core presentation

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The role of HE in economic development- the RDA
perspective on A New University Challenge23rd
September 2008Alison Webster
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The East of England - some headlines

• Approx. 5.5 million population
• 43 live in rural areas (58 live in communities
  lt 10,000)
• No large cities, highest number of market towns
  in UK
• Relatively prosperous at regional level but
  significant pockets of deprivation (eg coastal
  towns)
• ODPM growth areas all impact on the region
• Population growing 50 faster than UK

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Economic context East of England

• Strengths
• Global leading companies and university
  departments
• 3rd highest business spend on RD of all European
  regions
• High economic activity rates
• UK's leading ports
• Inspirational places / some of the UK's finest
  natural habitats

• Challenges
• Intensifying global competition
• Economy dominated by SMEs
• Poor post-16 skill base compared to competitors
• Infrastructure deficit
• Most vulnerable to climate change of all UK
  regions
• Pockets of deprivation

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New RES Vision and headline targets

• Vision
• An ideas driven region that is internationally
  competitive,
• harnesses the talent of all and is at the
  forefront of the
• low carbon economy.
• Headline targets to 2031
• Prosperity productivity raise annual growth in
  GVA per capita and GVA per employee
• Employment raise employment rate of the
• over-16 population
• Environment reduce CO2 emission levels by 60

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Background drivers.

• Learning Supply
• Seven universities and 3 HEIs across six counties
• Poor take-up of vocational learning and higher
  education significant cold spots
• Extensive HE delivered through FE
• Net exporter of graduates at first destination
  (54)
• 50 HE participation target (set in 2003)
  unattainable
• Business Demand
• Consistent skills shortages at L4, 5 and above
• Labour force forecasts more higher level skills
  required
• Increased in-migration of highly qualified people

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Productivity where are we on GVA ?
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but dont be complacent.
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How are we doing ?

• Leitch Targets by 2020
• 40 of adults qualified to L4
• L3 - no target
• 1,900k additional L3s
• 500k more apprenticeships
• 90 of adults qualified to L2

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The workforce their skills

• Highest employment rate in UK at 79.6
• But uneven spread across region
• And dominated by low value added jobs
• Good school performance overall,
• But poor take up of vocational skills, and
• science, technology, engineering and maths (STEM)
  post- 16
• 70 of skills shortages reported by employers are
  for skills at level 3 and below
• But 30 are higher level skills shortages at
  level 4 and above greatest in management (16)
• Significant skills shortages in our most
  prosperous areas
• And proportion of graduates in the workforce is
  lower than UK average except in St Albans and
  Cambridge
• A low skills equilibrium low productivity low
  GVA

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The hill to climb

• Future labour demand forecasts changing shape of
  the workforce
• Fewer low/unskilled
• Increased technician levels
• Increased graduate and post-graduate
• We cannot meet the productivity needs for global
  competitiveness through new young entrants to the
  labour market alone.
• Demography suggests that the cohort of young
• people moving through FE and HE peaks in 2010.
• Leitch 70 of 2020 workforce already working -
  Spring 2008 74, and rising.
• We need to drive up workforce learning especially
  at L3 and L4 if we are to increase productivity

to
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Current Strategy - Genesis

• EEDA RES HE an issue for regional economy
• 54 net outflow
• HE skills shortages
• HE cold spots linked to economic cold spots
• Population expansion early growth areas policy
• 50 participation target PMs announcement 2003
• EEDA/AUEE
• KPMG undertake review of Universities expansion
  plans identify 39,000 shortfall in HE places
• EEDA/AUEE
• with HEFCE and universities on potential for HE
  growth 2003 6
• EEDA HE Expansion Strategy to Board September
  2006

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The new university landscape

• Does not replace HE delivered through FE,
  improved and refreshed (Foundation degrees,
  e-learning etc), alongside FE Capital
  developments.
• Adds five new branded sites in cold spots,
  aligned to FE Colleges 25,000 new HE places
• Branded to reach local businesses and learners
• Curriculum specifically tailored for
  non-traditional students
• Older learners, employed, voluntary/community,
  businesses
• Strong FD curriculum

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Current HE Strategy - Progress

• 2006 Strategy outlined five new HE sites, where
  EEDA would contribute
• Southend approved and completed
• Suffolk (UCS) approved/progressing Phase 1
  and LEAPs
• Peterborough approved and almost contracted
• Harlow approved not contracted
• Thurrock developing proposition
• Also limited FE support (Lowestoft, WSC, COWA)
• The sites together bring a further 13,500 ftes
  p.a. to the region (approx 30,000 more students
  at any time)
• Strong element of non-standard HE
• FDs, workforce learning, business engagement.

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Why is this important ?

• Human Capital
• Improved career options
• Improved earning capacity
• Reduced tendency for unemployment
• Business Prosperity
• Supply of graduates Knowledge transfer to improve
  products and processes
• RD and applied research to improve global
  competitiveness
• Spin-outs and Spin-ins
• Local Economy
• Attracts new businesses
• Percentage of graduates remain in local jobs
• 10 increase in graduate workforce adds
• 13 to productivity

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What the region gains

• Increased, accessible HE provision for
• Widened and increased participation
• Enhanced progression routes to HE provision from
  FE
• Non-standard graduates, employees, businesses
  engaged
• HE provision designed with local businesses,
  sector and emerging economic drivers in mind
• Closer links between businesses and HE RD and
  applied research for innovation
• Increased graduates in the workforce, increased
  productivity, improved GVA

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Future challenges

• RDA potential for future co-funding
• Building on and sustaining our investments so far
• Refreshing our HE strategy its not just about
  places and capital
• Focus on improving FE to HE progression.
• Increasing L4 skills for those in the workplace

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• Thank you for listening
• Any questions?
• alisonwebster_at_eeda.org.uk