Good jobs and regional growth: building inclusive innovation systems
As powers are devolved to local leaders, how can we build inclusive innovation systems that support good jobs and regional growth?
On 9 December 2025, the APPG on the Future of Work held a lively panel discussion at the Shard that brought together policymakers, trade unions, community organisations, academia, and industry figures to discuss how technological change and regional policy can work together to deliver good work across the UK. Given the Government’s recent commitments to further devolved funding, and a broader renewed focus on local growth plans and place-based working, it is an important time to explore both the opportunities and risks that emerge when technological transformation meets geographic and economic disparities. This discussion took place against the backdrop of a busy legislative programme, including the ongoing Employment Rights Bill, the establishment of a Fair Work Agency, and the implementation of the Devolution Framework and Local Growth Plans, all of which will shape how technological change is managed and affects people and places across the country. The event sought to outline some of the considerations that must sit alongside increased devolution, to support regions, firms, and local communities to harness the potential of emerging technologies, manage risks, and increase access to good work across the UK.
Chaired by Lord Jim Knight, the panel was joined by:
Georgina Maratheftis - Associate Director for Local Public Services at techUK
Josie Moon - People & Place Ambassador at East Marsh United
Eve Navias - Head of Politics at Community Trade Union
Professor Danat Valizade - Professor of Quantitative Employment Research at the University of Leeds
Professor Chris Warhurst - Director of the Warwick Institute for Employment Research
Technology adoption is uneven and slower than expected
Despite public discourse suggesting otherwise, research reveals that only around a third of UK employers are actively and purposefully investing in AI-enabled technologies. In addition, many non-adopters have little intention of investing in the near future. Smaller and medium-sized enterprises often perceive technology investment as too risky, regularly lacking the technical capacity, time or funding to implement solutions while also facing growing concerns about cybersecurity and data infrastructure. This matters as technology uptake has significant impacts on job quality and regional growth.
Evidence from research shared during the panel suggests that when employers invest in AI and involve workers in its implementation, there can be positive effects on pay, particularly for lower-paid workers whose jobs involve continuous interaction with AI.1 However, these outcomes of technology adoption should not be assumed, and both formal and informal employee representation within decision-making processes are key mediators to ensure that AI adoption is positively linked to pay.
The panel discussed how uneven technological adoption across occupations, sectors, regions and firms will also likely impact individuals’ ability to access good work within their area. This is reinforced in areas with lower "innovation readiness," where technology tends to be adopted in ways that reduce skills demands and worsen work quality, entrenching rather than reducing inequality. It is therefore critical that employers, regional and national governments, and unions seek to provide support structures that focus on supporting good transitions and building resilient and productive regional economies - ‘good jobs economies.’
These dynamics raise important questions for the enforcement of the Employment Rights Bill, particularly around information, consultation, and collective voice during periods of technological change. While the absence of a dedicated AI Bill leaves a significant regulatory gap, panellists emphasised that secondary regulation, procurement rules, and sectoral regulation will now carry more weight in shaping how AI is introduced at work.
Moving beyond top-down regionalism
Panellists noted that there was a clear gap between policy ambitions in this area and the lived realities in the most disadvantaged neighbourhoods across the UK. In communities ranked in the bottom one per cent nationally for jobs, skills, and health outcomes, discussions of regional growth and future skills can feel far removed, including where benefits are captured regionally but struggle to reach those most in need. It was discussed that hyper-local approaches are increasingly needed to help bring communities together to address the fundamental human needs that underpin the creation of, and access to, good work.
The panel therefore called for a shift towards neighbourhood-level solutions rooted in lived experience, involving people with a deep understanding of the problems the Devolution Bill is being designed to solve, including around skills and employment support. It was argued that community empowerment, including investment and good work, should be identified as priorities in these regions.
Panellists also noted that without clearer duties or incentives within devolution legislation and funding frameworks to prioritise good work outcomes, local leaders may struggle to translate economic growth into improved job quality.
The tripartite collaboration model
One of the recurring themes during the discussion was the importance of employee involvement during technology adoption. Historical evidence shows that the outcomes of technological change are always shaped by strategic choices. When workers are consulted and involved in decisions about technology, better outcomes are realised for pay, productivity, and wellbeing.
Participation across the board was named as fundamental for supporting regional approaches to skills support, and ensuring that local workers and communities can shape the provision to properly suit their needs. On top of this, firms also need to be actively consulted on skills requirements, rather than overly focusing on the supply of skills within regions. To ensure appropriate demand, employers must require better skilled workers and will need to work with local government and trade unions to ensure the skills system meets the needs of local industrial strategies.
The creation of a ‘tripartite model’ of governments, businesses and unions was therefore proposed to better manage technological transitions at a regional level. Examples were provided of where unions can also play a coordinating role in connecting workers with training, resources, and support services that already exist in the current employment support system, but are often difficult to navigate. These innovative methods of employment support during times of industrial transition shine a light on the need for empathetic approaches that consider communities’ cultural and social identities, often grounded in local economies and industries.
This tripartite approach could also inform how new institutions, including the Fair Work Agency, operate at a regional level, for example through structured engagement with unions, employers, and local authorities during periods of industrial or technological transition.
Regional leadership and the limits of devolution
While strong regional leadership was acknowledged as essential, participants noted that employment is not a devolved matter in most of the UK. Regional authorities can set standards, help set up upskilling structures, and shape local procurement policy but they require support and resources from central government to be effective. There were calls for clearer statutory definitions and measurable thresholds for what constitutes healthy and good work, and for these to be embedded within the Employment Rights Bill and operationalised through the Fair Work Agency.
This was seen as critical to ensure that firms whose business models are predicated on poor quality employment standards are effectively regulated to protect workers’ rights.
Key policy takeaways:
Bridge the digital divide through targeted support for SMEs, who face struggles when trying to invest in new technologies.
Increase participant involvement in technology adoption decisions to make sure there is a fair distribution of benefits – this could be achieved through consultations and information rights throughout the Employment Rights Bill.
Devolve resources to the neighbourhood level, empowering grassroots organisations to co-design solutions based on lived experience, particularly within the context of the Devolution Framework and Local Growth Plans.
Shift focus from supply-side fixes and educate employers on the business case for good work, linking it to productivity, innovation, and reduced health costs.
Implement the Youth Guarantee through local and community-based employers, not only through large firms, and make sure it is rolled out across the country equally, and embedded as part of developing well-functioning innovation ecosystems.
Participants agreed that in the future, there should be a greater focus on identifying thresholds for healthy and harmful job conditions, as well as building collaborative ecosystems that bring together employers, unions, government, academia, and education providers. Showcasing successful regional case studies and ensuring that national frameworks support rather than constrain local innovation will be essential to making devolution and technological change work for everyone.
The APPG on The Future of Work thanks all panellists and participants for providing such rich discussion on this topic. The discussion was purposefully expansive in order to capture and understand all elements of good work ecosystems that require buy-in and action from multiple stakeholders and government departments.
Building on this public event, the APPG on the Future of Work will take forward a programme of more focused roundtables in 2026, examining how specific legislative and policy levers, including the Employment Rights Bill, Fair Work Agency, devolution settlements and skills policies, can better support good work and inclusive regional growth in practice. These sessions will focus on implementation challenges, enforcement, and the role of local institutions in governing technological change.