Regional Impact Study
Final report to the University of Warwick
April 2013
Contents
Executive Summary .................................................................................................... 2
1. Introduction ............................................................................................................ 10
The regional and local impacts of universities ............................................. 10
The University of Warwick ............................................................................... 11
Economic profile of the region and the local economies ............................ 12
The current study ............................................................................................. 13
Format of the report ......................................................................................... 15
2. Direct and indirect expenditure impacts ............................................................. 16
The University as a major economic entity in the region ............................. 16
Steps in estimating impacts ............................................................................ 17
Impact estimates............................................................................................... 18
Concluding comments ..................................................................................... 23
3. Research, innovation and engagement with businesses and other
organisations in the region ....................................................................................... 24
Research at the University of Warwick: An overview ................................... 24
Collaboration with business and public sector organisations .................... 26
High level skills ................................................................................................. 33
Creating and supporting new businesses ..................................................... 37
Concluding comments ..................................................................................... 40
4. Civic role and public engagement ....................................................................... 41
Overview ............................................................................................................ 41
Community and civic engagement ................................................................. 41
Widening participation: raising aspirations and achievement .................... 44
Providing services to the community ............................................................ 48
Cultural and sporting facilities ........................................................................ 51
Concluding comments ..................................................................................... 53
5. Global presence and connections ....................................................................... 55
Overview ............................................................................................................ 55
Warwick – a globally connected university ................................................... 56
International student survey ........................................................................... 59
From international to local impact?................................................................ 60
Concluding comments ..................................................................................... 61
Annex A: Estimating expenditure impacts ........................................................... A-1
Annex B: Student data ............................................................................................ B-1
1
Executive Summary
“We value them [Universities] for their intrinsic, as well as their
economic, worth: as seats of learning and research dedicated to
increasing the sum of human knowledge and understanding, and as
centres of innovation and invention, the driving force behind our
increasingly high-tech, knowledge-based economy”1 HM
Government, The Coalition: Mid-Term Review, 2013.
Warwick is one of the leading UK universities. It already has a global reputation for its
research and teaching programmes and aspires to soon be one of the top 50
universities globally. This study has explored the impacts of the University on its
region and sub-region. These impacts are substantial, exciting and dynamic and
demonstrate how a research intensive university can contribute to its region without
compromising academic excellence.
Universities are multidimensional and complex organisations, engaged in a range of
different activities and responsibilities to address different objectives in different
spatial geographies. Further, they typically have a long-standing presence in their
regional and local area - acting as ‘anchoring’ organisations – and playing a key role in
contributing to regional and local impacts.
This report considers Warwick’s impacts in the West Midlands and sub-regions, from
a number of perspectives. The most obvious, and tangible, is the direct employment
it creates and further economic activity generated through expenditure of staff and
students. But, the University’s reach, and we would argue its importance to the
Region, is much greater than through employment and expenditure alone. These
other impacts arise in a number of ways:

working with businesses, and other organisations, increases their efficiency
and innovative capacity

staff and students work in and with the local communities

through its global connections, it generates a wide range of benefits within the
Region.
Each of these themes is discussed below and examined in more detail in the main
report.
Direct and indirect expenditure impacts
The University directly spends around £306m in the West Midlands each year and its
staff and students make additional expenditures. These give rise to further
expenditure as a result of multiplier effects and we estimate the 2011/12 total
expenditure generated to be £520m in the West Midlands. Of which, almost
HM Government, The Coalition: together in the national interest – Mid-Term Review, 2013.
http://assets.cabinetoffice.gov.uk.s3-external-3.amazonaws.com/midtermreview/HMG_MidTermReview.pdf
1
2
£351m is in the Coventry and Warwickshire sub-region, £222m in Coventry,
£84m in Leamington Spa and £20m in Kenilworth2.
We estimate that this expenditure, combined with direct employment by the
University3, supports around 15,500 jobs (FTEs) in the West Midlands, of which
around 10,900 are in Coventry and Warwickshire. The distribution of employment
is as presented below.
The direct employment impacts (University and Students’ Union):
•
4,009 FTE jobs to residents of Coventry & Warwickshire
•
4,425 FTE jobs to residents of the West Midlands.
The extra jobs created through expenditure associated with the University (incl.
Students’ Union):
•
6,910 FTE jobs to residents in Coventry & Warwickshire
•
11,069 FTE jobs to residents in the West Midlands.
Direct jobs at the University (incl. Students' Union) to residents of Coventry,
Leamington Spa and Kenilworth combined are 3,177 FTE jobs. The extra jobs created
through expenditure associated with the University give the following impacts:

4,739 FTE jobs to residents in Coventry

1,852 FTE jobs to residents in Leamington Spa

214 FTE jobs to residents in Kenilworth.
Research, innovation and engagement with businesses and
other organisations in the region
This section focuses on the contribution the University is making to the effectiveness
and efficiency of local organisations in both the private and public sectors. Many of
these contributions are based on the research strengths of the University, but impacts
also arise through the provision of high level skills, training, business support and new
enterprise development. These are also discussed below.
Collaboration with business and public sector organisations
High quality research has been a strategic driver for Warwick almost since its
establishment and it has quickly established pre-eminence amongst those universities
established in the 1960s. It was ranked 7th for quality in the UK and 1st in the West
Midlands in the last Research Assessment Exercise and generated grants of £86m in
2010/11; £5m from business and £34m from public sector organisations4 and health
authorities demonstrating the relevance of its research to users. Over £9m of these
Coventry, Leamington Spa and Kenilworth are within Coventry & Warwickshire sub-region.
Including Students’ Union.
4 Excluding the Research Councils
2
3
3
research projects were undertaken for organisations in the West Midlands and a
further £3m was received from Regionally-based organisations for consultancy, use of
technical facilities and continuing professional development (CPD).
This is a substantial sum and represents the minimum value placed on these
relationships by organisations in the Region. We have examined some of these
activities in more detail and this evidences the major impacts that are arising. These
include:

WMG (formally the Warwick Manufacturing Group) has developed a close
relationship with JLR a major employer in the Region. There are many
dimensions to the links between the organisations, but we would highlight
two. JLR has located 180 of its R&D staff on campus as part of a programme
which will generate £100m of collaborative research over 10 years. JLR, and
its parent Tata, are also supporting the National Automotive Innovation
Campus at Warwick; a £92m investment announced at the end of 2012. WMG
also led the Premium Automotive Research and Development Programme
(PARD) designed to assist the automotive supply base in the Region. An
independent evaluation concluded that it has assisted 605 businesses,
generated £55.5m in value added and safeguarded 5,496 jobs

The Warwick Medical School was established in 2000 and achieved
independent degree awarding powers in 2007. Today the School employs
over 400 academic staff and is ranked 10th in the UK for the quality of Health
Services Research. Over the next 2-3 years, the recruitment of 80-100
additional research staff is projected. Its research excellence has attracted a
range of private sector partners, leading to substantial inward investment and
improved public health outcomes. It has also established a Clinical Trials Unit
which is credited with improving the standard of healthcare in the Region

Warwick Business School is one of the top business schools for teaching and
research quality. Its research covers a diverse range of areas and includes: the
Behavioural Science Group, the largest of its type in Europe which has worked
with local NHS Trusts to explore how design can influence violence
experienced by staff; a new externally funded Enterprise Research Centre; and
the active dissemination of its research to businesses through a number of
channel

Science City Research Alliance, in collaboration with the University of
Birmingham, has brought over £70m funding in the Region and has been
evaluated as creating or created or safeguarded over 270 jobs so far.
High level skills
Many would argue that the principal economic (and social) impact of a university
arises through its role as an educator and trainer. The quality of Warwick graduates
and postgraduates is widely recognised and a recent survey of the UK's one hundred
4
leading graduate employers5 identified Warwick as the leading target for recruitment
of all UK universities. Data on Warwick alumni shows that 23,226 graduates and
postgraduates of the University are still resident in the West Midlands. This is 3% of
the West Midlands population with NVQ Level 4 qualifications and above; a significant
proportion of the highly skilled labour force. Over the period 2008/09 to 2010/11,
19% of graduates were still resident in the Region6. Over time, this will add
significantly to skills availability in the Region.
The University is also providing CPD for businesses and other organisations and in
2010/11 this was valued at almost £2m in total. In particular, the Business School has
a wide range of offers from short sessions through to accredited MBA programmes.
These include a one year Diploma in Applied Management and 50% of the most recent
cohort were from organisations in the West Midlands. A number of long-term
partnerships have developed with West Midlands employers, including: Warwickshire
Fire and Rescue; Network Rail; Coventry City Council; and Coventry and Warwickshire
NHS Trust.
Creating and supporting new businesses
The University works closely with established businesses within and outside the
Region, but it is also helping to create new businesses for the future:

Warwick Ventures provides support to staff spin-outs. There are 33 spinoutsstill active of which 17 are located in the West Midlands. We have
employment data for 13 of these which employed 99 in total

The Science Park is distinctive in that it provides a full range of business
support services, and these are available to businesses elsewhere in the West
Midlands. These services have safeguarded or created 291 jobs. In addition,
there are almost 140 tenants on four sites, over 75% employing fewer than 10

