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THE ROLE OF A UNIVERISTY IN ITS REGIONJohn Goddard

Professor of Regional Development StudiesPro-Vice-Chancellor

University of Newcastle upon Tyne

University of Newcastle Public Lecture29 February 2000

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OUTLINE

1. Sources

2. The drivers for regional engagement

3. Implications for national, regional and university policy

4. The UK policy context

5. The geography of the UK knowledge economy/society and of UK higher education

6. The North East Region and Newcastle University.

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1. RESEARCH RESOURCES: UK

• CURDS ongoing research on regional variations in innovation and technological change

• CVCP - “Universities and Communities” (1994)

• DfEE - “Universities and Economic Development” (1997 - 98)

• DfEE - “North East Graduate Labour Markets” (1998 - 99)

• “The regional role of Warwick University: the development of a Strategic Partnership” (1999)

• HEFCE/CVCP - “The contribution of higher education to the regions” (2000-2001)

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INTERNATIONAL RESEARCH• OECD Programme on Institutional Management in Higher

Education: “The response of Universities to regional needs” (1997-99)

• Committee of Rectors of European Universities (CRE) “Dialogue of Universities with their regional partners” (1997-99)

• Finnish Higher Education Evaluation Council: “The responsive university: the regional role of Eastern Finland universities” (1997-99); “External engagement and institutional adjustment: an evaluation of the University of Turku” (1999 - 2000)

• EU 4th Framework Programme: UNIREG (UK, Ireland, Finland, Netherlands, Germany, Spain, Greece) (1999 - 2001)

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2. POLITICAL DRIVERS

• Old concerns - raising general education levels and output of scientific research

• New concerns - harnessing teaching and research to specific economic and social objectives

• Specificity most clear in field of regional development • Universities located IN regions but what contribution

does their teaching and research make to the development OF the region?

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THIRD ROLE• Long established contribution to the economy

and society in places in which universities are located

• Continuing Education, research support for local firms, public lectures, concerts, access to libraries, galleries and museums

• Requirement for formal recognition of the third role, but fully integrated with teaching and research

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HIGHER EDUCATION POLICY DRIVERS

• Shift from elite to mass HE• Meeting needs of a larger and more diverse client

population• Lifelong learning needs created by changing skill

demands in the labour market• Declining maintenance grants/more stay at home

students• Increased global competition from new providers• New modes of delivery (ICTs)• Changing nature of knowledge production

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ECONOMIC DRIVERS (1)• Globalisation and localisation of the economy

and declining regulatory capacity of the nation state

• Corporate decentralisation and growing importance of local production environment

• New local/regional clients for research and graduates

• Demand for work based learning and tacit skills

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ECONOMIC DRIVERS (2)

• Shift from mode 1 knowledge creation (homogenous, disciplinary, hierarchical) to mode 2 knowledge (non- hierarchical, transient, transdisciplinary, developed in the context of applications)

• Regionalisation of regulatory capacity of the nation state (firms, chambers of commerce, training agencies)

• Networks: “Associated governance”; “soft infrastructure”; “untraded interdependencies”

• Universities as “nation builders” to universities as “region builders” - active role in capacity building

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LEARNING REGIONS (1) Network knowledge is highly dependent on inter-

personal relations and therefore most readily developed within a region

Learning regions effectively communicate to the education and training system the appropriate skills and competencies required of the workforce

In learning regions people development linked to the strategic objectives of both organisations and the region

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LEARNING REGIONS (2) “The shift in knowledge-intensive capitalism goes

beyond the particular business and management strategies of individual firms. It involves the development of new inputs and a broader infrastructure at the regional level on which individual firms and production complexes can draw. The nature of this economic transformation makes regions key economic units in the global economy……

“To be effective in this increasingly borderless global economy, regions must be defined by the same criteria and elements which comprise a knowledge-intensive firm: continuous improvement, new ideas, knowledge creation and organisational learning. Regions must adopt the principles of knowledge creation and continuous learning; they must in effect become knowledge creating or learning regions” (R.Florida)

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National funding to meet national labour market and RTD needs

Single funder and long term security Predictable 18-21 year old cohort of students Corporate sector employers of studentsAcademic peers and corporate sector as research clients Limited demands on management Supporting self management and collegiality

