1.3.6 The Twenty-First Century Knowledge Economy and its Social and Economic Impacts Flashcards
• Knowledge economy clusters including education, research, culture / creative industries, digital / IT companies, science and biotechnology • Locational factors encouraging cluster growth including proximity to universities and research institutes, government support, planning regulations and infrastructure • Impacts of quaternary industry clusters on people and places including place making and marketing, demographic change and global connectivity
1
Q
What is the quaternary economy?
A
- Forms the major activity of the 5th Kondratiev wave
- Characterised by the rise of communication and computer/information technologies
- Clustering occurs and it is happening in cities
- Lots of intra-industry spill overs
2
Q
What is the knowledge economy?
A
Innovation
3
Q
What are Knowledge Intensive Business Services (KIBS)?
A
- Highly localised despite ICT systems
- In city centres
- 50% of KIBS jobs are taken by graduates
4
Q
What is the digital economy?
A
Includes ICT (software development, broadband networks, hardware, software, sales, marketing) and digital content (digital media, publishing, design, music, advertising)
5
Q
What are the creative industries?
A
Includes product design, software development, broadcasting, advertising, libraries, museums
6
Q
What is biotechnology?
A
Includes medical research, legal, accountancy and management consultancy
7
Q
What are unicorns?
A
Companies that have recently started but are now worth over $1 billion
8
Q
What is a patent?
A
The legal right to an invention
9
Q
Where is Silicon Valley?
A
- Between San Francisco and San Jose
- Extends the length of the Santa Clara Valley in Northern California
10
Q
How have triggers given rise to the growth of the knowledge economy in the valley?
A
- Pre 1940s, radio enthusiasts were attracted to the area due to the Mediterranean climate and cheap property prices
- Hewlett Packard located in Paulo Alto where they developed oscillators
- This triggered people to follow
11
Q
How have universities given rise to the growth of the knowledge economy in the valley?
A
- Stanford, Berkley, Caltech
- Research professors and students are a constant source of inspiration and have spawned many companies
12
Q
How have inspirational individuals given rise to the growth of the knowledge economy in the valley?
A
- Terman (dean of engineering at Stanford) set up Stanford Industrial Park where 150 firms are
- Shockley set up a laboratory and associates made semi-conductors/silicon chips (which late become Intel) when they broke away
- Brin and Page (former Stanford students) set up Yahoo and Google in 1998
13
Q
How has the family tree of companies given rise to the growth of the knowledge economy in the valley?
A
- A company called Fair child was a parent company of Apple, Cisco etc.
- Google, Yahoo, eBay and Netscape piggybacked on growing power of hardware from these companies
14
Q
How have military needs given rise to the growth of the knowledge economy in the valley?
A
- World War 2 Ames Research Centre is at Moffett
- Among the first computers developed in the world
- Same site evolved into an air force and NASA base
- Google and government share the site
15
Q
How have young entrepreneurs given rise to the growth of the knowledge economy in the valley?
A
- Highly skilled graduates refuse to leave the area
- Many have set up their own companies
16
Q
How has the inertia of young talent given rise to the growth of the knowledge economy in the valley?
A
- Highly skilled, talented, young graduates refuse to leave the area
- Companies have to locate there then to attract them
17
Q
How has the transport provision given rise to the growth of the knowledge economy in the valley?
A
- Regionally and internationally interconnected
- Freeway 101, Caltrain and 3 airports (San Francisco International Airport, Oakland International and Mineta San Jose)
- San Carlos is a small airport for wealthy entrepreneurs
18
Q
How has the ability of firms to recruit talent from around the world given rise to the growth of the knowledge economy in the valley?
A
- Talent is attracted to area by increasingly diverse amenities, restaurants and social provision available
- Not only employment
19
Q
How have takeovers given rise to the growth of the knowledge economy in the valley?
A
- Another means for firms to get larger
- Google aquired Youtube
20
Q
How have other organisations moving to the Bay area given rise to the growth of the knowledge economy in the valley?
A
- Tesla and Airbus moved into area
- Due to the availability of software engineers that they needed
21
Q
What is agglomeration?
A
Similar firms locating near each other
22
Q
What are economies of agglomeration?
A
The benefits that firms obtain from locating near each other
E.g. Decreases costs of production, attract more suppliers and customers
23
Q
What are the social advantages to agglomeration of the quaternary computer sector in Silicon Valley?
A
- Excellent higher education (as quality students and researchers are attracted)
- A cosmopolitan society
- Companies provide their own transport so there are more flexible working patterns
- Most qualified tech graduates in the world
- High levels of highly qualified posts for women as there is gender and minority progression
24
Q
What are the economic advantages to agglomeration of the quaternary computer sector in Silicon Valley?
A
- Hyper-speed broadband
- Landlords can raise prices/rents above inflatin
- Develoeprs building as fast as possible due to guarenteed profits
- Benefits transfer of ideas and career progression due to shared labour pools and ideas from universities
- Value placed on spin-offs and new entreprenurial ventures
- Rise of the electric car industry (e.g. Tesla)
- Potential to poach quality staff from competition (knowledge spillover)
25
What are the environmental advantages to agglomeration of the quaternary computer sector in Silicon Valley?
- Inventing new emission free technology
- Environmental awareness is widespread
- High levels of hybrid car ownership
26
What are the social disadvantages to agglomeration of the quaternary computer sector in Silicon Valley?
