This reiterates the significance of institutional factors for knowledge development, as well as the relative paucity of strong prevailing conditions in the eastern parts of the region. This chapter compares the South East of England with those overseas regions that have similar spatial structures in terms of the same indices reviewed in the global analysis. The key objective of this exercise is to examine whether the spatial structures of South East have a decisive impact upon the region’s performance in knowledge-based economic development.
Managerial practices in the UK have dictated companies pursuing under-performing business strategies. It is obvious that the extent of the four problems varies across the UK, being most acute and accentuated in peripheral regions. However, it is equally obvious that not only is this the national economic context within which the South East has to operate, but also that when regional comparisons are made against comparator regions these problems are also valid for the South East. Bipolarisation – within the South East economy there is a significant bipolarisation of work and occupations.
While a relatively small portion of knowledge-based, high-paying jobs (approximately one-seventh of all jobs are considered high-tech manufacturing and service jobs) exist, the vast majority are low-skill, low-paying service jobs. Tax conclusions frequently appear arcane and confused. Nonetheless, a proficient group of counselors from a few fields can lessen your government wage charges.
This has created a situation within which any surplus generated by knowledge-based jobs are too thinly spread across average GDP/capita or (earnings) and more than cancelled out by below-average figures of the greater majority of low-paying jobs. First, a significant proportion of manufacturing jobs have been displaced by service-sector jobs during the last two decades within the South East. Education and Training – also, the lack of education and training for employees in service sectors exacerbate the situation, lowering labour productivity.
Deregulation of labour markets since the 1980s has increased flexibility, but failed to create a condition for better education and training, which had been a weakness in the UK economy since the 1950s. In the UK, a relatively small number of high-ranking managers earn a disproportionately high income relative to the rest of the employees.
This tendency is to some extent pronounced in “New Economy” sectors such as software and multimedia in every major advanced economy. This has facilitated them to achieve a more even distribution of income and avoid a ‘class society’, which in turn encourages participation in education and training across various groups of the society.