Manchester has the potential to drive the UK's social and economic agenda, according to a report.

Research from the Work Foundation suggests the North West city could become the UK's second "knowledge capital", after London.

In the report, entitled Manchester: Ideopolis, the foundation claims globalisation has created opportunities for a new type of UK city.

The report says Manchester can become an alternative economic business centre and a catalyst for improving regional and UK-wide productivity.

'Unique position'

Will Hutton, chief executive of the foundation, said that if the UK is to sustain nine years of steady economic growth cities must reproduce London's economic and social vitality.

He said this must combat the twin problems of joblessness and urban deprivation which remain "a major problem in many of the UK's cities".

The Ideopolis or knowledge capital

High-tech manufacturing Knowledge services - universities with commercial partners Hub airport/major communication network Bold city leadership - delivers world class regeneration initiatives Liveability - attractive spaces, thriving creative and cultural life

"In these places poor health, education, housing and transport go hand in hand with high unemployment, crime and dereliction," said Mr Hutton.

Richard Leese, leader of Manchester City Council, said the report reinforced the city's position to develop.

"We want to maximise the intellectual capital of the city and use the quality of the city and use the quality of our higher education to benefit everyone in the city," he said.

Ideopolis cities have emerged in the USA including, according the foundation, Seattle, Boston and Atlanta.

In Europe cities like Helsinki and Barcelona are considered to be knowledge capitals.