John Goddard OECD/IMHE Project Leader Professor of Regional Development Studies and

1. Supporting the Contribution of HEIs to Regional Development OECD Project 2005 – 07www.oecd.org/edu/higher/regionaldevelopment John Goddard OECD/IMHE Project Leader Professor of Regional Development Studies and Deputy Vice Chancellor Newcastle University

2. Overview • Objectives and organisation of the OECD programme • Emerging policy challenges • The Finnish Case • The UK experience – Newcastle Science City ESRC 6 July 06

3. Objectives of Programme • Response to multiplicity of initiatives across OECD to mobilise HEIs in support of regional development (HEIs + region) • Synthesise experience into coherent body of policy and practise to guide HEIs and regional and national governments • Provide opportunity for dialogue between stakeholders and help with clarification of roles and responsibilities (i.e. assist with capacity building in each country/region) ESRC 6 July 06

4. Participants • 12 Countries and 14 regions which opted into the programme (i.e. not a pre-determined selection) • Criteria – nationally recognised administrative region with some history of working with HEIs • All HEI operating in regions to identify division of tasks plus their key partners • Wide variety of regional and national contexts and types of HEIs • Metropolitan rural • Central peripheral • Research intensive vocational • Devolved centralised countries ESRC 6 July 06

5. Methodology • Common framework for regional self-evaluation developed by OECD task group • Self evaluation report by regional consortium using OECD guidelines • Site visit by international peer review team (HEI, Regional, National Experts) • Peer Review Team review team report and response from the region • Analysis and synthesis by OECD task group drawing upon regional case studies and commissioned review of literature • Production and dissemination of synthesis report ESRC 6 July 06

6. Regional Steering Committee • Independent chair plus representatives of all HEIs; relevant regional authorities; relevant central Government departments; private and community sectors • Role to oversee and ensure continuing commitment of the region to the project • Provide financial support • Monitor progress and approve final self evaluation • Comment on peer review team response to the self evaluation ESRC 6 July 06

7. Self Evaluation Report • Regional context • Regional/national higher education systems • Contribution of research to regional innovation • Contribution of teaching and learning to labour market and skills • Contribution to social and cultural development and environmental sustainability • Contribution to regional capacity building ESRC 6 July 06

8. University/region value added ESRC 6 July 06

9. Outcomes • 14 substantial self evaluation reports with recommendations • Meetings of Peer Review Team Review Team with over 1,000 stakeholders at regional and national level • 14 substantial peer reviews each containing 25+ recommendations • Linkage to OECD Territorial reviews (Finland, UK, Korea, Denmark, Sweden) • Reviews a snapshot of an ongoing process of dialogue between HEIs and regional/national partners ESRC 6 July 06

10. Emerging Policy Challenges (1) • Universities can contribute to regional development in the round through teaching, research and third strand activities • Innovation, skills, culture, infrastructure (place), social inclusion, civil society • Potential for universities to be key institutions linking global and local • The challenge of drawing together functional silos in Government • Institutional autonomy and the intra-regional division of task between different institutions ESRC 6 July 06

11. Figure 1. TDP Local & Regional Agencies S & T HE Uni Indust LM National policies impacting on university / regional relations Key: S & T Science and Technology TDP Territorial Development HE Higher Education LM Labour Market Indust Industry policy ESRC 6 July 06

12. Emerging Challenges (2) • How can bottom up and top down approaches come together to support regional innovation? • National S & T policy can reinforce established hierarchies of HEIs and regions and global knowledge exploitation • Link between national S & T and innovation policies often poorly articulated and based upon • linear model • technology push • manufacturing ESRC 6 July 06

13. Emerging Challenges (3) • Neglect of contribution of humanities and social sciences to innovation as “new ways of doing things” • Link to higher education policy and the role of teaching / learning weak • Neglect of the role of students in establishing the social bases on which exploitation of technology / innovation depends ESRC 6 July 06

14. Finland: Science and Technology Policy CouncilKnowledge, Innovation and Internationalisation • “The success of Finland in combining extensive production and utilisation of knowledge with other areas, such as promotion of welfare and sustainable development” • “Education, science and technology and innovation policy must be able to guide and support regional development to ensure measures taken at the national and regional level support each other” • “Challenge to raise knowledge and know how and their utilisation to a level which withstands international competition in all regions” ESRC 6 July 06

15. (contd) • “The issue in terms of national higher education policy is to merge this and regional development policy together in a rational and expedient way” • “The aim is to achieve internationally higher quality, and structural development is required to meet this goal” • “One major questions is how the university as an institution will be able to manage the pressures and growing expectations directed at it with regard to social, cultural and economic development – whether the university has the internal capacity for renewal” • “The need to address these questions is tangible because the changes taking place in university missions and funding structures is systemic, shaking up the institution to its core” ESRC 6 July 06

16. The Regional Dimension to the Finnish National Innovation System • A national system with three pillars – HEIs, industry and public supported intermediaries (Triple Helix) • No explicitly territorial dimension to top down policy except Centres of Expertise which are linked to bottom up initiatives (especially Science Parks) • TE Centres deliver national policy in regions with no single body responsible for mobilising HEIs in the development of regions • Key role for Science Parks and HEIs working in tandem ESRC 6 July 06