The University has itself established businesses, the most important are:
Warwick Conferences and Unitemps (an online recruitment service).
Civic role and public engagement
Public engagement is becoming more important to the University sector as a whole
and, in many ways, supports and complements the more direct economic contribution.
Warwick is actively engaged with its communities. Activities are more diffuse than,
for example, research relationships and there is much less information on scale. They
are, nevertheless, an important local impact channel. They provide direct benefits to
the local community and can also be a valuable component of student educational
programmes. The report considers four types of engagement: formal, and some
informal, examples of civic engagement; specific activities to raise aspirations and
achievement in the local community focused on the widening participation agenda;
the ways in which the University’s core academic activities are leading to enhanced
5
6
High Flier Research January 2013 http://www.highfliers.co.uk/
Six months after graduation.
5
services in the local area; and access to cultural and sporting activities at the
University.
Community and civic engagement
University staff meet regularly with Local Authorities and there are two members on
the Coventry and Warwickshire Local Enterprise Partnership (LEP) Board. The
University was active in the successful bid to the Regional Growth Fund and is involved
in developing a City Deal for Coventry and Warwickshire.
A high profile and successful example of civic engagement is Warwick Volunteers. Over
2,000 students and staff each year sign up as a Warwick Volunteer. Many of these go
on to undertake a volunteer placement in community groups, charities and schools in
Warwick district or Coventry area. With support focussed on schools in disadvantaged
areas, the volunteers support a range of activity aimed at improving performance
outcomes of programme beneficiaries. One study7 has estimated the Volunteers
programme makes a contribution to the local community of almost £1m.
Widening participation: raising aspirations and achievement
In 2010/11 the University committed to investing over £500,000 in outreach
activities. This will rise to £1.9m by 2016. The University plans to spend in excess of
£1m of its own funds on fee waiver support during the 2013/14.
There is a wide range of programmes and activities involving students and staff. Some
notable examples include:

5,000 school pupils within the West Midlands receive support from the
Chemistry Department

each year 50-80 local school pupils from years 10-12 are invited to stay at the
University in order to challenge perceived barriers to attending University

70 schools in the Districts of Warwick or Coventry attended a session run by
Warwick Arts Council, designed to promote artistic and cultural engagement

over 60 Warwick students have been involved delivering sessions to over 300
school students through the Warwick Inspire programme

22 Local Authorities, including Birmingham and Coventry, participate in a
programme for gifted and disadvantaged children

Pathways to Law supports 50 school students each year through a three year
programme Realising Opportunities, involving 11 other universities – this
was awarded the times Higher Education, Widening Participation Initiative of
the year in 2012.
7
Degrees of value, nef http://www.neweconomics.org/publications/degrees-of-value
6

Warwick Arts Centre employs a dedicated Education team to support
outreach activity across the West Midlands. In 2010/11, the team delivered
over 900 sessions, reaching over 15,400 participants.
Providing services to the community
The core academic activities of the University are also generating impacts through the
services for local communities which are associated with these activities. These
include:

The Warwick Medical School, which is closely associated with healthcare
provision in the region. Local benefits include: around 520 students will be
undertaking clinical placements in the West Midlands at any one time; the
Clinical Trials Unit, has provided patients from the West Midlands with access
to cutting edge treatments; and the Warwick Healthcare Partnership is to
develop solutions, to chronic diseases that affect resource-poor communities
locally and overseas

The Centre for Lifelong learning provides learning programmes and
qualifications for those who may not have had a real opportunity to enter HE
when they left school, as well as non-accredited learning opportunities

a proposed ‘WMG Academy for Young Engineers at the University of Warwick’
has become a new University Technical College (UTC) project and will cater
for 640 students from the Coventry, Warwickshire and Solihull areas

Warwick’s Institute of Education admits around 500 students each year. In
2010/11, 178 were working as teachers in the West Midlands. It also hosts
the West Midlands Centre for Excellence in Teacher Training which provides
information and guidance services to teachers and trainers and a range of
specialist training programmes

The WBS, working with the Institute for Education, has launched the ‘Teaching
Shakespeare’ initiative alongside the Royal Shakespeare Company.
Cultural and sporting facilities
The Warwick Arts Centre is the second largest in the UK. In 2010/11 combined
audiences were 270,000 and 62% of visitors come from Coventry and Warwickshire.
An independent study estimated the total value to the local community from the Arts
Centre to be £27.7 million.
The University’s sporting facilities were classified as 5* by the Times Good University
Guide in 2007. Most of these facilities are open to non-university residents and used
extensively by local individuals and clubs. The facilities have also attracted national
and international events, including: the International Children’s Games in 2005; the
UK Schools Games in 2007; the British Transplant Games in 2009; and the Kelly
Holmes Athletics Camp;
7
Further, the University made a major contribution to bringing the International
Olympic Committee to Coventry, resulting in Coventry hosting the London Olympics
2012 volunteer and training events.
Global presence and connections
Research for the European Commission (2011) indicates that a globally connected
university can act as a ‘window’ on the local region to the rest of the world,
contributing to improved image and reputation of the region. Further, the study
reports that this can benefit the development of the region in various ways: connecting
people from all over the world into the region, acting as a vehicle for future
cooperation; attracting researchers who may contribute to the development of new
technologies, resulting in new and innovative activity; and acting as a lever for
international investment to the region. In addition, evidence published by the OECD
(2008) states that investment in universities is more effective in generating research
intensive foreign direct investment (FDI) than financial incentives to foreign investors.
There is no doubt that Warwick is globally connected. It is rising through the
international rankings and:

34% of academics are international, from 72 countries

over 8,350 international students are studying at the University

The International Student Barometer8 reported that 83% of Warwick’s
international student respondents would recommend the University
compared with 80% for the UK as a whole (90% reported overall satisfaction
compared with 88% for the UK)

500 Warwick undergraduates are expected to participate in an international
exchange during 2012/13

over 200 exchange partners in 40 countries

over 45,000 alumni are resident in 193 countries

Tata Motors European Technical Centre is based at the University

It has established two academic alliances with Monash in Australia and the
Centre for Urban Science and Progress (CUSP)9 – partnership led by New York
University and NYU-Poly alongside a consortium of universities and
businesses.
To the extent that the international links strengthen the University as whole, there will
be local benefits arising through the channels described elsewhere in this report,
8
9
http://www.i-graduate.org/services/international-student-barometer-and-student-barometer/
http://www2.warwick.ac.uk/fac/cross_fac/gpp/sustainablecities/cusp/
8
including international student fees and visits by family and friends to the region10;
and language and cultural skills acquired by students.
The international reach of the University raises the international profile of the region
which may help in facilitating international business contacts for local firms and it
increases the attractions of the region to inward investors. A further point is that
international alumni often take up influential positions in business or government in
their home countries or elsewhere. The contacts established while at the University
can be long lasting and valuable. We have not been able to identify tangible evidence
of such impacts, but would note that, in particular, both WMG and WBS have
substantial numbers of international alumni. The literature identifies longer-term
intangible benefits on local economies (often referred to as ‘catalytic effects’)11 as a
result of international students having a favourable attitude towards a university’s
region, including after the students have progressed to influential positions in their
careers.
For example, a study for the University of Sheffield reports that international students make a net
contribution to Sheffield’s economy of £120.3 million, rising to £136.8 million for the region (Yorkshire &
Humber). Oxford Economics (2013) Economic Costs and Benefits of International Students. A Report for the
University of Sheffield.
11 See for example: Oxford Economics, The economic impact of London’s international students, 2007.
http://www.londonhigher.ac.uk/fileadmin/documents/OxfordEconomicsReport.pdf
10
9
1. Introduction
The regional and local impacts of universities
“Just as castles provided the source of strength for medieval towns,
and factories provided prosperity in the industrial age, universities
are the source of strength in the knowledge‐based economy of the
twenty‐first century”12 Lord Dearing, 2002.
“We value them [Universities] for their intrinsic, as well as their
economic, worth: as seats of learning and research dedicated to
increasing the sum of human knowledge and understanding, and as
centres of innovation and invention, the driving force behind our
increasingly high-tech, knowledge-based economy”13 HM
Government, The Coalition: Mid-Term Review, 2013.
Universities are multidimensional and complex organisations, engaged in a range of
different activities and responsibilities (teaching, research, and what is often referred
to as the ‘third mission’14) to address different objectives in different spatial
geographies. Further, universities have a long-standing presence in their regional and
local area - acting as ‘anchoring’ organisations – and playing a key role in contributing
to regional and local impacts (economic, social and cultural).
Universities are
major economic
entities and
contribute to the
local and regional
community and
economy in many
and diverse ways
They provide high level training, collaborate with businesses, support start-ups/spinouts and commercialise research in other ways, thereby contributing to knowledge
exchange, technology transfer and innovation. Universities connect the regional/local
economy to the global economy – attracting international students, researchers and
other staff as well as acting as the ‘gateway’ for international firms to access regional
markets15. The cultural and community engagement aspects of universities are
growing with, for example, organised voluntary activities, social events, and
promoting widening participation in higher education. Further, universities are major
employers in the local economy and the expenditure of their staff and students
contributes a ‘multiplier’ effect throughout the economy, generating additional
demand for regional and local suppliers of goods and services.
Within this context, the European Commission16 categorises the various roles of
universities into four main areas (also adopted by the OECD in its research on
universities and regions): business innovation, human capital development,
Professor Sir Tim Wilson, A Review of Business–University Collaboration, 2012.
http://www.bis.gov.uk/assets/biscore/further-education-skills/docs/w/12-610-wilson-review-businessuniversity-collaboration
13 HM Government, The Coalition: together in the national interest, Mid-Term Review, 2013.
http://assets.cabinetoffice.gov.uk.s3-external-3.amazonaws.com/midtermreview/HMG_MidTermReview.pdf
14 Third mission refers to activities in universities which stimulate and direct the application and exploitation of
knowledge to the benefit of the social, cultural and economic development of society.
15 OECD evidence suggests that investment in universities is of greater effect in generating research intensive
foreign direct investment than financial incentives to foreign investors. Guimon, Government Strategies to
attract R&D Intensive FDI. OECD, Global Forum on International Investment. 2008.
16 These broadly relate to the four areas covered in the OECD reviews of the universities and regions: OECD
Higher Education and Regions, Globally Competitive, Locally Engaged, 2007.
http://www.oecd.org/dataoecd/51/27/39378517.pdf. See also, European Commission, DG Regional Policy,
Connecting Universities to Regional Growth: A Practical Guide, 2011.
http://ec.europa.eu/regional_policy/sources/docgener/presenta/universities2011/universities2011_en.pdf
12
10
community development, and institutional capacity of the region through engagement
in local civil society.
Figure 1-1: OECD framework for role of universities in regional development
Regional
capacity
building
Social and
cultural
development
HEIs
Regional
innovation
Human
capital and
skills
development
Source: European Commission, DG Regional Policy, Connecting Universities to Regional Growth: A Practical Guide,
2011
Universities’ local
economic
development role is
becoming
increasingly
important
It has become more important in the current challenging economic environment for
universities to be innovative and pro-active in contributing to local development, and
also to act as ‘drivers’ of change. In the new regional economic development
landscape, there is more emphasis on collaborative approaches between the public
and private sector. With the introduction of the Local Enterprise Partnerships (LEPs)
and the £2.4 billion Regional growth Fund (RGF) to support economic development
there is an opportunity for universities to increase their influence at a sub-regional
level. In addition, changes to university funding and the key government objective to
‘rebalance the economy’ sectorally and spatially are likely to influence universities’
roles and how they actively engage in their local areas. The ‘Triple Helix’ of universityindustry-government interactions has become more prominent.
The University of Warwick
Approval for the establishment of the University of Warwick was given in 1961 and
followed by the Royal Charter of Incorporation in 1965. After the first intake of
graduate students in 1964, it admitted its first 450 undergraduates in October 1965.
The University is situated on a large 700 acre campus which straddles the boundary
between the City of Coventry and the County of Warwickshire.
11
In 2007 the University’s Strategy - Vision 2015 was launched and updated in March
201117 . It articulates the following goals:
To make Warwick an undisputed world leader in research and
scholarship
To ensure a high-quality and distinctive Warwick student
experience
Its aim is to achieve
excellence and to
serve the region
To make Warwick an international beacon by embedding
internationalism into every area of the University's mission
To further strengthen our sense of community and increase
engagement with our stakeholders in order to enhance the
University's reputation in the UK and overseas
To ensure the ongoing sustainability of the University
The University’s strategy is to continue to improve its global position, but it is already
highly rated by external assessors. It is ranked:

