Академический Документы
Профессиональный Документы
Культура Документы
doi:10.1093/cjres/rsu030
This paper examines the roles of local institutions in economic development at the local
level. Drawing upon comparative analysis of the 39 local enterprise partnerships emergent
in England since 2010, it demonstrates: how local economic development institutions work
within multi-agent and multi-scalar institutional settings; the ways institutional genealogy
shapes processes of layering and recombining as well as dismantling and improvising in
episodes of institutional change and the analytical themes able to explore the roles and
functions of institutions in local economic development.
The Author 2015. Published by Oxford University Press on behalf of the Cambridge Political Economy Society.
All rights reserved. For permissions, please email: journals.permissions@oup.com
Pike etal.
and to explore how institutions adapt and cope Robinson, 2012; Farole et al., 2011; Gertler,
with change, disruption and uncertainty. 2010; Helpman, 2004; Hodgson, 2007; Martin,
Drawing upon comparative analysis of the 2000; Rodrguez-Pose, 2013; Rodrik, 2003;
39 new Local Enterprise Partnerships (LEPs) Streeck and Thelen, 2005). Despite the
established for economic development in increased attention, institutions remain poorly
England since 2010, the argument derives understood and under-appreciated in specific
insights from the interplay between concepts, disciplinary domains relevant to economic
theory and empirics (Sunley, 2008). It does not development at specific spatial levels and in
seek to provide just another individual and particular geographical contexts. This gap has
isolated case study of a particular institution been acknowledged in economic geography
in a specific geographical and temporal con- (Amin, 1999; Cumbers et al., 2003; Gertler,
text. Instead, responding to calls for stronger 2010; Martin, 2000; Peck, 1998; Wood and
comparative methods (Barnes et al., 2007), Valler, 2001) and human geography (Farole
Page 2 of 20
Local institutions
The institutional environment [that] refers But they typically constitute one set of influences
to both the systems of informal conventions, amongst many making it difficult to determine
customs, norms, and social routinesand the their precise causal roles and their extent and
formalstructures of rules, regulations nature (Gertler, 2010). Establishing the direction
which constrain and control socioeconomic of causation is beset by problems of endogene-
behaviour[and the] institutional arrange- ity because the relationship between actors and
mentsused to denote the particular organi- structures is recursive; institutions shape and reg-
sational formswhich arise as a consequence ulate and, in turn, are shaped and regulated by the
of, and whose constitution and operation are agency of economic actors (Farole et al., 2011).
governed by, the institutional environment. The quantitative degree of causal linkages ranges
from strong to weak effects and high to low mag-
Within particular variegations of capitalism nitudes (Beugelsdijk and van Schaik, 2005). The
(Peck and Theodore, 2007), how the institu- qualitative nature of institutional influence is
tional environment and arrangements interact diverse, imbuing economic development in differ-
and shape economic behaviours and outcomes ent geographical contexts with varied characteris-
across and between different spatial levels and tics including high or low quality, (in)equality and
in particular geographical contexts requires (un)sustainability (Cumbers etal., 2003).
further examination. Last, the ways in institutional environments and
Second, the causal linkages and interactions arrangements change and shape the evolution-
between institutions and economic develop- ary paths of economies over time and space and
ment at different geographical scales remain how economies influence institutions are under-
unresolved. Whether they exist, their extent researched (Tomaney, 2013). Specifically, little is
and nature, and in what directions they oper- known about how and why institutional architec-
ate are unclear: once basic formal institutions tures or regimes cohere during periods of stabil-
are in place, the relationship between institu- ity and fixity. Institutional change, disruption and
tions and economic outcomes becomes much instability raise only partially answered questions
more complex, fuzzy and difficult to isolate too. What are the exogenous and/or endogenous
(Rodrguez-Pose, 2013, 1038). Institutions per- sources that generate change (Gertler, 2010)?
vade the relations and processes of economic How and by whom is institutional restructuring
development across and between spatial levels. affected and what are its implications? Work has
Page 3 of 20
Pike etal.
