Innovation and business productivity are key pillars of contemporary economies. Innovation intensity brings considerable gains to regional productivity, yet local realities show a disproportion in their capacities to attract and develop R&D intensity and productivity in the North West.
In the NW, the top 5 sectors for productivity are:
- Repair of computers & household goods
- Chemical Manufacturing
- Pharma Manufacturing
- Scientific R&D
- Sports & Recreation
The PIN Evidence Review (McSorley, 2018) has highlighted that the 2008-9 financial crisis has increased income inequalities and unequal distribution of economic growth across regions and people in the UK. Such rise in inequalities can be addressed, according to Innovate UK and NWBLT (Hatch Regeneris, 2018), by focusing on innovation as a resource for productivity and inclusive economic development. The report suggests that region productivity variations can be explained in part by uneven engagement in entrepreneurial activity. For example, the entrepreneurial activity of the non-white ethnic population in the UK in 2015 was higher (at 11.7%) than that of the white population (6.4%), yet non-white owned firms have higher failure rates and less growth potential than white-owned firms both in the UK and the US. Non-inclusivity in entrepreneurial activity means lost opportunities for innovation and, therefore, productivity improvements. Innovation hubs play a key role in enabling inclusive economic development, by encouraging start-up activity, knowledge transfers and sharing, and offering groups such as women and ethnic minorities access to resources and networks for business success.