Connecting Universities to Regional Growth

1. Connecting Universities to Regional Growth Louise Kempton Centre for Urban & Regional Development Studies Newcastle University, UK

2. Outline of the presentation • The potential contribution of universities to regional innovation - the promise and the practice • The specific mechanisms that can be used • What are the issues/barriers • National vs regional policy making • Regional structures and governance • Finance • HEI leadership, governance and management • Recommendations - building regional partnerships

3. Source material (unless otherwise acknowledged) http://ec.europa.eu/regional_policy/sources/ docgener/presenta/universities2011/ universities2011_en.pdf (Or just Google ‘connecting universities to regional growth’!)

4. POTENTIAL ROLE OF UNIVERSITIES

5. Seen by policy makers as KEY actors in supporting growth and jobs • ‘In assessing the role of HEIs in the region it is useful to identify the steps needed to create a ‘connected region’ in which the institutions are key players. Through this connection process institutions become key partners for regional authorities in formulating and implementing their smart specialisation strategies’ • ‘They can contribute to a region’s assessment of its knowledge assets, capabilities and competencies, including those embedded in the institution’s own departments as well as local businesses, with a view to identifying the most promising areas of specialisation for the region, but also the weaknesses that hamper innovation’ Source : ‘An agenda for modernisation of Europe’s higher education system’ European Commission COM (2011) (567)

6. But this may not be a universal view • ‘While in some quarters universities are heralded as engines of technological advance and economic prosperity…elsewhere they are attached for being “self indulgent”, “backward looking” and “elitist”’ • ‘…the sheer scale of university expansion around the world in recent decades indicates that much is expected of these curious institutions – perhaps too much, or at least perhaps not exactly what they are best designed to provide.’ Source : Stefan Collini, (2012). What are Universities For?

7. 5 Roles of Universities in Innovation (and Growth) • Driving forward the research frontier • Giving people the skills for innovation • Knowledge exchange and people transfer • A node in an international network of knowledge • Providing regional leadership – specialisation: focussing on strengths and the needs of regions Source: National Endowment for Science, Technology and the Arts, UK http://www.nesta.org.uk/library/documents/five-ways-universities-v4.pdf vinnova (1)

8. The contribution universities can make (to regional innovation/development) Societal Translation of knowledge into innovation Education relevant to the workplace Research Teaching Academic education World class research Academic Source: DR M Wedgwood, Manchester Metropolitan University

9. How engaged is the academy? UK Innovation Research Centre Survey of 22,000 UK academics - External interaction and commercialisation activity (% of respondents) http://www.cbr.cam.ac.uk/pdf/AcademicSurveyReport.pdf

10. SPECIFIC MECHANISMS

11. The mechanisms by which universities can and do contribute to regional development and growth 4 Key Areas; • Enhancing innovation through their research activities • Promoting enterprise, business development and growth • Contributing to the development of human capital and skills • Improving social equality through regeneration and cultural development

12. Transactional Services vs. Transformational Activities • When exploring mechanisms for intervention we need to make a distinction between the impact of ‘normal’ university activity (financed as part of the core business of teaching and research) and ‘purposive’ interventions (initially funded from a source outside higher education and then ideally ‘mainstreamed’.)

13. Helping the region to articulate demand so the resources of the university can be mobilised in an holistic way to promote innovation high Facilitating networks and clusters Stimulating innovation Physical regeneration and capital projects Helping businesses articulate demand Human capital development International links and investment Cultural development and ‘place making’ Complexity of the activity Talent retention Workforce development & CPD Staff spin outs Widening participation Knowledge transfer partnerships Lifelong learning Talent attraction Technology transfer Student volunteering & community work Innovation vouchers Museums and galleries Teaching Graduate enterprises Academic Research Consultancy services Public lectures low transactional Intervention type transformational Teaching &learning Research & innovation Social mission &engagement

14. Universities are a critical ‘asset’ of the country and region; even more so in less favoured regions ….but • Universities have often been absent from or had a minimal role in national or regional innovation and economic growth strategies • Technology push model has dominated - potential contribution of the Arts, Humanities and Social Sciences has been generally ignored • The principles underlying why universities can be important agents in economic development have not been well understood by public authorities • While a range of mechanisms have been used with varying success, they have generally not been coordinated strategically to produce the maximum impact. • To achieve this means understanding and addressing a range of barriers and challenges, both internal to the universities and in the wider enabling environment

15. THE BARRIERS

16. National vs. Regional Policy Making • Lack of a territorial dimension to HE policy • HE meeting national/international research and education aspirations • Uncoordinated HE, S&T and territorial policy at national level • HEIs reinforcing hierarchies of regions (e.g. link between city status and citations) • Neglect of the role of teaching and learning in knowledge transfer and human capital development • Barriers between levels in HE (e.g. vocational and non vocational HEIs) vinnova (1)

