Knowledge Economy Programme - Second Phase Launched

LONDON - The Work Foundation today launches the second phase of its research programme on the future of Britain’s knowledge economy. In a new departure for the organisation, this major programme brings together key players from the public and private sector (including the UK’s creative industries), the NHS and government to develop a definitive plan showing how Britain can recover from recession and re-construct a knowledge economy by 2020.

Microsoft, EDF Energy, The Design Council, NESTA, the British Council, NHS Employers, the IPA and the government’s new Business Innovations and Skills department, have all signed up to working closely with The Work Foundation on this programme. Its primary aim is to set out a credible view of what a balanced and sustainable economy would look like in 2020. It will also describe the options for government, institutions and business and non-governmental organisations on how Britain can re-engineer its economy to be sustainable, and set out a roadmap of how to get there. As the economy struggles to recover from a deep recession triggered by the financial crisis, intense debate surrounds what the post-recession economy will look like. The research will investigate:

- Where will the new jobs and industries come from? - What will happen to the balance between the finance sector and the ‘real economy’? - What role will manufacturing play? - In an age of financial austerity, what is the role of the ‘public knowledge sectors’ in healthcare and higher education? - How should the UK capitalise on its strengths in the creative industries, design, science and technology? - What skills will be needed and what is the best way of getting the right mix? - What contribution could public services (like healthcare) with a strong R&D base make? - What difference would a better appreciation of intangible assets make to policy, investment and reporting? - How can the UK economy benefit from de-carbonising?

The second phase of the programme will be drawing on the insights from the first knowledge economy programme that ran between April 2006 and April 2009. It aims to build on the reputation The Work Foundation has established for evidence-based research and realism regarding some of the claims occasionally made for the ‘transformative’ implications of knowledge.

Ian Brinkley, director of the knowledge economy programme at The Work Foundation said:

“The strength and durability of the recovery depends critically on how much of the UK’s knowledge and scientific base will survive the recession. The government can help by supporting organisations to preserve as much as possible of their human capital and science base and by investing also in the physical and electronic infrastructure. But ultimately, it is today’s strategic decisions of knowledge based organisations - both public and private - that will determine the state in which we find ourselves in ten years from now.”

Over the past forty years three major, interlinked changes have driven the UK and other advanced industrial countries. They are: - New jobs, growth (measured by value added) and exports have come from the expansion of the ‘knowledge based industries’ (defined by the Organisation for Economic Co-Operation and Development as business, financial, and high tech services, the creative and cultural sector, high to medium high tech manufacturing, education and healthcare). In 1970 only 25 per cent of the workforce was employed in these industries. Today it is nearly 50 per cent. - Businesses have switched from investing mainly in buildings, vehicles and machines (’tangibles’) to investing in design, software and databases, research & development, brand equity, human and organisational capital (’intangibles’). In 1970 business investment in these knowledge based intangibles was worth only 40% of investment in physical assets. In 2004 it was worth over 120%. - The workforce has changed from a situation where most people had no qualifications to one where almost everyone does, with an increasing number at degree level or higher. In 1970 nearly 60 per cent of people in work had no qualification. By 2005 it was just over 10 per cent.

Notes to Editors

1. Ian Brinkley is available for interviews and briefings.

2. The programme plans to carry out five sector-based studies: on energy and the environment (low-carbon); health-care and the health science base; creative and cultural services; high-tech manufacturing (manu-services); and high-tech services.

3. Current sponsors of the second phase of the programme are: the British Council, the Department for Business, Innovation and Skills, The Design Council, EDF Energy, IPA, Microsoft, NESTA and NHS Employers. Further sponsors will be announced in due course.

4. For further information on The Work Foundation’s knowledge economy programme please click here ( www.theworkfoundation.com/research/keconomy.aspx).

5. The Work Foundation is the leading independent authority on work and its future. It aims to improve the quality of working life and the effectiveness of organisations by equipping leaders, policymakers and opinion-formers with evidence, advice, new thinking and networks.

Source: The Work Foundation

Media enquiries: Nasreen Memon +44(0)20-7976-3507 / +44(0)7825-527-036 nmemon at theworkfoundation.com