5th out of 120 UK universities: Guardian’s University League Table 2013

6th out of 116 UK universities: The Complete University Guide 2013

124th out of 400 global institutions: Times Higher Education World University
Rankings 2012-2013 (and 12th of those under 50 years old)

58th of 872 global institutions in the QS World University Rankings 2012-13.
Economic profile of the region and the local economies
The West Midlands
The region has
above average
employment in
manufacturing and
below average
productivity
The West Midlands generated almost £91 billion Gross Value Added (GVA)18 in 2009
which accounts for 7.4% of the total UK GVA:

manufacturing accounted for 15% of the total GVA, greater than the average
for the UK as a whole. The second largest contributor to GVA in 2009 was
Wholesale and Retail Trade.

historically, the West Midlands is associated with lower productivity
compared to the UK as a whole and the gap has widened since 2001. Labour
productivity was the third lowest of the 12 UK regions and Devolved
Administrations.
The West Midlands is home to just under 209,000 businesses employing just over 2.3
million people (2011)19.:
The University of Warwick, University Strategy, March 2011. http://www2.warwick.ac.uk/about/vision2015
GVA is a measure of economic output of a region. It measures the contribution to the economy of each
individual producer, industry or sector in the United Kingdom.
19 ONS, 2012. http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-254601
17
18
12
R&D spend by
businesses is also
average
The region has
successfully
attracted inward
investment

the West Midlands has undergone economic restructuring over two decades
with relative shares of employment and wealth generation shifting from
manufacturing to service sectors

the West Midlands spends less on R&D compared to most other regions (£1.2
billion in 2008), with higher education institutions accounting for 27% of the
total

the West Midlands Observatory20 reports that the region has a weaker private
sector than other parts of the country. There is also a ‘Poorer representation
of higher value added activities and high growth firms with the potential to
create new, skilled jobs.

a more positive picture is found in terms of inward investment with 79 inward
investment projects recorded in 2011/12. These have created a total of 5,780
new jobs and safeguarded a further 5,391 jobs21. The United States, Germany
and India were the top investing countries in terms of projects but India
created most jobs (2,290).
Coventry & Warwickshire
The University campus straddles the Coventry City-Warwickshire boundary. The local
economy exhibits:
Activity in the local
economy is
concentrated in
Coventry

in 2011 the business population in Coventry & Warwickshire was 35,840
employing a total of 399,500 individuals (2011)22.. Coventry, the urban
centre, has the highest number of employees, 138,758. North Warwickshire
has only 38,888 employees, reflecting its rural setting.

the largest business sector in Coventry and Warwickshire in 2011 was the
Professional, Scientific and Technical sector, accounting for 5,570 businesses.
Other notable sectors are Construction, Retail, Business Administration and
Support Services.

business start-up rates for Coventry and Warwickshire are similar to England
averages over the period 2004-2009. There is, however, a significant
difference between Coventry and Warwickshire. Coventry had 35 new
business start-ups per 10,000 people on average; Warwickshire was notably
higher with 51.9.
The current study
The current study is
wide ranging
covering economic,
social and cultural
impacts of the
University
This purpose of this independent study is to report on the local and regional impacts
of the University in the widest possible sense and to capture the economic, social and
cultural value of the University’s activities and outputs. It is not within the scope of
http://wmro.wordpress.com/category/research/innovation/
Regional Observatory, Marketing Birmingham, Inward Investment in West Midlands, 2012.
http://www.marketingbirmingham.com/regional_observatory/business_economy/
22 Ibid.
20
21
13
the study to provide a catalogue of external relationships and activities; rather it
examines local and regional impacts under four headings:

direct and indirect expenditure and employment impacts

research, innovation and business engagement

civic role and public engagement

global presence and connections.
These impact channels provide the framework in which the data and information23
has been gathered and analysed for this study. The nature of the data and the impacts
themselves, mean that it is not possible to monetise or quantify all impacts. In view of
this, our overall approach has been to:

monetise/value impact where possible

quantify where possible

catalogue and describe where neither valuation nor quantification is possible
(or appropriate).
Definition of geographical areas
Data has been
analysed at regional
and a number of
sub-regional levels
The geographical and spatial scope of the University’s impacts varies according to its
activities, outputs and purposes. The data and information are analysed at specific
geographic levels. The post code data for relevant geographies were sourced from the
mapping software - Geographic Information System (GIS)24. The following areas are
covered in the analysis25:

Coventry City

Warwick district

Leamington Spa

Kenilworth

Coventry & Warwickshire

Rest of the West Midlands

West Midlands

Rest of the UK

Other (Abroad).
The study encompassed a desk review of data and literature and consultations with staff from the University
of Warwick and some external organisations that have engaged with the University.
24 GIS uses post-code data from the Post Office. http://www.esri.com/what-is-gis.
25 In some cases post-codes overlap local authority boundaries. Where this is the case, we have used our
judgement to allocate a post-code to a specific area.
23
14
Local authority district (LAD) boundaries as defined by the Office for National
Statistics (ONS) were used to make-up the Coventry & Warwickshire sub-region and
the rest of the West Midlands. These are identified in Table 1-1.
Table 1-1: Local authority districts for Coventry & Warwickshire and rest of the West
Midlands
Geographic
area
Local authority districts
Coventry &
Warwickshire
Coventry; North Warwickshire; Nuneaton & Bedworth; Rugby; Stratfordon-Avon; and Warwick
Rest of West
Midlands
Birmingham; Bromsgrove; Cannock Chase; Dudley; east Staffordshire;
Herefordshire County of; Lichfield; Malvern Hills; Newcastle-under-Lyme;
Redditch; Sandwell; Shropshire; Solihull; South Staffordshire; Stafford;
Staffordshire Moorlands; Stoke-on-Trent; Tamworth; Telford and Wrekin;
Walsall; Wolverhampton; Worcester; Wychavon; Wyre Forest.
Source: Office for National Statistics: http://www.ons.gov.uk/ons/index.html
For the purposes of this study and specifically for calculating the expenditure and
employment impacts, the Coventry and Warwickshire sub-region is considered as
local impact and West Midlands as regional impact.
Format of the report
The remainder of this report is structured as follows:

chapter 2: presents the key results from the direct and indirect expenditure
and employment impacts associated with the University and its students.

chapter 3: discusses engagement with businesses and public sector
organisations in the area. It focuses on research and innovation but other
impact channels are also discussed.

chapter 4: presents the civic role and public engagement dimension of the
University including civic engagement, raising aspirations and achievements
through widening participation and outreach initiatives; providing services to
the community; and cultural and sporting.

chapter 5: discusses the global presence and connections of the University in
terms of its international role, in particular international students; research
collaborations and international alliances.

