Memorandum submitted by Aston University
Aston University is located in Birmingham, within
the West Midlands region, and this submission will focus on the
University's experience in working with Advantage West Midlands
(AWM).
1. THE NEED
FOR A
LEVEL OF
ECONOMIC DEVELOPMENT/BUSINESS/REGENERATION
POLICY DELIVERY
BETWEEN CENTRAL
AND LOCAL
GOVERNMENT
As a region, the West Midlands does not have
a natural or historic identity, embracing rural areas such as
Worcestershire and Herefordshire, the urban conurbation of Birmingham
and the Black Country, and areas with a strong local identity,
such as Stoke-on-Trent and the Potteries. These diverse and historically
separate identities have, from the start of its existence, presented
challenges and caused tensions in AWM's region-wide economic development
and regeneration role.
As a result, AWM has always made strenuous efforts
to demonstrate inclusion across the region, and has sought to
ensure that the region's wide range of rural, industrial, business
and special needs is reflected within its economic development
activities. Initially this led to some concerns that Birmingham's
role as the major economic driver within the regional economy
was not fully recognised, but this is now a key feature within
the current Regional Economic Strategy (RES).
During its relatively short lifetime, there
has been demonstrable progress and maturing within AWM's economic
development and regeneration role. Its regional scale enables
a degree of co-ordination and collaboration not practicable at
a central or local government level. For example, there are 13
higher education institutions (HEIs) within the West Midlands,
and AWM has played a significant role in increasing the extent
to which they work with business and industry, and collaboration
between HEIs. To demonstrate this point, AWM has funded two high-profile
projects led by Aston University on behalf of the region's HEIs—INDEX,
which encourages small companies to access universities' expertise
and funds this through a voucher scheme, and Graduate Advantage,
which encourages small companies to recruit graduates and enables
them to trial this through project placements.
AWM has also been able to catalyse initiatives
across the region's HEIs, bringing together specialist expertise
and facilities. It has part-funded several projects at Aston University
which would not have proceeded otherwise, and which have achieved
their tasking output targets by creating new businesses, jobs,
business support and skills development for the region. One example
is the Aston University Day Hospital, located on Aston University's
campus, which combines leading edge research in ophthalmics, neuroscience
and medical imaging with clinical services and commercial activities,
and which won the regional award for best medical start-up company.
In addition, out of this original investment, Aston is now working
with AWM on proposals for the Aston Brain Centre which will include
the world's first paediatric MEG facility.
Under the Birmingham Science City initiative,
AWM funded the UK's first ocular allergy centre uniting Aston's
expertise in ophthalmics with the University of Worcester's expertise
in allergies, leading to business benefits for optometrists and
pharmacists across the region, and which was cited in the recent
DIUS white paper—Innovation Nation. AWM is also currently
working with Aston University to establish the European Bio-energy
Research Institute, which will bring together partners from other
HEIs, industry and the public sector.
2. THE EFFECTIVENESS
OF RDAS
AND THEIR
ROLE IN
ADDING VALUE
RDAs have a broad and complex role, and they
were required to become operational very soon after formation.
In AWM's case its effectiveness was frequently questioned during
its early years (up to around 2004), with confusion over funding
opportunities, poor communications, lengthy response times, inconsistent
approaches, and ambiguous monitoring and reporting arrangements.
In many cases these difficulties were attributable to a lack of
robust systems and suitably experienced staff. As stated above,
since that time AWM's effectiveness has improved markedly.
As stated above, AWM has been shown to add value
in the HEI context, and other examples include action to deal
with the MG Rover crisis, Birmingham Science City, broadband provision
across the region, and a range of significant capital projects.
Increasingly, its region-wide perspective has enabled a better
gauging of demand, for example in the case of medi-parks and incubators,
and it has been able to combine or head-off some projects where
duplication could have occurred.
3. RDA EXPERTISE
The role of the RDAs requires many different
types of specialist knowledge and, during the early years of AWM's
existence, there were demonstrable weaknesses. This was compounded
by a fragmented organisation structure and working arrangements
which, on occasions, led to an uncoordinated, parochial approach.
However, this has improved significantly in
recent years with the benefit of more experience and training
amongst staff, clearer strategies and practices, and more effective
organisational arrangements. Specific changes include the introduction
of allocated AWM project sponsors to work with applicants on bids
for funding.
4. THE EXTENT
OF, AND
NEED FOR,
THEIR OVERSEAS
ACTIVITIES
Overseas activities are recognised as an essential
component of economic development, both in terms of supporting
exporters and in attracting inward investment. In AWM's case these
include providing support on European funding opportunities, being
the lead partner for the West Midlands in Europe office in Brussels,
an inward investment team, and close working with UK Trade and
Investment.
The nature of these activities, and available
support, is not always understood by external parties and there
have been changes recently, with the West Midlands in Europe office
being restructured and EU Connects, a source of advice on EU funding
opportunities, being established. There also has been, and continues
to be, confusion regarding the respective roles of AWM's inward
investment team, and that of Birmingham City Council (Locate in
Birmingham).
5. THE
CONSEQUENCES OF
EXPANDING RDA REMIT
TO INCLUDE
NEW FUNCTIONS,
AS PROPOSED
BY THE
SUB NATIONAL
REVIEW, INCLUDING
THE DELIVERY
OF EU FUNDING
Expanding the RDA remit to include ERDF funding
would seem a logical step, enabling further integration of economic
development funding, and AWM has been implementing this change.
However, the eligibility criteria, processes and reporting requirements
for ERDF funding have not been well understood by external parties
generally, and this change is presently requiring further specialist
knowledge within the RDA. AWM is unifying its bidding procedures
to incorporate ERDF requirements so, in time, the incorporation
of ERDF should create further opportunities for applicants, but
both RDA staff and external parties need to develop a good understanding
of its requirements for these opportunities to be realised.
Other changes, such as the integration of the
RES with the Regional Spatial Strategy would also appear logical
but, clearly in this case, there are many issues still to be considered
and resolved. Within the West Midlands both the RES and the Regional
Spatial Strategy have adopted an evidence-based approach and discussions
are just commencing to consider the implications for an evidence-based
Single Integrated Regional Strategy.
6. THE ACCOUNTABILITY
OF RDAS
The role of RDAs is such that accountability
will be required to both central and local government. This, in
turn, will require that planning processes ensure appropriate
local input and consultation, while not becoming unwieldy or unduly
lengthy.
7. HOW RDA PERFORMANCE
HAS BEEN
MEASURED IN
THE PAST
AND WILL
BE MEASURED
IN THE
FUTURE
In the past the combination of Independent Performance
Assessment (IPA) together with "top-line" reporting
of quantified tasking outputs has provided an acceptable assessment
of performance together with media-friendly numbers.
However, these tasking outputs have been cascaded
to individual projects, leading to a culture whereby projects
are often "output" driven, rather than "outcome"
driven with a longer term change objective.
Going forward, the incorporation of such functions
as EU funding and spatial planning will have implications for
the RDAs' objectives and will require greater flexibility in both
strategy and performance measurement. Although the tasking outputs
are welcomed by the media because of their simple, quantified
nature, they are not necessarily suited to many of the more complex,
longer term initiatives and should be reviewed with more focus
given to broader outcomes.
19 September 2008
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