The New Local Enterprise Partnerships: An Initial Assessment - Business, Innovation and Skills Committee Contents


Written evidence from the University of Plymouth

EXECUTIVE SUMMARY

  The University of Plymouth, the enterprise university, strongly supports the creation of Local Enterprise Partnerships (LEPs). We consider that the inclusion of a university within a LEP is of key importance. A university has a clear role as an "urban innovation engine"[113] of the regional economy developing economically and socially vibrant cities.[114] Depending on location and circumstance it may also be important for universities to be involved in more than one LEP, maximising interaction between education, innovation and business communities regardless of boundaries. To ensure the success of LEPs, it is important to ensure that form follows function, with each LEP reflecting a specific localised context. Where functions are overseen centrally, it will be essential to ensure local assets and priorities are arranged and utilised to achieve maximum economic benefit, without placing too high an administrative burden on those administering each LEP.

THE UNIVERSITY OF PLYMOUTH

  The University of Plymouth, the enterprise university, is an ambitious, world-class institution. The University has its roots as a College of Navigation in 1862 and actively demonstrates how universities can play a key role in leading the development of an economically, culturally and socially vibrant enterprise-led region.

  The University is a top 50 UK research university with 80% of research judged in the RAE 2008 as being of international repute, and is a partner in the Peninsula College of Medicine and Dentistry, treating 500 people per day across the South West region.

  The University has excellent links with business through the "Enterprise Solutions" gateway. In the last year we have been able to assist nearly 1000 businesses and over 1600 individuals. The University is a leader in knowledge transfer and the largest provider of KTP in the South-West region, currently overseeing 28 projects with a value of £2.6 million.

  At Plymouth, there is also a strong emphasis on entrepreneurship, volunteering and work placements. Through the Plymouth Graduate Internship programme nearly two thirds of interns placed with organisations are retained in these companies in newly created graduate level jobs.

  Plymouth is home to one of the largest Marine Institutes in Europe, and in partnership is investing £25 million in the Plymouth Science and Innovation Programme to build a new world-class marine facility which will house state-of-the-art research facilities, unique to the UK.

  The University recently won the contract to manage the Pool Innovation Centre, the first of its kind in the county of Cornwall. This is a landmark £12million, purpose-built centre that will support activities at the University-owned Tamar Science Park and incubation centres.

RESPONSES TO KEY POINTS

1.   The functions of the new Local Enterprise Partnerships (LEPs) and ensuring value for money

  1.1  As in guidance recently provided by Government, we consider that form should rightly follow function with each LEP reflecting a specific localised context. In most contexts function might include all of the following: Housing; Business Support; Innovation; Sector Development; Transport; Employment/ Worklessness; Skills; Culture/ Tourism; Regeneration; Trade; Technology Strands; Finance; Research & Development and Planning. However, this will naturally vary based upon local priorities.

1.2  It has been suggested that some of these functions might be organised on a national level, for example Innovation, through a different mechanism outside of LEPs. If this were the case, care would need to be taken to ensure local priorities and assets (ie Innovation Centres in specific LEP areas) can be arranged, utilised and maximised for economic benefit according to the needs and demands of local partners. This should be achieved with a minimum level of intervention and bureaucratic burden being placed upon those running the LEP.

  1.3  Returning to function however, consultation with the business community and their representative bodies has revealed in many cases that in their view function should be focused upon relative contribution to economic growth, with areas such as Worklessness sitting outside of any LEP.

  1.4  It is as yet unclear what, if any, money will flow centrally for any LEP outside of the Regional Growth Fund. Therefore, value for money should also be determined locally. This will inevitably be measured by the relative input of the partners in the consortium. Poor value will lead to a lack of buy-in and thus participation, particularly by the private sector. For centrally allocated or contested funding, standard measures based upon outputs and outcomes should be applied.

2.   The Regional Growth Fund, and funding arrangements under the LEP system

  2.1  The Regional Growth Fund should be based upon a contestable model, not based proportionally upon the old boundaries of the RDAs and how they were historically funded. Novel proposals and those which will achieve the greatest impact should be encouraged, as locally defined and hence valued in the local context. Other funding for LEPs should be provided from specific streams relevant to the function of the LEPs, making use of both public and private sector funding to support activities.

