Group 5

Si Hoi Man, Gloria (21)

Yeung Lik Yan, Teresa (32)

Mak Chung Yin, Danny (18)

Wong Chung Sze, Bobo (25)

Wu Yu Si, Rain (30)

M4 Corridor--UK

Background Information• England Silicon Valley

• Mainly footloose industries (IT)

• Greatest Concentration : between London and Reading

• many motorways--excellent communication networks—attract companies

• large number of businesses, particularly in Berkshire, Swindon and the Thames Valley

• Contribute much to the Information Economy of the UK

Map of M4 Corridor (1)

Map of M4 Corridor (2)

Map of M4 Corridor (3)

link to London Heathrow Airport

Where is M4 Corridor?

• adjacent to the M4 motorway, spanning from London to Bristol (South Wales)

• The M4 motorway --linking London with West Wales major places

• directly accessible from M4 junctions are Reading, Swindon, Bristol, Newport, Cardiff and Swansea

• Link to London Heathrow Airport

• Rail access

• science parks & universities

• Attractive Countryside---pleasant working environment

What are the Dominant industries ?• Information Technology Industries

• technology based companies

• Examples:

What are the Characteristics of the IT industries?

• Production

• Product

• Market

Characteristics-Productioni. Technology-intensive

e.g. 1 software industries(e.g. Microsoft)application programs

e.g.2 communication services industries(e.g. Vodafone) mobile tele-communications

ii. R&D – intensive

      --designing and improving products

      -- near universities and research centres (e.g. Oxford)

Characteristics-Production

iii. Highly emphasis on human resources

Requires highly-skilled labour (experts)

-E.g. scientists, engineers

Characteristics-Production

Characteristics-Product

i. High Value-added

Little Costs of raw materials and power resources, but expensive products

Much value is generated in using R&D, advanced technology and highly skilled labour

E.g. for application programsraw materials required is limited, however value is added through repeated testing on programs by scientistslight product but high value

ii. Short Product life Cycle

Characteristics-Market

i. Serve Global market

serve customers all over the world

Footloose

E.g. Transnational corporations (TNCs)

Design and research - MDCs (headquarters, R&D are set up in M4 Corridors in London)

Manufacturing process -- LDCs (Africa)

lower production cost

What are the Locational factors of M4 Corridor?

M4 Corridor

TransportLabour Attractive

working environment

Agglomeration economies

Government Land

Raw

materials

Market

Energy

Transport(accessibility )

Labour(Mobilty )

Attractive working Environment

(pleasant)

Which are the important locational factors?

Form good communication and accessible network

attract attract

Excellent Communication network

Transport

Characteristics

Proximity of London Heathrow Airport

Proximity of the M4 and M4 links to other UK’s major motorway (M5, M40, M25, M3)

Close to high speed rail link

Describe the Locational advantages & evaluate its importance

Adv:

• High Accessibility to other parts of UK and other countries

• Mobility of labour increase

• Shorten the Commuting time for labour

• Allow easy communication

Importance:

essential for the professional from all around the world

 Share of ideas

Attract foreign IT professionals and experts

Labour

Characteristics• large labour force

• Nearness to universities (e.g. Bath, Bistrol, Oxford, Reading, London) where experts are found and research facilities available

• Close to Science parks and research centres

Adv:

•a lot of skilled and trained labour for IT

•New ideas or innovation can be exchanged quickly

•Maintain and share supportive service

Importance:

depends much on skilled labour/ high quality labour

easily be found near university or research centres

Describe the Locational advantages & evaluate its importance

An attractive working & living environment Characteristics

• green fieldsite, beautiful and pleasant place

• scenic surrounding

• proximity to London (entertainment)

• easy access to research and financial institutions

Adv:

• Attracts more skilled labour (both UK and foreign labour)

Importance

• Great competition for skilled labour

Describe the Locational advantages & evaluate its importance

Cluster of IT industries

Agglomeration economies

Characteristics • proximity to other IT

industries• previous location and

existence of government and other research centers

Adv:

• ideas and information can be exchanged quickly and easily

• cost can be lowered by sharing infrastructure (e.g. M4 Motorway)

• Good reputation—attract venture capital and skilled labour

Importance:• Improvement in IT depends

much on sharing of ideas• Huge Venture capital is

required for IT industries• Skilled labour would tend

to choose to work in this place for reputation

Describe the Locational advantages & evaluate its importance

Government Incentives

Characteristics:

• Set up research centers

• Infrastructual support

• grants to assist new firm

Adv: Provide skilled labour Provide efficient transport

-- high accessibility

Land Characteristics:

• land price, premises and housing are a lot cheaper than London

Adv: Lower cost Put more capital on R&D

Relatively less important: not require abundant land space

Market , raw material, energy

• Traditional locational factors• Serving global market• Raw material are mainly ideas and technology• Energy is not much required

relatively less important

Future Development 1. Concentration of IT industries will still remain

• present locational advantages (transport and labours) still exist

• agglomeration economies

• Strength: nodal points that can become complementary

What are the Future Development?

2. Expand westward--New M4+Government relocation Programme

i. New M4 proposed motorway south of Newport new dual 3-lane motorway link between Magor and

Castleton

The key objectives of the project are:

Social- deliver enhanced accessibility to services and employment opportunities

Economic-deliver a more efficient transport capability for road traffic on the primary economic gateway to South Wales

-facilitate growth in regional and national prosperity

Environmental-prevent, reduce and where practicable offset any significant adverse effects on environment

Develop better transport links in west of M4corridor

Encourage more industries to set up in the west

ii. Government relocation Programme

ii. Government relocation Programme relocate 20000 public sector jobs from London and

SE to the region---cluster of government departments

encouage industries to set up in the western part of M4

Local structural development

Future Development