Dave Anderson: Working together to build our Capital a bright future

IN TODAY'S knowledge-intensive, global economy, cities matter more than ever before as hubs of innovation and creativity, and drivers of economic growth.

Higher density, urban living is also a sustainable choice in a world of rising population and diminishing resources.

Over 42 per cent of Scotland's GDP comes from its three largest cities – Glasgow, Edinburgh and Aberdeen.

Our cities are crucibles of knowledge and invention. They contain vital research and education assets and social, cultural and business networks. They are magnets for new talent.

But some cities are more successful than others. Edinburgh, Scotland's inspiring capital, is blessed with outstanding natural and built assets, with iconic vistas such as Salisbury Crags, the Castle and the New Town.

Edinburgh's credentials as a place of learning and knowledge are also remarkable. Two hundred and fifty years ago the city was a cauldron of intellect and knowledge, helping to shape much of the modern world. The city's reputation remains strong today, as evidenced by the long list of plaudits it has received for its quality of life, quality of place and success as a business location, including the award by the Financial Times' Foreign Direct Investment magazine in 2008 as the best small European city of the future for business investment.

Edinburgh has weathered the storm of the recent global recession far better than most other UK cities. However, it is the plans and actions that we set in motion now that will determine the city's future prosperity.

There are strong grounds for optimism. More than 80 per cent of the city's adult population are economically active, well above the UK average. 45 per cent of those of working age are qualified to NVQ level 4 or above, higher than every other UK city, bar Cambridge. Edinburgh has a fantastic quality of life and continues to attract new talent. The city's population has grown steadily recently and forecasts suggest that growth will continue.

Edinburgh is well represented in the key industry sectors that are projected to grow in coming years, including tourism, life sciences, informatics and creative industries. The city has a major opportunity in renewable energy through Leith's position as a location for offshore wind turbine manufacture and the research and knowledge base of our universities. The opportunity to make more of our position as a global leader in arts festivals is huge.

Despite the impact of the economic crisis upon the city's financial services industry, recovery is already under way, with a number of new players such as Tesco Personal Finance and Virgin Money driving employment growth.

Development plans for priority investment zones across the city are already in place. These focus on four key areas. In west Edinburgh new development will be driven by the continued growth of the airport and the improved transport links provided by the tram and a planned rail/tram station at Gogar. This will transport passengers from Fife and Forth Valley and, in due course, from the west. By 2016, there will be 13 trains per hour from Glasgow to Edinburgh.

In South-east Edinburgh, new development will be fuelled by the growth of Edinburgh BioQuarter including a new Sick Kids Hospital, the Scottish Centre for Regenerative Medicine and state of the art space for spin-out businesses. The scale of life science and healthcare developments planned at Little France will place Edinburgh as a global, top ten research and development centre.

Edinburgh's new waterfront will include a major, mixed-use development around the harbour at Leith Docks, with new housing and enhanced facilities for business, leisure and tourism uses, including facilities for berthing cruise liner traffic, and new events space.

In the city centre, plans are well under way for an 850 million investment in a new St James Quarter, which will vastly improve and modernise Edinburgh's retail offer, as well as providing new homes, hotels and restaurants. Proposals are also in place for major upgrades to Waverley and Haymarket stations. And at the Edinburgh International Conference Centre, new exhibition and events facilities will help improve the city's offer for business-related tourism. Development of the former Scottish Power site at Dewar Place and canal-side regeneration at Fountainbridge will provide excellent opportunities to extend the Exchange financial services district. There is every reason to believe that over the next five years it will be possible to revive sensitively the development of important gap sites, such as Caltongate and the former Morrison Street Goods yard.

Strong and effective leadership across the private and public sectors will be essential if we are to attract investment to existing industries and unlock the huge potential of new sectors. Plans to bring together the Edinburgh Business Assembly, the Chamber of Commerce, NHS Lothian and the city's higher education sector to work with the council towards the vision of a city that is economically successful, environmentally sustainable, and fair and inclusive are well advanced. Unity of purpose and clarity of focus can help Edinburgh move forward to an even better future.

Dave Anderson is the director of city

development at Edinburgh City Council