a detailed explanation of the derivation of the expenditure and employment
impacts is presented in annex A and student data in annex B.
15
2. Direct and indirect expenditure
impacts
£270 million local (Coventry and Warwickshire) expenditure by the University
of Warwick and students, £306 million expenditure in the region
£351 million local impact after allowing for multiplier effects and £520 million
regional impact
Direct employment at the University of 4,009 jobs (FTEs) for residents of the
local area, and 4,425 jobs (FTEs) for residents of the region
Indirect and induced employment impacts are 6,910 jobs (FTEs) for residents
in the local area, and 11,069 jobs (FTEs) for residents in the region.
The University as a major economic entity in the region
We adopted a
conventional
multiplier approach
to estimating the
impacts of
expenditure by the
University its staff
and students.
The University, its staff and students contribute to the economic impact generated
locally and regionally. Our approach to calculating these impacts involved analysing
the University’s payroll and purchases; Students’ Union payroll and expenditure; and
student expenditure. These are assessed at the level of the local economy (Coventry
& Warwickshire sub-region) and regional economy (West Midlands)26. We also assess
these impacts separately for the areas of Coventry, Leamington Spa and Kenilworth.
Aside from the direct spending, there is also re-spending in the local and regional
economy. For instance: staff will spend some of their wages in the economy,
generating further employment and business; any purchases made will create
employment in suppliers (indirect effects); and these employers will receive wages to
spend in the local and regional economies (induced effects). These ‘knock-on effects’
are commonly estimated using ‘multipliers’.
The full geographic breakdown for the expenditure impact analysis can be found in Annex A and includes:
Warwick LAD; Coventry LAD; Coventry & Warwickshire; Rest of West Midlands; West Midlands; Rest of UK; and
where relevant abroad.
26
16
Figure 2-1: Impact of the University of Warwick arising from expenditure
Steps in estimating impacts
We developed a model to calculate the impact on the local and regional economies.
This embodied a number of assumptions, evidenced from secondary sources and in
some cases our own judgement on the data and information available. The stages in
the impact calculations with all the data and assumptions we used are detailed in
Annex A. Our calculations have assumed that students, and the associated expenditure,
would not have gone to other HEIs in the region if they had not attended the University
of Warwick.
A summary of the main steps in estimating impacts and key results are set out below27.
All expenditure
associated with the
University has been
included
Student expenditure
estimates are based
on a DIUS survey

payroll expenditure - the University supplied (anonymised) payroll data for
2011-12. This data covered all staff (excluding Students’ Union staff) and
included: number of full-time equivalent staff; gross and net pay; postcode of
residence where available. Using these data we calculated pay of staff by place
of residence

University purchases – the University supplied purchasing data for 2011-12.
This included values and postcode location of suppliers as well as the number
of vendors. We analysed the location of expenditure

Student’s expenditure – the University provided data on headcount of students
for 2011-12 and their postcode locations. The figures for expenditure per
student were based on the study by the (then) Department for Innovation
There are some uncertainties on the data used in our calculations. This is attributable to practical reasons
(e.g. the nature and availability of data supplied by the University) and methodological reasons (e.g. values for
multiplier effects can vary). Therefore, the results reported here should be treated as ‘indicative’.
27
17
Universities and Skills (2009) Student Income and Expenditure Survey
2007/0828. A number of assumptions were made in estimating student
expenditure, all of which are detailed in Annex A. Details of students numbers
by resjdence can be found in Annex B.
Multipliers are based
on a review of the
literature and are
similar to those used
in other regional
impact studies

Students’ Union – the University provided data on Students’ Union expenditure
and payroll for 2011/12 along with postcode data. We analysed these
expenditure and payroll data and broke it down by geographic area.

indirect and induced impacts – to estimate the indirect and induced impacts,
we took into account research evidence published by the Department for
Business, Innovation and Skills (2009)29 on multipliers as well as evidence
from Universities UK (2010)30. The BIS research was considered because
multiplier values were available at a sub-regional and regional level, based on
extensive evaluation data across a range of intervention types. The
Universities UK research was considered because of its applicability to the
university sector and availability of a multiplier value for West Midlands.
These sources helped inform our own judgement on arriving at multiplier
values (local and regional) which we consider to be reasonably conservative,
but appropriate for calculating the knock-on effects from the direct impacts
associated with the University and students. These multiplier values do not
differ significantly from those used in other regional expenditure studies. See
Annex A for further details on multiplier values.

employment impacts – to estimate further jobs created by the expenditure
from the University, Students’ Union, and students, a Gross Value Added (GVA)
per filled job31 for the West Midlands region was applied. This was sourced
from the Office for National Statistics (ONS)32.
Impact estimates
Expenditure
The impact of expenditure are summarised in Figure 2-2. Full details about how these
and other results reported in this section were calculated can be found in Annex A.
http://www.bis.gov.uk/assets/BISCore/corporate/MigratedD/publications/D/DIUS_RR_09_05.pdf. The
survey estimates average expenditure of £13,452 per annum by full-time students and £18,042 by part-time
students. These have been adjusted for: inflation; payments to the University (which are counted in University
expenditure); and non-residence in the area outside term time.
29 Department for Business, Innovation & Skills, (October 2009) BIS Occasional Paper No. 1, Research to
improve the assessment of additionality. http://www.bis.gov.uk/files/file54063.pdf
30 U. Kelly, D. McLellan, Iain McNicoll, The University of Strathclyde for Universities UK (2010), Making an
economic impact: Higher education and the English regions.
http://www.nwua.ac.uk/Publications/Reports/Docs/Making%20an%20economic%20impact%20%20Higher%20education%20and%20the%20English%20regions%20(June%202010).pdf
31 According to the ONS, GVA per filled job is the most appropriate measure of regional/sub-regional
productivity. This measure only counts the input of those who are directly employed in the production process
(rather than the population as a whole) and additionally provides a workplace based labour input denominator
to match the workplace based GVA numerator, thus fully accounting for the impacts of commuting. See for
example: http://www.ons.gov.uk/ons/dcp171766_260413.pdf
32 Office for National Statistics (2013), Regional Economic Indicators, GVA per filled job.
http://www.ons.gov.uk/ons/search/index.html?newquery=gva+per+job
28
18
Figure 2-2: Impact of expenditure, 2011/12
Local
(Coventry &
Warwickshire)
Regional
(West Midlands)
Direct impact of
expenditure
£270.1m
£306.0m
Direct, indirect,
induced impact
of expenditure
(incl.multipliers)
£351.1m
£520.2m
Direct expenditure in
the West Midlands
was £306m in
2011/12
Allowing for indirect
and induced effects
as well as direct
expenditure, the
University generates
£520m per year in
expenditure impacts
in the West Midlands
Source: SQW calculations using University of Warwick data.
The impact from all the different types of expenditure are summarised in Table 2-1.
Table 2-1: Direct impact of expenditure, 2011/12
Local impact
(Coventry and
Warwickshire) in £millions
Regional impact (West
Midlands) in £millions
University payroll
£85.2m
£95.2m
University purchases
£47.5m
£68.6m
Students’ Union payroll
£2.0m
£2.2m
Students’ Union purchases
£1.2m
£1.5m
Student expenditure
£134.2m
£138.5m
Total impact
£270.1m
£306.0m
Source: SQW calculations using University of Warwick data.
Taking into account expenditure impacts on staff and purchases made by the
University and Students’ Union, and the expenditure made by students, gives the
following total direct impacts for 2011/12:

£270.1 million direct local impact

£306.0 million direct regional impact.
Applying local and regional multipliers to the direct impacts gives the results
presented in Table 2-2.
Table 2-2: Direct, indirect and induced impacts of expenditure (i.e. including multipliers),
2011/12
University payroll
Local impact (Coventry
and Warwickshire) in
£millions
Regional impact (West
Midlands) in £millions
£110.7m
£161.8m
19
Local impact (Coventry
and Warwickshire) in
£millions
Regional impact (West
Midlands) in £millions
University purchases
£61.7m
£116.6m
Students’ Union payroll
£2.6m
£3.8m
Students’ Union purchases
£1.6m
£2.5m
Student expenditure
£174.4m
£235.5m
Total impact
£351.1m
£520.2m
Source: SQW calculations using University of Warwick data.
Taking into account re-spending in the local and the regional economies, gives the
following total impacts for 2011/12:

£351.1 million local impact (direct, indirect and induced)

£520.2 million regional impact (direct, indirect and induced).
Table 2-3 below provides a summary of both the direct and indirect and induced
impact through multiplier effects which the University has at a local and regional scale.
The sub-regional economy of Coventry and Warwickshire generated total GVA of
£16.8bn in 2008 so the University of Warwick is an important contributor of
expenditure and employment in Coventry and Warwickshire as well as the rest of the
West Midlands.
Table 2-3: Summary of total impact of expenditure, 2011/12
Local impact (Coventry
and Warwickshire) in
£millions
Regional impact (West
Midlands) in £millions
Direct impact
£270.1m
£306.0m
Indirect and induced
impact
£81.0m
£214.2m
Total impact
£351.1m
£520.2m
Source: SQW calculations using University of Warwick data.
Employment
There is a direct impact from providing employment for people from the surrounding
area, working at the University or the Students’ Union. However, due to the additional
expenditure by the University, Students’ Union and the student themselves, further
jobs are created within the local and regional economy to provide the goods and
services to support the demand from the university. In order to estimate this impact,
it is necessary to take the overall impact of the University’s expenditure and calculate
how many jobs this equates to at a local and regional scale using GVA per filled job,
sourced from the Office for National Statistics. The direct jobs and those created
through further expenditure impacts are summarised below.
20
Figure 2-3: Summary of jobs impact, 2011/12
The University (incl.
Students’ Union)
directly employed
4,425 people (FTEs)
in 2011/12. Further
FTE jobs generated
through expenditure
impacts: 6,190 in
Coventry and
Warwickshire and
11,069 in West
Midlands
Direct jobs at the
University (incl.
Students' Union) to
residents of the region
Extra jobs created in the
local area (Coventry &
Warwickshire)
Extra jobs created in the
region (West Midlands)
4,425
6,910
11,069
Source: SQW calculations using University of Warwick data, based on full time equivalents (FTEs).
The direct employment impacts (University and Students’ Union) in 2011/12 equate
to:

4,009 FTE jobs to residents of the local area

4,425 FTE jobs to residents of the region.
The extra jobs created as a result of expenditure associated with the University and
the Students’ Union in 2011/12 equate to:

