APPENDIX 63
Memorandum submitted by Science City York
1. SUMMARY
1.1 Science City York is a joint partnership
between City of York Council and the University of York, with
significant private sector input. Set up in 1998, the project
built on the success of Bioscience York which was established
in 1995, making it one of the first cluster developments in the
country, and provides specialist help to high technology companies
in three sectors, bioscience, e-science and heritage and arts
technology. Already more than 6,800 people are employed in this
dynamic initiative, and the pace of growth is set to create in
excess of 1,600 further employment opportunities by 2003.
1.2 For the past two years Science City
York has been facilitating the development and promotion of clusters
within the York area. As part of this work, specific barriers
to the growth of clusters have been identified. We would like
to see the following points addressed by government to ensure
the rate of cluster development continues.
1.3 Recommendations
The consolidation of funding sources, and a
longer life-span for awards and grants.
Targeting new resources on functional activities,
such as promotion.
A more integrated approach to planning and economic
development to speed up the process to match the pace of growth
in science based industry.
The special requirements of knowledge based
industries to be recognised in the UDP land allocation process.
The continual involvement of higher education
institutions as an essential part of cluster development.
That developers are encouraged to offer shorter
term property lets.
That the pace of change in opening up the local
telecoms market continues to ensure lower bandwidth access costs.
2. SCIENCE CITY
YORK—A SUCCESSFUL
PARTNERSHIP
2.1 Science City York is geared to meet
the needs of high technology companies through a specialised programme
of assistance, providing the right supportive environment to allow
businesses to grow and flourish. It supports the promotion, development
and exploitation of three interconnected clusters in the York
area:
— Bioscience York includes over 48
firms, employing over 2,500 life scientists working in bioscience
within an eight mile radius of the city, and is recognised as
one of the country's most exciting bioscience clusters. This cluster
is particularly strong on drug development, plant biotechnology,
health and food sciences.
— Facilities include a new strategic
research centre at the University of York: the Centre for Novel
Agricultural Products, with a mission to undertake inter-disciplinary
research in this area.
— e-Science York is a fast-growing
information and communication technology cluster with over 130
firms, employing 2,600 people in the City. The University's world-class
Departments of Computer Science and Electronics, producing over
200 graduates a year and with a proven record of spin-out companies
provides invaluable support.
— Heritage and arts technology links
York's traditional economy and heritage with the knowledge based
economy. The established infrastructure of attractions has seen
the City develop expert visitor management techniques to accommodate
four million visitors a year.
— A critical mass of creative interpretative
and education expertise has developed, building on York's existing
commercial and academic strength, with 55 specialist organisations
operating in the field employing over 1,000 people. These include
specialist data services, conservation, display design and technology
and multi-media content and the creative application of technology.
2.2 In total, Science City York has seen
since its establishment 40 technology transfer projects, eight
spin-outs and eight inward investment successes. Results from
a comprehensive survey (with an 85 per cent response rate) highlight
that between July 1998 and July 2000, a growth of over 1,000 jobs
or 18 per cent has been generated as a result of Science City
York.
2.3 Aside from the University and the City
Council, funding partners involved include York Inward Investment
Board, York Business Development Ltd, North Yorkshire Training
and Enterprise Council and the European Union through European
regional development funds from the Konver II programme. The success
of the initiative also relies on the input of local schools, colleges
and local business across all sectors.
3. THE WHITE
PAPER—EXCELLENCE
AND OPPORTUNITY
This submission looks at five areas of the White
Paper "Excellence and Opportunity" in which we have
a particular interest and where we have considerable experience.
3.1 Funding
3.11 We welcome the acceptance in the White
Paper that clusters form an important element in regional economic
development. We also welcome the new money for RDAs and a Regional
Infrastructure Fund. However, we are concerned that the short-term
nature of much government funding is proving a constraint on growth.
This form of funding prevents medium to long-term planning, and
the application process absorbs considerable time.
3.12 Investment in cluster development from
within the technology community requires the development of sustainable
funding mechanisms in order to lever in private sector involvement.
The joining up of government resources, both national and regional,
into a framework which enables all partners to plan on a longer
term basis would be very beneficial to future growth.
3.14 More resources for specific functional
activities would lead to greater growth. A recent report by the
Regional Biotechnology Cluster Association Forum, which benchmarked
UK cluster development against international competition, demonstrated
that trade promotion, the attraction of inward investment and
the promotion of technology transfer would lead to more activity.
