21st Century knowledge economy (quaternary) and its social and economic impacts Flashcards
What facilitated the quaternary economy?
- rise of communication
- rise of computer and information technologies
- allied to the changing nature of communications and transport systems producing new townscapes
What has the quaternary economy facilitated?
CLUSTERING
- productivity and innovation are concentrated in cities
INTRA-INDUSTRY SPILLOVERS
- proximity of similar firms enables knowledge and ideas to travel among specialist companies, furthering development of new activities
Explain why cities promote clustering
- innovation needs backers e.g. city-based financiers and entrepreneurs
- cities have concentrated of creative, digital and professional activities because they can support skilled workforce, broadband infr. and trade links
What percentage of small- and medium-sized enterprises (SMEs) were in cities 2015?
65% creative industries
60% digital companies
What characterises the knowledge economy?
- focusing on advancing technology through innovation
- mostly based in a specific place: produced, developed
- 50% highly skilled jobs taken by graduates
- IT and tech
- creatives: design, museums, broadcasting, ads
Where do knowledge economy businesses tend to locate?
CITIES generally with unis or clustering of tech businesses
- where services already are
- broadband fast
- equipment
- graduate students take the jobs
What are the top 5 strongest knowledge economies?
- China
- S. Korea
- Japan
- Germany
- USA
Who is employed in the knowledge economy?
Give an example
- graduates
- people with very high qualifications
e.g. Cambridge working population = 66% have high level qualifications
How does the knowledge economy impact the wider UK economy?
JOBS: creates 1 in 5, and 6% UK workforce is employed in the digital economy
- this decreased graduate employment problems
MASSIVE INCOME: three-quarters UK unicorns are in London
What are unicorns?
Give some examples
companies that have recently started up that are already worth over US$1 billion
e.g. Uber, Airbnb
- both originated in Silicon Valley
Deliveroo
- UK
What are the locational factors influencing cluster growth?
- government support
- role of unis and research establishments
- planning regulations
- infrastructure
How does government support encourage cluster growth?
Give examples
INVESTMENT AND POLICY
- government announced 50% increase in R&D by 2027
e.g. national and local government support was given to East London Tech City
e.g. 2017 gov announced launch of Tech Nation
= consolidates Tech City and Tech North and aims to grow tech businesses UK
- identified 16 Silicon Suburbs which have higher proportion of ditital tech employment than UK average such as Basingstoke
How do unis and research facilities encourage cluster growth?
- government allows unis to establish local growth plan and University Enterprise Zones, with business spaces for new high tech companies starting up
- presence of highly educated workforce needed by companies and for start-ups
- encourage investment in R&D
How do planning regulations encourage cluster growth?
EZs and LEPs encourage new industries
How does infrastructure encourage cluster growth?
Industry locates in areas with good connectivity to other parts of the country and globally
How does education impact cities?
Give an example
STUDENTIFICATION:
- play a part in gentrification
- live in houses in the private rented sector
- may stay in the area after graduating, rolling on gentrification, and being involved in start-ups in the knowledge economy
- also access to highly qualified researchers and facilities
e.g. Manchester has >99,000 students over 4 unis
What are the impacts of quaternary industry clusters on people and places?
Give examples
- costs pushed up
e.g. Cambridge combination of historic, uni and highly skilled people attracting Knowledge-Intensive Business Services
- lack of quaternary economy can lead to digital exclusion OR digital company growth
e.g. Bournemouth = uni town, has The Enterprise and Innovation Research Cluster
- digital company growth 2010-13 = 212%
- more people employed in the tech sector
e.g. Wales, especially Cardiff (28,000 2015). Staff and space are cheaper than elsewhere in the UK. Proximity to gvmt, and Business Wales Digital Development Fund have meant they can set up the Innovation Centre for Enterprise in Caerphilly, one of the most deprived towns in Wales
What is digital exclusion?
What are the reasons for it?
Give an example
lack of skills associated with computers and poor access to broadband
REASONS:
- out-migration of young adults to unis
- lack of jobs
- and no training for older people
Therefore they cannot provide the threshold population to support the investment in cabling these regions
- can lead to social exclusion BUT isn’t always the deciding factor e.g. Scunthorpe has access to broadband but low education attainment and relative poverty, and is still socially excluded
e.g. 2019, 9.3% adults in Wales had never used the internet
What are high technology industries?
- industries developed within the last 40 years
- processing techniques require micro-electronics, medical instruments, biotech and pharmaceuticals
- demand high info input, expertise and R&D
- footloose
- agglomerations
What does footloose mean?
(modern term = flexible specialisation)
- not tied to raw materials, have a free choice of location
What is the opposite of footloose?
Give an example
FIXED INDUSTRY
- tied to a location
e.g. ship building is near the coast
What is agglomeration?
where several firms choose the same area for their location in order to minimise costs
Where does high-tech industry in the UK locate?
- Silicone Glen
- Silicon roundabout
- Cambridge and the M11 corridor
- M4 corridor
Why does high tech industry in the UK locate where they do?
- lots of skilled/educated workers
- lots of customers
- near major cities
- good transport links
- government promotes research establishments e.g. Harwell and Aldermason have government contracts near Bristol
- attractive environment and proximity to cultural centres
e.g. London, Oxford
