Industrial Strategy Green Paper – Tara Dean, Pro-Vice Chancellor Research & Enterprise
The Government issued the ‘Building our Industrial Strategy’ Green Paper towards the end of January, inviting views on its plans to support growth and improve living standards across the UK. It has taken me few weeks to read it carefully and I can share that the strategy is a clear signal that the approach to economic growth is changing, and the catalyst is Brexit.
The Strategy recognises that the UK must become more innovative, build on its world-leading science base and develop its skills base; that it must create the right institutions to bring sectors and places together; and that it must cultivate its world-leading sectors. Universities can play a vital role in achieving these ambitions. The priorities are to increase ‘productivity’, close the gap with global competitor nations and to rebalance the economy of the UK in regional terms.
Active engagement in the many aspects of developing and delivering the Industrial Strategy will be crucial for universities’ self-interest. UK universities support more than 750,000 jobs (2.7% of all UK employment) and generate an economic output in excess of £73 billion a year. The UK’s Higher Education sector is the envy of the world, and the Government could make use of the vast knowledge our universities cultivate and communicate. The UK is home to exceptional universities and people travel from so many different countries to experience our Higher Education system. The links universities build internationally – whether through partnerships, overseas campuses or recruiting international students – can have a positive impact in terms of soft-power. UK universities can play an increasingly important role in fostering international relationships and I hope that the strategic importance of the Higher Education sector will be reflected in the Industrial Strategy as the Government moves forward with its proposals.
University Alliance has published a paper setting out how Alliance universities can help government deliver its ambitions for growth. The document, Universities: delivery partners for industrial strategy, sets out how, by working closely with business, Alliance universities produce high-level skills and support high-value innovation. Universities are not only deeply rooted in their cities and surrounding regions but have networks that span different economic and administrative boundaries within the UK.
The Industrial Strategy is built on what the Government is calling 10 ‘pillars’:
- Investing in science, research and innovation
- Developing skills
- Upgrading infrastructure
- Supporting businesses to start and grow
- Improving procurement
- Encouraging trade and inward investment
- Delivering affordable energy and clean growth
- Cultivating world-leading sectors
- Driving growth across the whole country
- Creating the right institutions to bring together sectors and places
The Green Paper is strong on research and innovation. The new Industrial Strategy Challenge Fund (£2bn/yr in steady state by 2020-21) will be delivered primarily through the newly established UKRI. Exactly how UKRI will do this is still not clear. When it comes to skills, the document is quite vague. Degree apprenticeships and postgraduate taught provision are not mentioned at all, which does make one wonder if the role of universities in the skills supply line has been appreciated at all.
Overall, this Green Paper is a stage in a process. The Government appears to be seeking a coherent and consistent strategy which will lead to the formulation of a set of policies that are designed to improve the performance of the economy. Time will tell whether this stronger embracing of industrial strategy is any more successful than its predecessors.
The Green Paper is open for consultation until 17 April 2017.