OLD HE MANAGEMENT MODEL

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NEW HE MANAGEMENT MODEL • Universities not immune from globalisation and localisation

pressures• Privileged relationship with Government undermined• New intermediaries articulate demands of others• Chambers of Commerce: SMEs; community associations:

life long learners; local authorities: arts and cultural industries

• New requirements for locally relevant knowledge production; global gateways; adaptable workforce; leadership in regional governance

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Value added university management processesValue added regional management processesUniversity/regional dynamic interface

T

R

S

S

I

C

T = TeachingR = ResearchS = Service to the community

S = SkillsI = InnovationC = Culture and community

UNIVERSITY REGION

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THE ROLE OF STUDENTS AND GRADUATES

• A channel for local employers to the global knowledge base available to university researchers

• Feedback mechanisms via CPD and alumni to ensure teaching and learning reflects employer needs

• Access for researchers to challenging problems• Social basis of relationships on which

commercialisation of the science base can build

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THE ROLE OF CULTURAL ACTIVITIES

• Strengthening regional cultural identify and self awareness

• Contributing to cultural industries (audience and product)

• Attracting and retaining creative people• Reducing social exclusion and developing local

communities• Leadership in civil society and contributing to the

“environment” within which business operates

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THE CHALLENGES OF HEI ENGAGEMENT WITH TERRITORY

• HEIs operate within multiple territories - local, regional, national, international

• Closed territories of local stakeholders compared to open territories of HEIs

• Connotations of insularity and parochialism associated with regionalism (cf. metropolitan/cosmopolitan)

• Institutional autonomy versus regional planning of higher education

• Challenge to simultaneously manage the various territorial portfolios so they reinforce each other and establish mechanisms through which the national and international connections of HEIs and be mobilised to benefit the region

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3. RECOMMENDATIONS TO

NATIONAL GOVERNMENTS• Mapping the geography of higher education

– what courses are taught where and how

– where do students come from and graduates go to

– highlight good practice in regional engagement

• Foster inter-ministerial dialogue

– Industry, technology, labour market, interior, other specialist agencies

– Identify common interests in universities and territorial development

– build joint strategies

• Design and establish an incentive and funding programme for “Regional Development and Universities”

– Incentives to encourage HEIs to establish programmes/projects to strengthen regional links

– Promotion of partnerships and dialogue between regional education providers such as schools, FE and HE and other training providers

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RECOMMENDATIONS TO LOCAL AND REGIONAL AUTHORITIES

• Develop understanding of HEIs in the area

– Goals, mission, profile, organisation of institutions

• Use HEI expertise for regional analysis

– Participation in regional Future Search Conference

• Incorporate HEIs into regional action plans/programmes

– Inward investment

– Technology transfer

– Skills/training/physical plans

– cultural initiatives and institutional capacity building

• Financial support for collaborative projects

– Joint bids to national fund

– Mechanisms for regional interface

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INCORPORATION INTO REGIONAL ACTION PLANS AND PROGRAMMES

• Inward investment - overseas delegations• Consultancy schemes to assist product and process

innovation• Student work based learning/placement schemes• Skills enhancement to raise regional competitiveness

via targeted graduate retention and CPD• Joint planning of non-vocational education and public

opening of university facilities

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RECOMMENDATIONS TO HEIs

1. Economic Audit

2. Social and Community Audit

3. Stakeholder Mapping

4. Stakeholder Analysis

5. Dialogue with Stakeholders

6. Performance and Practice Management

7. Review Internal Mechanisms

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4. UK POLICY CONTEXT: DEARING

• One of the four purposes of HE “to serve the needs of an adaptable, sustainable, knowledge based economy at the local, regional and national level”

• But “the extent of the local and regional engagement of universities is patchy and needs to turn to active and systematic engagement”

• “Each institution should be clear about its mission in relation to the local community and region as part of the compact we advocate between higher education society”

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OTHER UK POLICY

• DETR: Building Partnerships for Prosperity: sustainable growth, competitiveness and employment in the English regions

• DfEE: The Learning Age: a renaissance for a new Britain

• DTI: Our Competitive Future: Building the knowledge driven economy.

