The saving of Luton and indeed of Britain, (restoring our 'Great' prefix) would be the New Technology Economic Model, a 'model' which has been identified around the world with USA, Canada and Malaysia taking a keen interest. The basic principle is the use of technological innovation to drive the economy. Today, the US has an economic stimulus package in basic R&D, biomedical research facilities and essential broadband infrastructure as a response to their economic environment. A major research university can provide a huge economic boost to a regional economy with the University of Calgary (Canada) benefiting Alberta economy about $50 million per year circa 1994, including faculty and professional staff knowledge transfer. Spin-off companies commercialise intellectual property from university laboratories and are significant drivers of innovation appearing to effectively transfer technology out of universities, leading to job and wealth creation. However to contribute to economic growth, they must survive and succeed. Canada reports over 80% of their spin-off companies are still in business five years from start-up.
It is generally recognized that developed countries are moving to economies based on commercialising intellectual property and other intangible assets. In these new economies, concepts such as patents, copyrights, customer relationships, brand value, unique institutional designs, the value of future products and services and their structural capital (culture, systems and processes) are critically important to a region’s businesses. Economic performance is determined by a region’s effectiveness in using its comparative advantages to create and expand knowledge assets and convert them into economic value.
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Author: The Daily Politics
