New report highlights role of universities in driving local and regional economies

A new report by the Institute of Economic Development (iED) and AtkinsRéalis puts universities at the centre of the debate on how to generate growth in local and regional economies with national impact. It is critical that government incentivises higher education and local government to focus on economic development, through policy guidance, capacity building, and budgets, the co-authors say.

How Universities Can Help Drive Local and Regional Economies, which is aimed at economic development practitioners, shares best practice and makes a series of recommendations to government to deliver the growth and innovation agendas that took further shape in the Spending Review and Industrial Strategy White Paper.

In line with government’s shift towards a place-based approach to growth, the report looks at the opportunities for universities as hubs of innovation and economic drivers across the UK. It centres on a series of in-depth case studies on Edinburgh and South East Scotland, Greater Manchester, Lincolnshire, and White City London. It also offers insights into initiatives in Barcelona, Durham, Teesside, South London, and Yorkshire.

In the report, The Edinburgh and South East Scotland City Region Deal (ESES CRD) is featured as a case study to demonstrate the impact that place-based investment can have in catalysing strong and long-lasting partnerships that grow the impacts of projects and programmes and go on to create further benefits for local economies, including institutions – such as local councils and universities – embracing roles beyond their traditional boundaries.

Gemma Cassells, Head of Strategy for the University of Edinburgh and Heriot-Watt University’s Data-Driven Innovation initiative, said:
“This report shows just how vital long-term, place-based partnerships are in turning innovation into inclusive economic growth. Through the Data-Driven Innovation initiative, we’ve seen how collaborative investment in research, skills and entrepreneurship can position universities as trusted anchors for regional development. It’s a model that’s delivering real results in Edinburgh and South East Scotland, and has lessons for regions across the UK.”

The report explores, from universities’ perspectives, how partnerships with local government and business can develop successful innovation districts, robust wider multi-institutional place-based economic partnerships, and aid universities’ role as anchor institutions. The power of higher education institutions – as trusted innovators, networkers, capacity builders, income attractors, and strategists – must be harnessed. It is essential that universities are at the heart of place-based growth, the report says, “assisting with national challenges such as productivity, scaling businesses, and regional disparities in economic performance and therefore people’s opportunities”.