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ideas and fresh perspectives from other nearby colleagues boosts productivity. Such knowledge spillovers have been a key driver of the UK’s geographically uneven economic performance. But new technology is reducing the importance of spillovers and allowing innovators to collaborate effectively. Data on patenting and academic collaboration suggest it’s less important than ever to work physically near other people to access their expertise and ideas.


Even before Covid-19, remote work was on the rise. The prevalence of remote work in the UK was stuck just under 3.0 per cent from 1994 to 2010, but then climbed steadily to 4.7 per cent in 2019. However, these numbers understate the overall increase in remote work by omitting those who work from satellite offices, co- working spaces, coffee shops, and other alternatives. It also fails to factor the number of workers working remotely


some of the time. In the US, once these alternatives are factored in, the proportion rises from 5 per cent to 36 per cent.


There are major economic benefits from increased levels of remote work. The importance of agglomeration effects over the last several decades led to economic prosperity for cities in the South and economic decline elsewhere, at significant social cost. While remote work is not a panacea, by decoupling where people live and work it spreads economic activity more equitably and may reverse the tendency for economic activity to cluster in a few cities. This will reduce regional inequality and deliver the promise of levelling up. It will also mean graduates will no longer have to leave friends and family behind to move for work.


A rise in remote work may also contribute to a reduction in carbon emissions by


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reducing commuting, therefore making it easier to meet the 2050 Net Zero Target.


To access these benefits, the report argues that policy makers should actively promote remote work by granting tax relief for home office expenses, improving digital infrastructure, and investing in online education and training.


Dr Matt Clancy, author of The Case for Remote Work, says: “In the midst of the Covid-19 global pandemic, the case for short-term remote work is obvious. What other choices do organisations have to keep the lights on when their workers are isolating themselves? But the case for long-term remote work is also much stronger than is typically thought. Remote work does not have to be merely an emergency response, to be discarded when the pandemic subsides. For many industries, it can be the new normal.”


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