Competitiveness and the post-regional political economy

Abstract

This article seeks to examine how the changing institutional environment concerning local and regional economic development in Britain is related to the changing competitive fortunes of its localities and regions. Drawing on evidence from the UK Competitiveness Index, it is found that the institutional shift toward a post-regional political economy, particularly the demise of Regional Development Agencies and the introduction of Local Enterprise Partnerships, has coincided with an increased concentration of Britain’s economic competitiveness and growth capacity within London, in particular the City of London. Overall, there is found to be continuing divergence in competitiveness between England’s least and most prosperous regions and localities. In the devolved regions of Scotland and Wales, there is little evidence to indicate that their localities are competing any more effectively with their English counterparts. It is suggested that the most effective role for economic development institutions is to act as a guiding light to ensure sustainable local and regional economic models are established.