**Wales Ranks Bottom in New Regional Economic Competitiveness Study**
Wales has been singled out as the UK’s lowest-performing region in a fresh assessment of economic competitiveness, falling behind every region in England, according to an influential new report. The analysis, devised by Professor Robert Huggins of Cardiff University and Professor Piers Thompson from Nottingham Trent University, introduces the NICE index—a composite measure evaluating networks, innovation, creativity, and entrepreneurship across local authorities in Wales and England.
The researchers’ findings, released in their paper “Economic Possibilities Across England and Wales: the NICE index of localities and regions,” paint a sobering picture for Wales. While London and the South East clearly head the rankings, many Welsh local authorities languish at the bottom. Merthyr Tydfil finds itself in last place out of 330 council areas assessed, with Blaenau Gwent and Anglesey also close to the end of the scale. By comparison, Cardiff fares best among Welsh councils but still comes in at a modest 62nd position.
The assessment goes beyond merely critiquing physical infrastructure. The report starkly describes numerous Welsh communities as “innovation deserts,” citing critically limited business networks, lack of creative infrastructure, and insufficient entrepreneurial activity. The authors argue that these deficits amount to more than absent resources—they signal persistent behavioural barriers and entrenched narratives of economic decline, which further exacerbate the challenges facing Welsh regions.
Professor Huggins commented on the findings, stating that despite policy initiatives, Wales remains “economically cut off from many parts of the rest of the UK”. He highlighted not only shortages in transport and housing, but also “profound behavioural barriers that prevent them from creating the networks, innovation, and entrepreneurial cultures essential for modern economic success.”
Quantitative analysis reveals that Wales is ranked lowest or close to lowest among the UK regions in terms of business networks, innovation, and entrepreneurship. It only achieves a relatively better, though still subpar, ranking in creativity. These metrics are crucial, as the study establishes a strong correlation between NICE index scores and economic productivity, as measured by gross value added per capita.
One particularly concerning aspect noted by the researchers is the development of what they term “self-limiting mindsets,” especially in post-industrial towns. These communities, they argue, risk becoming entrenched in stories of decline, which in turn hinders their ability to envision or enact new economic opportunities. Rather than being solely a matter of infrastructure, the researchers contend that Wales needs interventions aimed at rebuilding confidence and nurturing entrepreneurial habits at the community level.
The report makes several key recommendations, arguing that both schools and lifelong learning institutions in Wales must weave entrepreneurial thinking and creativity into their curricula. Without building the “psychological resources necessary for network participation, imaginative risk-taking, innovative thinking, and venture creation,” the authors warn, economic isolation and underperformance may become entrenched.
Recent UK Government initiatives, including the latest industrial strategy which focuses on growth industries such as clean energy, digital technology, and advanced manufacturing, could offer some respite for Wales. However, Huggins and Thompson caution that these strategies will do little to address the deeper behavioural gaps unless explicitly targeted to do so.
The study suggests the newly established Council of the Nations and Regions should play a leading role in coordinating and supporting remedies to these foundational issues. Proposed actions include shifting away from traditional infrastructure investments in favour of programmes that foster collaboration, entrepreneurship, and forward-looking narratives highlighting local successes rather than dwelling on past hardships.
While Wales confronts daunting challenges, some encouragement comes from the fact that “pockets of success” do exist, notably in Cardiff and a few other urban centres. Nonetheless, the researchers insist these examples must become the rule, not the exception, if Wales is to close the economic gap with its neighbours.
It is notable that the study did not cover Scotland or Northern Ireland due to the lack of comparative data, meaning the Welsh results stand solely in contrast to regions and local authorities in England. The report issues a stark warning: without urgent, targeted action, Wales risks permanent economic marginalisation—a scenario with serious implications for communities across the nation and the wider UK economy as a whole.