Higher education, industrial strategy, and the importance of place

As co-founder of a Durham University spinout, operating in the northeast of England for 20 years, I know first-hand how university R&D can be translated into products and services that drive growth and create skilled jobs.

My company, Kromek Group, originated in Durham University research into cutting-edge radiation detection technology, and now delivers breakthroughs applied everywhere from local hospitals to the frontline in Ukraine, employing more than 150 people across two continents.

The question of how government can support this kind of commercialisation of cutting-edge research is critical for our future economy. Universities must simultaneously consider how they can give researchers the tools to turn new technologies into successful businesses and contribute to growth.

Green shoots

The industrial strategy green paper published last week has provided us with insight into how ministers view the role of government in driving growth through sectors like defence and life sciences. For universities facing increasing financial uncertainties, it presents a significant opportunity to showcase what – in partnership with industry – the sector can offer to help address the substantial challenge of restoring the UK’s economic health.

So what can universities, and businesses like Kromek with close ties to higher education, take from the Invest 2035 green paper?

The first positive is the clear focus on stability in policy-making. Successful partnerships between universities and businesses are rarely flashes in the pan. R&D and commercialisation take time – as do the capital projects that provide essential infrastructure.

The government needs to show it is serious about delivering economic growth not just in this Parliament, but across the next decade. That comes through clearly in the green paper, and getting this right will help build confidence in the UK as a destination for investment.

Place and local growth

Universities and their partners will also welcome the high priority given to place. If you want to “unleash the full potential” of cities and regions to create strategic, high-potential clusters, higher education will have a fundamental role to play. As long-standing anchor institutions in regions and cities across the country, universities are a big factor in creating high-value skills and attracting external investments into areas that – without a thriving, high-performing university – might be overlooked.

Co-ordinating a variety of expertise in each region will be key to maximising the attractiveness of cities and regions as investment destinations, and universities are well-placed as hubs for this activity given their existing contributions through skills training, facilities, research capabilities, industry partnerships, and community and civic missions – as the recent Russell Group report Future Ready demonstrates.

In northeast England, Durham University has been doing this for over 20 years in partnership with Durham County Council in Sedgefield. NETPark is a thriving hub for 40 businesses – including Kromek – employing over 1000 people. Home to three national innovation centres, three national catapult centres, and about to start a new £61m development phase, NETPark is a great example of how universities, local government and businesses are working in close collaboration with a shared vision to drive innovation-led growth.

Activities like these should be central to local growth plans, which were trailed in the Labour manifesto and feature again strongly in Invest 2035. The government is keen to make the most of what it calls “untapped potential” outside London and the southeast, working closely in partnership with local leaders – in particular the network of elected mayors, and the business, education and community leadership who they are convening. The acknowledgement of the strengths of clusters (such as life sciences in Liverpool, or advanced manufacturing in the northeast) is welcome, and these help businesses take advantage of shared benefits like supply chains, knowledge spillovers and – notably for universities – talent pipelines.

I would hope to see these local plans structured to support closer working between businesses, universities and other partners like catapult centres – and to see them acknowledged and supported by government as a clear statement of regional ambition.

Northeast England has a strong tradition of good partnership working and there is a widespread shared sense of place and purpose among these leaders, illustrated by initiatives such as the development of NETPark. Creating a national framework for this work to make an impact will ensure that every place can reach its potential, and can make its contribution to national industrial prosperity.

The need to make a strong case

So far, a positive start for universities. But that does not mean that the sector can rest on its laurels, waiting for business and government to come and offer a place at the table. As someone who works closely with higher education institutions, I know that senior leaders are acutely aware of the need to make a strong case and build even more effective dialogues and partners, to ensure universities are fully immersed as the industrial strategy progresses.

This is where collaboration and co-ordinated thinking will be vital, and it’s for that reason that I was pleased to join the Russell Group’s new industrial strategy advisory panel, which is providing a space for academics, university leaders, businesses and entrepreneurs to share our knowledge and experience to create detailed policy recommendations.

While the government has identified several specific high-potential sectors, we know it will be vital to draw on a whole range of multidisciplinary expertise and knowledge to get this right and also to be alert to new technologies and emerging sectors which can be grown for the future. Universities have a key role to help guide understanding of these emerging possibilities.

One early point that I’ve made is that an area where some universities could improve their processes is in making sure engagement is as easy for small and medium-sized enterprises (SMEs) as it is for large multinationals – especially where these businesses are working in the high growth potential sectors identified in the industrial strategy green paper. For SMEs, the interface between businesses, researchers and other university services can be fragmented and challenging to navigate – yet it’s those businesses that could benefit the most from university support to access funding and expertise, and they form a vital part of regional growth prospects.

Crystallising their offer to SMEs is one way by which universities could strengthen their position as a key pillar in the bridge between public investment and private business innovation. I already see this happening effectively in the northeast, where the Innovating Together InTUNE partnership has brought together five northeast universities to support SME growth in the region, helping to create 60 new businesses in the last six years through the Northern Accelerator. However, this push for greater support has to be coupled with funding, long-term investment through procurement, and wider incentives from government, many of which have been lost in recent years due to the ending of European structural funds.

After the publication of Invest 2035, we’ve now entered a period of consultation – and it’s in this environment the Russell Group advisory panel will continue to develop our thinking on how universities, in collaboration with industry, can maximise their impact.