside talent to breed confidence, raise ambitions, make connections and attract yet more talent in its wake. • The space in which that talent can do something different that would not be possible elsewhere. • Building links to the existing community in the city – in the case of MIF the
cultural sector – to help raise ambitions for the long run. Manchester should explore how to apply the MIF model – focused on world premiers and leading innovation – to health, housing, ageing and climate change, in Wythenshaw as well as at the Whitworth. The equivalent of an MIF for public services would see Manchester give a world premier to a set of new public services every two years. The MIF has raised the sights of Manchester’s cultural sector and enhanced its reputation. A similar strategy may well pay dividends in other sectors where the city needs a reputation for original modern thinking. Ambition and aspiration matter hugely to the demand side of innovation. It is more difficult to innovate, especially in services, if producers are working with undemanding and parochial consumers. More sophisticated, demanding consumers drive suppliers to innovate. In some sectors – leisure sports, music, software, computer games – consumers are themselves innovators. A culture of consumption marked by low aspirations will not drive innovation. Innovative, lead consumers come in many shapes and sizes. In popular culture and social networking on the web lead users might be 14-18 year olds. In other sectors – fine food and hotels – they are more likely to be affluent and cosmopolitan. In science and law lead consumers are likely to be highly knowledgeable. In football they are avid fans. There is no single recipe for creating the kind of demanding consumers that drive innovation. To sustain innovation across a wide front however Manchester
24 Original Modern Manchester’s journey to innovation and growth
needs to be home to, or easily connected to, innovative lead consumers, whether in services for the elderly or in recycling and sustainability. In some of these areas the public sector will need to act as a lead consumer, setting high standards or as in the introduction of personal budgets for social care, creating a system that allows innovative demand to emerge. Where Manchester cannot itself provide lead markets it needs to make sure companies based in Manchester can easily get access to them. This is particularly true, for example, in media where Manchesterbased companies need to work with global brands based in London, New York, Milan and Los Angeles. Collaboration is another critical feature of innovation culture: who collaborates with whom, and how. Collaboration matters to innovation because it is through collaboration that people with different disciplines, skills and viewpoints combine to create new ideas.23 At the very least collaboration can allow people with complementary skills – a manufacturer and a designer, a restaurateur and food supplier – to meet and match. Collaboration can create a shared knowledge base for an entire industry and so enhance learning. In digital media, for example, collaboration is creating shared, open source knowledge bases and even infrastructures made up of linked hardware. Modern science relies on shared databases and open source software tools. Collaboration of the right kind can speed learning as ideas spread through networks and supply chains. New forms of collaboration will be increasingly vital to innovation.24 If Manchester wants to be
an innovative knowledge economy then it needs to excel at the kind of collaboration that creates and spreads ideas. It must be easier to find the right collaborators in and through Manchester than other cities. The MIER has uncovered evidence about how Manchester’s creative and digital industries are particularly poorly integrated into local supply chains. This limits the spread of new ideas that Manchester’s creative businesses are so well placed to absorb from their excellent business connections outside the region. This is especially important in light of NESTA research that suggests that companies that work with creative businesses are more innovative than ones that do not. NESTA, in partnership with the Manchester City Council, the North West Development Agency, the ESRC and the AHRC is launching a new scheme called Creative Credits that aims to stimulate new business connections between Manchester-based creative businesses and small businesses in other sectors.25 How a city’s social networks structure collaboration has a huge bearing on how it learns and responds to change, as the recent history of two US steel towns Allentown, Pennsylvania and Youngstown, Ohio shows. Twenty years ago both towns went into steep decline as their steel-making firms hit crisis. Allentown has rebounded by transforming existing companies, building an entrepreneurial sector and attracting inward investment. Youngstown was similar to Allentown in virtually every way. Yet instead of adapting in the face of acute economic crisis, it failed to attract new businesses or grow
Original Modern Manchester’s journey to innovation and growth 25