The level of funding support for clusters is
crucial in supporting the sector, especially as there is growing
international competition, particularly from EU neighbours such
as Germany.
3.15 Science City York Recommends
The consolidation of funding sources, and a
longer life-span for awards and grants.
Targeting new resources on functional activities,
such as promotion.
3.2 Planning Guidance
3.21 The uncertainty and delay by the planning
system in responding to the need for suitable sites to be brought
forward which could accommodate science-based growth and facilitate
further growth is beginning to become restrictive on growth. This
is partly due to the "lag time" in the drafting and
approval processes of unitary development plans, which is considerably
longer than the speed of development of many knowledge based companies.
3.22 Recent changes by DETR have been noted
and welcomed; Planning Policy Guidance (PPG) notes 11 & 12
recognise the essential connection between planning policy and
the development of business linked to the science and research
base. In particular, the clear role defined by PPG 12 for local
authorities to use these tools to encourage economic development
through knowledge driven industries is one played successfully
by the City of York in developing Science City York.
However, the time-scale for implementation may
be too late for the forthcoming Green Belt Review in the City
of York. The current Green Belt Review process in York will have
a massive impact on whether the fast growing high technology clusters
in York will continue to expand or not. Five local factors make
this especially relevant for York:
3.23 The current demand for sites and premises
from substantial surveys conducted by SQW within York high technology
business, highlight that there are significant shortfalls in the
short, medium and long-term in the provision of the quality sites
that science/technology firms are demanding. The timescale for
completing the Green Belt Review/Local Plan Process is incapable
of meeting the requirements that are expected over the next three
years.
3.24 The layout of the City means there
is a lack of suitable brownfield sites held in reserve. The only
large scale brownfield land opportunity, York Central, land north-west
of the Railway Station, occupies approximately over 60 ha will
only be suitable for approximately one third of Science City York
firms (as defined by consultants SQW) and is unlikely to be brought
forward for development before 2004.
3.25 The majority of the designated employment
land held in reserve falls within the City's Green Belt, thus
if the clusters are to develop as per the 25 year forecasts, the
release of land over this timescale is required.
3.26 As a "new" university established
in the 1960's, the University of York is located on the outskirts,
surrounded by Green Belt. In order to achieve sufficient geographical
proximity, necessary for successful cluster development and effective
business incubation, there is no option but to take land out of
the Green Belt.
3.27 Once employment land is allocated through
the process, the current planning system provides only limited
support for ensuring that the land can be used for the high-tech
purpose for which it is intended—rather than being put to
general B1 or B2 uses.
3.28 The planning process has the potential
to aid the development of knowledge based industry, but at the
moment it can be a significant barrier in the development of clusters,
and in York we are specifically being held up by the Green Belt
Review. We would like to see the Government be more pro-active
in reforming the planning process in order to speed up timescales
and thereby remove the current hindrance on cluster development.
We would also recommend that the current definition of "employment
sites" be refined so that land can be reserved solely for
knowledge based industries.
3.29 Science City York Recommends:
A more integrated approach to planning and economic
development to speed up the process to match the pace of growth
in science based industries.
The special requirements of knowledge based
industries to be recognised in the UDP land allocation process.
3.3 The Private Sector and Cluster Development
3.31 Private partners have been involved
in the cluster development in York since the instigation of Bioscience
York in 1995. They have helped in defining the direction of the
project through the Science City York Advisory Group and have
made a financial contribution to running the project, funding
a Bioscience York executive staff post to support the development
of interactions between companies through a series of working
groups.
3.32 These working groups have examined
areas for collaboration between partners including Nestlé
R&D, CSL, Smith and Nephew Group Research, the University
of York and Covance. Through sharing expertise through the Library
and Information Services Working Group savings of over £60,000
per annum has been attained. Similarly the Procurement and Purchasing
Group have purchased specialist equipment, such as mass spectrometers,
to share between company research teams. The HR & Training
Group were also successful in helping to ensure that a bid to
the Competitiveness Fund for over £500,000 was invested into
new HND bioscience technician training facilities at York College
to support company's training needs locally. A new SME marketing
and communications working group is shortly to be established
to help bioscience SMEs with PR and marketing issues—which
has been raised as a pertinent local issue facing their businesses.
