Universities can become important engines for growth when they move out of their ivory towers, and link up with cities to form local and national economic partnerships
Sooner or later, national and local policymakers who are musing on how best to support economic growth will have to turn their minds to two of the strongest tools they have: world-class research-intensive universities and commercially successful high-growth firms.
National policy in this area continues to be busy, from the technology and innovation Catapult centres, to Sir Andrew Witty and Sir Tim Wilson’s reviews on universities and growth. Yet the latest research from Centre for Cities shows how important it is for city and urban policy to be taking a lead and making the most of some of their strongest local assets.
Cities matter not only because most universities are based in them, along with many of the fastest growing firms. They also matter because the opportunities to interact that cities offer - whether through local committees, a shared commitment to the quality of the local area or simply because it’s easy to bump into people - means they have an important role to play in nourishing and supporting relationships.
The report looks across the globe at examples of cities that have made the most of the links between universities and local firms. All the case studies are quite different but they all shared strategies that: a) had very clear objectives; b) responded to the particular issues facing the institutions in that city; and c) are clear that their interventions will improve rather than hinder local relationships.
Looking across the various case studies and interviews held with policymakers and businesses, three common themes emerged that cities sought to address in different ways.
First, enabling university to business relationships to happen in the first place. Some of the most famous examples of successful university-business collaborations, including Germany’s Fraunhofer research model and Cambridge’s science parks, are built on a foundation of individual firm to institution relationships. Cities’ experience suggests that the most effective way to foster such partnerships is not by choosing or matching specific departments and organisations, but by creating the general conditions in which networks and personal relationships can develop organically.
Cities also need to be clear when is best to intervene or leave it to firms: in Cambridge, for example, there are so many networks that firms are beginning to report network fatigue and that engagement is yielding diminishing returns.
Second, scaling up existing university-business relationships. Typically this involves the commitment of long term funding to provide certainty, as well as attempts to widen the reach of existing networks. For example, working across local authority boundaries with neighbouring cities can providing funding for infrastructure that would otherwise be beyond a local authority’s reach – as the north of England N8 Universities’ collaboration on their high performance computer illustrates.
And third, concentrating on cities’ local strengths. For example, a loan from Bristol city council has funded a networking space – Engine Shed – that capitalises on local high tech collaborations. Engine Shed builds on the success of the SETSquared universities partnership. Further north, Teesside University has developed links with digital companies, a growing sector in the region and a particular strength of the university. It also offers digital training and support to other businesses in the area.
The benefits of improving relationships between universities and high growth firms are myriad, and what emerges strongly from the evidence from businesses, universities and policymakers is that cities have a critical role to play.
By setting the right conditions for collaboration, providing additional funding and certainty to develop partnerships at the right scale, and applying local knowledge to encourage specific partnerships, cities could help strengthen some of the relationships that will make a big difference to growth, not just locally but nationally in the years ahead.
Ed Clarke, is an analyst at the Centre for Cities
