Despite the flood of inward investment heading to China, India, and Eastern and Central Europe, the United Kingdom is holding its own. For 2002-2003, UK Trade and Industry reports that the UK attracted 709 investment projects, creating more than 34,000 jobs. The Organization for Economic Cooperation and Development (OECD) emphasized the UK’s remarkably resilience during the recent economic downturn.
Nevertheless, the UK Trade and Investment Agency has stepped up efforts to better position itself in the global marketplace by improving links between universities, science parks and development agencies to ensure that the UK remains competitive for high-tech investments. The effort is paying off.
Manchester, for example, has emerged as the UK’s epicenter of biotechnology. The area already rivals traditional Oxford and Cambridge.
More than 170 biotech and biomedical companies already employ more than 20,000 people in the region, with thousands more working as life scientists in area universities, research institutions and hospitals. Manchester is home to multinational companies with manufacturing and R&D facilities such as Astra Zeneca, Eli Lilly, GlaxoSmithKline and PowderJect.
Yorkshire and Humber has carved it niche in digital technologies with the fastest growing information technology (IT) sector in the UK. Nearly 3,000 companies in the region work in the digital fields of new media, software technology and broadcasting.
These industries are expected to grow by more than 50 percent during the next 10 years, adding 1.2 billion pounds to the region’s economy.
Freeserve, the UK’s biggest Internet service, was founded in Leeds and one-third of the UK’s Internet traffic is handled in the region. Huddersfield University runs the first specialist degree course in commercial use of the Internet.
The region has also invested in incubation units for startup businesses and centers of excellence for improved research, increased productivity, more new business formation, greater innovation and increased inward investment.
To date, the efforts have resulted in the creation of Europe’s first e-campus facility at the University of Sheffield.
Advanced engineering and metals has traditionally been the region’s largest clusters. Links between Boeing and the University of Sheffield’s Advanced Manufacturing Research Centre are creating one of the most advanced facilities for metals-cutting technologies in the world.
Already a 100-acre high-tech Advanced Manufacturing Park is under construction in South Yorkshire as a result of this synergy, which is expected to create 4,500 jobs by 2007.
“Boeing and the University of Sheffield’s presence on the park will ensure it is a world-leading center of the most advanced technologies.” Said Jerry Ennis, a former vice president of Boeing, and honorary chairman of the Advanced Manufacturing Park.
Also locating there is the National Metals Technology Centre, which provides metals research for all of the UK.
London has long been a center for software development and high-tech industries because of its huge talent base. West Chester, Pa.,-based Economy.com, a provider of economic, financial, county and industry research, opened its first European operation in London last year.
“We chose London for the cultural ease of doing business, as well as the high concentration of multinational organization, and especially those within the financial sector,” said Tim Osborne, marketing director for Economy.com. “We were also keen to exploit the highly skilled human resources available within London, and also have a convenient gateway to Europe.”
W. L. Gore Establishes Facility in Scotland
High-tech corporations have long found advantages to being located in Scotland, a country known for its innovative, entrepreneurial, inquiring and determined spirit. Industries such as microelectronics and optoelectronics, life sciences and communications technologies have done well in Scotland.
W. L. Gore & Associates recently chose to establish its production of catheter devices in Dundee, a city in which the company already produces electronic interconnect products.
“We are delighted by this level of confidence from our colleagues in our medical products division,” said Rodger Pheely, plant leader for W.L. Gore. “The associates in Dundee have shown over an extended period of time that their teamwork, skill and attitude make a significant contribution to our success in the electronics sector. We will now build on this to take our medical products to similar success.”
In making the selection, the company was awarded a Regional Selective Assistance of 112,500 pounds for developing the technology in Dundee.
IBM Locates in Wales
Wales continues to carve out its niche in the high-tech world. It captured a major company last year when IBM decided to locate its world-class Cynefin Centre for Organizational Complexity at Cardiff Business School, the first center of its kind outside the United States.
The goal of center is to help businesses and organizations tackle complex management problems.
Falls Church, Va.,-based General Dynamics is also building secure communications systems for the British armed forces at its facility in Cardiff.
“Wales is a great place to do business,” said Larry Johnson, president of General Dynamics UK. “It is very close to the North American links.”
Northern Ireland’s High-Caliber Work Force
In Northern Ireland, Kiel Laboratories is setting up a $8.5 million manufacturing shop in Carrickfergus. The Gainesville, Ga.,-based company is the first U.S. pharmaceutical firm to establish operations in Northern Ireland.
“The regulatory environment in Ireland and the United Kingdom is compatible with the standards of the FDA,” said Jeffrey S. Kiel, CEO of Kiel, a manufacturer of private label and generic prescription drugs. “This was a very attractive factor in our decision to establish this plant.”
Another advantage is Northern Ireland’s ability to attract and retain high-caliber employees.
ASG of Naples, Fla., opened a development center in Belfast. The $6 million investment is expected to draw technology professionals from the region.
“Since R&D is an essential feature of our business model, we intend to develop close relationships to facilitate fruitful and productive two-way technology transfer benefits,” said Arthur L. Allen, president and CEO of ASG.
ASG evaluated several sites, including in China, India and Russia. It chose Northern Ireland because of the abundant and available high-quality graduates in software, electronic engineering and mathemati