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Being a magnet for talent is region’s secret for economic success


In the seemingly-perpetual debate about the UK’s north-south economic divide, little mention is ever made of what makes a region truly prosperous. The answer is simple, says Hampshire County Council. The south dominates because it is a magnet for talent.


Attention is paid to why companies are attracted to their location. Historically, heavy industries such as coal and steel grew in places where the natural resources were to be found, or where power could be generated, and those places grew rapidly as people flocked to where the jobs were. The focus on trying to attract companies to places, continues to this day.


But there is increasing evidence that jobs are attracted to people, much more than people are attracted to jobs; and that people are attracted to attractive places.


Research in locations such as the US states of Ohio and Indiana suggests that from the 2000s there has been an emerging trend of companies (and jobs) relocating to be near people, and that factors such as educational attainment and the ability of the quality of a place to attract the desired individuals have become more significant in influencing population growth.


In the dominant service-based sectors of the economy, people are the core resource. If a place is attractive to talented people, it is much more likely to be attractive to businesses. This is the basis of recent analysis undertaken by KPMG in its 'Magnet Cities' research, which identifies a strong link between the prosperity of places and their attractiveness to talented people.


There is thus an emerging argument that places should focus on investing in promoting and developing


themselves as attractive and aspirational for (especially young) talented individuals.


In the UK, a recent quality-of-life survey by Halifax plc, the South East of England dominates the annual list. Hampshire emerges as one of the “best places to live in the UK”, with seven of the 50 top-ranked districts being in the county.


According to the survey, Hart was the Hampshire district with the best quality of life in the UK, for the fifth year running. It scored highly on wellbeing, employment, crime rates and even weather.


Winchester, Hampshire’s historic cathedral city, has been named the ‘Best Place to Live in Britain’ by The Sunday Times. The recent announcement that Time Incorporated, the major publisher, is to relocate 300 of its UK staff from London to Farnborough is further evidence that locations such as Hampshire offer a balance between proximity to London, competitive property costs and, most importantly, access to a strong talent pool.


Does Hampshire’s attractiveness as a place to live translate into economic prosperity? It appears to. The north-east of Hampshire, which includes places such as Farnborough, Aldershot and Fleet, was recently highlighted in a 'Centre for Cities' report as being in the top 10 urban areas of the UK for business start-up rates, productivity, proportion of private sector jobs, number of businesses per 10,000 population and levels of innovation.


But what are the common characteristics of places which attract talented, innovative and ambitious wealth creators? According to the extensive research by KPMG, entrepreneurs are drawn to places which provide the physical spaces,


THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – MAY 2016


networks, housing, connectivity, and even restaurants and bars which enable them to set up and grow their businesses. Such places also need to have a definable identity which must be authentic and not contrived, firmly rooted in the historic as well as the current strengths of the place.


An obvious example is Southampton. It made perfect sense for Incat Crowther, the leading international naval architects to locate its new European design office in the place which is at the heart of the UK’s leading marine cluster.


Dan Mace, general manager of the firm, explained: “Incat Crowther’s offices worldwide have tended to


follow a pattern of locations where the quality of life has attracted the individuals who can provide the skills required to deliver excellent level of service to our clients. Our Australian office is located at Sydney’s Northern Beaches, and our American office located in Lafayette (Louisiana).”


So for places in the north, what does all this mean? Focusing investment on making your location attractive to talented people might seem to be the conclusion. Rather than offering short-term incentives such as grants to attract businesses and jobs to a region, long-term strategies built around educational attainment and the overall quality of place might be a better bet.


NEXT MONTH In the June issue of The Business Magazine Focus on Portsmouth From international port to leading business centre


Technology: Connectivity The best tech links in the region Corporate Finance


Mergers, acquisitions, deals and funding Legal Focus


News, views and expertise from top law firms


To participate in these features email Peter Laurie at peter@elcot.co.uk


or Frank Trivino at frank@elcot.co.uk www.businessmag.co.uk


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