Universities Fostering Economic Growth in Regions and Local Communities
The Institute of Economic Development (iED) and AtkinsRéalis have released a new report highlighting the potential of universities to drive economic growth and innovation across the UK. The report encourages the development and expansion of industries, with a focus on prioritising the potential for innovation in regional strategies.
According to the report, universities can act as innovation hubs, anchor institutions, and key partners in local economic development. They drive productivity, innovation, job creation, and economic diversification within their regions, and support place-based growth strategies focused on reducing regional disparities.
One such example is Teesside University, which has been instrumental in the success of the DigitalCity initiative. This initiative has supported over 650 digital and creative businesses, contributing significantly to the local economy.
The report underscores the importance of partnerships and innovation districts, where universities collaborate closely with local governments and businesses to stimulate research-based entrepreneurship, technology transfer, and scaling of businesses. Universities, as stable economic players, also attract investment, talent, and build local capacity, leveraging their networks to strengthen the wider economic ecosystem and generate jobs across sectors.
The report also emphasises the need for government incentives, policy guidance, and capacity building that empower universities and local governments to align their strategies for economic development, in line with national agendas such as the Industrial Strategy and Spending Review.
Higher education also boosts regional productivity by raising workforce skills and attracting talented graduates, benefiting both graduates and non-graduates and enhancing overall GDP per capita in university-dense regions. Universities’ engagement with their communities strengthens social capital and supports the delivery of regional growth agendas, especially under newer place-based policies that delegate more autonomy and funding to regions and mayoral authorities.
John Rayson of AtkinsRéalis emphasises the importance of regional economic development strategies considering the potential for innovation. Lynsey Robinson, deputy director of economic development and operations at Teesside University, stated that the university has had a shared vision for the growth of the digital and creative sector in Tees Valley for over 20 years.
The report suggests that the national government should ensure sufficient financial performance and cultural incentives for institutions and individuals to focus on economic partnerships. Universities must be sufficiently resourced for their important roles in driving innovation and wider economic growth, responding to local and regional economic conditions.
Agendas and structures may differ between the agendas of the UK and devolved governments, but the principles for long-term and consistent economic development remain. The report includes recommendations from universities on how the government can best drive economic growth in local and regional economies.
In summary, the iED and AtkinsRéalis report advocates for universities to be central elements in multi-institutional, place-based economic partnerships, supported by targeted government policies, to maximise their capacity as drivers of regional economic growth and innovation.
- Universities, such as Teesside University with its DigitalCity initiative, can drive economic growth and innovation by acting as innovation hubs, supporting job creation and local economic development.
- Universities, through their partnerships with local governments and businesses, can stimulate research-based entrepreneurship, technology transfer, and scaling of businesses, making them essential economic players.
- To maximize the potential of universities as drivers of regional growth, the government should provide sufficient financial and cultural incentives, align strategies for economic development with national agendas, and empower universities to respond to local economic conditions.
