The Work Foundation has produced a really exciting document http://goo.gl/qxfN8 explaining how the UK could drive itself out of recession by developing a knowledge based economy. I have heard Will Hutton speak on the subject with great eloquence. Rather than just thinking about “Manufacturing Goods and providing Services” there is a third element called “Knowledge”.
Evan Davies recently presented in the 2nd part of a 3 part BBC documentary called “Made in Britain” which is part of the Open University syllabus http://goo.gl/hlP90 This also opened up the idea of trading on “Knowledge”
I was particularly taken by the success story of ARM Holdings (Cambridge) who design Chips for the PC and Smartphone industries. They licence the “intellectual property” that they create and do no manufacturing or services. ARM is one of the most successful companies in the UK
In the past trade figures were worked out by inspecting goods at physical customs border. You cant do this with Services and Knowledge !!
The development of a “world leading” Knowledge economy in Cambridgeshire is dependent on two important factors. A 100Mbps Broadband infrastructure throughout the county and serious addressing of the STEM (Science, Technology, Engineering and Maths) agenda in our schools and colleges.