6,910 FTE jobs to residents in the local area

11,069 FTE jobs to residents in the region.
Impacts for Coventry, Leamington Spa and Kenilworth
Based on the methodology described above we also assessed impacts relating to
Coventry33, Leamington Spa34 and Kenilworth35. We summarise the results below.
Expenditure
The results indicate the following estimates of impacts for 2011/12:
Coventry covers local authority district area
Leamington Spa covers wards: Clarendon, Crown, Manor, Milverton, Brunswick and Willes.
35 Kenilworth covers wards: Abbey, Parkhill and St Johns.
33
34
21
Figure 2-4: Impact of expenditure, 2011/12 – Coventry, Leamington Spa, Kenilworth
Direct, indirect and
induced expenditure
of: £223m in
Coventry, £84m in
Leamington, and
£20m in Kenilworth.
Coventry
Leamington
Spa
Kenilworth
Direct impact of
expenditure
£171.2m
£64.3m
£15.7m
Direct, indirect,
induced impact
of expenditure
(incl.multiplier)
£222.5m
£83.6m
£20.4m
Source: SQW calculations using University of Warwick data. .
The breakdown of the different types of expenditure is presented Table 2-4.
Table 2-4: Direct impact of expenditure, 2011/12
Coventry
Leamington Spa
Kenilworth
University payroll
£40.2m
£12.4m
£12.3m
University purchases
£26.8m
£1.8m
£1.3m
Students’ Union payroll
£1.3m
£0.5m
£7.5k
Students’ Union purchases
£1.1m
£10.8k
£2.8k
Student expenditure
£101.8m
£49.7m
£2.2m
Total impact
£171.2m
£64.3m
£15.7m
Source: SQW calculations using University of Warwick data. N.B. Total figures may not sum due to rounding.
Applying the same local multiplier as before to the direct impacts gives the results
presented in Table 2-5 below.
Table 2-5: Direct, indirect and induced impacts of expenditure (i.e. including multipliers),
2011/12
Coventry
Leamington Spa
Kenilworth
University payroll
£52.3m
£16.1m
£15.9m
University purchases
£34.8m
£2.3m
£1.7m
Students’ Union payroll
£1.6m
£0.7m
£9.8k
Students’ Union purchases
£1.4m
£14.0k
£3.7k
Student expenditure
£132.3
£64.6m
£2.8m
Total impact
£222.5m
£83.6m
£20.4m
Source: SQW calculations using University of Warwick data. N.B. Total figures may not sum due to rounding.
22
Employment
3,177 direct jobs
(FTEs) generated to
residents of
Coventry,
Leamington Spa and
Kenilworth
Further 6,805 jobs
(FTEs) generated
through expenditure
impacts in the areas
of Coventry,
Leamington Spa and
Kenilworth
The extra jobs created as a result of expenditure associated with the University and
the Students’ Union in 2011/12 for Coventry, Leamington Spa and Kenilworth are
summarised in Figure 2-5.
Figure 2-5: Summary of total impact on jobs, 2011/12 - Coventry, Leamington Spa and
Kenilworth
Direct jobs at the
University (incl.
Students' Union) to
residents of Coventry,
Leamington Spa and
Kenilworth
Extra jobs created in
Coventry
Extra jobs created in
Leaminton Spa
Extra jobs created in
Kenilworth
3,177
4,739
1,852
214
Source: SQW calculations using University of Warwick data, based on full time equivalents (FTEs).
Concluding comments
Expenditure by the University and its staff and students gives rise to over £520m
expenditure in the West Midlands after allowing for indirect and induced effects. This
reflects the importance of the University as an economic entity. The majority of these
impacts are in Coventry and Warwickshire, and in particular the former, but impacts
in the rest of the West Midlands are also significant.
We estimate that this expenditure, combined with direct employment by the
University, generates around 15,500 jobs (FTEs) in the West Midlands. The
distribution of these jobs reflects expenditure impacts, but Coventry and
Warwickshire also benefit from direct employment by the University.
23
3. Research, innovation and
engagement with businesses and other
organisations in the region
This chapter focuses on the contribution the University is making to the effectiveness
and efficiency of local organisations in both the private and public sectors. Many of
these contributions are based on the research strengths of the University, but impacts
also arise through the provision of high level skills, training, business support and new
enterprise development and these are also discussed.
Research at the University of Warwick: An overview
£86m research grants and contracts undertaken in 2010/11
The University is
intensively engaged
with businesses in
the UK and abroad

£40m funded by the research councils and charities 36

£5m research contracts with business

£34m research contracts for public sector organisations (including health
authorities)

£6m from EU research programmes

£1m from other sources
Ranked 7th in the UK in the 2008 Research assessment Exercise
Local and Regional partners in 2010/11 accounted for
Warwick is a leading
UK research
intensive university
with a global
reputation

£9.1m research

£0.6m consultancy

£1.8m for the use of facilities and equipment

£1.9m for continuing professional development (CPD).
Producing high quality research has been a strategic driver for Warwick almost since
its establishment and it has quickly established pre-eminence amongst those
universities established in the 1960s. Research strengths continued to develop during
the 1970’s and 80’s and Warwick is now one of the leading research universities in the
UK with a global reputation. Research underpins much of the economic impacts which
the University generates, through:
36
Charities which provide research funding on a competitive basis.
24

developing new knowledge which is transferred to businesses and other
organisations

creating intellectual property which is commercialised through spin-outs and
licensing

training post graduate students and post doctorates.
Total research
grants and contracts
amounted to £86m
in 2010-11
In 2010-11 the University secured just over £86m in research grants and contracts,
the 17th highest research income of any UK university and larger than many with
substantially more students. As well as volume, Warwick scores highly on quality. The
Research Assessment Exercise (RAE) evaluates the quality of research in UK
universities and was last conducted in 200837. Although the data is now over four
years old, research strengths are unlikely to have changed significantly since then.
Universities decide which staff to submit to the RAE and almost 90% of eligible staff
were submitted by Warwick. The RAE does not provide a ranking of Universities, but
a ranking can be constructed on certain assumptions. The University’s own
calculations place it 7th in the UK and top in the Midlands38.
In 2010-11,
contracts with
organisations in the
West Midlands were
worth £12.2m
Table 3-1 shows the total value of funding from organisations in the West Midlands
was £12.2m and 78% was with organisations based in Coventry and Warwickshire.
These funders include health authorities and other public sector organisations rather
than just businesses, but in all cases we can interpret the figure as a minimum39 value
that the funder placed on the working with the University.
Almost 80% of
partners are based
in Coventry or
Warwickshire
Table 3-1: External funding 2010-11 (£m)
Coventry and
Warwickshire
Other West
Midlands
Total West Midlands
Research
7.3
1.841
9.14
Continuing
professional
development
(CPD)
0.51
0.091
0.6
Consultancy
0.21
0.351
0.56
Facilities
1.551
0.3
1.85
Total
9.57
2.58
12.15
Source: SQW based on University of Warwick data.
The RAE will be replaced by the Research Excellence Framework (REF) in 2014.
Specialist institutions active in a few subjects or a narrow range of disciplines are excluded from this
comparison.
39 On the basis that the organisation might have been willing to pay more, but would not have entered into the
contract unless it expected to derive benefits at least equivalent to the cost.
37
38
25
Collaboration with business and public sector organisations
WMG

close partnership with Jaguar Land Rover includes: 180 JLR R&D staff on
campus; The National Automotive Innovation Campus with £92m
investment from JLR, the Government and Tata

led the Premium Automotive Research and Development Programme
(PARD). Assisted 605 businesses and generated £55.5m in value added;
safeguarded 5,496 jobs
Warwick Medical School

research excellence has attracted a range of private sector partners,
leading to substantial inward investment and improved public health
outcomes

Clinical Trials Unit established at a cost of £400m

recruitment of 80-100 additional research staff projected over 2-3 years
Warwick Business School

one of the world’s top business schools for teaching and research quality

Behavioural Science Group established in 2010, is the biggest institution
of its type in Europe and works in partnership with the University Hospitals
of Coventry and Warwickshire NHS Trust

new £2.9m Enterprise Research Centre to be hosted by Warwick Business
School and Aston Business School

active dissemination of research to local firms
Science City Research Alliance

over £70m funding in the Region

created or safeguarded over 270 jobs.
The data presented in the previous section indicates the scale of the University’s
involvement with local and regional organisations, and therefore the value that these
organisations place on the University, but it tells us comparatively little about the
nature of these interactions or the actual benefits. We discuss below some specific
activities which illustrate how the research capabilities of the University are
generating benefits within the Region. It focuses on a number of units and initiatives,
including the Warwick Manufacturing Group (WMG), the Warwick Medical School
(WMS), the Warwick Business School (WBS), and Science City Research Alliance
SCRA).
26
Warwick Manufacturing Group
WMG is dynamic
and innovative
organisation which
has established a
global reputation for
working with industry
WMG has received
financial and other
support from the
University since its
establishment
WMG, originally the Warwick Manufacturing Group, was established in 1980 and is
one of the best known initiatives undertaken by the University. It currently employs
around 450 staff, the majority funded by external grants and contracts with an annual
budget of just over £120m. WMGs scale alone would lead to an international profile,
but it quickly established an international reputation for the quality of its activities
and for innovative ways of working with industry. The latter included:

a recognition that effective management of technology was essential to its
successful exploitation and a determination to address management issues as
well as the development of new technologies. In the 1980s this distinguished
it from many engineering departments in the UK.

