Wednesday, 19 March 2014

Case Study: M4 corridor in the UK










The corridor is a narrow belt of land that has become home to a growing number of services and high-tech industries. It is sometimes described as England's Silicon Valley. It's spine is provided by the M4 motorway, which stretches westwards from London, along the main railway line to Bristol and Cardiff. It contains a number of well-established cities and towns with significant manufacturing such as Reading with the 3 b's (beer, biscuits and bulbs) and Cardiff is another port once famous for the export of coal, iron and steel but now the home of Welsh Assembly. However, those old industries have now largely disappeared and been replaced with newcomers. Some of those that have disappeared and have been replaced with newcomers. Some of those that have disappeared and have been replaced by newcomers. Some have resurfaced in other countries. In the second half of the 20th century the character of the corridor began to change. There was a considerable growth in population because commuters and their families moved out of London in search of cheaper and better housing. The M4 motorway was opened and the main railway line was upgraded. New factories appeared, many of them associated with food and drink. Other involve cars, electrical and other household goods. However, most conspicuous among the new industrial enterprises were so called high-tech industries. Such as Compaq, NEC and Intel are here (in the quaternary sector). Reading for example, has become home to a mix of businesses that include Microsoft, ING Direct, Prudential and Ericsson.

What factors have encouraged this concentration of high-tech industries?:

Transport and accessibility- the presence of Heathrow is an important factor. The nature of much high-tech activity is essentially international. Both staff and products have to move around the globe quickly and often on short notice.

Labour- suitably qualified and experienced workers enjoyed large salaries. They can afford to choose where they live. The corridor is able to offer many attractive residential locations.

universities- many of the companies in the corridor are involved in research and development for the reason 'feed off' links with universities and establishments. The corridor contains at least 3 universities with high research rankings -Reading, Bristol and Cardiff. Not far outside the corridor to the North is Oxford University.

Incentives- firms have been encouraged to set up by various incentives offered by local government authorities, the UK government and EU. The incentives include earmarked Greenfield sites at reduced prices and with tax exemptions.  

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