17. ESRC 6 July 06

18. ESRC 6 July 06

19. Science Parks: The Way Forward • Replacing linear model of innovation by an interactive model involving learning • Embedding knowledge exploitation through research and teaching into the customs and practices at the heartland of the university • Moving the science park “on campus” and avoiding it becoming a means of keeping the messy world of knowledge exploitation “at bay” • Placing emphasis on HEIs in the round as key agents in economic development ESRC 6 July 06

20. Obstacles to More Effective Regional Engagement by HEIs • Current funding model for HE • Limited integration of relevant central government policies • No mandate for Regional Councils to engage in development of regional strategies for higher education • Overly rigid demarcation boundaries between Universities and Polytechnics and limited capacity for joint working • Limited autonomy of Universities and related underdeveloped management capacity to build entrepreneurial .institutions linking the global and the local ESRC 6 July 06

21. Overcoming Obstacles at the National Level • A single Higher Education and Regional Development Fund (capital and revenue) • Competitive bidding led by universities and polytechnics and other regional stakeholders (Municipalities, Regional Councils, Science Parks, Chambers of Commerce etc) • 5 year programme and selection from a range of activities (translational research, knowledge transfer, skills development, community/cultural development) • Bidding by consortia not linked to specific regions • Clear mechanism for programme management, monitoring and evaluation of impact. ESRC 6 July 06

22. Overcoming Obstacles at the Regional Level • Clear regional development mandate for Universities as well as Polytechnics • Regional Councils responsible for rationalisation of strategies seeking to mobilise higher education in support of regional development • Shared academic development unit for Universities and Polytechnics in regions where both are present ESRC 6 July 06

23. Overcoming Obstacles at the HEI Level • Polytechnics and Universities learning from each other in terms of institutional management • Implementing the Burton Clark model for developing the Entrepreneurial University but with a strong regional development dimension • Strengthened steering core (senior management team) • Expanded development periphery (Science Parks) • Transformed academic heartland ESRC 6 July 06

24. The UK Experience • Limited success in translating excellence science into business benefits and marked inter-regional variations in innovative performance • UK Treasury designation of six Science City, (Newcastle, York, Manchester, Nottingham, Birmingham and Bristol) first attempt to link urban/regional policy with science / innovation / higher education policy. • Science Cities to be developed by partnerships between universities, local government, RDAs and private sector • Objective to bring industry and universities closer together within the city, remove barriers (physical / institutional) to commercial exploitation of the science base • Not a one size fits all initiative – individual experiments in new ways of working that recognises local opportunities ESRC 6 July 06

25. Newcastle University • 19th Century origins in engineering and medicine • 1960s city planning for “Education upon Tyne” creates campus in heart of the city • 2000+ restructuring reasserts institutional values of “Education with a Purpose” • Restructuring building an entrepreneurial university engaged in economic development with support from the Government and RDA (e.g. University Innovation Centre in Nanotechnology, Life Knowledge Park in Genetics) • Opening out the campus to the city (e.g. University Cultural Quarter) but limited space for business on campus ESRC 6 July 06

26. Newcastle University Model(after the Copenhagen Business School) The vision is not to transfer certain research results with particular commercial potential from the university to the regional economy, rather it is to make the university itself an active player in the regional economy. A fundamental difference between this and the traditional model is that the latter is tailored to help commercialise research, whereas the Newcastle model seeks to build an institution that is capable of producing commercialisable research. The traditional model is tailored to help new entrepreneurs commercialise research-based technologies, while the Newcastle model seeks to make entrepreneurs of students and commercialisable technologies of research. ESRC 6 July 06

27. City of Newcastle • Historic record in industrial innovation • Long history of experimentation in economic development from the 1930s onwards • 1990s culturally based regeneration attracting and retaining a new breed of entrepreneurs with strong links to higher education • International Centre for Life (ICfL) prototype for Science City • Institute for Human Genetics • NHS Fertility Testing Service • Politics, Ethics and Life Sciences Institute • Incubators • Conference facilities • Life Science visitor attraction/education facility • Ongoing problem of educational underperformance and social exclusion ESRC 6 July 06

28. Science City Foci • Growth areas of science capable of shifting industrial paradigms • Local research strength (Newcastle +Durham) and critical mass of interested commercial partners (regional, national, international) • Potential to build a new economic base for the city and region through spin outs, transforming existing businesses and attracting inward investment • Initial domains: • Stem cell biology and regenerative medicine • Ageing and Health • Molecular Engineering • Energy and the Environment ESRC 6 July 06

29. Space for Science and Business • Importance of physical proximity – research, teaching and business • 4 sites – ICfL; Science Central; Campus for Ageing and Vitality (former Newcastle General Hospital site in inner city); Newcastle University campus • Science Central a 19 acre city centre site purchased by University, City Council and ONE NorthEast for labs, offices, incubator facilities, exhibition areas, hotels, cafes, student housing. ESRC 6 July 06

30. Nurturing talent within and attracting talent to Newcastle and the North East • Programme to boost participation and attainment of science in local schools working with the regional Science Learning Centre • Review of university science syllabus • Roll out of Enterprise Education modules across the University • Integration of Business School into Science City (e.g. MBA projects with Science entrepreneurs) • Attraction of entrepreneurial academics to newly created Chairs. ESRC 6 July 06