the co-location of university and company R&D staff. In the 1980s WMG
established the Advanced Technology Centre on-campus which hosted
researchers from Austin Rover, British Aerospace, and other companies, as
well as WMG staff. This was one of the first UK examples of ‘embedded
laboratories’ which have become more common in the last 10 years or so.
WMG leadership has been innovative and dynamic, but the University also played an
important role in WMG’s development. It provided up-front support during WMGs
establishment for what was, at the time, a new and relatively untested way of working
with industry.
Working with Jaguar Land Rover
WMG has especially
close relationships
with the automotive
sector; JLR is a
major partner
WMG has had close relationships with the automotive sector in the West Midlands
since it was established and these have continued through restructuring and
ownership changes in the sector. It currently works closely with Jaguar Land Rover
(JLR), (and also with JLR’s parent, Tata). The relationship with JLR encompasses the
location of 180 R&D staff from the company on-campus and this is part of the
company’s strategy to triple vehicle production in the UK. JLR has committed to
£100m of collaborative research over the next ten years; which will be equally funded
by JLR, the University and public sources (such as the Engineering and Physical
Sciences Research Council and the Technology Strategy Board). JLR R&D staff was
located close to the University before the new arrangement, and there were
constraints on expansion at the previous R&D Centres, but the company expects there
to be real benefits from co-location with WMG.
"One of the reasons we are at WMG is that we have a saying at
Jaguar Land Rover – not all the clever people work for us," - Tony
Harper, head of research and advanced system engineering at JLR.
Other relationships
have followed from
research
collaborations
Research collaboration is key to the future relationship and will focus on aluminium
alloys, controls for hybrid cars, battery technology and advanced entertainment
systems. But there are other local impacts arising from the relationship:

JLR is funding a new Chair at WMG as a key element in its strategic relationship
with Warwick. The Chair will lead a new team working to achieve
27
international research leadership in key hybrid/battery electric vehicle digital
product innovation.

Plans to establish
National Automotive
Innovation Campus
on the University
campus announced
in late 2012. £92m
investment from
public and private
sources
JLR has secured £70m funding from the Regional Growth Fund (RGF) which
will support company R&D projects. Some of these funds will, directly or
indirectly, support research at WMG. But, WMG also worked with JLR on
preparing the bid. WMG has an excellent understanding of government
requirements in such bidding processes and, we understand, materially
enhanced the bid.
A major new initiative, the National Automotive Innovation Campus (NAIC), was
announced in October 2012. This will be a £92m investment by the Government, JLR
and Tata Motors European Technical Centre. NAIC will be jointly managed by WMG,
Tata and JLR. The investment will support additional R&D but the aim is to bring to
integrate and build on the various activities described, including under and post
graduate education and the University Technical College40.
The Premium Automotive Research & Development (PARD)
WMG led PARD
which aimed to
improve the design
and manufacturing
capability of the
West Midlands
automotive supply
base
The JLR association is the most recent high profile collaboration but there have been
other interesting initiatives in addition to the very earliest collaborations with the
automotive sector. The Premium Automotive Research & Development (PARD) was
a £72m programme launched in 2003 with the purpose of improving the design and
manufacturing capability of the West Midlands automotive supply base. AWM, the
now defunct RDA, provided £38m funding and at one time 120 professional engineers
and academics worked on nineteen separate projects within WMG with 200 active
partner companies contributing personnel and resources. PARD assisted 605
businesses, mainly in the region, and is estimated to have generated £55.5m in value
added41. Almost 5,500 jobs were safeguarded. JLR was also involved in PARD and
succinctly summarised the benefits of the programme:
"It is important in today's highly competitive automotive market
that we are able to offer a significantly differentiated product. To
meet that demand we need to be able to draw on a wide range of
specialist suppliers who understand the challenge. Before PARD it
might have been difficult to guarantee that those suppliers would
be available to us within the UK. Now we can say with confidence
that the skills and capabilities we need are right here and
accessible. Al Kammerer, director of product development JLR.
WMG’s contribution
to the region extends
beyond the
automotive sector
These examples have focused on the automotive sector, but WMG has also been
successful recently in establishing centres in related areas which will benefit the
region:

40
41
WMG centre High Value Manufacturing Catapult. This is the first Catapult
established and WMG is one of six research partners. The Catapults are
funded by the Technology Strategy Board and involve collaborative research
See Chapter 4
AWM evaluation of PARD.
28
with businesses. WMG's focus within the Catapult is on the international
challenge of Low Carbon Mobility.
WMG’s success
demonstrates and
reflects: support and
commitment from
the University; how
research of
international
standards can
generate local
benefits; how
research
relationships can be
a platform for other
interactions

Institute of Digital Healthcare (IDH). A £4m centre set up in partnership with
NHS West Midlands, WMG and Warwick Medical School (WMS). The IDH aims
to improve people's health and wellbeing through the use of innovative digital
technologies.

The International Digital Laboratory. A multi-disciplinary research centre,
originally supported by AWM, combining WMG’s expertise with that in
underpinning sciences including psychology, medicine, computer science and
mathematics. Businesses wishing to engage in hi-tech R&D are encouraged to
come and discover the potential for cost-effective research at the Laboratory.
Small and medium sized businesses (SMEs) in the West Midlands can access
expertise and leading-edge technology free of charge.
WMG is, by any standards, an impressive organisation and we believe it illustrates a
number of more general issues concerning the University of Warwick:

the University supported WMG’s establishment at a time when it represented
a radical departure from traditional HEI-industry relationships in the UK, and
was relatively high risk.

WMG is concerned with internationally leading edge research, albeit with the
expectation of short to medium term impacts. This is essential for it to work
with global corporations, but these relationships generate benefits and
opportunities for less technically sophisticated (and smaller) businesses via
supply chain linkages.

we believe that research relationships are key to WMG, but these have proved
to be a platform for other initiatives which bring local benefits, for example
the University Technical College42 (UTC) and the Advanced Skills
Accreditation Scheme43 (ASAS).

WMG has demonstrated the potential benefits of cross-departmental
collaboration, where required, for example, the Institute of Digital Health Care
and the Digital Lab.
Warwick Medical School
Over 400 academic
staff and ranked
10th in the UK for
the quality of Health
Services Research
Warwick Medical School was established in 2000, in partnership with the University
of Leicester. In 2007 the School was granted independent degree awarding powers,
marking the end of this partnership. Today the School employs over 400 academic
staff and is ranked 10th in the UK for the quality of Health Services Research.
Focus on leading
edge research with
real world
applications
The School has a strong culture of cross-departmental working, and actively pursues
the application of research in a real world context. Its research excellence has
42
43
See Chapter 4
Described later in this chapter
29
attracted a range of private sector partners, leading to substantial inward investment
and improved public health outcomes. The Warwickshire Institute for Diabetes,
Endocrinology and Metabolism (WISDEM) is a unique collaboration between the
Medical School, the University Hospitals Coventry and Warwickshire NHS Trust and
Danish pharmaceutical company Novo Nordisk. Funding from Novo Nordisk has been
used to provide a hub for healthcare professionals to benefit from access to cutting
edge research on the treatment of obesity and diabetes, and the opportunity to actively
participate in the development of new treatments and approaches.
New Clinical Trials
Unit established and
credited with raising
standard of patient
care in the Region
Since 2000, the School has developed a close working relationship with the University
Hospitals Coventry and Warwickshire NHS Trust and others including the South
Warwickshire Foundation Trust, George Eliot, Coventry and Warwickshire
Partnership Trust, Birmingham and Solihull Mental Health Trust and the Heart of
England Foundation Trust. As well as supplying a flow of high quality medical
graduates, 178 students each year, the School has developed strong
research/commercial relationships. In 2009 the Clinical Trials Unit building was
completed at Gibbet Hill at a cost of £400m. The Unit now boasts 24 separate trials
across its four major work streams of musculoskeletal conditions including injury
prevention and management, cancer, clinical trials methodology and systematic
reviews. This resource is also credited with raising the quality of clinical practice in
the local area.
Plans for continued
growth
This steady rate of growth is set to continue over the next five years or so as the
University seeks to develop its research credentials through collaboration with
Universities across the West Midlands, and indeed the UK as a whole. Over the next
two or three years, the recruitment of 80-100 additional research staff is projected as
a result of investment in biomedicine, Health Sciences and Mental Health and
Wellbeing and a new partnership between WMS and the Liverpool School of Tropical
Medicine44.
Warwick Business School
A leading UK
business school with
global recognition
Over the last 40 years, Warwick Business School has developed into one of the world’s
top business schools for teaching and research quality. The school is now consistently
in the top ten business schools in the UK, and in 2012, the Financial Times placed the
schools MBA programme in the top 4 nationwide. Forbes ranks the School’s MBA
programme the 8th best programme offered outside of the US. WBS works closely
with other schools and departments. Collaboration with the Medical School, for
example, was important in securing investment from Advantage West Midlands to
establish Science City (discussed below).
An example of cross
disciplinary working
for the public sector
In recent years, this commitment to world-class research has been showcased through
the Behavioural Science Group. Established in 2010, this Group focusses on the
interaction between the natural and social science approaches to understanding
behaviours such as decision-making and rationality. The biggest institution of its type
in Europe, the Group was recently successful in winning support from the Design
44
Liverpool School of Tropical Medicine: http://www.lstmliverpool.ac.uk/
30
Council to explore how hospital design can influence the levels of violence experienced
by staff. Working in partnership with the University Hospitals of Coventry and
Warwickshire NHS Trust, the initiative stands to benefit not only staff and patients
across Coventry and Warwickshire, but the UK as a whole. The strength of the
partnership is demonstrated by the decision to permanently locate a member of staff
in the Council’s London offices.
Establishment of an
Enterprise research
centre with external
funding
The School also has a strong history of working with national, regional and local
partners to develop the evidence base around enterprise and entrepreneurship, to
ensure that business leaders are better able to meet the challenges of an ever changing
marketplace. This is demonstrated by the recent decision by the Department for
Business, Innovation and Skills45, the British Bankers Association46, the Economic and
Social Research Council47 and the Technology Strategy Board (TSB)48 to invest in a
new £2.9 million Enterprise Research Centre to be hosted by Warwick Business School
and Aston Business School.
Active dissemination
of research to local
businesses
WBS undertakes commissioned research for individuals and groups of businesses but
also actively disseminates research findings to regional organisations through a
number of channels including:

The Warwick Breakfast Series in Birmingham. Meetings are addressed by WBS
senior staff and external authorities. These are fee events open to senior
managers in medium and large businesses or local government.

