Final answer:
The Newquay Aerohub SEZ is a strategy to diversify Cornwall's economy beyond tourism by providing incentives for businesses to invest in technological and other sectors, fostering increased economic resilience.
Step-by-step explanation:
The establishment of the Newquay Aerohub as a Special Economic Zone (SEZ) is an initiative to diversify the economy of Cornwall, which historically has depended heavily on tourism. This SEZ aims to foster economic growth by creating a business-friendly environment with incentives such as reduced taxes and regulations to attract private investment and stimulate technological change and innovation. The objective is to create new jobs in various sectors other than tourism, such as high-tech industries, transportation, and logistics, which can lead to a more balanced and sustainable economic development.
Special Economic Zones like the one in Newquay offer significant advantages for both domestic and foreign companies, which can help to reduce dependency on a single economic sector such as tourism. By drawing in diverse businesses related to technology and other industries, these zones help to foster a more resilient local economy capable of withstanding fluctuations in tourism trends. The experience of regions like Mauritius, which has seen substantial economic growth as a result of its SEZs, illustrates the potential benefits of such initiatives.
Supporting scientific research and creating a legal environment that encourages innovation are also critical components of the economic strategy within an SEZ. The European Union's investment in scientific research, which has led to increased research intensity and sales for firms, serves as an example of how government support can aid in economic diversification, leading to a broader range of job opportunities and economic activities in regions formerly reliant on tourism.