5.1.6 Economic Futures in the UK

Economic Development in the UK: A Post-Industrial Economy

Why has the UK's Economy Changed?

• De-industrialisation:
  • Decline of manufacturing (secondary) industry.
  • Growth in tertiary and quaternary employment.
• Contributing Factors:
  • Machines and Technology:
  • Replaced many jobs in modern industries 📝 (e.g., car production).
  • NEEs 📝(e.g., China, Malaysia, Indonesia):
  • Cheaper labour costs.
  • Produce cheaper goods.
  • Lack of Investment:
  • High labour costs and outdated machinery.
  • Made UK products too expensive.
• Industry Decline:
  • Traditional UK industries (coal mining, engineering, manufacturing) have declined.
  • UK is now a world centre for financial services, media, research, and creative industries.

Key Causes of Economic Change in the UK:

• De-industrialisation:
  • Decline of the UK's industrial base.
  • Fewer jobs available in manufacturing.
  • Shift to tertiary and quaternary sectors.
• Globalisation:
  • Manufacturing moved overseas where labour is cheaper.
  • TNC headquarters remain in the UK, production in NEEs 📝 (e.g., India).
• Government Policies:
  • Investment in new infrastructure and technology.
  • Membership in trading groups facilitates global trade.

What is a Post-Industrial Economy?

• Definition:
  • Economy where manufacturing is replaced by service and tertiary jobs.
  • Growth in quaternary industry in the 21st century.
• Quaternary Sector:
  • Also known as the 'knowledge economy'.
  • Involves information development, technology, biotechnology, and creative industries.
• Workforce Shift:
  • 15% of the UK workforce now in the quaternary sector.
  • Only 10% in manufacturing (compared to 55% in 1900).
• High-Tech Corridor:
  • M4 corridor from London to Bristol.
  • Home to high-tech industries over the past 30 years.
  • Companies like Microsoft based there.

Economic Development in the UK: SCIENCE & BUSINESS PARKS

Why has the UK seen a rise in business parks and science parks?

• Industries:
  • Quaternary and tertiary industries are increasingly found in science or business parks.

Science Parks:

• Definition**:**
• A group of scientific and technical knowledge-based businesses located on a single site.
• Focus:
• Emphasis on technology, hence linked to the quaternary sector.
• Location:
• Often on town edges, near transport links and prestigious universities.
• Facilities:
• Include laboratories and offices.
• Low-rise buildings with ample parking and green spaces.

Business Parks:

• Definition:
• An area of land with a cluster of businesses on a single site.
• Focus:
• Commerce and services, hence linked to the tertiary sector.
• Location:
• Typically on town edges near transport access.
• Facilities:
• Low-rise offices with good parking and green spaces.
• Cost:
• Cheaper land is prioritised over proximity to universities.

Growth of Parks:

• Demand:
  • Increasing demand for high-tech products.
• Universities:
  • High number of strong universities for science parks to form links with.
  • Proximity to universities gives companies access to skilled workers.
• Clusters:
  • Related businesses in one place can boost each other.
• Quaternary Sector:
  • Growing sector, with 60,000 people employed in IT.

SCIENCE PARK CASE STUDY – Birmingham Science Park

• Overview:

• Leading UK science park, established in 1983.

• Third oldest in the country.

• Specialisation:

• Specialises in 'Life Sciences' (study of organisms like plants, animals, humans).

  

• Focus:

  • Forefront of combating diseases and viruses through drug development.

• University Link:

  • Built adjacent to Aston University for access to a skilled workforce.

• Employment:

  • 22,000 people employed across 600 companies.

• Transport Links:

  • Close to M6, New Street Station, and Birmingham International Airport.

• Relocation:

  • Moving to Selly Oak in 2022 near Birmingham University.