In recent years, the impact of automation and globalisation on jobs and communities has dominated headlines. We have witnessed a political backlash from places such as the US “rust belt,” where many people feel left behind by the economic changes of the last few decades. In addition, many citizens fear that the next waves of automation and globalisation could leave behind a new cohort of people and places.

In the big picture, automation and globalisation are forces of good in the world, making countries richer and improving the overall quality of life. They bring what economists call “creative destruction”, that both destroys old ways of doing things and creates the new ways. However, many people get trapped in painful and prolonged transitions, when the destruction of their jobs and lifestyles occurs quicker than the creation of new and better opportunities.

This is particularly tough when the places where citizens live and work struggle to adjust, and fall behind the leaders in the global race. The result is unequal opportunities for people in different places. Magnet cities are attracting the world’s top talent, R&D, trade and investment. However, many other places fall into the middle-income trap, of being uncompetitive on cost with the developing world and uncompetitive on skills and innovation with the magnet cities.