Regional development agencies and the Local Democracy, Economic Development and Construction Bill - Business and Enterprise Committee Contents


Memorandum submitted by the University of Birmingham

  The University of Birmingham is the largest HEI in the West Midlands and a major and influential institution in the Region as confirmed in a recent study of the Economic Impact of the University on the City and Region.[258] The University can both contribute to and benefit from the unique character and development of its Region and as such interacts closely with the West Midlands RDA—Advantage West Midlands (AWM)—and its various delivery vehicles. In particular, the new West Midlands Economic Strategy (WMES)[259] that AWM drives has a very strong focus on developing a knowledge-based economy with a central role for Universities. The Strategy is built around four themes—Business, Place, People, and a Powerful Voice—in each of which the University of Birmingham can have a significant delivery role that will both benefit both the region and positively benefit the University's own objectives around research, knowledge transfer, teaching and learning and internationalisation.

  It is in this context of a strong relationship between the University and AWM, with a particular emphasis on the knowledge-economy, that we respond to the issues of concern in this inquiry in turn.

The need for a level of economic development/ business/ regeneration policy delivery between central and local government

  The University supports current Government thinking that there is a role for the Regions in knowledge-based economic development which the RDAs have an important role in facilitating. The Sainsbury Review[260] recommends an enhanced role for RDAs in supporting science and innovation, particularly user-driven collaborative R&D, knowledge transfer, cluster development and start up/ growth of new businesses. It is further elaborated in the "Innovation Nation" White Paper[261] that this should be achieved in collaboration with the enhanced Technology Strategy Board, using RDAs' "single pot" and ERDF funds to support a range of initiatives (eg innovation platforms, voucher schemes, proof of concept funding and Knowledge Transfer Partnerships). The University supports these views because a regional scale is large enough to encompass significant clusters of activities or partnerships, which often transcend local authority boundaries, yet a small enough scale for the players to establish trusting partnerships with shared regionally specific/focussed objectives. For example, the University believes that initiatives like high-technology clusters/corridors around world-class universities, or Science Cities based on a strong regional knowledge base, are appropriate subjects for RDA engagement and leadership. This is also consistent with the view in "Innovation Nation" that seeks to support partnerships in addressing regional challenges and developing demonstrators, aligning national and regional programmes where possible.

The effectiveness of RDAs and their role in adding value

  With respect to the development of the Knowledge Economy, AWM has become a increasingly important partner in recent years. In development of innovation AWM funding has become a significant source, particularly for Knowledge Transfer activities, in this and other regional Universities and AWM has built a good relationship with all the regions universities in which each side has a growing understanding of the others objectives and how they can be mutually supportive. Together with national and regional policy emphasising the role of HE in the regional knowledge economy, AWM sees universities, including Birmingham as the largest in the region, as important partners in delivering elements of the new West Midlands Economic Strategy.

  The University's impression is that AWM, with regional partners, has initiated a number of initiatives at the forefront of national good practice, eg Innovation Voucher Schemes. They are perhaps prepared to go further in supporting "research leading to innovation" that is the case in other regions. For example, within Birmingham Science City, AWM have already committed £45m (with about the same again in planning) to development of the Birmingham-Warwick Science City Collaborative Package of research infrastructure, in the themes of Energy, Advanced Materials and Translational Medicine. This package will develop for the region and the partner universities a highly visible critical mass of research excellence, extensive business interaction, further collaboration with other HEIs regionally, nationally and internationally, and leverage of substantial additional revenue support (over £15m already secured in the first 18 months). A recent independent report for AWM anticipates a major economic impact of this package over 10 years plus.[262]

  In addition to the innovation role, AWM is at the centre of the Regional Skills Partnership which brings together a wide range of appropriate partners, including the regional universities, for example in initiatives designed develop skills for the new knowledge economy and to retain graduates in the region, including specifically the Advantage West Midlands funded Graduate Advantage Project.

RDA expertise

  With respect to the University's main area of interest with respect to the RDAs, namely economic development through the knowledge economy, AWM has a growing level of expertise within its specialist Innovation and broader Economic Development Team, and a developing sense of its importance at the strategic and decision making levels. From our experience, however, the nature of Innovation and its long-term importance to the economy is not understood sufficiently across the RDA, which leads to a lack of a joined up view on this agenda.

The extent of, and need for, their overseas activities

  As a major asset and presence in the region, the University has a significant role to play as both a leader and delivery organisation for promoting West Midlands. As such it has a role, in partnership with the RDA and other organisations, to promote the capabilities and infrastructure of the University as part of the assets to attract people to live, work, study and invest in the Region. Furthermore, activity such as the Science City collaborations with Warwick (as above), the Midlands Alliance in securing the National Energy Technology Institute etc have a huge role to play in attracting inward investors. AWM have not exploited this type of highly visible activity fully to date in this respect, indicating the lack of joined up view suggested above.

The consequences of expanding RDA remit to include new functions, as proposed by the sub national review, including the delivery of EU funding

  It is clear from above that the University has a broadly good impression of the RDA in this region and has built up a trusting relationship in its areas of concern. Therefore, based on our experience with AWM, we are broadly content with the RDAs taking on further responsibilities, as long as the resources were sufficient. In regard to the particular example, AWM would already seem to be making an excellent job of delivering the complex European Structural funds, working well in partnership with the Universities and a wide range of other stakeholders.

  The only concern we would raise relates to the lack of joined up view mentioned above. With a greater range of responsibilities, it would be essential that the RDA have appropriate internal decision making and communication strategies and routes to ensure consistency and compatibility across its varied remits, to a greater extent than currently exists.

The accountability of RDAs and how RDA performance has been measured in the past and will be measured in future

  Working with the RDA brings ongoing opportunity for the University, although AWM funding does bring challenges associated with the accountability and monitoring of their activity, which is then passed on to delivery partners. At a large institution such as the University of Birmingham we have been able to develop significant specialist resource therefore needed to work with the complex application, contracting and monitoring procedures, as well being secure enough to carry some of the risks passed on to delivery organisations. Smaller organisations that may have a lot to offer to the RDA are unlikely to have the capacity or capability to develop and deliver projects via the RDA.

  A particular concern for the University is the nature of the tasking framework outputs that the RDAs are required to deliver against, and which in turn have to be passed on to the delivery organisations. These are very poorly suited to developing the sort of long-term, transformational knowledge economy type of activity that the West Midlands partnerships are trying to develop through Birmingham Science City, the Technology Corridors etc. We would encourage BERR to think widely about indicators that measure impact more broadly and over the longer term needed for the full benefit of knowledge economy interventions to be fully realised.

19 September 2008






258   Regional and Local Economic Impact Assessment of the University of Birmingham (July 2007;
www.bham.ac.uk/about/regionalimpact.shtml). Back

259   "Connecting to Success", West Midlands Economic Strategy (December 2007). Back

260   "The Race to the Top", Sainsbury Review of Government Science and Innovation Policies (October 2007). Back

261   "Innovation Nation", Department for Innovation, Universities and Skill White Paper, March 2008. Back

262   "Economic Impact Assessment of the Birmingham and Warwick Science City Collaborative Package", Report for AWM by GHK (October 2007) Back


 
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