The aim is to create conditions in which business can compete freely, develop and exploit new technologies and generate sustainable jobs. The White Paper, and the 1999 Pre-Budget Report, emphasised the importance of promoting the expansion and creation of clusters or networks of knowledge driven companies. Links between businesses, and between business and the science and research base, need to be encouraged if UK business is to compete successfully in world markets. 4.8 Geographic proximity, and the flexible use of space, can be factors in cluster success. Within clusters, incubator units, where new ideas are developed and tested, help foster innovation and competition.
Large firms can be the host for such incubator units.
Clusters may be concentrated in a particular location, such as technology parks, or linked in 'Innovative Cluster Areas'. ICAs comprise networks of locations with a central research and development base, with incubator units, connected through communication links, both digital and land based, to growth points for specialised production, analysis, testing and services. Through the planning system, local authorities can help create the right conditions in which businesses can thrive and prosper. In preparing development plans, local authorities should take account of the need to revitalise and broaden the local economy, the need to stimulate employment opportunities, and the importance of encouraging industrial and commercial development, particularly in the growing knowledge driven sector. They should look to provide a range of suitable sites in their plans for industrial and commercial development which take account of the needs of existing and future businesses.