Page 4 of 20
Local institutions
time in places (Martin, 2010, 1415; see also and encompassing the local level. Synthesising
Peck and Theodore, 2007; Streeck and Thelen, the academic and policy literature (for example,
2005). Two further processes can be identified. Acemoglu and Robinson, 2012; OECD, 2012;
Dismantling is where institutional arrange- Rodrik, 2003), a range of analytical themes can
ments are abolished, closed down and removed be extracted to provide a framework for under-
from the landscape. Often focused on national standing and explaining the roles and functions
level welfare state reform (Streeck and Thelen, of institutions in local economic development.
2005), this process involves substantial efforts, Reducing uncertainty for local actors, institu-
time, resources and (un)foreseen costs and ben- tions undertake important work in: diagnos-
efits that create legacies which pattern the evo- ing local economic development circumstances
lution of institutional architectures. Drawing and issues; leading actors in deliberation and
upon ideas of bricolage and unstructured social selection of priorities; formulating develop-
agency (Garud etal., 2009), improvising is where ment strategies appropriate to local contexts
Page 5 of 20
Pike etal.
to interpret and perform by gathering and ana- and centralisation (Pike and Tomaney, 2009).
lysing information on their strategies and pri- Reflecting a history of compulsive re-organ-
orities, organisation and governance, resources, isation (Jones, 2010, 374) and perpetual
effectiveness and working relations, innova- restructuring (Mulgan, 2010, 1), repeated insti-
tions, lessons learned, capacity building issues, tutional experiments have tried to address the
future barriers and challenges. The comparative missing middle (Shaw and Greenhalgh, 2010,
methodology and research design were based 457) between central and local government
on: (i) semi-structured in-depth interviews with in economic development. Building on the
the lead actors the chairs and/or chief/senior regional planning system established in the late
officers in all 39 LEPs (100% response rate; 1940s, this process resembles a pendulum in the
13 (33%) conducted face-to-face) undertaken post-war period swinging between the regional
between December 2012 and February 2013; (early 1960s), local (c. 19791994), regional
(ii) review of secondary sources (for example, (19972010) and local (2010) scales. As a par-
Page 6 of 20
Local institutions
in the complex and messy activities involved in pace of change has been rapid since 2010: mov-
winding-up the Regional Development Agencies ing from start-up, embryonic organisations to
(RDAs), transferring their assets and liabilities, bidders and delivery managers for substantial
(re)negotiating contractual commitments, staff national and EU funding initiatives to stra-
redeployments and redundancies, and archiving tegic leaders of their LEP area economies.
and managing regional knowledge bases (BIS, LEPs expressed concerns that this unplanned
2012; Pike etal., 2012b). and accelerated trajectory has precluded their
This particular political-economic context organic evolution as institutions. The absence
for local economic development in England of an England-wide vision and plan has gener-
imparted distinctive legacies that shaped the ated instability and uncertainty for the emer-
emergent institutional landscape for the LEPs. gent local institutions, acknowledged by the
First, the coalitions version of decentralisation national minister: [G]etting rid of the RDAs
and localism meant no longer term vision and and bringing in LEPs has perhaps been a little
plan for LEPs was set out by central govern- Maoist and chaotic (Vince Cable, Secretary of
ment. Instead, local discretion, initiative and State for BIS, quoted in Stratton, 2010, 1).
innovation were emphasised. The emergence Second, marked unevenness was evident
of LEPs consequently reveals a cluttered and across the 39 LEPs in the speed at which
fragmented path of institutional evolution. The they were agreed with national government,
Page 7 of 20
Pike etal.
established and became operational. Reflecting dismantling and conversion, lack of long-term
processes of dismantling, improvising, layering vision and plan and exhortations of localist
and recombining, the LEPs building-up from agency that have shaped the extent, nature and
and adapting existing (sub-)regional partner- pace of emergence of LEPs as local institutions
ships were relatively quicker off the mark. Such for local economic development in England.
sub-regional partnerships either pre-dated
and/or were deployed as part of the now dis-
mantled regional structures. LEPs working Local institutional agency in multi-agent
in new geographies with new local partners and multi-scalar institutional settings:
faced lengthy improvisation to find their feet. centralism, localism and theLEPs
While national government later articulated Given their relatively limited resources and
more centralised versions of guided localism emergence in a fragmented and evolving land-
(Eric Pickles, CLG Secretary of State, quoted scape of economic development governance
Page 8 of 20
Local institutions
Table2. Main organisations involved in local economic development in LEP areas in England.
