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


Written evidence from Universities South West

UNIVERSITIES SOUTH WEST

  Universities South West is the higher education membership association for South West England. We represent a strong partnership of 13 universities and higher education institutions working together for over a decade to influence and shape opportunity in a creative and dynamic geographic area.

MEMBER ORGANISATIONS
Arts University College Bournemouth University of Bath
Bath Spa UniversityUniversity of Bristol
Bournemouth UniversityUniversity of Exeter
Open University in the South WestUniversity of Gloucestershire
Royal Agricultural College, Cirencester University of Plymouth
University College Falmouth
University of the West of England, Bristol
University College Plymouth St Mark & St John


  We welcome the fact that the Department of Business, Innovation and Skills has recognised the contribution that universities make and have involved the sector in the consultation process for the formation of LEPs and the Regional Growth Fund.

Universities are significant local employers, landowners and landlords in their own right and have a substantial impact on local infrastructure.[115] It is logical therefore, that as sizeable business organisations and drivers of their local economies and communities, universities have a key role to play as members of LEPs.

EXECUTIVE SUMMARY

  1.  South West universities are at the heart of multiple business and economic partnerships spanning a huge breadth of activity. It is vital for the continuation and enhancement of their economic impact that universities are able to continue to engage with partners in the areas of higher level skills, research, innovation, enterprise, international linkages and knowledge transfer.[116]

  2.  The South West, traditionally considered to encompass the West of England unitary areas, Gloucestershire, Wiltshire, Somerset, Dorset, Devon and Cornwall, has a diverse and somewhat unique socio-economic demographic and geographic make-up. Our universities are finely attuned to these characteristics and have developed strong links and considerable expertise to support community and business interests that extend further than the local.

  3.  Subject to further details, it should be recognised that many existing successful partnerships and relationships occur at a level that is beyond the expected local remit that individual LEPs may have. It is therefore, anticipated that universities will necessarily have interests in multiple LEP areas, for example, due to campuses spanning likely LEP areas, being geographically located in positions which border or overlap LEPs or linkages with bodies (eg an FE College or R&D facility) situated in another LEP.

  4.  Again, subject to further details, the proposed separation of responsibility for innovation and skills, which are to be dealt with on a national basis, and enterprise, to be within the remit of LEPs, needs to be clear and efficient as universities currently consider these two aspects as complementary.

  5.  Universities have a significant role to play in providing a skilled workforce for businesses in the peninsula. Whether through the provision and retention of quality graduates[117] or higher skills training for employees, our work plays a vital part in ensuring that the South West is able to secure success in the economic upturn and compete in the global economy. Again this will most probably extend beyond the remit of a single LEP and require a structure to support collaboration between LEPs to ensure that the needs of all businesses could be supported.

  6.  Universities have a proven record of facilitating the creation of enterprise and encouraging entrepreneurship within the South West. We welcome the opportunity to work with LEPs to identify the needs of our local communities in terms of making enterprise flourish, providing opportunities for entrepreneurship from our staff and students[118]and supporting spin-out businesses.[119]

  It is vital for the commercial interests of our business partners that this work continues without disruption and, provision is made for adequate funding at both local and sub-national levels to be available to ensure that the South West is able to compete fairly in the national and international market.

  7.  Universities are experienced and have a strong record at procuring and managing funding and grants from external organisations. It is anticipated that universities will have a significant role to play in generating the most value from the Regional Growth Fund.

BACKGROUND INFORMATION

  1.  For more information about the economic impact that our universities have in the South West please see our new report on "Driving Economic Growth" at: universitiessouthwest.ac.uk/newsampinfo/tabid/122/newsId/244/Default.aspx

  2.  The South West encompasses a diverse and dynamic area presenting many distinctive features, socio-economic challenges and real growth opportunities.

    2.1 Although combined, it has the largest area of any English region, it is the least densely populated (5.2 million). Economically market towns, smaller settlements and rural areas sit next to urban clusters and economic activity zones. Agriculture appears to be more prominent in the centre of the region throughout Devon, west Somerset and west Dorset, as well as in parts of Gloucestershire. There is a clear focus on service sectors towards the east of the region, with smaller pockets around larger cities in the region and dotted through the other counties. There are stronger concentrations of manufacturing as an employment sector in the far north of the region, and to the south of Bristol, including a large band from east Somerset into central Wiltshire. Employment in public administration, education and health is fairly widespread across the region, with particular concentrations apparent in Dorset, Devon and west Gloucestershire.[120]

    2.2 Much of the region is characterised by high proportions (more than 80%) of businesses being micro-enterprises (0-4 employees).[121]

    2.3 Low carbon technology is an emerging and increasingly important sector in the South West. An example of this growing sector is that, with the longest coastline of any region within the UK, the peninsula has been designated a Low Carbon Economic Area (LCEA) in Marine Energy. The Government's recent £1.5 million investment in the development of wave energy technology for Wave Hub project, will further encourage growing university and business collaborations in the marine energy field.

