Just over a year ago the government’s flagship Levelling Up White Paper was published. Now, two Prime Ministers later, the Levelling-up and Regeneration Bill is being scrutinised line-by-line in the House of Lords, but the fervour that seemed to grip the white paper release seems to be slipping away at the top of government.
The contribution of foreign direct investment (FDI) to levelling up is worth examining more closely, in particular the role played by university enterprise support. FDI can support efforts to redress regional imbalances, yet there have historically been wide variations in investment across UK regions. Over the past five years, however, FDI has risen by over 70 percent in the North of England whilst falling elsewhere – an achievement deemed the only “notable success” of the Northern Powerhouse by one of its key architects. The Levelling Up White Paper highlights the role that elected mayors have played in attracting inward investment, and the government also launched a new Office for Investment in November 2020, focused on landing complex ‘top tier’ investments.
Universities can play a key role in attracting inward investment whilst contributing to local development, as set out in last week’s HEPI report focused on FDI and R&D, and reinforced by several reports, blogs and statements published over the past couple of years. Some of this will be general support, especially in terms of identifying and developing expertise. Whilst an NAO report published in January found that the Department for International Trade has successfully broadened its scope to support broader government priorities such as levelling up, it does not have a clear overview of the relative strengths of local areas. More specifically, universities can link the development of people – managers, employees, researchers, students – with broader place-based economic and social activity.
A survey of what investors in Scotland look for when considering investment opportunities found that nearly 40 percent prioritised the presence of talent and a skilled workforce in a particular region or locality. This is considerably higher than the presence of university research or an industry cluster (6.1 percent each). In response, the Scottish Government prioritises the development of cross-cutting skills – innovation, self-management and social intelligence – in its inward investment plan.
Universities are well-positioned to strengthen their (often already strong) relationships with Combined Authorities, metro mayors, local government, LEPs, business and others, to collectively showcase internationally the unique strengths of higher education in their region as an asset to attract investment and jobs. Stronger strategic collaboration also provides an underpinning framework that enables quicker and more effective responses to investment opportunities as and when they arise. But part of this should also be to strengthen and showcase the enterprise support offered by UK universities, and the vital role this plays in local economies and communities.
On Wednesday 29 March NCEE and Sheffield Hallam University will be holding a lunchtime webinar on ‘Regional Start-up Ecosystems: Where Do Universities Fit?’. This free event will launch our new campaign on universities and place. Sign up here.