existing ones and fell into a mean race to the bottom. As its economy declined so its social fabric stretched and tore.26 The difference in these two towns was in their social and business networks. Youngstown’s business networks, organised around its Garden Club, rewarded insiders and protected incumbents. New thinking from outsiders was resisted. Instead of building a broad coalition for regeneration, Youngstown’s leaders became inward-looking and sectarian. Allentown had much more diverse, dynamic and outward-facing business networks that connected the town to new opportunities. New businesses quickly found a niche in these networks, adding momentum and energy to the town. Allentown recovered because the social networks linking its business and civic leadership were open to opportunity and collaboration. Youngstown struggled because its leadership networks were inward-looking, centralised, conservative and closed to outsiders. Youngstown and Allentown are much smaller than Manchester and were heavily dependent on a single industry. Yet the central lesson is still relevant to Manchester’s challenge: how the city brings together its civic and business networks, attracts and integrates outsiders, around a shared vision of the future, will be critical. Manchester’s track record for collaboration is impressive, particularly the links between public and private sectors, which have been central to Manchester’s strategy over the past decade. Manchester’s
city’s leadership is closely connected and accessible. As a result it is easy to find the right person to talk to and to get things done, people say. Manchester is a large city-region but its core, where many of the critical decisions are made, feels small because the city’s leadership is so closely connected. Manchester’s capacity for collaboration will need to be extended and deepened, however, in the decade to come. Manchester is leading the way in creating collaborative forms of regional governance. Public and private partnerships are embedded in the Commissions set up to develop strategies for the city-region. City-region governance promises to provide Manchester with a platform for innovation in transport, housing, economic development and jobs. However Manchester will need to deepen and extend its approach to collaboration in a number of ways. • Key to Manchester’s success over the past decade has been its highly effective leadership which has mixed both stability and creativity, and combined well with private and public sector counterparts to chart the regeneration strategy. A relatively cohesive, tight-knit group of city leaders has driven an ambitious programme of change. Manchester needs to develop the next cadre of civic and business leaders, a new generation. It also needs to widen the pool of potential leaders to draw in people from community associations, small business, churches, social entrepreneurs and young people. A tight-knit leadership
26 Original Modern Manchester’s journey to innovation and growth
group may have been the appropriate way to drive the strategy of the last ten years focused on buildings and physical regeneration. But Manchester will need a more distributed, diverse leadership to pursue a strategy focused on the more diffuse challenges of developing people and changing culture. • Manchester has strong sector networks, which link people within common knowledge domains. However innovation increasingly comes from people sharing ideas across domains. Crosssector networks are more important to innovation because they speed lateral searching and thinking. This is why Manchester so needs a locally driven innovation forum to provide a continuing focus for innovators from all sectors to come together and pool ideas to tackle the big challenges facing the city. • Not enough is being made of the innovation and learning from Manchester’s more internationally oriented companies. Were they to be more connected to other Manchesterbased companies with a more domestic orientation it would speed innovation and learning.27 Some of this kind of learning can take place along supply chains, or through initiatives such as the Sharp Project which aims to support start-ups with advice from more established digital media companies. The rise of the Chilean wine industry over the past two decades was largely due to the role of a few internationally connected firms that were the conduit for new ideas and techniques that then rippled through the rest of the industry.
Manchester needs to do more to make the learning of its best firms available to the rest. • Manchester should match its innovative approach to collaborative governance at the city-region by developing new approaches to much more localised governance, at the level of wards and estates to galvanise community level innovation. Manchester needs ambitious leaders locally as well as at the level of the city-region. One interviewee suggested a Wythenshaw Assembly as a local counterpart to the collaborative governance overseeing the whole of the city-region. • The city must continue to press plans to create a free or low-cost broadband wi-fi space stretching at least from the Sharp Project to Media City. The web is increasingly vital to collaboration and networking, in business, politics and social life. It will be difficult for Manchester to claim to be a prime location for original modern thinking if it trails places such as Amsterdam and Seoul which are leading the pack on widespread and low-cost high-speed access to the web. • In addition, Manchester should also consider how to lead the way in promoting open source access to public information and knowledge, allowing public data to be repackaged and reused, much as Apple has opened up the iPhone to independent developers. Open access to public information will be a key feature of innovation-friendly cities in future.