- Congestion
- Overloaded transport system
- Demand for housing, schools and facilities for young families
- Older residents may feel that the places they grew up are being destroyed
- Difficulty for public service workers to be recruited due to cost of living being too high
27
What are the economic disadvantages to agglomeration of the quaternary computer sector in Silicon Valley?
- Companies will compete for workers and ideas
- Weaker companies will be put out of business
- Maintaining infrastructure for a large population is expensive
- High property prices so employees are forced to live further away where it is cheaper
28
What are the environmental disadvantages to agglomeration of the quaternary computer sector in Silicon Valley?
- High levels of pollution due to it being a high pressure climate
- Water supply issues due to high demand
- The space to build is rapidly decreasing so movement is forced onto protected land (urban sprawl)
29
What is the location of Silicon Roundabout?
- Concentrated around Old Street roundabout, East London
- In Shoreditch
30
What are the characteristics of Silicon roundabout?
- Young and diverse area seen as attractive to cosmopolitan youth from around the UK and world
- 2000 start ups per year
- Old warehouses and factories converted to office space
- 300,000 work in digital economy within 5 miles of Old Street roundabout
- Second biggest concentration of digital industry after Silicon Valley
- On the Fringe of CBD
- Land is cheaper
- More culturally diverse
- More informal working spaces preferred
- Government rebranded it 'Tech City'
31
What is a tech start up?
An early stage digital business
32
What is the locational spread of new start ups across inner London?
- 1001-1800 start ups in 2013 in Tech City, Canary Wharf, Holborn, Mayfair and Soho
- 3228 tech firms per sq km in Silicon roundabout compared to the London average of 58 and the UK average of 1-2
33
What are the factors that led to the growth and location of London Tech City?
- Higher broadband speeds than other parts of Central London
- Connectivity to the rest of London and the UK
- Proximity to Central London and the City (which is the marketplace for innovations and the source of finance)
- Renting of floor space is far cheaper than in the CBD
- Branding and messaging have made entrepreneurs and financiers aware of new activities
- Complementary firms have clustered in the area and make use of incubator space
- Amenities of the area cater for the new workforce (e.g. cafe culture)
- Visa requirements were relaxed for tech graduates
34
What are the advantages of Silicon roundabout for Shoreditch?
- 300,000 jobs in digital businesses
- Diversity and cultural exchange
- Increased investment
- Smart city with green initiatives
35
What are the disadvantages of Silicon roundabout for Shoreditch?
- Rent doubled between 2011 and 2013
- Gentrification and loss of local culture
- Displacement of local businesses
- Social inequality
- Increased pollution
- Loss of green space
36
How can students gentrify an area such as Swansea?
- Have a budget of £205 million with a student population of 13,000 and on campus accommodation for 3,400
- May become involved in new start up businesses in the knowledge economy
- Stay in the area of graduation
- Live in privately rented houses
- Uplands and Brynmill have been gentrified
37
What is a science park?
A purpose built clustered development designed to support research and development in science and tech
38
What is Cambridge Science Park?
- Founded in 1970 by Trinity College
- Oldest science park in the UK
- Most businesses are biotech or technology (premier biomedical science hub in the world)
- Strong links with Cambridge University
- 100 companies
39
How have Cambridge and the Cambridge Science Park benefitted each other?
- Economic growth as jobs are created and tech companies boosted local economy
- Collaboration between academia and industry
- Knowledge transfer between companies
- Improved infrastructure (e.g. Trainline to London, M11, Stanstead Airport, modern labs)
- Attract and retain graduates
- Good reputation
40
What is digital exclusion?
A lack of access to use the internet (often combines with low educational achievement and relative poverty)
41
What are places that are very digitally excluded in the UK?
- Northumberland
- Scottish highlands
42
What are places that are digitally well connected in the UK?
- London
- Manchester
- Cambridge
- Edinburgh
43
Which areas and groups are at risk from digital exclusion?
Rural:
- 11% of people in Wales are digitally excluded and most of them are in rural areas
Older people:
- Only 40% of over 75s use the internet compared to 97% of 16-49s
- Due to differences in motivation, digital literacy and trust
Low income:
- 21% of disabled people are digitally excluded
- 25% of those are on housing benefits
44
How bad is digital exclusion in Wales?
- 300,000 people in Wales aren't online
- Only 53% of people with no qualifications use the internet
45
How may digital exclusion impact people's lives?
- Limited access to information
- Employment barriers (online applications)
- Social isolation
- Poor healthcare access (booking appointments and online information)
- Economic inequality
- Educational gaps
- No access to online banking which is needed as high street banks are closing
46
What has been done in Wales to improve digital inclusion?
- Welsh government funded 4 initiatives
- Government s et up the Digital Inclusion charter to support organisations who are willing to promote digital skills and help people get online through 6 key pledges
- Investment in superfast broadband
- Community hubs with computers and internet in libraries
- Supported school by enhancing digital literacy programs and donating laptops
- Ongoing research and evalusation
- Provided free WiFi
47
What are the initiatives that the Welsh government has funded?
- Communites@One provided funding as support to community organisations to help them purchase digital equipment (2005-2009)
- Communites 2.0 support 1520 enterprises/community organisations which worked with digitally excluded people (2009-2015)
- Digital Communities Wales supported organisations in digital inclusion and recruited digital volunteers to pass on skills (2015-2019)
- Digital Communities Wales - Digital Confidence, Health and Wellbeing helped people increase their confidence with technology to suit their personal lives