Level England
Central government National Government Departments (for example, BIS, CLG, DEFRA, DECC, DfT,
HMT)
Sub-national offices of central government departments (for example, BIS local, CLG
RGF/ERDF local teams)
Central government functional agencies (for example, HCA, HEFCE, Highways Agency,
TSB, UKTI)
Local government Local authorities
Local authority groups (for example, combined authorities, joint committees)
Local authority associations
Development agencies Local development agencies
have meant a cadre of more capable LEPs pull- (Walker, 2013). Several emergent types can be
ing ahead of the rest in developing their contact discerned. First, LEPs that are explicitly a sub-set
networks and deal-making skills with central of mayoral and combined authority governance
government in building capacity and influence arrangements (for example, London, Greater
over economic development in their localareas. Manchester, Leeds, North East and Sheffield).
Relations between LEPs and their respective Where the LEP is absorbed into existing struc-
BIS localsthe sub-national structures of the tures, it is deemed to have greater accountability
central government department BISwere pos- and legitimacy. Second, several LEPs are operat-
itive. Supportive relations were established even ing as de facto business-led, arms-length organi-
as the BIS local teams dealt with the layering of sations of the local authority Leaders board. Last
enlarged institutional geographies and reduced are LEPs that are still finding their way and are
staff and resources following the abolition of currently sitting alongside often newly formed
regions. LEP and constituent local authority rela- local authority leadership structures. Such
tions were pivotal to their roles and effectiveness LEP arrangements are marked by institutional
Page 9 of 20
Pike etal.
histories and remain fluid as the local growth and example, combined authority, Greater London
cities agendas continue to evolve. Authority/Mayor). Almost all LEPs have either
As purportedly business-led organisations, a single or set of multiple local authorities as the
LEP interactions with local business parallel accountable body for the stewardship of public
their critical relations with local authorities. money. The modi operandi of the LEPs is evident
Shaped by their particular local genesis and through a range of organisational structures and
legacies of the regional era, in some LEPs, the practices: local authority leaders boards; board
Chamber of Commerce played an integral role leads (public and private); standing sub-groups;
and, in specific cases, is even providing the LEP Task and Finish groups; delivery partners and
secretariat. Elsewhere, as some LEPs seek to business membership body support arrange-
enrol businesses as subscribing members, this ments. LEP board size varies from over 40 for the
risks putting them into competition with busi- South East LEP to under 10 in Worcestershire
ness associations. Several LEPs explicitly claim (Figure 3). Although Government specified at
Page 10 of 20
Local institutions
were struggling to retain their agility, flexibility prosperous LEP areas have tried to establish
and entrepreneurialism in the face of what they the conditions for local growth, assembling land,
term creeping bureaucratisation arising from premises, infrastructure and skills.
the widening and increasing level of responsibil- Shaped by their particular genesis and charac-
ities and resources envisaged by central govern- ter, four broad strategy types were evident across
ment for the LEPs (Authors interview, 2013). the 39 LEPs focused: (i) on the LEP area as an
Echoing the regional era, the evolving roles and economic geography; (ii) on the LEP as an insti-
functions for the LEPs are mirroring the mis- tution; (iii) on rolling forward an existing strategy
sion creep of unintentional expansion beyond and (iv) on a new formulation exercise. Reflecting
their original legislative purpose experienced the legacies of regional dismantling, half of the
by the RDAs (Pike etal., 2012b). LEPs inherited their initial strategies from pre-
Leading in devising and formulating strategy vious area-based economic development strate-
and deciding upon priorities and future paths in gies framed by a RDA sub-regional partnership
concert with relevant actors from the public, pri- or local authority Local Economic Assessment.
vate and civic spheres are critical to institutional Any new strategies were commissioned exter-
roles in local economic development. Diversity nally or pulled together by an executive or sub-
in economic conditions and potential shaped group then further developed through the EU
LEP strategy setting and prioritising activi- Structural Investment Framework and Strategic
ties. Wide disparities exist between the LEP Economic Plan processes informed by central
areas in their Gross Value Added (GVA) per government guidance. Despite central govern-
head (Figure 4). More prosperous LEP areas ments What Works policy development agenda
have sought to address the qualitative nature (Cabinet Office, 2013), collation and analysis of
of local growth, prioritising target sectors and evidence bases, formulation and consultation
providing infrastructure to sustain growth. Less were inconsistent. Substantive numbers of LEPs
Page 11 of 20
Pike etal.