• DCMS; DOH; MAFF, etc

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UK POLICY CONTEXTDETR

Building Partnershipsfor Prosperity:

Sustainable growth,competitiveness andemployment in the

English regions

DTIOur competitive

future: Building theknowledge driven

economy

DfEEThe Learning Age: arenaissance for a new

Britain

HEFCEAnnual Report:Achieving the

Learning Society

UNIVERSITIES

RDAs TECs Regionalconsultants

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REGIONAL DEVELOPMENT AGENCIES

• All UK regions except London and South East below European average of GDP per capita

• Regional executive agencies of central government

• VC presence on 8 out of the 9 boards but CVCP “slate” not accepted

• Informal forum of VCs in all regions but the RDA Board member does not “represent” the sector

• RDAs to “identify key skill gaps affecting regional economic development and to set out plans for addressing these covering all the main sectors of education and training” (DfEE)

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ONE NORTH EAST PLANNED EXPENDITURE 1999/2000

£m %

Land and Property 11.7 9.7

Derelict Land Grant 1.9 1.6

Single Regeneration Budget 91.6 75.6

Rural Development 2.6 2.1

Skills Development Fund 1.7 1.4

Competitiveness Fund 0.3 0.2

Inward Development 1.7 1.4

Administration 9.8 8.1

TOTAL 121.2 100.0

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DTI COMPETITIVENESS WHITE PAPER• RDAs creatures of DETR but do provide new delivery mechanisms for DTI

national policies

• Business should “turn into commercial success technological knowledge in our universities …. and …. form collective partnerships with suppliers, customers, schools and universities to build networks and clusters of excellence to win competitive advantage”

• Government will “reward universities for strategies and activities that enhance interaction with business… and … encourage the development of entrepreneurship and skills, especially amongst school pupils, students and university researchers”

• “Successful business depends upon strong team work - with suppliers, customers, joint financial partners and between managers and employees”

• “The government will act as catalyst to promote creative collaboration between businesses and within regions”

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DTI POLICY INITIATIVES• 8 new Science Enterprise Institutes

• University Challenge Fund

• Regional Innovation Strategies

• Higher Education Reach out Fund “to reward universities for strategies and activities which enhance interaction with business, promote technological and knowledge transfer, strengthen high level skills development and improve student employability and help recognise the importance of university interaction with business alongside education and research”

• Faraday partnership schemes, expanding TCS and Regional Foresight

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5. THE GEOGRAPHY OF THE UK

KNOWLEDGE ECONOMY AND SOCIETY• Concentration of private and government R&D in the South

East and East Anglia (Figure 1)

• HEIs a significant part of local R&D capacity in other regions, especially Scotland, Yorkshire & Humberside and London

• Concentration and growth of knowledge intensive business services in the South East

• Concentration of graduate workforce in the South East

• Schools and households in North lagging behind in access to the information highways

• Low levels of education attainment (and preparedness for HE) in the Midlands and North

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FIGURE 1 - Expenditure on R&D as a % of Regional GDP 1995

0 0.5 1 1.5 2 2.5 3 3.5 4

North East

North West

Yorks and Hum

E Mids

W Mids

Eastern

London

S East

S West

Wales

Scotland

N Ireland

UK

HEIs

Government

Business

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INSTITUTIONAL CAPACITY

“The biggest issue we face is the multiplicity of players involved in “Information Society” issues, lack of institutional cohesion and unwillingness to share developments and ideas. Even within sectors where there is a common interest and agenda, one constantly comes up against what we have christened the “Competition-Collaboration Paradox”. It is an issue everywhere of course, but it is one which, interestingly, the private sector often manages better, recognising where its own self-interest can be served by sharing information, experience or development effort. In our public and quasi-public institutions, often driven by narrow targets and increasingly operating in an apparently zero-sum bid culture, it takes real leadership and vision to see the bigger picture and the wider issues, and to commit time, effort and political will to their resolution”

Source: Northern Informatics Application Agency (NiAA)

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A DIVERSE HIGHER EDUCATION SYSTEM

• Old foundations (e.g. Oxbridge)• Victorian Expansions (e.g. Manchester)• 20th Century London spin off colleges (e.g. Reading)• 1960’s, Greenfield Universities (e.g. Lancaster)• Upgraded Colleges of Advanced Technology (e.g.