The Warwick Business Growth Network provides a forum for (SME) business
owners to share ideas, experience and best practice and to access leading edge
research. It developed from the Business Innovation and Growth Alumni
Group comprised of owners who had attended an educational programme at
WBS. It is based in the Enterprise Hub. There are two levels of membership:
full, for those who have paid for a programme at WBS and costing £300 per
year; and associate for those nominated by a member and costing £150.
Science City Research Alliance (SCRA)
A partnership with
the University of
Birmingham
supported by the
Regional
Development
Agency and others
Direct impacts on
employment in the
Region
SCRA is a partnership between the Universities of Warwick and Birmingham. It was
catalysed through an initial grant of £10m from Advantage West Midlands, and £1m
from the Wolfson Foundation, for staff and set-up costs. A further £57m investment
in the regional research infrastructure has also been provided. The work of the
Alliance is focussed on three high-growth technology sectors: Energy, Advanced
Materials and Translational Medicine.
Work within the Energy Efficiency stream has focussed on research on new
technologies for use in buildings and vehicles. Since 2007 this work stream has
generated nearly £11m of research funding into the region, supporting the creation of
33 new jobs, and leading to the publication of over 90 peer-reviewed papers. Access
45Department
for Business and Skills: www.bis.gov.uk
British Bankers Association: www.bba.org.uk
47 Economic and Social Research Council: www.esrc.ac.uk
48Technology Strategy Board: http://www.innovateuk.org/
46
31
to high quality facilities and expertise has led to the development of a number of
ground-breaking regional (West Midlands), national and international partnerships
with private sector partners. At Warwick, this has been showcased through the
Alliance’s work with Cubewano, a Birmingham based high-tech manufacturing firm,
on optimising combustion in a new rotary engine.49 The output was subsequently
awarded the Birmingham Post Business Award for Manufacturing Science &
Technology in September 2010. On the back of this work an additional contract has
been signed with BMW.
The programme has
led to further
business-university
relationships
Research around the next generation of solar panels has led to a collaborative R&D
project with West Midlands based, automotive painting company - Paintbox50.
Subsequent to this initiative the company secured a contract with BMW. The
Managing Director of Paintbox spoke of the competitive advantage, he felt Paintbox
had derived from working with the Alliance:
“Paintbox has won a contract from BMW for the company’s
prestigious Rolls Royce operation. The contract is worth 100million
euros and will safeguard 100 jobs and create another 50. We won
the contract in competition with companies in Germany and we
believe that a significant factor that tipped the balance in our
favour was the relationship with the University of Warwick and our
access to the laboratory facilities of the Science City project.” James
Sharp, Managing Director, Paintbox
The Advanced Materials work stream has focussed on the creation, categorisation and
use of advanced materials such as nanoparticles and has led to nearly £12.5m of
additional research funding, supporting the creation of 28 new jobs and the
publication of 179 peer-reviewed papers. Access to high-tech equipment and facilities
was crucial to attracting US software firm 3C Software51 to Science City, as they sought
to understand the growth processes behind the development of superconducting
structures. The company hope that this collaboration will continue as this market
develops.
The third work stream is centred on Translational Medicine. The key objective in this
area has been to develop the clinical trials infrastructure to the extent to which
scientific advances can be effectively transferred into improved patient care. In close
collaboration with the Medical School, the Alliance was responsible for a £5m
investment in facilities resulting in the establishment of a new Clinical Trials Unit at
Gibbet Hill. The work stream has been responsible for attracting nearly £28m of
research funding into the region, nearly £11m of which can be attributed to projects
led by academics at the University of Warwick. Over 94 new jobs have been created
(49 attributable to Warwick) and academics have been responsible for producing over
200 peer-reviewed papers (51 attributable to Warwick).
The total impacts of SCRA, identified by independent evaluators are:
49
Cubewano: http://www.cubewano.com/
50Paintbox:
http://www.paintboxuk.com/?utm_campaign=applegate.co.uk&utm_medium=referral&utm_source=applegate.
co.uk
513C Software: http://www.3c.co.uk/
32
Leveraging of
additional
investment into the
Region

Jobs created: 258

Jobs safeguarded: 18

Business assists: 140

Knowledge base collaborations:138

Skills development: 1,141

Research funding leveraged: £13m

Businesses created or attracted: 9.
Investment in these high-tech facilities has been crucial, not only to research aimed at
improving public health in the region, but securing additional private sector
investment. For example, international digital and optical equipment manufacturer,
Olympus has recently paid for the installation of a cutting edge microscope in the
Centre for Mechanochemical Cell Biology. While Olympus52 has gained an opportunity
to rigorously test their product, clinicians have gained access to new technology to
assist them in making complex diagnoses. Through this project, Academics at
Warwick have been placed at the forefront of international research in this area. It is
hoped that as a result of this collaboration, Olympus will continue to increase its
presence in the West Midlands.
High level skills
23,226 alumni are resident in the West Midlands. They make up 3% of the West
Midlands population qualifies to NVQ level 4 and above
In the last 3 years. 19% of graduates were resident in the Region six months after
graduation
WBS provides

a one year Diploma in Applied Management attracted 50% of the students
from the West Midlands

It has developed long-term training partnerships with local employees
including: Warwickshire Fire and Rescue; Network Rail; Coventry City
Council; and Coventry and Warwickshire NHS Trust
WMG

52Olympus:
launched the Advanced Skills Accreditation Scheme (ASAS) offering
engineers the chance to develop green and future engineering skills /…
http://www.olympus.co.uk/
33

entered an agreement with Jaguar Land Rover to teach up to 600 Jaguar
Land Rover employees to degree level
In 2010/11, the University delivered £1.9m in Continuing Professional Education
to organisations in the Region
Warwick graduates
are high quality and
recognised as such
Many would argue that the principal economic (and social) impact of a university
arises through its role as an educator and trainer. There is a never ending debate on
the relationship between academic research and undergraduate teaching quality, but
it is certainly the case that Warwick’s research strengths are one factor explaining the
very high level of applications the University receives and, as a result, the quality of its
students and graduates. There is little doubt that research and post graduate
education are closely linked. The quality of Warwick graduates and postgraduates is
widely recognised and a recent survey of the UK's one hundred leading graduate
employers53 identified Warwick as the leading target for recruitment of all UK
universities.
Graduate retention
Provided there are suitable job opportunities, many graduates will stay in the area of
the university they attended as the social links they have established while studying
endure after graduation. Data on Warwick alumni shows that 23,226 graduates and
post graduates of the University are still resident in the West Midlands, almost 13,000
of these in Coventry and Warwickshire. In fact Warwick graduates account for 3% of
the West Midlands population with NVQ Level 4 qualifications and above, asignifcant
proportion of the highly skilled labour force.
The above figures reflect many years’ graduates and the University has expanded
rapidly in recent years. The trend has, however, continued. We analysed records of
just over 23,000 students who graduated from the University between 2008/09 and
2010/11. Alumni data enabled us to identify the current postcode residence of
graduates and this is presented in Figure 3-1.
53
High Flier Research January 2013 http://www.highfliers.co.uk/
34
Figure 3-1: Residence of Warwick graduates
4,500
2008/09
4,000
2009/10
Number of students
3,500
2010/11
3,000
2,500
2,000
1,500
1,000
500
0
Coventry &
Warwickshire
Rest of West
Midlands
Rest of UK
Overseas
Unclassified
Source: SQW analysis based on University of Warwick data.
Warwick graduates
are likely, over time,
to add significantly to
skills availability in
the Region
Over the last three years, 4,476 (19%) of graduates were living in the Region54. And
the proportion was approximately the same for each year’s cohort. This means that
the three year graduate output from the University, staying in the region, is
approximately 0.5% of all residents qualified to Level 4 and above. Although small in
relation to the stock, over time Warwick graduates are adding significantly to skills
availability in the Region.
Training for local companies
Warwick Business
School provides a
wide range of
programmes, both
with and without
credit
Warwick Business School, working in collaboration with Departments across the
University, offers a menu of education and training options for organisations across
the public, private and voluntary sectors. At the heart of the University’s offer is the
desire to share cutting-edge thinking and research with external partners. The School
is responsible for running a range of half-day sessions on critical business issues. Run
on a monthly basis, seminars alternate between the campus and the Institute of
Directors in London55. Recent events have included: ‘Developing your Brand for
Personal Success’ and ‘Exploiting Emotional Finance in Practice’. These events have
been well attended, and the School hopes to run the next series in a ‘business
breakfast’ format. This offer is supplemented with a range of formal and ad hoc. For
example, recent work with the Bank of England has placed the school in a position to
offer quarterly briefings to coincide with the Banks quarterly inflation report56. With
growing interest from local firms in this type of intelligence, it is hoped that these
sessions can become part of the School’s staple offer.
54
At least six months after graduation.
of Directors: http://www.iod.com/
55Institute
56
Bank of England: http://www.bankofengland.co.uk/Pages/home.aspx
35
Creation of a
network for Regional
employers
A demand by West Midlands employers to access research expertise of the University
has led to the creation of an Executive Network57. Members are able to work with staff
at the School to create an annual programme of lectures, master classes and seminars,
designed to meet their needs. Recent master classes have included ‘Creating
Competitive Advantage through Collaborative Working’, and ‘Complex DecisionMaking in a Changing Environment’. Membership is varied including a range of private
sector employers across the region including Coventry Building Society58, and
Birmingham City Airport59.
Accredited courses
for employees with a
strong Regional
demand
In addition to the Warwick MBA, the school offers a range of accredited courses,
designed to meet the needs of employers. Now in its third year, the School offers a one
year Diploma in Applied Management. Within the most recent cohort, 50% of the
delegates were from the West Midlands. Recent participants have included those from
a range of local and regional employers including Eon, the Agricultural and
Horticultural Development Board, and Warwickshire Fire and Rescue.
Close partnerships
with major
employers in the
Region
Through this type of work a number of long-term partnerships have developed with
West Midlands employers, including:
Up skilling for
engineers in green
technologies

Warwickshire Fire and Rescue: Over the last five years, the School has
worked with the Warwickshire Fire and Rescue service to deliver an
accredited course for Brigade Managers. To date around 30 delegates a year
have graduated from this scheme.