were active in engaging key local actors in devel- of impact and value for money should be dem-
oping and owning local strategies and priorities. onstrated. With increased responsibilities and
Institutional dismantling and layering meant the funding, LEPs were seeking enhanced account-
new geographies of LEP areas devalued the exist- ability, transparency and the ability to demon-
ing regional and city-regional evidencebases. strate added value (House of Commons BIS
In terms of strategic prioritisation, LEPs Select Committee, 2013). The early picture was
adopted a sector-focus at a range of levels (for mixed across the 39 LEPs. A few had devel-
example, food processing, advanced manufactur- oped performance management frameworks,
ing, renewables), a thematic focus (for example, several had published annual progress reviews
skills, inward investment, infrastructure, con- and others have identified measures of success
nectivity) or a mix of both. When strategy was and progress in programme and project deliv-
focused on the LEP as an organisation, promi- erables and outcomes. In the governments
nent activities (for example, enterprise zones centralised form of localism, all 39 LEPs were
25,000
GVA per capita ()
20,000
15,000
Cornwall & the Isles
of Scilly
10,000
5000
0
0 5 10 15 20 25 30 35 40
Page 12 of 20
Local institutions
situation changes everyday (Authors interview, The second category is core-varied allocation
2013). Key distinctions are, first, between funds where specified formulae were used and each
allocated to the LEPs by central government LEP received different amounts of funding.
and funds generated by the LEPs from sources The Growing Places Fund (GPF) was allocated
other than central government. Second are the on a formula based on population density and
different forms in which financial resources employed earnings (employment multiplied
are provided, for example as cash with certain by earnings, DfT and CLG, 2011). Analysing the
spending conditions or in-kind support from a geographical distribution of the GPF demon-
seconded individual or organisation. Third is the strates that LEP areas with stronger economic
issue of measuring the value of the pro-bono performance received relatively more of the pub-
publico and voluntary contributions made to the lic funding (Figure5). This allocation mechanism
LEPs, for instance by the private sector chair, is an innovation in spatial economic policy terms.
board members and other local institutions. It does not aim to redistribute public resources
35,000
25,000
GVA per head ()
20,000
York & North Yorkshire
15,000
10,000
5000
0
0 2 4 6 8 10 12 14 16 18 20
GPF per head ()
Page 13 of 20
Pike etal.
the best bids. The results created winners and Although not restricted to LEPs, in line with
losers in a geographically uneven map of pub- its aims, the geographical distribution of RGF
lic resource allocation. Reflecting the impro- demonstrates a slant towards less prosperous
visational and incremental nature of central LEP areas and those with relatively high public
government policy, however, of the 39 LEPs, 11 sector employment (Figure 6). Significantly, the
(28%) were awarded a first wave EZ without competitive principle was identified as the pre-
any formal competition. In total, 26 (67%) bids ferred mechanism for resource allocation in the
were submitted for a second wave EZ, and 13 Heseltine Growth Review (2013) incorporated
(50%) were successful (SQW, 2011). The map into the local growth fund bids from eachLEP.
of EZs displays a geographically dispersed pat- In generating, pooling and directing
tern. The first wave of EZs was mostly awarded resources by the LEPs, a range of different
to LEPs in the north and the midlands, whilst forms was evident. First, LEPs were drawing
the second wave of EZs went predominantly upon financial contributions from their con-
Page 14 of 20
Local institutions
on a pro-bono publico basis from further and/or relatively better endowed LEPs have an EZ, RGF
higher education institutions and through vol- and other programme funding, some independent
unteering by public, private and civic actors. In sources of local revenue in addition to govern-
the context of the austerity state, the self-help ment core funding streams and GPF allocations.
and internal generation of resources by and for In summary, the combination of central govern-
the LEPs is an element of central governments ment allocations and internally generated sources
longer term vision, aligning with international can amount to an estimated footprint of well over
aspirations toward the self-financing of local 10 million per annum for 20132014 to 2015
and regional economic development institu- 2016. Less well-endowed LEPs are restricted
tions (Bellini etal., 2012). effectively to government core and GPF sources.
