Stephen Nicol:
Framing the future

The BBC's decision to move part of its operation to the North proved the catalyst for the launch of Peel's Media City. The futuristic development on a 200-acre site at Salford Quays has been hailed as a project of national importance.

The move will bring five BBC departments and 1,600 jobs to the area; it is hoped that it will encourage further growth of the creative industries sector and have much wider economic benefits for the region as a whole. According to the North West Development Agency, which invested £30m in Media City, it will create in total up to 10,000 jobs and add £170m to the regional economy.

The creative industries sector - which includes radio, TV and associated industries such as advertising and publishing - employs over one million people in the UK and in recent years has expanded faster than the rest of the economy. Many towns and cities now see the creative industries as a key growth area and have policies in place to support the sector.

In truth, this faith is largely misplaced. Creative industries are concentrated in the core cities - London, Manchester, Birmingham and Bristol and, to a much more limited extent, Leeds, Sheffield, Newcastle and Nottingham - and there is a good reason for this.

Creative industries need a critical mass to thrive - a concentration of skills and expertise, firms and freelancers, and access to specialist services and equipment. It is only the major centres of population that can provide this.

Media in London revolves around a range of locations such as White City and Soho

Outside of London, Manchester is the largest centre of media-focused creative industries in England. In Manchester in 2004, the number of people employed in film, radio and television stood at around 2,700, about one third higher than in the next provincial centre, Bristol.

The BBC's move will bolster this critical mass and is likely to have a strong multiplying effect. The arrival of 1,600 highly paid, highly skilled jobs to Manchester, plus up to 2,000 more jobs in the supply chain, will give many media people who may previously have been tempted to move to London the real opportunity of building a career in the North West.

This will help arrest the drain of talent from the North West and even attract people from other areas. These extra creative workers will lead to an exponential growth in the number of networking and cross-fertilisation opportunities.

The move could also have a wider effect in encouraging independent production companies working for the BBC to relocate to the North West, and in attracting other communications, technology and creative firms. This is a trend that has been observed at other similar locations, such as Cologne Media Park.

Built on 50 acres of derelict industrial land and anchored by Germany's major TV and radio broadcasters, Cologne is a pioneering development now employing 5,000 people in 250 companies. It is home to major broadcasters and music industry giants, which have in turn attracted suppliers such as software companies, advertising agencies and law firms, which together provide a full service for all areas of media and music production.

The development even has its own hotel and cinema centre, hosting international film premieres. As a result, Cologne Media Park has become a cultural attraction in its own right, drawing in 4.5 million visitors a year.

Salford, which fought off intense competition from its neighbour Manchester to host the new jobs, hopes to emulate this success. However, in reality both areas are winners.

The media sector in London revolves around a range of interconnected locations such as White City and Soho, only five miles apart. A similar broad 'cluster' of media activity across the Manchester city region could easily be imagined.

Ultimately what matters is the overall size of the talent pool, which is best seen as operating at a city region level. In reality, it is likely that the predominant impact of the new jobs in the North West will be across the Manchester city region.

But perhaps the most important effect will be the wider message from the BBC move. It will not only have a major impact in raising the profile of the Manchester city region, but also in changing attitudes to the North as a whole.

This move by one of Britain's most prestigious organisations shows that London is not the only location for media and other major businesses. Northern cities can offer a viable alternative. So, the BBC relocation will have an impact out of all proportion to its size.