Bradford)• Former Polytechnics (e.g. UNN)• Upgraded Colleges (e.g. Derby)

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UNIVERSITY STRATEGIES TOWARDS REGIONAL ENGAGEMENT

%

• A community-based institution serving the

needs the local area/region 2.4

• An institution seeking to contribute to the local

area and also develop international strengths 43.4

• An institution seeking to contribute equally

between international research and support to

the local area 10.9

• An international research institution seeking to

provide support to the local community where

it does not conflict with international research

excellence 34.9

• An international research institution with no

particular ties to the local area/region 2.4

• None of the above 6.0

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THE GEOGRAPHY OF UK HIGHER EDUCATION

• Under provision of HE relative to demand in the South East, South West and West Midlands

• Higher propensity for students to attend a local university in London and the North and a net flow of undergraduates from south to north especially pre 1992 Universities

• Concentration of HEFCE research funding and research grant and contract income in London, the South East and East Anglia (Figure 2)

• Combined research activity of universities in provincial cities less than single leading institutions in South (Figure 3)

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KEY1. Public2. UK Industry3. Charities4. Other

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GRADUATE MOBILITY

• Majority of graduates (55%) take up first employment in their home region

• Students studying away from home most likely to view the labour market in national terms

• Graduate mobility also greatest for those with

– best degree results

– attending pre 1992 universities

– from families in higher socio-economic groups

• Graduate retention least likely in regions that are net importers of undergraduates, ie. less favoured regions

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6. REGIONAL ECONOMIC STRATEGY

FOR THE NORTH EAST“Unlocking our Potential”

1. Creating wealth by building a diversified, knowledge driven economy

2. Establishing a new entrepreneurial culture

3. Building an adaptable and highly skilled workforce

4. Placing universities and colleges at the heart of the region’s economy

5. Meeting 21st Century transport, communications and property needs

6. Accelerating the renaissance of the North East

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UNIVERSITIES FOR THE NORTH EAST: A STRATEGY FOR THE NEXT 10 YEARS

• To develop the sector as a direct and indirect source of employment by enhancing its national and international competitiveness in teaching and research (development of the sector).

• To increase the number of full and part-time students from the region studying within the region (growing participation in HE and student retention).

• To increase the number of students from outside the region, especially outside the UK, studying in the region (student recruitment).

• To increase the proportion of graduates from the region taking up employment in the region (graduate retention).

• To increase the contribution of the sector to the competitiveness of business in the region via new business foundations, knowledge and technology transfer, the attraction of new investment and the creation of an innovative milieu (contribution to competitiveness).

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THE UNIVERSITIES AND THE REGION: A COMPACT BETWEEN ONE AND UNE

• Teaching and Learning

• Knowledge transfer through students to regional industry

• Knowledge transfer through general consultancy, teaching and invention

• Community engagement through community based activities

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ECONOMIC IMPACT OF NEWCASTLE UNIVERSITY

• 4,000 Staff (Third largest employer in Newcastle)

• 16,000 students and 3,500 graduates annually

• Annual expenditure £155m

• Research income £37m

• 160 contracts with commercial companies in 1997/98

• 23 spin out companies

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UNIVERSITY OF NEWCASTLE INSTITUTIONAL PLAN 1999 - 2004 (STRAND 3)

Contribution to Economic, cultural, and social development

1. Strengthened capacity for effective engagement to shape and respond to national and regional agendas on the economy and on community issues

2. Proactive contributions to these agendas through mutually reinforcing teaching, research, and cultural and community-based activities

3. Working with partners to maximise the economic and social development of the North of England, drawing upon our expertise and connections from our work at international and national levels to assist - the region’s companies to improve their competitiveness

- its people to develop and to enhance their employability, and

- its communities to be more sustainable

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NEWCASTLE UNIVERSITY - HERO BC SCHEME“Making Knowledge Work”

Objectives

• Understanding the needs of business

• Matching needs to expertise

• Establishing means of delivery

• Focus on business clusters(bio-sciences and pharmaceuticals; engineering, including offshore; agriculture, marine and food science; IT and informatics, cultural industries) (people, firms, institutions)