Original Modern Manchester’s journey to innovation and growth 27
Conclusion: Original Modern, Again
The changes in Manchester have been impressive. The cycle of decline has been arrested and in some places reversed. A platform has been put in place for further development. Yet the achievements of the past decade are no more than the start of a long process of renewal that could take several more decades of heavy lifting to come to fruition. The focus on Manchester’s efforts will have to shift from buildings and infrastructure to people and culture, developing homegrown talent, improving education, supporting families, providing a much better experience for children in their early years, raising ambitions, encouraging entrepreneurship, enabling creative collaboration across different sectors. Manchester still does not have enough of the high quality ingredients it needs to be a world-class city and those ingredients need to be mixed and combined more intensively and productively. What made Manchester the original modern city in the 19th century was its combination of thinking, creating and doing. The same mix – think, create, do – will be vital for Manchester to be the place where the successful modern city of the 21st century is made. In the 19th century Manchester provided much of what would become the operating system of modern capitalism and the alternatives to it, from Cobden’s liberal free-trade, to Engels’ scientific socialism, Owen’s utopian social capitalism, the cooperative movement and trade unionism. All were recipes for how people would best collaborate to take the opportunities of urban living, new technologies, forms of production and patterns of trade. Manchester needs to do the same again, to provide the ideas that will shape how cities cope with climate change, digital technologies, networked innovation and ageing. Manchester should be the place where new operating systems for education, welfare and the extended life span are devised. Manchester was a font of ideas in the 19th century because it had such a cosmopolitan mix of people brought together by the pursuit of new knowledge and above all, practical solutions. Manchester was a practical place for turning useful knowledge into action. Practical action and experimentation fed Manchester with the raw material for ideas and ideologies. The same must be true now. Manchester must earn a reputation for making changes happen in welfare, education, digital media, life sciences and new materials. It must be the natural home for people who are frustrated by bureaucracy and want to get things done. That was possible in the 19th century because Manchester was socially more open to maverick, irreverent thinking that challenged orthodoxy or simply ignored it. Time and again places have overcome their apparent marginality by providing a
28 Original Modern Manchester’s journey to innovation and growth
home for mavericks, renegades and even pirates, who were squeezed out of more established centres of production. This is how the valleys south of San Francisco that used to grow fruit and nuts became home to Silicon Valley rather than the more established technology clusters on the east coast; why Hollywood is home to movies, not New York, and why the US car industry set up in farmers’ fields in the Mid West rather than in the industrial North East. Marginal places can leapfrog their more established peers by thinking and acting like outsiders and mavericks, licensing unconventional tactics and thinking. Manchester must not become bland, predictable and dully respectable, a controlled outpost of global corporate culture. Manchester became the original modern city because it was where the future arrived first. That is why people flocked to it, to see the first signs of what was to come. Manchester will only reclaim that mantle if once again it applies a mix of maverick ideas and resolutely practical problem-solving to big issues that face all cities. If Manchester can address these big challenges of education, welfare, sustainability, digital media, with maverick thinking from around the world, matched to practical action, then it has a chance to be again a city to which the rest of the world turns for a lead.