Given the complexities and difficulties involved Figure 7 illustrates the level of resources LEPs
in identifying and accessing the central govern- appear to have available directly to allocate or
ment allocation mechanisms and the generation indirectly to influence on the basis of their growth
millions
Figure7. Combined GPF, RGF and EU structural and investment fund resources under the strategic influence of LEPs in
m (20112020/2021).
Note: Figures for RGF are based on estimates of the allocations in rounds 13. EU structural and investment fund allocations
have been published in euro and have been converted to pound using the exchange rate of 0.8627 as of 15 July 2013. Up
to 2% of GPF funding can be spent on programme management, which is envisaged to support LEP and partner capacity.
Source: Her Majestys Government figures and authors own estimates.
Page 15 of 20
Pike etal.
In terms of staff, some LEPs claimed to have has sought better understanding of the roles
up to 60 direct staff (for example, Liverpool City of local institutions in economic development
Region), around one third of LEPs have 59 staff at the local scale. Conceptual and theoretical
and a further third 14 staff (Figure8). Akey dis- developments and reflections have been under-
tinction is between staff directly employed and pinned by comparative empirical analysis of all
under the direction of the LEP and those staff 39 LEPs established for local economic devel-
that work for a LEP and a Leaders board, local opment in England since 2010. Responding to
authority, public agency and/or pre-existing part- the call for a richer account of where good
nership. Here, the resources and capacity avail- institutions come from, the shape they take,
able to LEPs and/or to other partnerships and and how they need to evolve to support long-
organisations becomes blurred. Management term growth (Rodrik, 2003, 12), three specific
and co-ordination of the interests of the various contributions have been made. First, economic
local institutions involved is a thorny issue for development institutions working at the local
0 10 20 30 40 50 60 70
Number of staff
Page 16 of 20
Local institutions
Page 17 of 20
Pike etal.
government. These issues are being exacerbated Studies and Regional Studies Association Seminar
by the existence of differential and overlapping The State of the LEPs, Newcastle upon Tyne (March
approaches to functional economic geographies 2013), and the Cambridge Economics Society
amongst the LEPs. Given the lack of long-term Conference Local Economic Growth: Recession,
Resilience and Recovery, Cambridge University
vision and strategy for their development, the
(July 2013). We acknowledge the support of the
fundamental tensions yet to be resolved and their
Spatial Economics Research Centre funded by the
institutional deficits and limitations in authority, Economic and Social Research Council, Department
accountability, capability and resources, at this for Business, Innovation and Skills and the Welsh
stage in their evolution, the comparative analysis Assembly Government (ES/J021342/1 and ES/
of the 39 LEPs suggest that many will struggle G005966/1). The usual disclaimers apply.
to exercise substantive influence upon economic
development at the local level. Continued state
austerity, faltering growth and uncertain eco- References
Page 18 of 20
Local institutions
Page 19 of 20
Pike etal.
SQW. (2011) Enterprise Zones: Delivering the Plan The Economist (2011) Bagehot. The Economist, 26
for Growth? Cambridge: SQW. November.
Stratton, A. (2010) Vince cable: abolition of devel- Tomaney, J. (2014) Region and place I: insti-
opment agencies was maoist and chaotic. The tutions, Progress in Human Geography, 38:
Guardian, 12 November. 131140.
Streeck, W., Thelen, K. (2005) Introduction: institutional Walker, P. (2013) Local Authorities, Local Enterprise
change in advanced capitalist economies. In W. Streeck Partnerships and the Growth Agenda, First Report
and T. Thelen (eds.) Beyond Continuity: Institutional of Joint Research Project. Dorchester, Dorset:
Change in Advanced Capitalist Economies, pp. 139. CEDOS and ADEPT.
Oxford: Oxford University Press. Wood, A., Valler, D. (2001) Guest editorial: turn
Sunley, P. (2008) Relational economic geography: again? Rethinking institutions and the governance
a partial understanding or a new paradigm? of local and regional economies, Environment and
Economic Geography, 84: 126. Planning A, 33: 11391144.
Page 20 of 20