3.33 Two of Science City York's key funding
partners, the York Inward Investment Board Ltd and York Business
Development Ltd are also from the private sector.
3.34 In addition to Bioscience York activity,
each particular cluster (bioscience, e-science and heritage and
arts technology) meets each quarter, to consider local initiatives
and activities and to encourage networking between cluster members,
with input from commercial and academic partners. Specialist advice
is available in technology transfer, funding, start-up assistance,
access to finance and venture capital, marketing, and international
trade promotions from the Science City York Business Development
and Promotion Team.
3.35 Regular "Business 2 Business"
networking events are held bi-monthly on issues which are affecting
clusters as a whole, the most recent session has examined at remuneration
issues. Members of the cluster also have dedicated email listservers
to post information of interest to other firms in their sector,
for example the ICT community exchange information relating to
the best deals in relation to internet and ASDL access through
this service. The heritage and arts technology companies are also
working together to support a bid to NESTA to help provide locally
more specialist support for creative industries start-ups through
a mentoring and funding scheme.
3.36 Private sector involvement in cluster
development activity is at the heart of Science City York to ensure
that services and initiatives delivered are beneficial to them.
On the whole, most firms within each sector recognise the holistic
benefit of them working collectively together on common issues
which are relevant to their firms or to the community, for example
on National Science Week activities. The key issue to maintain
their support is for government to ensure that appropriate funding
sources for business driven initiatives are sustained in the longer
term and that they are to be flexible to adapt to changing business
needs.
3.37 Science City York Recommends
A longer life-span for flexible awards and grants
to support business-driven initiatives in order to sustain private
sector support and enthusiasm.
3.4 Universities and Cluster Development
3.41 The underpinning of Science City York
by the University of York, a research led university which is
constantly ranked in the top-ten of the UK's leading Universities
with world class departments of biology, chemistry and computer
science, has been a major factor in the project's development.
3.42 The University already had a successful
record in the commercialisation of research work and intellectual
property. Many major global companies have already established
research links with the University. Not only does the University
provide spin out and start-up companies, but also high calibre
graduates which top up the city's skilled workforce year on year.
3.43 The York Science Park, adjacent to
the University's campus, offers opportunities for technology transfer
through direct business links, access to facilities and joint
venture opportunities. The initial phase began in 1992 with the
location of the Smith & Nephew Group Research Centre. Subsequent
development has seen mixed office and laboratory space for small
technology-based companies, and a persistent demand for space
will see a further development of 53,000 sq. ft. being made available.
There has also been significant government investment through
the location of MAFF's Central Science Laboratory in the City.
3.44 The University of York has been awarded
the HEFCE Reach Out Bid. The £1.1 million, four year award
will provide funding for five new key positions to facilitate
interactions between businesses and the University. One of these
positions, the Science City University Interface Manager will
be charged with developing and enhancing technology and knowledge
transfer between university staff and Science City York companies.
This would complement existing business development activities
which are already in place.
3.45 Science City York Recommends
The continual involvement of higher education
institutions as an essential part of cluster development.
3.5 Infrastructure
3.51 There are two key infrastructure issues
which we feel are missing from the White Paper, yet are creating
tangible constraints on development of clusters, and knowledge-based
industries in general. The first is the issue of property leaseholds
for high technology companies who have out-grown incubator space.
At present it is very difficult to obtain short leases, as is
the norm in the USA—15 years is usually the minimum term
sought by institutional investors. Yet the new knowledge-based
companies Science City York is trying to encourage will not necessarily
have the strength of covenant to make such an inflexible commitment.
3.52 The second point is the access to broadband
telecommunications. The unbundling of the local loop in July 2001
is an encouraging development, and will deliver real benefits
if, through more competition, it results in lower prices for "always
on" connections. This is a major concern for e-Science York
companies at the moment, for example one ICT firm within York
has expressed the view that they are considering whether to expand
their business in Manhattan, rather than York as the costs of
bandwidth in the US are so substantially cheaper. We have been
speaking to providers in York about bandwidth infrastructure,
and at least one provider is keen to extend their fibre coverage
in the City, however, ensuring that the unbundling of the local
loop occurs at the pace required by high technology businesses
ought to be a main priority for OFCOM.
3.53 Science City York Recommends
That developers are encouraged to offer shorter
term property lets.
That the pace of change in opening up the local
telecoms market continues to ensure lower bandwidth access costs.
12 January 2001
| 
