Growing Together Alliance launch Connected Clusters report
Today, the Growing Together Alliance, a coalition of six leading employers’ groups representing the leading city regions of England including London and the North, share the Connected Clusters report, outlining a bold and comprehensive strategy to encourage interconnected, inclusive economic growth across the UK.
Providing an evidence-based framework for unlocking synergies between the UK’s innovation clusters, the report presents a transformative vision around Connected Clusters. By emphasising regional strengths and promoting collaboration, it is a credible plan to ensure the UK remains globally competitive while driving growth that benefits each region and no longer plays the old Treasury game of claiming that growth in one place is simply displaced from another.
The report will be launched at the Festival of Flourishing Regions, an event dedicated to exploring the role of regional collaboration in driving economic growth and innovation across the UK. Bringing together policymakers, business leaders, academics, and local stakeholders, the festival provides a platform to share insights and discuss strategies for inclusive and sustainable development. The launch of the Connected Clusters report highlights the importance of fostering stronger links between innovation hubs to maximise economic opportunities across all regions.
Five Drivers of Connected Growth
The Growing Together 2025 Report identifies five core drivers essential to achieving connected and inclusive growth:
- Connected People (Talent and Skills):
Access to talent and skills is identified as a key factor in encouraging innovative companies to establish multiple UK locations. Recommendations include mapping talent pools in regional clusters, expanding access to the innovation economy with devolved skills funding, benchmarking visa costs, and supporting collaborative projects that connect regional talent pools. - Connected Places (Transport):
Physical connectivity is critical for collaboration, economic productivity, and growth. Our report calls for investment in key infrastructure projects such as Northern Powerhouse Rail, East West Rail, and HS2 to Euston, as well as incorporating connectivity goals into the UK’s Ten-Year Infrastructure Plan. - Connected Capital (Innovation Funding):
Increasing domestic innovation capital is vital to prevent companies from relocating overseas. Our suggested interventions include boosting government-curated VC funds, expanding place-based seed funding initiatives like Northern Gritstone, increasing R&D investment to 3.5% of GDP, and supporting regional R&D spending targets set by local leaders. - Connected Leadership (Devolution):
Empowering local leaders through greater fiscal devolution and more extensive decision-making powers is essential for fostering economic collaboration. The report highlights the need for strategic planning, restructuring Local Government, and incorporating deeper fiscal flexibility to align policies with regional economic geographies. - Connected Cultures (Placemaking):
A vibrant culture of innovation and high quality of life are critical to attracting and retaining talent. Our Alliance recommends cross-regional engagement to build collaborative networks, promoting affordable housing, and considering cultural and social infrastructure in regional development plans.
Simone Peppi, Chair of NWBLT said: “I welcome this report which demonstrates the benefits and importance of collaboration between different parts of the UK, through the Growing Together Alliance. At a time when the drive for growth is so strong, the collective ‘know how’ across the Alliance footprint can be a real asset for UK plc.”
Andy Hulme, Head of Innovation and Growth for NWBLT added: “It’s been a pleasure to contribute to this project as part of the Steering Group. I’d particularly like to thank those members of NWBLT who gave their time to contribute their thoughts and insights. I’m looking forward to exploring how the report’s recommendations can be reflected in the NWBLT’s Innovation and Growth agenda moving forwards.”
Dr Kath Mackay, Chief Scientific Officer for Bruntwood SciTech, said:
“The Growing Together 2025 Report makes a compelling case for addressing the deep-rooted regional imbalances in R&D funding, which are holding back the full potential of the UK’s innovation economy. While increasing public investment in underrepresented regions like the North is essential, we need to ensure this is also carefully balanced to not cut support to the Golden Triangle.
“For too long, regions such as the North have faced barriers to realising their full potential due to imbalanced public funding. This report builds on critical insights from previous research, which has highlighted that uplifting per capita public R&D spending to match the levels seen in London, the South East, and East of England would require at least £4 billion annually, with £1.6 billion needed in the North of England alone.[1]
“By devolving a proportion of R&D funding and building capacity for regions to manage these resources, we can ensure solutions that reflect local strengths. Simultaneously, by increasing the UK’s overall R&D intensity we can provide the necessary uplift to avoid a zero-sum game and allow all regions to grow together.”
You can find a copy of the full report here.
[1] Tom Forth, Open Data Institute Leeds Richard A.L. Jones, University of Manchester May 2020 Tom Forth, Open Data Institute Leeds Richard A.L. Jones, University of Manchester