From Malmö to Miami: Four cities that could inspire a Merseyside startup-led regeneration
Following a decade of poor leadership, cartel-style governance and a misplaced sense of exceptionalism, debate continues about how Liverpool can overcome its social and economic problems. In times of public sector disarray, the private sector must step up. It must speak firmly but constructively to the political machine and the enabling infrastructure around it. We need only look back to the original era of the Merseyside Development Corporation to see how this produced positive results. Tired of the fallout from the city council’s war of attrition with the Thatcher government, business leaders convened to offer an alternative route forward. It’s so easy to sling mud, but who will stand up and offer solutions and work to deliver them?
As self-styled ‘Startographer’, I operate at the confluence of public and private sectors, local government, investment and tech. I’m drawing together my professional experiences with my background as a geographer to recommend how we could chart a path to a brighter future. Where can we look for inspiration?
There is limited utility in measuring Liverpool against Manchester or other cities without comparable population, demographic set, political mycelium or other determinants of economic geography. Yet, there are abundant examples of good practice in regeneration methodologies which we can adopt and modify to suit our current situation.
Malmö
If we cast our eyes roughly 660 miles east, we see an example of excellent placemaking in action - Malmö. After the Swedish, Danish and Finnish capitals which have inherent advantages in size and development, Malmö and its wider Skåne region are the fourth highest scoring Nordic location when it comes to startups securing investment. This is no mean feat for a place that has a smaller and more sporadic population distribution than Liverpool City Region. Central to this success has been public authorities working attentively to continue the legacy of major employers who already called the region home such as Ericsson and ARM by aligning their inward investment and skills policy with these giants. Equally, Lund University stands as an example of the economic progress that can occur when Universities embrace innovation, enterprise and local industrial collaboration. The future of the region is not inevitable prosperity, however, as the results of poor social cohesion and ill-thought-out immigration strategies begin to become apparent.
Mainz
Mainz in Germany serves as an example of how development of targeted key growth sectors can drive wider social and economic regeneration. The largest city of Rhineland-Palatinate has exceptional health and life sciences assets not dissimilar to our own and its recent success continuing the Moderna momentum could be self-perpetuating, creating a kind of compound interest. Mainz brought the printing press to the world in the earlier industrial revolutions and its strengths in vaccine research and personalised medicine allow it to be a strong contender in the fourth. In a similar vein, Steve Rotheram often talks about Liverpool being the gateway to the first industrial revolutions (steam and automation) and how it could become the gateway to the fourth (robotics and AI).
One of the primary advantages that Mainz has is its comparatively decentralised German economic system: greater freedom over local tax rates. Whilst there was some talk under the coalition government of introducing a system where local authorities could retain more of their business rates under LEP supervision, nothing came to fruition. Certainly no radically different proposal from our top-down system of rigid economic policies was mooted that would allow local direction of major taxes. That said, perhaps the impending Liverpool City Region Freeport initiative could demonstrate how steps in this direction could be hugely rewarding.
In addition to a stable Mittelstand of manufacturers, pharma and other technology businesses, Mainz is seeing success in its startup metrics. This is a result of effective diffusion of knowledge, people and money through local corporates and research assets into new ventures. Crucially, these are catalysed into action through a helpful and supportive set of public sector financial instruments, programmes and other initiatives. This, in spite of the absolutely insane bureaucracy of the German notary and investing system which makes angel investing in German startups as attractive as getting a root canal with no anaesthetic. This is one thing the UK absolutely gets right: it’s so easy to start a company here and raise money if you have a compelling proposition.
Rotterdam
Successful regional economies need appropriate transport infrastructure. Most have suitably connected light rail or subway systems. Merseyrail does this well, but it serves a limited portion of regional neighbourhoods and the 15 minute delay between trains can be frustrating. Many other commentators have far more detailed views and suggestions for taking Merseyrail into the 21st century so I will not riff on this for too long; but creating a digital ticketing experience which links to the buses and ferries, and potentially onto other regions’ transport systems, is as essential as extending the network itself. Kop Van Zuid in Rotterdam demonstrates how economic activity clusters around new, properly planned metro stations. Here, glossy skyscrapers punctuate land that was once rundown dockland. Many of the historic warehouses are still present, with renovations providing a home to new residents and businesses. Readily available access to social and leisure activities and the ability to quickly get to other parts of the city by punctual, frequent rapid transit has a gravitational pull to would-be resident entrepreneurs. One of the things I have picked up from entrepreneurs in the North of England is that after office rent and salaries, their biggest cost heading is train tickets to London. There's an argument for making a 'Startup Railcard' available to founders actively growing their businesses and seeking investment.
Miami
I cannot think of a narrative change so pronounced as Miami’s metamorphosis during the pandemic. The Miami of today is a contender for the venture capital destination of choice in the USA, and has become the epicentre of web3 development. This is a far cry from the image it bore in the 1980s as a cocaine-fuelled hotbed of violence and gang culture. Mayor Francis Suarez, the republican mayor at the helm, has capitalised on several consecutive administrations who made broad steps in the right direction. When the pandemic hit and California adopted lockdown measures on the stricter end of the spectrum, Miami offered an alternative. The spark? This tweet. Investors and founders flocked to Miami in droves, and despite Silicon Valley’s continued dominance in the tech industry not being seriously threatened, Miami has carved a permanent and impressive new key growth sector through being diligent about what it’s known for. It cashed in on those decades of slow but steady steps away from a poor image at the perfect time, and the dividend has been enormous. This could be the moment for Liverpool to do the same.
A word on brand
Re-writing our narrative is perhaps the hardest part of all this, because it takes more than a wad of cash and a procurement contract. No creative agency can do it, nor any ad campaign. Instead, it requires a multi-decade commitment to champion, against all headwinds, a set of memorable, realistic and sustainable messages that speak to the best experiences of living here. For me, personally, they might be:
Liverpool is the most European place in England.
Liverpool is the best place to embed creativity and culture within your business.
Liverpool is one of the best places to build a manufacturing, health and life sciences or creative business.
Liverpool is one of the best places to enjoy the benefits of a city without all of the costs, and whilst still being less than an hour from incredible nature.
And then the hard part - stick with it. Religiously.
This isn’t just the slogans and stock photos that appear on inward investment collateral. This must be pushed as the base reagent of the longform pieces that newspapers like The Spectator build from when they construct articles about Liverpool. It must be the instant neuronal connection that occurs when a civil service fast streamer must look at locations for funding, hurried along by the MP they work for. I don’t have the stamina left in me to read another article talking about the Liverpool of today that opens with some reference to the Toxteth riots, Militant or some other stain on our history. Narratives that endure, endure even more. The sign that it’s working will be when both the diaspora that left in the 80s could seriously consider returning, and the students who come here can see it (and can engage with it) as more than a nightlife destination with some University buildings.
We don’t have to reinvent the wheel, but we do have to make sure our tyre is round — with suitable grooves to grip the road. We need to make it from durable material and ensure it delivers sustainable performance — and we need to add an authentic design that only we would be capable of. To do this, the people living here have to have confidence and belief in the direction their leaders, whether political, civic or business, are taking them. That means getting the small things right, first. It means not expending precious resource on any new opportunity that comes along. It means sticking with one core strategy for a period longer than any one politician or faction’s tenure. It means tearing up the old stuff that no longer serves us.
Perhaps whilst we’re at it we could even consider turning the benches around on The Strand so they face the right way.