17. What is the interaction between national and regional policy making? Impacted by international policies and drivers Impacted by local policies and drivers Nationally driven Locally driven Science and Innovation Higher Education Economic development Employment and skills Transport and infrastructure Planning and regeneration Regional Growth and Innovation Strategies

18. Regional Structures and Governance • HE not domain of local government • Fragmented local governments • Limited regional level powers/authority • Intra regional competition and urban/rural tensions • Absence of strong private sector R&D base • Fragmented SME populations – lack or critical mass, absorptive capacity vinnova (1)

19. Finance • Third role legislation but not part of core funding • Teaching funding related to student numbers/graduate output – poorly connected to regional needs • Research not fully costed – no headroom for investment in translational research capacity • Intra regional competition for consultancy / CPD • Short term project based funding from variety of non HE sources • Metrics – outcomes in non HE domains (e.g. job generation) vinnova (1)

20. HEI Governance, Leadership and Management • Lack of institutional autonomy to respond to regional opportunities (e.g. in some countries limited control over estates, senior academic appointments etc.) • Weak internal management in old research intensive HEIs • Unrelated drivers for Teaching, Research and External Engagement • Partnership working confined to senior management and / or isolated entrepreneurial academics • Intermediate organisations (e.g. science parks, centres for continuing education) detached from academic heartland vinnova (1)

21. BUILDING THE PARTNERSHIP

22. HOW TO BUILD CAPACITY AND INCENTIVES FOR UNIVERSITIES AND PLACES TO WORK TOGETHER • Understanding where the place is ‘at’ • Building the partnership • Designing and implementing interventions • Capacity building and leadership development

23. The disconnected region PUBLIC SECTOR Lack of coherence between national and regional/local policies Lack of political leadership Lack of a shared voice and vision at the regional/local level PRIVATE SECTOR No coordination or representative voice with which to engage Motivated by narrow self interest and short term goals Dominated by firms with low demand or absorptive capacity for innovation No boundary spanners Focus on supply side, transactional interventions Ineffective or non existent partnership Lack of a shared understanding about the challenges Entrepreneurs ‘locked out’ of regional planning HIGHER EDUCATION SECTOR Seen as ‘in’ the region but not ‘of’ the region Policies and practices discourage engagement Focus on rewards for academic research and teaching

24. The ‘connected’ region – strong partnerships based on shared understanding of the challenges and how to overcome them PUBLIC SECTOR Developing coherent policies that link territorial development to innovation and higher education Analysis of evidence and intelligence for planning Building the infrastructure for growth Evidence based policies that support ‘smart’ innovation and growth Investing in people and ideas that will create growth Generating intellectual and human capital assets for the region Skills development, commercialisation of research HIGHER EDUCATION SECTOR PRIVATE SECTOR

25. Questions for partners Public Authorities What is the role of universities in economic growth? What are some of the mechanisms for involving universities in delivering growth? How can the barriers to mobilising universities be identified and overcome? How can effective partnerships and strategies be created to maximise the relationship between universities, nations and regions? Universities and other research or academic partners What benefit can universities get from working with economic and social development partners? What specific activities can universities get involved in? How can universities improve their ability to engage with national and regional development actors? Businesses and other commercial or social partners What can be done to influence policy makers? What are the benefits of cooperating with universities? What specific activities can be used to leverage the resources of universities?

26. Capacities needed for regions to move from ‘disconnected’ to ‘connected’ Needs consistent policies and strong institutions Needs investment in human capital and infrastructure for research Absorptive Capacity Leadership Capacity • Research labs • Talent attraction • Universities • Private sector investment • Clusters • Critical mass • Networks and associations • Joint projects and shared facilities • Boundary spanners • Ability to create a shared vision for the future Generative Capacity Collaborative capacity Needs investment in building ‘social’ capital and trust to promote open innovation etc. See OECD report - ‘How Regions Grow’

27. Recommendations (1/2) • There should be an active attempt to a shift from ‘transactional’ to ‘transformational’ interventions with a greater emphasis on programmes rather than one-off discrete projects. • Build partnerships in the region to specifically address the issues of engagement between universities and regions with particular attention is given to ensuring the sustainability of partnerships in the longer term, independently of funding cycles. • Managing Authorities should assign funds from their technical assistance budgets to support capacity building within the partnership. • Universities, business communities and other public sector authorities should demonstrate their commitment to the process by investing in their own development.

28. Recommendations (2/2) • Regional Partnerships should consider participating in the OECD programme of regional reviews in order to help identify their current strengths and areas that may require capacity building and consider carefully the findings of EUIMA and other related programmes. • Some simplification and flexibility in implementing Cohesion Policy Regulations should be considered and Managing Authorities actively encouraged to adopt a more flexible approach. • Managing Authorities and Universities adopt a broader definition of innovation to acknowledge the role that arts, humanities and social sciences can play, especially in responding to the ‘grand challenges’ and develop mechanisms that draw on the expertise and contribution from the arts, creative industries etc.

29. Building the Bridge between HEIs and Regions