    In order to ensure that the South West is able to meet its aspirations in "green" industries through provision of a qualified workforce, through Universities South West and a number of regional business and FE partners, SW universities are currently running a £2.4 million Low Carbon High Skills project to identify business requirements for higher level skills training.

    An important element of this project is the understanding that, in order to meet the needs of the growing low carbon sectors, local universities and FE Colleges were not able to offer the complete range of employer and employee demand and that the project necessitated the creation of a sub-national partnership to ensure those needs are collectively met. It is difficult to address the multiplicity of skills needs locally without duplication and, in many cases, the required specialisms are often not available locally.

    2.4 The South West has the second largest Creative Industries sector in the UK, worth approximately £4 billion and employing over 65,000 people.

    The South West hosts the National Council for Graduate Entrepreneurship (NCGE). NCGE, BIS, South West RDA and the SW Design Forum, Universities South West and its members have established a Creative Industries University Enterprise Network (CI-UEN) with pump priming support from NCGE/BIS and the Knowledge Escalator Project (SWRDA/ERDF). The CI-UEN's first pilot initiative, led by the Arts University College Bournemouth, the University of Plymouth and Bath Spa University, aims to partner mentors from SME design businesses with students studying design. This will be one of five UENs nationally and the only one of its kind in the UK focused on the creative industries, establishing closer links between HEIs and the strong CI business sector in the region. NCGE will provide £20k to match the £20k Knowledge Escalator funding.

    A number of our HEIs have international reputations as leading specialists in the creative industries field and there is a strong established culture of network clustering and collaboration between business, sector interest groups and universities that extends across the peninsula.

  3.  It is early in the formulation stage, but there is likely to be fragmentation across the region and this may be more to the benefit of economically active areas over the economically vulnerable, more rural sectors of the region.

    3.1 Somerset and Wiltshire do not have any HEI provision but have long established links with HEIs across the South West. We believe it is vital in the interests of the business community and the local, regional and national economy, for these localites to retain engagement with Higher Education. Universities and LEPs must continue to build relationships with partners in those areas to ensure that localisation does not disadvantage such areas.

    3.2 Many universities have campuses that are likely to span across LEP areas, to give an example the University of Exeter has a campus in Falmouth, Cornwall. It will be important for universities who find themselves in such a position, that individual LEPs are not so different, that working across multi LEP areas leads to confusion, excessive bureaucracy and duplication of administration.

    3.3 There is some danger that over-fragmentation in some parts of the region which will produce areas that are too small to achieve the stated objectives and also be too small to facilitate effective university engagement. Again, there will need to be structures in place that will ensure that universities are able to effectively respond across local and sub-national boundaries.

  4.  Whilst remits for new structures and responsibilities locally and nationally are unclear, we would not wish to see the coverage, membership and management of LEPs become too "hard-wired". It is currently unclear as to how the innovation, sectors and skills agendas will, for example, be managed by Government at a national level, and this uncertainty makes it difficult to fully comment of the role and remit of LEPs at this stage.

  5.  It is vital for local economies to meet the skills requirements of their businesses and to recruit and retain graduates to enhance their skills levels.

    5.1 At the end of October 2009 the South West RDA-funded Graduates for Business project came to a conclusion—and this has led to localised gaps in provision as staff have been lost from the region's universities as a result of funding coming to an end. The project successfully delivered over 700 student and graduate placements in regional businesses. The project also supported the regional graduate recruitment service www.gradsouthwest.com which is now financially sustained by HEIs and South West RDA. The service currently has over 41,000 registered student and graduate jobseekers, and c1,700 vacancies and provides a invaluable source of graduate talent for businesses drawn from the local, sub-national and national graduate pool. We would like to ensure that such services are funded to continue supporting the economic success of the region.

    5.2 This year the region has placed over 1,000 subsidised internships, offered by the universities to businesses to take on unemployed recent graduates. A significant percentage of which are in private sector businesses and are leading to longer term new jobs.

    5.3 The University of the West of England (UWE) is offering a series of five free half day workshops as part of its solutions4recession scheme. The sessions have been designed to increase attendees' capabilities in specific areas and will be led by expert practitioners from Bristol Business School and UWE Careers: the topics are, New Thinking in Management, Uncovering your Strengths, Finance: a mystery or a foreign language, Marketing: dispelling myths and assumptions, Management as Intervention. They are continuing to develop their offer of support with: increased level of subsidy for courses; new workshops on "starting up your own business"; the launch of a range of services in Swindon; and an opportunity for businesses to utilise graduate internships.

    5.4 The University College Plymouth St Mark & St John (Marjon) is working with representatives of Jobcentre Plus to discuss the possibility of delivering professional and executive focused job search training. Marjon also hosted a Network South-West event on 4 September 2009 attended by c 90 businesses with 10 business support exhibitors, who were working to the support businesses through the economic downturn.

