Memorandum submitted by the University
of Warwick
The University of Warwick welcomes the opportunity
to submit evidence to The House of Commons Business and Enterprise
Committee for their enquiry into "|the role of regional
development agencies (RDAs) and implications the Government's
review of sub national economic development and regeneration may
have on that role." Whilst Warwick is an international
institution the University is also a committed regional partner
in the West Midlands with our Regional Development Agency (RDA)
Advantage West Midlands (AWM) and the Coventry and Warwickshire
sub-region. Furthering economic prosperity and tackling disadvantage
are areas of key importance to the University, both historically
and into the future.
The Business and Enterprise Committee may be
considering, or wish to consider, further evidence and comment
submitted to: the West Midlands Economic Strategy Consultation;
the recent consultations on "Prosperous Places: Taking
forward the Review of Sub-National Economic Development and Regeneration"
(BERR, June 2008) and "Delivering Success in the Regions
VFM Study—Survey of Stakeholders & Partners"
(National Audit Office, July 2008).
INQUIRY RESPONSES
The need for a level of economic development/
business/ regeneration policy delivery between central and local
government
The need for strategic economic development
and delivery at a regional and sub-regional level has been established
with the RDAs filling a historical vacuum in focused strategic
development. Responding to identified local needs has historically
not received the attention, or resources, required to make tangible
and sustainable changes. A strategic view of investments and business
support is crucial to future prosperity, investments made by AWM
in the Birmingham Science City Collaboration between the Universities
of Warwick and Birmingham are far sighted and will produce tangible
economic benefit beyond the usual RDA timelines for project output
delivery.
At present there are successful sub-regional
delivery vehicles in the West Midlands, sponsored and supported
by AWM, the three high technology corridors. As organisations
the three corridors facilitate the delivery of economic development
across administrative boundaries and as partnerships of key stakeholders—delivering
focused interventions in response to identified sub-regional need.
There remains a concern (in common with other
RDAs and Devolved Administrations) that AWM consistently find
it difficult to reconcile the need for continued, or enhanced,
investment in "successful" sub-regions of the West Midlands
with the need for investment in "lagging" sub-regions.
Further, there is an evident risk of a "silo-effect"
where RDAs are unable to address opportunities collaboratively
which cross regional and indeed sub-regional boundaries.
THE EFFECTIVENESS
OF RDAS
AND THEIR
ROLE IN
ADDING VALUE
The University of Warwick would particularly
like to bring the success of the Premium Automotive Research and
Development Programme (PARD) to the attention of the committee.
PARD, delivered by Warwick Manufacturing Group (WMG) from The
University of Warwick, has safeguarded 4000 jobs and contributed
to the development of nearly 200 new products and processes. This
project, and other exemplars, provide evidence of RDA success
and the strategic role required for economic development.
However, AWM, in common with other RDAs, can
be too procedurally driven and slow to absorb new ideas and views.
On occasion, AWM have been too slow to respond to opportunities.
Project initiators can endure lengthy delays in the development
of projects which can be frustrating, resource intensive and costly.
The administrative context within which RDAs
function can have a negative impact on economic development and
regeneration projects. Regulations and procedures imposed centrally
or from the EU can engender a short term approach, allied with
the limited time horizons for budgets. Successful, indeed critical,
projects can be forced to close when programme funding ends and
no appropriate funding has been made available. Economic development
and regeneration are long term activities which require sustained
funding, which will often exceed RDA project timelines and CSR
timetables.
RDA EXPERTISE
AWM has a large pool of expertise which is accessible
for both policy formulation and delivery. This expertise extends
from the Board Members through to the staff in the agency. There
have however been occasions when capacity problems and recruitment
difficulties have impinged on the operation of the agency. For
the future there is an extensive pool of expertise and experience
within the West Midlands, within HE, FE and the public and private
sectors which could add substantial value to the agency and the
region. Currently, the mechanisms for unlocking this potential
are limited. Under the new accountability arrangements, especially
the proposed Regional Select Committee, there could be an opportunity
to address this.
THE EXTENT
OF, AND
NEED FOR,
THEIR OVERSEAS
ACTIVITIES
The University of Warwick has worked on several
opportunities with AWM and the inward investment team. This has
included India, USA and the current Bridge to Growth Programme
intended to attract small companies to the West Midlands. Staff
at AWM have been helpful in this work and thoroughly professional.
It is appropriate for such regionally focused activity, supported
by RDAs, to take place. However, there has been some brand confusion
over the activities of RDA Inward Investment Teams and UKT&I
which requires attention. Further, the level of support available
for companies in the region wishing to export and/or explore new
markets has been found to be lacking or at best confusing.
THE CONSEQUENCES
OF EXPANDING
RDA REMIT TO
INCLUDE NEW
FUNCTIONS, AS
PROPOSED BY
THE SUB
NATIONAL REVIEW,
INCLUDING THE
DELIVERY OF
EU FUNDING
An enhanced strategic role, especially with
the integration of responsibility for planning, for RDAs is welcomed.
The link between economic and social development and the planning
system and process is one that requires strong coordination and
delivery. The way in which funding and delivery is devolved to
a local or sub-regional level, through the implementation of the
SNR, is of concern. In the West Midlands AWM has been able to
undertake projects which are supportive of both Regional and National
priorities and opportunities, for example Birmingham Science City.
Any new arrangements for economic development and regeneration
should not prevent further developments of this initiative or
limit future large scale strategic projects.
The SNR quite rightly emphasises functional
geographic areas as opposed to extant administrative boundaries.
This is to be encouraged both at a local and sub-regional level
but also across RDA boundaries, businesses do not see administrative
(ie local authority) boundaries.
THE ACCOUNTABILITY
OF RDAS
Whilst there is a current accountability framework
for RDAs, which includes Regional Assemblies and Parliament (via
Government Departments), the abolition of Assemblies in 2010 will
only serve to increase the impression of a democratic deficit.
The future role of Regional Select Committees will be crucial
to engendering and maintaining public trust and confidence in
RDA activities and performance.
HOW RDA PERFORMANCE
HAS BEEN
MEASURED IN
THE PAST
AND WILL
BE MEASURED
IN FUTURE
Advantage West Midlands already has established
measures of activity and success in terms of core outputs. Adding
a further level of outputs and measures may at best be a distraction;
at worst be just "lip service". Further issues identified
with the use of new performance measures include:
1. "What gets measured gets done"—will
these measures really reflect success and a positive trajectory
of change or will they just skew activity? For example enterprise
is often measured on the basis of the number of start-ups rather
than the growth or innovativeness of new firms.
2. How will new measures be integrated with current
core outputs for AWM: will these become new core outputs in and
of themselves?
3. The recently revised Regional Economic Strategy
(RES) will be one step in long term activity; will these measures
reflect "improvements" in trajectory during the new
WMES period? There is a very real issue of longitudinal measurement
in the determination of these success measures which needs to
be addressed.
The University of Warwick would also like to
bring to the attention of the committee that the West Midlands
Observatory is looking for indicators of the effect of Regional
Development Agencies on regional performance, with particular
emphasis on the West Midlands Observatory. The indicators and
performance indicators developed by the regional Observatory to
try to measure the performance of the RDA should be watched with
interest.
The University of Warwick favours the utilisation
of alternative measures of success and improvement within the
region, indeed a re-definition of appropriate core outputs is
probably required. The University would welcome the opportunity
to work with AWM on the identification, development and deployment
of new indicators and measures of success in the medium and longer
term. Economic metrics are only one indicator, measures need to
incorporate other indicators of social change that fulfil the
West Midlands (and other RDA) strategic objectives.
19 September 2008
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