THE North-East is still the least competitive region in the UK, academic research has shown.
The region has stayed bottom out of 12 areas on the national index since 1997.
The report shows that all districts measured in the North-East are below the national average in terms of economic competitiveness, including the biggest cities and towns.
The UK Competitiveness Index 2005, authored by Dr Robert Huggins, senior economist at the University of Sheffield's Management School, shows that the continued lack of competitiveness among regions outside the South-East is a leading factor in the UK's decreasing ability to compete economically with other countries.
The study shows that between 1997 and 2004, the UK has slipped eight places to 17th position in an international ranking of economic competitiveness.
Dr Huggins' report suggests that the North-South gap in competitiveness is a direct result of an increase in public sector employment. The report shows that all employment growth in the North East between 1997 and 2004 occurred in the public sector.
He said: "The North-East has become more public sector dependent since 1997. From a competitiveness and long-term economic perspective this is worrying, since it is the private sector that is the engine of growth and development."
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