3.   Proposals for ensuring co-ordination of roles between different LEPs

3.1  LEPs need to achieve an optimum size. Making sure that sufficient critical mass is achieved whilst ensuring the LEP remains locally accountable should be a key consideration when determining the final membership structure and functions of LEPs. Relevant central government departments will have a critical role in ensuring co-ordination between different LEPs.

4.   Arrangements for coordinating regional economic strategy

  4.1  Care needs to be taken here in order not to recreate another regional layer or RDA equivalent. In the new structure the question of what constitutes regional must be clearly answered. For example, will the previous RDA boundaries remain in place? In terms of economic boundaries, and particularly for functions such as transport infrastructure, central government needs to maintain a broad overview of the national situation, with the relevant department acting as the co-ordinator and broker to facilitate activities. For example, the Department for Transport will need to facilitate the development of new roads which span several LEP boundaries. Local authorities will also have a key role to play here, and will need to work closely on such projects.

5.   Structure and accountability of LEPs

  5.1  Structure should be determined locally, and solutions for neighbouring economic geographies might look very different from one another. This is not necessarily a bad thing, as the "one size and model fits all" approach has failed in the past. For example, some areas might propose an overarching LEP with a sub-LEP framework while others might propose to place the LEP title at the sub- level and still have an overarching framework which acts in a co-ordinating role. Others might simply be freestanding with no sub-structures.

6.   The legislative framework and timetable for converting RDAs to LEPs, the transitional arrangements and the arrangements for residual spending and liability of RDAs

  6.1  The framework and timetable needs to reflect the inevitably variable speed at which different LEPs will be formed and become operational. This need not affect the timetable for transition or abolition of bodies such as the RDAs. Transitional arrangements should be made within each specific LEP with a lead organisation identified early in the process.

6.2  Arrangements for residual spending and the transfer of the assets and liabilities of RDAs should be made based upon an assessment of the most appropriate potential partner within an emerging LEP. In most cases this might be a local authority or educational institution, whilst in others a business representative organisation or a joint venture vehicle may be more appropriate. These could be established specifically for such a purpose with both public and private sector partners.

7.   Means of procuring funding from outside bodies (including EU funding) under the new arrangements

  7.1  Given that LEPs will be formed from both the public and private sector, it is expected that the means of procuring funding will already exist within most LEP boundaries, meaning new structures will not be necessary. Local Authorities and Universities and Colleges, as well as others participating in any LEP are usually well geared to procure funding from outside bodies including EU funding. Therefore, partners with the expertise and experience here should lead this aspect as part of their contribution to their LEP. This will avoid duplication and wasted money in setting up new administrative functions in each LEP.

8.   The role of universities within LEPs

  8.1  For any LEP, the role of universities and further education colleges will be crucial in supporting economic growth in terms of both skills and innovation, and supporting and growing the business base. For example, the University of Plymouth operates an Innovation, skills and enterprise platform which includes the only functioning Science Park west of Oxford. This in turn is linked to Innovation Centres in Cornwall. As this platform might potentially span two or more emerging LEPs, it will be crucial for Universities to be able to span one or more LEPS. Equally, LEPs nationally should aim to maximise their interaction with the education and research base regardless of boundaries.

RECOMMENDATIONS

  1.  That all universities are encouraged and supported in playing an active role in the development of LEPs and the innovation infrastructure for their local area.

  2.  That universities are able/encouraged to span one or more LEPs if appropriate, reflecting their area of influence and their contribution to economic development nationally as well as locally.

  3.  That the structure of each LEP is such that it reflects priorities locally, and that a critical mass in terms of membership is achieved, whilst maintaining local accountability.

  4.  That central funding should be allocated based on a contestable model, encouraging development of collaborative, innovative and high impact projects.

  5.  That the transition framework and timetable reflects the inevitably variable speed at which different LEPs will become operational.

13 August 2010







113   The Work Foundation-Embedding Universities in Knowledge Cities-December 2008. Back

114   OECD-(Re)Conceptualising the Academy: Institutional development of and beyond the third Mission-December 2008. Tim Vorley University of Cambridge and Jen Nelles, University of Toronto. Back


 
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