    5.5 Bath Spa University has strengthened its relationships with two major city-wide business support and networking organisations: Creative Bath and Federation of Small Businesses (FSB). The recent collaboration with the FSB has included two successful speed-networking events designed exclusively to promote placements and internships as a mutually-beneficial way to support businesses whilst providing work based learning opportunities for university students. Further activities through this partnership, from sponsoring the FSB's `Best Employer in Bath' award through to a shared presence at training events, seminars, careers and enterprise events, were further strengthened in late 2009 through the co-opting of both a Bath Spa University student and graduate to the FSB's Bath Branch Executive Committee.

  6.  Collaboration between businesses and universities is mutually supportive and rewarding. Through a mixture of interactions and partnerships, knowledge transfer and research development expertise, universities help attract new business, stimulate and nurture enterprise and support existing businesses to innovate and prosper.

    6.1 The Knowledge Escalator Project is a region-wide knowledge transfer/knowledge exchange initiative delivered by universities in the South West aimed at strengthening HEs capacity to engage with business and provide targeted elements of business support aligned to the Innovation and Knowledge strand of the EU ERDF programme. It is part financed by the ERDF Programme 2007-13 securing £2,224,000 of ERDF investment through the South West RDA (£1,833,000 under the Competitiveness and Employment programme and £501,000 under the Convergence Programme).

    6.2 Bath Spa University has found the Knowledge Escalator's funding for implementing an Industry Mentors Programme to be a significant mechanism for mitigating the fall in demand for certain business collaborations identified in the "Background" section above. Within just 10 months, not only have over 50 students engaged in six-month mentoring partnerships to improve their employability, but the scheme has also paved the way for graduate placements, collaborative projects with businesses and access to jobs for students. Perceived by business as a low-risk means of getting to know the University, the industry mentors programme is generating longer-term benefits for both sides.

    6.3 The University of Gloucestershire has extended links with the county's HEI's and Business Link SW in promotion of Graduate Challenge, and in connection with the Regional Knowledge Escalator project. The University also delivers the BUG Business Planning Programme on which Business Link provides support, helping university staff, students and alumni with an interest in future self-employment or business creation.

    6.4 The Royal Agricultural College and the University of Plymouth, are working in partnership to help improve the economic performance and competitiveness of land based industries and rural businesses across the region. This scheme aims to provide a high quality knowledge transfer service to rural businesses in the South West, helps the sector adapt to change, improve profitability and enhance its sustainability.

    6.5 A number of our universities are at the forefront of international research and work hard at transferring that knowledge to the benefit of business. Across the South West exciting collaborative projects are set to encourage STEM led business growth. Central to this is, the development of clusters of academic and business expertise through the provision of supported incubation space. The University of Bath, the University of Bristol and the University of the West of England have collaborated with public and private sector partners to create SPark (Bristol and Bath Science Park), which will be one of the largest science parks in the UK. Over 75,000sq feet of new high quality technology facilities and delivering 6,000 high quality jobs, SPark will be ideally situated to capture new investment in the advanced engineering and aerospace sector; stimulating and energising the existing strong cluster of companies in these sectors in the wider region.

CONCLUSION

  Universities, as in the case of large companies, are complex entities with interests and expertise and have a global, national, sub-national/regional and local "reach". It is important the LEP agenda does not impinge on this wider remit.

  It is important that there is an inherent ethos of cross-LEP collaboration in the formation of this initiative. Over fragmentation and localism within the region would see some areas disadvantaged, create layers of bureaucracy and individual negotiation and result in, at best, a loss of dynamism and efficacy in HE support for business at this crucial time.

  It is vital that the work universities are currently engaged in continues and administrative transfer is quick and efficient, with as little disruption as possible. Existing access to funding, such as the ERDF and ESF, should not be undermined or jeopardized and new streams of funding, such as the Regional Growth Fund, are welcomed and would appear to have a direct significance and application to the work that universities are already carrying out.

  Universities South West, its members and its partners are committed to providing businesses, students and employees within the South West with a range of programmes, initiatives and opportunities that are easy to access and will have a positive impact on raising the aspirations and capabilities of a strong, sustainable and balanced competitive knowledge economy.

12 August 2010







115   HEIs in the South West contribute nearly £3 billion to the local economy and generate approximately 66,000 full time jobs. Back

116   universitiessouthwest.ac.uk/newsampinfo/tabid/122/newsId/244/Default.aspx Back

117   Of the graduates from South West HEIs in 2007-08, some 60% remained in the region after gaining employment here (South West Observatory). Back

118   74 graduate start ups were established in the South West in 2007-08 (HEFCE). Back

119   To March 2010 the Knowledge Escalator South West project had assisted 58 businesses, initiated 41 "new collaborations", selected and trained 17 HE non-exec directors, established 180 mentoring partnerships and awarded 47 Proof of Concept awards. Back

120   South West Observatory-State of the South West 2010 report. Back

121   South West Observatory-FEMA final report 2010. Back


 
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