• Building internal networks

• Strategic planning

• Changing the culture

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METHODOLOGIES

• Cluster business development managers

• Technology transfer

• CPD and open distance learning

• Employability

• HR development

• Regional development office

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BIO-SCIENCES AND PHARMACEUTICALS

• High research rated departments, cross departmental and cross faculty research collaborations (Medicine, Science, Engineering, Agriculture)

• Promotion of a science enterprise culture - Science Enterprise Centre; “Making Biotechnology Happen” Symposium

• International Centre for Life: Institute for Human Genetics, “Bio-Cell” communications network; Politics, Ethics and Life Sciences Institute (PEALS)

• Biotechnology companies, Novacastra, Sea Bait, Arrow Therapeutics, Genotype, Selective Antibodies, BioEnhancement, Northgene

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ENGINEERING AND OFFSHORE TECHNOLOGY

• Contribution to Knowledge House - access for SMEs to University expertise (32 company contracts awarded 1998)

• Regional Centre for Innovation in Engineering Design - Industry club support for 300 SMEs; Virtual product design and prototyping on the Internet

• Teaching Company Schemes: company, student, supervisor (technology transfer, graduate retention, research contracts)

• Industrial Statistics Research Unit and Centre for Quality Engineering

• Industrial Design Centre

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IT AND INFORMATICS

• Department of Computing Science: Centre for Software Reliability Club with 2,500 corporate and individual members

• MARI and Northern Informatics and Northern Metropolitan Area Network (NORMAN)

• Sowerby Centre for Health Informatics

• Transport Operations Research Group/Geomatics - regional transport electronic information service projects

• Rural telematics

• CURDS - North East Information Economy

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AGRICULTURE, MARINE AND FOOD SCIENCES

• Food chain - link between economic activities affecting land use, rural and marine development

• Primary industry - fishing and forestry and secondary industries of food processing, marketing and retailing

• Interaction between food consumption, human health and well being

• University Farms

• Dove Marine Laboratory: Programme of Marine Science Education and Northumberland Marine Bio-diversity project

• Recycling to Land Initiative with local companies

• Centre for Rural Economy

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CULTURAL INDUSTRIES

• Heritage: Departments of Archaeology, Classics, History; MA in Museum Studies

• Museum of Antiquities; Shefton Museum of Greek Art and Archaeology; Hancock Museum

• Visual Arts: Department of Fine Art and Hatton Gallery

• Music: Department of Music, Kings Hall Concerts, Northern Sinfonia

• Performing Arts: Playhouse Theatre

• Popular Culture: Student Union concerts

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CAREERS SERVICE AND REGIONAL LABOUR MARKETS

• Graduate Direct - graduate placement in SMEs

• Graduate labour market intelligence

• Work with former graduates to encourage a return to the region

• Gradient: Graduate employability enhancement programme

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SOCIAL AND COMMUNITY DEVEL0PMENT

• Students into Schools programme• Progression and Access Routes to Newcastle

University (PARTNERS) programme with Tyneside Schools

• Community widening participation programme in Blyth Valley

• Electronic delivery of teaching for PT degrees in rural areas

• Medical School - Health Action Zones and Health Promotion

• Student Community Action (SCAN)

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CONTRIBUTION TO THE PUBLIC SPHERE

• Newcastle Gateshead Initiative; Newcastle Common Purpose; Universities for the North East; Northern Informatics

• Urban and Regional Analysis: Geography/CURDS; Centre for Rural Economy; Architecture, Planning and Landscape, etc.

• Regional Competitiveness Project, Regional Economic Strategy, Regional Foresight

• “Expert” contribution to regional and national media

• Agenda setting in relation to EU and national policy (e.g. ERDF, Competition Policy, Labour Market Policy, Health and Science Policy)

• Neutral ground for public debate (e.g. Campaign for a Northern Assembly)

• PEALS - Café scientifique

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PEOPLE DEVELOPMENT

• Know how: management of change; building and management of networks; facilitation and mediation; working with different organisational cultures; project planning and implementation; raising financial support; organisational politics and dynamics

• Know what: structure and responsibilities of organisations involved in development; central and local government powers and responsibilities; different timescales and drivers; institutional overlap

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END NOTE

• Regional engagement as a means of creating universities which are more responsive to the needs of the economy and society