3
The role of HE in economic development
- the RDA perspective on A New
University Challenge
23rd September 2008
The East of England - some headlines
• Approx. 5.5 million population
• 43% live in rural areas (58% live in communities <
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
Economic context – East of England
Strengths
Challenges
• Global leading companies and
university departments
• Intensifying global competition
• 3rd highest business spend on
R&D of all European regions
• Poor post-16 skill base
compared to competitors
• High economic activity rates
• Infrastructure deficit
• UK's leading ports
• Most vulnerable to climate
change of all UK regions
• Inspirational places / some of
the UK's finest natural habitats
• Economy dominated by SMEs
• Pockets of deprivation
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%
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
Productivity – where are we on GVA ?
Headline GVA per head: Residence Based 2006
30 000
25 000
15 000
10 000
LON
SE
EOE
England
SW
EM
WM
NW
0
YH
5 000
NE
£
20 000
…but don’t be complacent….
Headline GVA per head: Workplace Based 2006
30 000
25 000
15 000
10 000
LON
SE
England
EOE
SW
EM
WM
NW
0
YH
5 000
NE
£
20 000
How are we doing ?
• Leitch Targets by 2020
• 40% of adults qualified to L4+
England
East
25.6% - 2005
• L3+ - no target
– 1,900k additional L3s
– 500k more apprenticeships
28.9%
26.6 % - 2007
England
East
47.8%
44.6% - 2007
England
East - 2007
• 90% of adults qualified to L2+
55.2% - 2005
68.1%
66.3% - 2007
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
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 productivitytoneeds 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
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 – PM’s 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
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
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.
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
– R&D 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
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 R&D and applied
research for innovation
– Increased graduates in the workforce, increased productivity,
improved GVA
Future challenges…
• RDA potential for future co-funding
• Building on and sustaining our investments so far
• Refreshing our HE strategy – it’s not just about places
and capital
•
Focus on improving FE to HE progression.
• Increasing L4+ skills for those in the workplace
Thank – you for listening
Any questions?
[email protected]