Chris White MP for Warwick and Leamington spoke on the last day of the Birmingham Made Me Design Expo, delivering a keynote speech summarised below, emphasising the importance to the UK economy of design and innovation.

In opening he said: "There are many think tanks in this country but it is great to see Idea Birmingham as a 'think and do' tank. It is great too to see a strong and growing Birmingham with the potential for this to continue for years to come."

He spoke with some passion about the myth that our region does not make anything emphasising that it's 'alive with creativity and fresh talent'.

He compared our economic situation with a global race - a marathon - as a race without finishing line where the other runners were getting stronger and quicker and we've had severe cramp through a recession and a financial crisis.

"We need to succeed in an even tougher global economic environment," he said.

Continuing he added, "We need to progress this situation through our Balance of Payments (BoP). In 2011 we had £30bn BoP deficit, but in 2012 our BoP deficit had grown to £57bn. Our trading imbalance is one of the reasons for our financial crisis. We are having to borrow to pay for our imports. We have built up a dependence on financial services to mask our poor performance on trade and exports.

"Politicians of all parties relaxed their stance to let this happen. Our dependence on one sector has had big impact on the credit crunch when it hit. As Joseph Chamberlain said provided the City of London remains the Clearing House of the world any other country can be its workshop.

"However this shows we must re-design our economy to move towards more design and innovation. This is a lesson we should relish for both our students and for Birmingham. We do have fantastic history of design and innovation and our economy can benefit. As Co-Chair of the All Party Manufacturing Group I have drawn on the importance of making products in the UK. Colleagues are beginning to realise that there is a need to focus relentlessly on design and innovation.

" 'Looking for Growth, Sack the Economists and Hire a Designer', was a good report - if a little harsh in its title - in highlighting the emphasis by local businesses on design and innovation. The need to keep producing new products and keeping existing products up-to-date means that in the Midlands we are investing over £3bn on new product design.

"As a former employee of MG Rover I cannot say how proud I am to see the renaissance of the automotive sector. Research shows 50% of companies have been able to enter new export markets on the back of new offers. We have an excellent example in AGA Rangemaster - with its heritage stretching back over some 300 years. They produced the first cast iron cooker heated with solid fuel. They were awarded a Gold Medal at the Great Exhibition of 1851.

"They have not rested on their laurels. They have invested heavily in quality products and have taken confidence in the 'Made in Britain' label. They are looking to China and are to be congratulated for the inspiration they provide in moving into these new markets. The UK cannot compete on price alone. Quality has to be our watchword. Ideas and innovative solutions are key. It is not just about new products but it's also about new ways of doing things - encouraging businesses to think about holistic design.

"Good design is good business as one former IBM CEO said. This approach needs to be spread through the supply chain. Big business needs to play fair and not poach the best designers from smaller businesses. This is not fair and it is not good for the economy. We have world class designers based in the Midlands. In 2010 20,000 new design studies graduates produced in UK. Design education is not a tap we can turn on whenever we need it.

"Through my involvement in the All Party Design Group we have called on government to develop a national Design Strategy to integrate design into the education system. Design & Technology in schools needs to be encouraged. D&T is now being considered as an option for the EBacc and with excellent local institutions like BCU we have the potential to be at the heart of design. And to build links between education and business translating skills between business and universities.

"I am optimistic about the future. If we focus on high quality products we can create exports and these will fuel growth and jobs. Our region can play and important and essential role in this regeneration.

"Some people have said that we need to spend our way out of economic difficulties. Some people have said we need to cut our way out of economic difficulties. I say we need to design our way out of our economic difficulties."

• Beverley Nielsen is Director of Employer Engagement at Birmingham City University