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Jobs Underpin Recovery. Discuss The Big
Picture?

• Stuart Gulliver

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• Economic performance is central to the success of
  the city economy
• Sustainable city recovery is fundamentally about
  job growth and incomes

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• By Jobs we can mean 3 things
• the quantity of jobs (in survival period this
  is a priority)
• the quality of jobs (pay levels, skill levels)
• job direction (Glasgow jobs for Glasgow people)

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• Job Growth comes about because of 4 rates of
  change - a sort of Corporate demography
• birth rate of business
• death rate of business
• growth rate of existing businesses (and
  institutions)
• migration rate of existing business (and
  institutions)

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3 Models of Job Generation pursued by cities over
last 30 years
I
II
III
Survivalism Get any job you can
Re-structuring Economic self-improvement
Post-Industrial Seeking competitiveness in the
global economy
Indigenous business, small business, technology
sectors, risk capital
Both indigenous and exogenous
Focus
Chasing FDI
E-Zones, tax breaks, sector parks, business
services
Get basics right, connectivity, talent,
amenity, networks
Deep subsidy, low costs, skills available
Approach
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• Particular Approaches to Job Generation
• - the growth of fadism
• i) Foreign Direct Investment (FDI)
• USA, Japan. Branch plant later subsidiary
  entrepreneurship. Silicon Glen
• ii) Technology Sectors
• Electronics, Health Care, Advanced Engineering,
  Financial Services, Oil Gas, Tourism
• iii) Picking Winners
• SDA had an investment capability
• iv) New firm formation and small business
  development
• Motivated by U.S. research by Birch
• v) Commercialisation and Technology Transfer
• vi) Clusters

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• What are Glasgows competitor cities up to in
  early 90s?
• 1989 Analysis Glasgow in bottom half of 3rd
  Division of 4 Division system
• 1990/91 Visits Hamburg, Munich, Copenhagen
  Lyon, Barcelona, Monpellier, Marseille,
  Rotterdam, Amsterdam, Milan

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• Our Competitors - 4 themes emerging
• 1. Get the basics right and do them really well
• external connectivity
• human capital
• quality of built environment / amenity
• 2. Universities research centres as key
  institutions
• 3. Focussed business development
• SME Support systems
• promotion of entrepreneurialism
• 4. Appropriate Development Mechanisms

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• The Glasgow Approach
• What is amenable to change at the city level?
  Macro factors affect 80 of what happens
  at city level
• Strategy of rowing, steering and cheering
• Difficulty of identifying which economic
  activities will be key at the city level in the
  future

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• 1. External Connectivity
• Route development, Use it or lose it campaign
• 2. Other supply side activity
• creation of modern, attractive business locations
  sites
• quality of labour market
• access to investment funds, venture capital
• 3. Universities designated as a Key Industry
• 4. Focused Business Development
• 5. Strategic Marketing
• 6. Implementation - delivery focus making
  Glasgow an easy place to invest in

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Jobs Come Late in the Cycle
Stages of City Turnaround
Decline
Survival
Stabilise
Revival
Transformation
Re-position
Re-invent
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Turnaround Life Cycle - Jobs come late in the
cycle
City Performance
Stage 1 Survival
Stage 2 Revival
Stage 3 Re-position
Time

• City turnaround takes a generation - 25 years
• Need for Pacing Devices

• 1988 Glasgow Garden Festival
• 1990 European City of Culture
• 1996 Festival of the Visual Arts
• 1999 UK City of Architecture Design