Making city regions work for business

Any governing body needs to convey a clear message on goals and reasons for regional collaboration via a strategy and consistent communication. Stable leadership is important, as is a regional strategy and plan (e.g. Greater Manchester has a region-wide Local Enterprise Partnership) with well-defined priorities which are reviewed and revised at regular intervals.

For Greater Manchester’s city region the development of its initial strategy was informed and shaped by an independent review of external experts and reports. This highlighted specific challenges characteristic of the region and helped to develop locally appropriate and distinct policy solutions.

The Stuttgart city region likewise has a strategy and regional plan. One of its priorities is to guide the development of its spatial structure along public transit routes to optimise resource use and sustainability.

Developing a functioning city region takes time and a consistent long-term commitment (including longer term funding arrangements). Actors in any emergent region go through a learning process that develops collaborative capacity. It is important to acknowledge that such collaboration relies on both communicating joint gains from joining forces but also on trust in relationships amongst partners. Building trust takes time and requires transparency, fairness and openness.

The Stuttgart region was formally established in 1994 and has practised regional collaboration for more than two decades. The two representatives from peripheral cities in the region suggested that trust in the democratic and legal channels as well as networks for informal interactions were vital to facilitate communications and effective decision-making.

Both Mike Blackburn (Greater Manchester) and Thomas Kiwitt (Verband Region Stuttgart) stressed that regional governance or government and its representatives need to be accountable at the regional scale and their actions/decision making transparent.

The setup of any regional governing body thus must:

a. include representation from each (all) of the existing local authorities or administrative units, and

b. ensure that representatives are responsible for tasks at a regional level to overcome partisanship and parochialism.

Accountability and transparency of decision-making within such a board or committee, and parliament need to be established.

Links of any regional governance or government with the private and third sectors are important and need to be carefully considered and maintained. Inclusivity should be considered, i.e. not just the large players. In respect to region-business relations, the city region association of Stuttgart has established an arms-length separate agency to support business development (like a regional development agency) in the region. The association also maintains links with a regionally operating tourism board and supports the representation of the region at international real estate and business fairs.

The Stuttgart regional (landscape) park initiative coordinated by the regional association contributes to the improvement of soft locational factors in the region which in turn enhance the attractiveness of the region for highly qualified workers and industries. The care for the environment is seen as vital to enhance socio-economic conditions and attract business.

Similarly, the Greater Manchester Combined Authority works alongside the Manchester Growth Company which is separate from but accountable to the GMCA and which supports skills development and supports business development in general.