Observations for each region are weighted by the population of each region. Chart 5 compares the regional distribution of income per head in the UK, France and Germany in 2016, again centred on mean income levels in the UK in 2016. It suggests a materially wider regional dispersion in incomes in the UK than in France and Germany. The gap between richest and poorest regions in the UK is almost twice as large as in France and three-quarters larger than in Germany.13  12 13  Comparing NUTS 3 regions. Figures refer to income differences at the NUTS1 regional level, using Purchasing Power Standard (PPS). 9  All speeches are available online at www.bankofengland.co.uk/speeches  9  Chart 5: Distribution of UK, France and Germany income per head in 2016  Île de France  Oberbayern  Inner London West  Sources: Eurostat and Bank calculations. Notes: Purchasing power standard (PPS) per household in NUTS2 regions for 2016 centred around the UK mean. Excludes NUTS region ‘FRY’ (‘Départements d'outre mer'). These regional differences in GDP are found in alternative metrics of economic health, such as pay (Chart 6).14 They are also mirrored in medical health. Chart 7 plots one measure of medical health by region – average life expectancy. This mirrors regional income differences. Richer people tend to live longer. The gap between highest and lowest life expectancies regionally is around 3.4 years, or 4.2% of the UK average. 14  Haldane (2019).
40  All speeches are available online at www.bankofengland.co.uk/speeches  40  Chart 25: Cartogram of local-authority level ECIs  Sources: ONS Business Register and Employment Survey (BRES) and Bank calculations. Notes: UK NUTS 3 regions re-sized and coloured using estimates of economic complexity. 41  All speeches are available online at www.bankofengland.co.uk/speeches  41  Table 1 lists the top ten local authorities by ECI across the UK in 2017, while Table 2 shows the bottom ten. There is a high degree of inertia in both rankings. The ECI framework could be used to help assess which industrial strategy interventions might boost the degree of specialism and diversity, and hence the income benefits, both in already-successful and struggling regions. Table 2: Bottom 10 local authorities by ECI Dudley  Moray  South Derbyshire  Hartlepool  Wrexham  Carmarthenshire  Aberdeenshire  Breckland  North-East Lincolnshire  Telford and Wrekin  Sources: ONS Business Register and Employment Survey (BRES) and Bank calculations. Economic complexity can also be assessed across industries using a product complexity index (PCI). This proxies the embedded knowledge in an industry. Table 3 plots the top-20 UK industries by PCI against their sector shares. Financial services, the creative industries, and higher education exhibit the highest economic complexity and thus potentially generate the highest value-added. PCI metrics could be used to identify industries where “sector deals” could benefit most the economy, as part of an industrial strategy.