Memorandum from the University of Nottingham
(EM 16)
1. This response represents the submission
from the University of Nottingham to the East Midlands Regional
Select Committee of the House of Commons for its first inquiry
on the East Midlands Development Agency (emda) and the
Regional Economic Strategy (RES).
2. The University of Nottingham (UoN) is
the leading and largest HEI in the East Midlands on a number of
metrics. Various independent assessments place UoN in the Top
10 of UK HEIs and in the top 1% of all Universities worldwide.
Within the East Midlands, UoN is the leading research-led University
and on a number of measures it is the largest in the region. Research
income to UoN represents in excess of 40% of the total for all
HEIs in the East Midlands.
3. As a research-led university, Nottingham
has a long history of working with industry and offers many opportunities
for collaboration. Blue-chip companies that maintain ongoing research
relationships with the University include Rolls Royce, E.ON, The
Boots Company, GlaxoSmithKline, The Ford Motor Company and AstraZeneca.
Our business relationships also extend to local SMEs with whom
we engage in various ways, often as a result of initial contacts
through our programme of business-focused events.
4. Although an institution with an international
presence and outlook, we are committed to the region and its economic
performance. This is evidenced through activities and developments
such as:
— The development of the University of
Nottingham Innovation Park.
— Our partnership role in developing and
delivering BioCity, an internationally recognised facility that
provides accommodation and support to high potential bioscience,
pharmaceutical, med tech and healthcare companies.
— The Nottingham Science City initiative,
involving City and County Councils, emda and other partners.
— Our involvement in four regional "innovation
networks" or iNets—a key part of emda's Regional
Innovation Strategy.
5. Currently the University has a £15 million
portfolio of live projects, funded by emda or ERDF (which
is now managed by emda in the East Midlands). Activities,
which generally have a strong "innovation" focus include:
— Business engagement and knowledge transfer
around centres of technical expertise and application.
— Technology development, proof of concept
and commercialisation.
— Skills development, enterprise and placement
activities.
— Capital build developments, including
the University of Nottingham Innovation Park.
6. We have regular meetings of senior University
and emda staff (VC and PVC level staff, with emda's
Chief Executive/Directors), this supported by a number of operational
contacts across both organisations.
7. This response addresses a number of the
areas of interest identified by the Committee.
The role, responsibilities and accountability
of emda
8. We broadly support the role that emda
plays in the region. The funding provided via the RDA makes a
unique and beneficial contribution to the University in supporting:
innovation, business engagement, knowledge transfer, the development
of infrastructure related to regional economic development. These
are key priorities for Government and Europe (Lisbon agenda).
9. Whilst our relationship and experience
of partnership working with emda is positive overall, there
remain issues around the project appraisal processes. Timelines
from initial submissions to project start are often long and unpredictable.
Processes do not seem to be able to provide either a robust "no"
at early stages of the appraisal process nor a "conditional
yes" to substantive strategic projects. Certain funding schemes
are, by design, highly inefficient in terms of the relative cost
to administer the scheme and are difficult to access. This can
lead to projects that are small but considered to be significant
not being presented to emda for appraisal.
The process by which the RES was drawn up and
the level of involvement of regional stakeholders
10. The University was strongly engaged
in the RES consultation in 2005, an engagement led at PVC level.
Our involvement included formal written responses, one-to-one
meetings and wider involvement of academics. Similar approaches
have been taken to subsequent consultations, for example on the
Regional Innovation Strategy (2006) and Business Birth Rate Strategy
(2006).
The effectiveness of the RES for the East Midlands
in delivering against its targets
11. The RES presents a useful framework
for priority identification and one that informs the development
of new projects or activity against identified regional needs.
12. Within the East Midlands emda's
prioritisation of "business investment and risk finance"
has helped to establish a successful and coherent "escalator"
of funding for businesses (eg via risk finance funds), individuals
and Universities (via proof of concept or seed investment for
spin-outs). It is notable that emda have built on success
where it already existed, for example:
— The Lachesis Fund—a University
seed investment fund—first established under the DTI "University
Challenge" scheme in 2001.
— The Nottingham-led Innovation Fellowships
programme—first established in 2000 under the HEFCE
HEROBC[41]
initiative and continued through emda and HEIF[42]
support.
The effect of the financial and economic situation
on businesses in the region including the effect on different
sectors and the impact on local employment, and how well emda
is meeting needs in the challenging economic climate
13. The present economic situation, which
is proving painful for many businesses, is also expected by a
number of commentators to substantially ease as we progress through
2010-11 and return to growth. The RDAs response to this situation
should not be to the detriment of long term investment in skills,
capacity and infrastructure needed to sustain and grow the knowledge
economy. The University, like many other HEIs, is not well placed
to respond suddenly to business needs as a result of sudden failures
in the supply of money or collapses in product sales. We are effective
in supporting businesses to grow and become more competitive,
skilled and resource efficient through planned R&D, access
to skilled people and the development of their employees.
14. Even during times of economic growth,
the operating and reporting conditions placed on RDAs often led
to a focus on the short-term "outputs" at the expense
of long-term benefits. Typically an RDA's interests in a project
cease after two to three years.
The changes to regional policy proposed in the
Local Democracy, Economic Development and Construction Bill and
the potential effect on the work of emda
15. We do have concerns that proposed changes
to sub-regional responsibilities for economic development will
disadvantage the Nottingham region. To date the Greater Nottingham
Partnership (GNP), one of the sub-regional strategic partnerships
established in the East Midlands region, has provided a coherent
economic development focus on the "Greater Nottingham"
area—an area governed politically by the Nottingham City
and Nottingham County Councils.
16. The University has Board level representation
on GNP. However from 2010 it will no longer exist.
17. With sub-regional economic development
responsibilities moving to the City/County Councils, we do have
concerns about the fragmentation and weakening in the economic
and social development of the Nottingham conurbation. The benchmark
is set by other city-regions such as Sheffield, Manchester, Munich.
The role of other Government agencies such as
the Government Office for the East Midlands, and of partnerships
between Government agencies, local government and the private
sector, in delivering the aims of the RES
18. Whilst there is growing desire to see
RDA investments work in conjunction with, for example, those of
the Technology Strategy Board, the application and appraisal processes
present significant barriers to effective co-financing.
41 The Higher Education Reach-out to Business and the
Community programme: a precursor to HEIF, provided funding to
HEIs in support of activities that increased their capability
to respond to the needs of business. Back
42
The Higher Education Innovation Fund (HEIF) is designed to support
and develop a broad range of knowledge exchange activities which
result in economic and social benefit to the UK. Back
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