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The importance of knowledge based industries to the regional economy and the role of One NorthEast
RUnUP conference
Gateshead
9th February 2009
Outline of this presentation
• Challenges facing the economy of North East England• Moving from an industrial economy to a knowledge economy• Innovation Strategy
• Stage 1 : 2002• Stage 2: 2005
• Innovation Connectors• Next steps - Building on strengths
Challenges facing the economy of North East England
• In 2006 the regions GVA was 81% of national average• The economy is reliant on manufacturing, business services and
public sector• High levels of deprivation and economic inactivity, concentrated in
parts of the region• In 2007, 59.7% of North East young people achieved five GCSE at
grades A* to C, the national averages was 61.5% • At end of 2005, 69% of 16 year olds continued into full time
education, compared with 76% nationally• In 2007, the number of VAT registered businesses per 100,000 head
of population was 41% below the national average • In 2007 the level of employment was just over 71%• Rates of entrepreneurship and investment in research &
development are low
Strengths, Assets, People
• Industrial critical mass and skills base in chemical engineering, power engineering and offshore engineering
• Europe's largest concentration of Engineering Design companies
• Large scale port, quayside and power assets• There is a flourishing cultural sector and
increasing visitor numbers • Can do and entrepreneurial culture re-
emerging• RDA – strategic partner of national
government and business on innovation
Regional Economic Strategy : targets for 2016
• increase GVA per capita in the North East to 90% of the national average
• create between 18,500 and 22,000 net additional new businesses; and
• provide employment for between 61,000 and 73,000 more people than current levels.
3 Models of Economic Regeneration
1. Regeneration of an industrial sector that has existed in the region but which had gone into decline
2. Establishment of a new industry based on excellence within the universities
3. Development of an existing industrial sector in which the region already has proven strengths and track record
Moving from an industrial economy to a knowledge economy
• Exploiting the regions research and technology base to transform economic prospects, through:EntrepreneurshipTechnology transferMaximise investment
• Investment priorities:Energy and low carbon technologiesHealthcare and life sciencesProcess industries and chemicalsUnderpinned by finance, digital, design and
software
Science and Industry StrategyStage 1: 2002
−
Centres of Excellence in Key SectorsCentres of Excellence in Key Sectors
NSTAR (early stage finance)NSTAR (early stage finance)
Scie
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In
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Scie
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Research based on ExcellenceResearch based on Excellence
Industry Clusters
Research Council Funding
Research funded from other sources
Vision in 2002 –what will success look like in 2012?
• 10 years of transition has turned research and technology into sustainable business success
• The North East is seen by scientists, entrepreneurs and investors as one of the preferred locations for building technology based businesses and developing careers
• Barriers between science and industry are as low as anywhere in Europe• The Region has internationally leading Centres of Excellence• The Region has a level of technology spin-offs as high as
anywhere in Europe• The Region has growing internationally competitive clusters, based on its
knowledge base and Centres of Excellence, with high levels of innovation, productivity and skills
Review of progress in 2004
• Strategy has potential, in overall terms, to deliver a growing, sustainable Regional economy – up to £6bn additional value
• Wide support for overall objectives and model from:BusinessGovernmentRegional AssemblyUniversities
• Some considerable achievementsNational Centres – Bioprocessing, Nano Particulates, Micro-
fluidics, PVMajor Science Developments – Stem Cells, Nano-electronics,
AgeingStep change in collaboration between universities and business£40m new venture fundsMajor increase in high tech start-upsSubstantial investment leverage (£100m+)
Science and Industry Strategy for North EastStage 2: 2005
NewcastleScience
City
BalticBusinessQuarter
Digital City, Middlesbrough
Energy Centres WiltonCentre
Skills BusinessSupport
Design and Innovation
Science and Technology Finance Skills Business
SupportDesign and Innovation
Science and Technology Finance
Healthcare &Technologies
Healthcare & Health Sciences
Process Technologies
Energy
Leadership Council
Related Activities e.g.
Biosystems Informatics Institute
New Cluster
Cels/ICfL
Leadership Council
NaREC
Related Activities e.g.
PV NorthEast
Cluster Development
Leadership Council
CPI
Related Activities e.g.
Tees Valley Hydrogen Project
NE PIC
Healthcare &Technologies
Healthcare & Health Sciences
Process Technologies
Energy
Leadership Council
Related Activities e.g.
Biosystems Informatics Institute
New Cluster
Cels/ICfL
Leadership Council
NaREC
Related Activities e.g.
PV NorthEast
Cluster Development
Leadership Council
CPI
Related Activities e.g.
Tees Valley Hydrogen Project
NE PIC
NETPark
Software City,Sunderland
ICT E-business Content SoftwareICT E-business Content Software
Universities
•Focus investment even further on actual regional opportunities•Further strengthening of research base and opening access to business•Need to integrate other policy areas and activities•Particularly integrate with physical regeneration•Create internationally competitive facilities and capabilities•Develop greater capacity for product and service innovation through design•Greater private sector investment
Moving forward
• Innovation Connectors as integrating conceptSpatially focussedNew approaches to research/applicationWorld class facilities and peopleExplicit links to regeneration, employment,
education and access• Together with enterprise support, sectoral and
technological prioritisation, people and place agendas
• Retain long term strategy and increase focus on key strengths
• Regional collaboration eg Northern Way• Integrated element of National and International
framework, working with TSB, Research Councils, HEFCE, EU, Japan and others.
Innovation connectors
• Newcastle Science City• Design in NewcastleGateshead• NETPark and Co Durham• Sunderland Software City• NaREC Energy Centre• Wilton and Tees Valley• Digital City
Newcastle Science City
• Developing internationally leading science-based research, business and education
• In a new environment, including large scale facilities integrating research, business and social interaction
• Internationally competitive location• Benefiting region as a whole• Key driver for City Regional Regeneration
Digital City
• Digital Media (including games and animation)• Focussed on Middlesbrough• University as a generator of businesses• Twin track of research and development, and business
support• Substantial number of new businesses being created
Design Centre for the North
• Iconic state of the art building
• Baltic Quays in Gateshead
• Base for design collaboration
• Industrial Design
• Product Design
• Graphical Design
• Digital Design
• Service Design
• National and international hub for design and innovation
Next steps – building on these strengths
− Build further the strategic partnership to encourage and foster Innovation between:
− Government− Universities− Private Sector
− Develop better alignment of local, regional and international agenda’s and investment
− Focus regeneration based on:− traditional industrial strengths such as energy
and process industries− new industrial specialisations such as bioscience
and software− A strategy and implementation policy to produce
dramatic change in the region within a generation.
Contact details
Mark PearsonInnovation Strategy ManagerOne NorthEastStella HouseGoldcrest WayNewburn RiversideNewcastle-upon-TyneNE15 8NY
Tel: 0191 229 6422Email: mark.pearson@onenortheast.co.uk Website: www.onenortheast.co.uk, www.strategyforsucess.info