United Kingdom

The Welsh Government is refining its approach to regional development, adopting a regional lens directed to four regions to better allocate resources and address local needs. This OECD Multi-level Governance Study – a follow up to the 2020 OECD report The Future of Regional Development and Public Investment in Wales, United Kingdom – summarises the progress Wales has made to advance this regional lens, and identifies key areas of attention going forward. It synthesises the results of a vision-setting exercise, capacity-building workshops with the national government and regional bodies, and a multi-stakeholder workshop on collaborative working among Welsh regional development actors. This report identifies enablers for the effective use of a regional lens in Wales, including robust regional data, long-term and future-oriented objectives, effective co-ordination across Welsh Government policy areas related to regional development, capacitated regional structures, and trust and collaborative working among levels of government. The report's insights on establishing strategic direction and fostering collaboration among national, regional, and local levels could be valuable for countries exploring ways to optimise regional development policy, including in the face of resource constraints.

Scotland (UK) is a strong innovator, ranking among the top 20% of economies among European regions, with strengths in university-firm collaborations and skills for innovation. With close to two-thirds of all growth in productivity from 2010 to 2018 coming from better use of resources in remote rural areas, rural areas are critical to economic prosperity. In addition to the valuable heritage that they offer, rural areas in Scotland have had remarkable achievements over the past decade in terms of economic growth, social innovation and progress for climate mitigation. Unlike the demographic decline perceived in OECD countries, the decline in rural areas of Scotland is much slower. In the case of accessible rural areas, the population is still growing. In part, much of the progress of ensuring well-being in rural areas, is supported by mechanisms to link entrepreneurs with researchers, regional support for entrepreneurs and an established system of social entrepreneurship. This report sets the scene, reviews main policies and programmes impacting rural innovation, and explores the importance of social innovation in rural areas. It provides recommendations to reinforce some of the good practices in Scotland, which is particularly important as the government implements the new National Innovation Strategy.

Cultural and creative sectors are a significant driver of local development through job creation and income generation, spurring innovation across the economy. Beyond their economic impacts, they also have significant social impacts, from supporting health and well-being to promoting social inclusion and local social capital. Glasgow City Region in Scotland, United Kingdom has a long history of transformative cultural policy. Cultural and creative sectors are now one of the region’s strengths. This paper provides an overview of cultural and creative sectors in the Glasgow City Region, highlighting trends in employment, business dynamics, entrepreneurship and financing as well as cultural participation. It offers analysis and recommendations to support the region in continuing to build on its local cultural and creative ecosystem.

OECD countries deliver publicly-funded employment services through different institutional arrangements. While in most OECD countries the majority of such services are delivered by public employment services, in two in five OECD and EU countries (or regions) they are partly or fully contracted out to external providers, including for-profit and not-for-profit entities. Contracting out employment services to outside providers offers many potential benefits: an increased flexibility to scale capacity in line with changes in unemployment, the possibility of offering services more cost-effectively, the option to better tailor services through the use of specialised service providers and the possibility to offer jobseekers choice of providers. However, achieving these benefits will depend on the actual design and monitoring of the contracting arrangements that are put in place. Focusing on the job brokerage, counselling and case-management employment services typically provided by public agencies, this paper reviews the experiences of OECD countries that have contracted out employment services through outcome-based payment schemes. It highlights the need to carefully consider questions related to the design and implementation of this form of contracting: fostering competition amongst potential providers, setting appropriate minimum service requirements and prices for different client groups, and ensuring the accountability of providers through monitoring and evaluations. These issues are discussed based on country examples, which are also detailed in factsheets contained in the online annex of the paper.

The transition to a circular economy in Glasgow is part of a broader journey of the city aiming to transition from being one of the greatest industrial places in the world back in the 19th century, to becoming a carbon-neutral city by 2030. The 2020 Glasgow Circular Economy Route Map seeks to enable a system where people can access local jobs and where green business practices contribute to achieving zero carbon goals. This new path, primarily driven by the collaboration between Glasgow Chamber of Commerce, Zero Waste Scotland and Glasgow City Council, can also contribute to the recovery from the COVID-19 pandemic, which severely affected the local economy. This report summarises the findings from a 20-month policy dialogue between the OECD, the city of Glasgow and several stakeholders, presenting the state of the art of the circular transition, the main challenges and the ways forward for the implementation of the city’s Route Map.

Sub-national governments have a key role in delivering on national and international biodiversity commitments. Drawing on policy practices from Scotland (UK), France and other signatories to the Edinburgh Declaration, this paper provides an overview and analysis of sub-national strategies, plans and mechanisms to ensure policy coherence and co-ordination. It then examines the policy instruments that subnational governments can leverage to deliver positive biodiversity outcomes. The paper highlights, among other things, the need to: develop clear and measurable biodiversity targets at sub-national level; incorporate biodiversity considerations into sub-national climate action plans and urban, rural and regional development strategies, plans and instruments; and promote nature-based solutions at a sub-national level to harness synergies between climate mitigation, climate adaptation and biodiversity.

This policy brief discusses recent international policy experiences in developing e-learning and digital business diagnostic tools for entrepreneurs. E-learning tools can develop entrepreneurial knowledge, skills and competences among users and increase their confidence and success in business creation. Business diagnostic tools offer entrepreneurs ways to assess their business management practices against peer companies or good practices, building competence and diffusing good practice. This brief sets out considerations for the successful development and implementation of these tools. It presents eight international cases of tools and discusses the public policy lessons from these international experiences.

Cities are not only home to around half of the global population but are also at the forefront of the transformation of jobs, skills and labour markets. Furthermore, cities play a leading role in the COVID-19 response, as the pandemic is not only accelerating megatrends such as digitalisation and automation that change the world of work, but is also challenging city economies. In London, COVID-19 has caused an unprecedented labour market shock, with several service sectors having been devastated. The crisis and its impact on employment and firms make skills development and adult learning more important than ever. London is the first major city within the OECD to introduce a comprehensive skills strategy. The report Future-Proofing Adult Learning in London, UK analyses London’s capacity to design effective adult learning programmes, which are critical for a strong and sustainable economic recovery and for preparing for the future of work. The report sheds light on major challenges facing London, especially in light of COVID-19, while also pointing to opportunities for London to design a future-ready adult learning system that responds to the impacts of the pandemic and aligns training to rapidly evolving labour market demands.

This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples.

The COVID-19 crisis has had a profound impact on SME access to finance. In particular, the sudden drop in revenues created acute liquidity shortages, threatening the survival of many viable businesses. The report documents an increase in demand for bank lending in the first half of 2020, and a steady supply of credit thanks to government interventions. On the other hand, other sources of finance declined, in particular early-stage equity. This paper, a special edition of Financing SMEs and Entrepreneurs, focuses on the impacts of COVID-19 on SME access to finance, along with government policy responses. It reveals that the pre-crisis financing environment was broadly favourable for SMEs and entrepreneurs, who benefited from low interest rates, loose credit standards and an increasingly diverse offer of financing instruments. It documents the unprecedented scope and scale of the policy responses undertaken by governments world-wide, and details their key characteristics, and outlines the principal issues and policy challenges for the next phases of the pandemic, such as the over-indebtedness of SMEs and the need to continue to foster a diverse range of financing instruments for SMEs.