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1. Association of Greater Manchester Authorities (2009) ‘Prosperity For All: The Greater Manchester Strategy.’ Manchester: AGMA. Available at: http://www.agma.gov.uk/ccm/cms-service/download/asset/?asset_id=2355003 2. National Statistics (2006) ‘Regional, Sub-Regional and Local Gross Value Added.’ Newport: ONS. Available at: http://www. statistics.gov.uk/pdfdir/gva1206.pdf 3. Centre for Cities (2009) ‘Cities Outlook 2009.’ London: Centre for Cities. Available at: http://www.centreforcities.org/ assets/files/Cities%20Outlook%202009.pdf 4. Manchester Enterprises (2007) ‘Greater Manchester Strategy Business Plan.’ Manchester: Manchester Enterprises. Available at: http://www.manchester-enterprises.com/documents/GM%20City%20Strategy%20Business%20Plan%20Full%20 Version.pdf 5. Colombo, A. (2008) The ‘Lombardy Model’: Subsidiarity-informed Regional Governance. ‘Social Policy and Administration.’ Volume 42, No.2, April 2008. 6. OECD (2006) ‘OECD Territorial Reviews: Milan, Italy.’ Paris: OECD. 7. Shapira, P., Luger, M., Uyarra, E. and Marzocchi, C. (2009) ‘Innovation across the Manchester City Region: A Discussion Paper.’ Manchester: Knowledge Capital UK. 8. Ibid. 9. De Propris, L., Chapain, C., Cooke, P., MacNeill, S. and Mateos-Garcia, J. (2009) ‘The Geography of Creativity.’ NESTA: London. 10. NESTA (forthcoming report) ‘Creative Clusters and Innovation: Final report.’ London: NESTA. 11. Based on data from Manchester Independent Economic Review (2009) ‘Reviewer’s Report.’ Available at: http://www. manchesterreview.org.uk/download/?id=642 12. Sabel, C. and Saxenian, A. (2008) ‘A Fugitive Success - Finland’s Economic Future.’ Sitra Reports 80. Helsinki: Sitra. 13. Nathan, M. and Urwin, C. (2006) ‘City People: City Centre Living in the UK.’ London: Centre for Cities. Available at: http:// www.centreforcities.org/assets/files/pdfs/city_people.pdf 14. Huggins, R. et al. (forthcoming report) ‘Sourcing Knowledge for Innovation: The Internationalisation of Flows.’ London: NESTA. 15. Hunt, T. (2009) ‘The Frock-coated Communist: The Revolutionary Life of Friedrich Engels.’ London: Allen Lane. 16. Manchester Independent Economic Review reports available from http://www.manchester-review.org.uk/ 17. Kidd, A. (2006) ‘Manchester: A History.’ Manchester: Manchester University Press. 18. Manchester Independent Economic Review reports available from http://www.manchester-review.org.uk/ 19. Manchester Independent Economic Review (MIER) (2009) ‘Reviewers Report’, p.5. 20. Mahroum, S., Huggins, R., Clayton, N., Pain, K. and Taylor, P. (2008) ‘Innovation by Adoption: Measuring and mapping absorptive capacity in UK nations and regions.’ London: NESTA. 21. Saxenian, A. (2006) ‘The New Argonauts.’ Cambridge, MA: Harvard University Press; as cited in Day and Stilgoe (2009) ‘Knowledge Nomads: Why Science Needs Migration.’ London: Demos. 22. Hunt, T. (2009) ‘The Frock-coated Communist: The Revolutionary Life of Friedrich Engels.’ London: Allen Lane. 23. London School of Economics (2009) ‘The Case for Agglomeration Economies.’ Manchester: Manchester Independent Economic Review (MIER). 24. Sabel, C. and Saxenian, A. (2008) ‘A Fugitive Success - Finland’s Economic Future.’ Sitra Reports 80. Helsinki: Sitra. 25. See http://www.creative-credits.org.uk 26. Safford, S. (2008) ‘Why the Garden Club Could Not Save Youngstown: The Transformation of the Rust Belt.’ Cambridge, MA: Harvard University Press. 27. Volterra Consulting (2009) ‘Innovation, Trade and Connectivity.’ Manchester: Manchester Independent Economic Review (MIER). 30 Original Modern Manchester’s journey to innovation and growth
Charles Leadbeater Charles Leadbeater is a leading authority on innovation and creativity. He has advised companies, cities and governments around the world on innovation strategy and drawn on that experience in writing his latest book We-think: the power of mass creativity which charts the rise of mass, participative approaches to innovation from science and open source software, to computer games and political campaigning. He is a visiting Senior Fellow at NESTA and a visiting Fellow at the Skoll Centre for Social Entrepreneurship at the Saïd Business School in Oxford. He is author of Living on Thin Air: A guide to the new economy and, as a special adviser to the former DTI, drafted the 1998 government white paper: Our Competitive Future: Building the Knowledge Driven Economy.
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