Network Rail: Over the last six years, the School has worked with Network
Rail to develop a suite of qualifications for staff at all levels within the
organisation from middle-management to senior executives. Over twohundred staff receive training each year. Working with colleagues in the
Warwick Manufacturing Group, and the Department of Engineering, the
School has been able to offer a bespoke programme covering sessions on
procurement in the transport sector to effective leadership practices.

Coventry City Council: From 2009-2011, the School worked with Coventry
City Council to deliver an in-house version of the Diploma in Applied
Management. Tailored to the needs of managers in a public sector
organisation, the programme was delivered to over 300 public sector
managers.

Coventry and Warwickshire NHS Trust: Working with the Medical School,
the Business School has assisted in the development of courses for healthcare
professionals on a diverse range of topics from Clinical Leadership, to the
dangers of drug misuse. A large number of these programmes are accessed by
professionals from Coventry and Warwickshire.
WMG launched the Advanced Skills Accreditation Scheme (ASAS) in June 2012. This
offers engineers the chance to develop green and future engineering skills. It is led by
Warwick Executive Network: http://www.wbs.ac.uk/courses/professional/
Coventry Building Society: www.coventrybuildingsociety.co.uk/
59 Birmingham City Airport: http://www.birminghamairport.co.uk/
57
58
36
Semta (the sector skills council for Science, Engineering and Manufacturing
Technologies) and supported through the Government’s Growth and Innovation Fund
with additional finance from the UK Commission for Employment and Skills. WMG
will manage the coordination of relationships with educational establishments while
an Employer Board, featuring representatives of leading technology companies and
chaired by JLR, will oversee the quality and delivery of the overall project.
JLR has already begun the largest advanced engineering skills
programme in the UK, to help us to deliver our low carbon vehicles
of the future. We are planning for more than half of our 6,000
engineers to take part in the programme. If UK companies are
going to be able to compete successfully in the future, we need to
raise the skill levels throughout the supply chain and UK
manufacturing as a whole. Mike Wright, JLR Executive Director.
A degree level
programme for
employees
WMG has also recently entered an agreement with Jaguar Land Rover to teach up to
600 Jaguar Land Rover employees to degree level in product engineering and
manufacturing engineering. Up to 100 Jaguar Land Rover staff will take up their places
as sponsored degree students in October 2013- January 2014.
Creating and supporting new businesses
17 spin-outs from the University are located in the West Midlands and employ
99 people
There are 138 businesses located on the Warwick Science Park campuses
Since 2006/07 the Warwick Science Park has

assisted 1,800 businesses (most not located on the Science Park)

attracted 24 companies to the Region

created 66 businesses

safeguarded or created 291 jobs.
The University has itself established businesses, the most important are:
Warwick Conferences and Unitemps (an online recruitment service).
The University works closely with established businesses within and outside the
Region, but it also helping to create new businesses for the future. The relative
importance of universities in creating new businesses is sometimes overstated, but it
is nonetheless important and we conclude this section with a discussion of spin-outs,
technology sale and licensing and the Science Park (and associated developments).
Spin-outs
75 spin-outs
established of which
33 are still trading
Warwick, in common with other UK universities, permits academic staff to establish
spin-out companies. It recognises, however, that this will only be appropriate for a
External investment
of £49m secured
37
17 in the West
Midlands employing
99
small proportion of staff; few will have the commercial knowledge, or interest, to start
new businesses and there may well be more effective means of transferring University
knowledge and expertise and generating economic impact. Nevertheless, the
University, through Warwick Ventures, does provide support to staff, in a variety of
ways, where there is a commitment to this means of commercialisation and a sound
business case. This includes investment funds, incubator space and general business
advice.
Figure 3-2 shows the cumulative number of spin-outs established since 1999, the first
year for which data is available. In total, the University invested £470,000 in these
companies and they have raised additional external investment of £49m. Around one
half were licensing technology owned by the University. Just over 23 of the spin-outs
were located in the Coventry and Warwickshire sub-region (11 in University owned
premises) and one third in the West Midlands as a whole60.
Figure 3-2: University of Warwick spin outs (cumulative including those which have
ceased trading)
80
70
60
50
40
30
20
10
0
Source: University of Warwick data.
The 75 spin-outs shown in Figure 3-2 include those which have subsequently gone out
of business, or are dormant, as well as those still trading. The attrition rate for what
are mainly technology-based start-ups is high, and of the 75 companies established
3361 are still trading. Seventeen are located in the West Midlands and we have
employment data for 13 of these. There are 99 staff in total.
As defined elsewhere in this report
This includes 8 companies in which the University has disposed of its financial interest which are no longer
tracked.
60
61
38
Technology sale and licensing
The University currently has 29 active licensing deals. They are managed by Warwick
Ventures and have, in total, generated almost £640,000 revenue for the University.
Only one licensee is based in the West Midlands.
The Science Park
138 tenants
Over 1,800
businesses assisted
since 2006,
safeguarding or
creating almost 300
jobs
The Science Park was established in 1982 as a joint venture between the University
and Coventry City Council, Warwickshire County Council, and the West Midlands
Enterprise Board, but since February 2012 has been fully owned and controlled by the
University. The University of Warwick Science Park comprises four developments at
three locations: the Warwick Science Park and Warwick Innovation Centre (both on
Campus); and Innovation Centres at Binley and Blythe Valley.
The science park is distinctive in that it provides a full range of business support
services, and these are available to businesses elsewhere in the West Midlands. The
focus, to date, has been very much on small firms, but the strategy has been
development and growth rather than incubation of start-ups. The main services at
present are:

mentorship for start-ups

access to finance – the Science Park team manages the Minerva business angel
network and offers more general support for firms seeking investment funds

technical marketing advice including market appraisal and product review

strategic consultancy and business plan development.
Table 3-2 shows the current occupants at all sites. Over 75% of these tenants employ
fewer than 10, but in aggregate the Science Park is supporting a substantial number of
jobs.
Table 3-2: UWSP Tenants 2012
Location
Tenants
Warwick Science park
47
Warwick Innovation Centre
44
Blythe Valley innovation Centre
20
Binley Innovation Centre
27
Total
138
Source: UWSP
39
University Businesses
The University has itself established businesses which have developed from a need to
provide services connected to academic activities but distinct from them. The most
important are62:

Warwick Conferences. The University can accommodate up to 1,800 delegates
in four venues around the campus and up to 1.700 on a residential basis. This
year, Warwick Conferences was awarded gold medals for best value for money
conference centre and best academic venue and silver for best management
training centre in the Meetings and Incentives Travel Awards. It has won gold
in the best academic category 18 times in the awards 25 year history.

Unitemps. An online recruitment service which, supplies temporary staffing
to leading universities and commercial businesses across the UK and globally.
The University is seeking franchise partners and branches have so far been
established at eight other UK universities.
Concluding comments
This section has presented data on the University’s research and links with local
organisations, and descriptions of specific initiatives. We consider that it illustrates a
number of key features concerning the University and its Region:

many of these local impacts did not arise because they were consciously
sought by the University. Rather they reflect research excellence and the
attraction of organisations wishing to work with the University because of
this. Proximity has, nevertheless, facilitated relationships in at least some
cases

interdisciplinary has been important, and essential in some cases, and
University staff have demonstrated a willingness and capability to embrace
this where necessary

the nature of impacts is far wider than the commercialisation of new ideas
emerging from the University and local benefits have arisen in many ways

some of the research and other partners are global organisations and it seems
reasonable to assume that these relationships have raised the profile of the
West Midlands nationally and internationally although we have no tangible
evidence of this leading to inward investment so far. This issue is discussed
further in the last section of the report.
List of commercial services provided by the University can be found at:
http://www2.warwick.ac.uk/business/services
62
40
4. Civic role and public engagement
Overview
The previous section discussed ways in which the University contributed to the region
through working with local businesses and other organisations. The University, and
its staff and students, also contribute to the local area and the region in other ways
described in this chapter. These activities are more diffuse than, for example, research
relationships and there is much less information on scale. They are, nevertheless, an
important local impact channel. They provide direct benefits to the local community
and can also be a valuable component of student educational programmes. In addition,
these activities help to build relationships, and understanding, between the University
and its community and thereby facilitate more traditional interactions between the
University and external organisations.
This chapter is divided into four sections. The first describes formal, and some
informal, examples of civic engagement. The second is concerned with specific
activities to raise aspirations and achievement in the local community and is focused
on the widening participation agenda. This is followed by a discussion of the ways in
which the University’s core academic activities are leading to enhanced services in the
local area. It concludes with a discussion of access to cultural and sporting activities
at the University.
Community and civic engagement
Members of staff on the Coventry and Warwickshire LEP board
Senior University staff meet regularly with closest Local Authorities
Stakeholder Relations Team engages with many different community and
local stakeholders
Local residents and officials attend University social and ceremonial
occasions
Over 2,000 students and staff each year participate as Warwick Volunteers,
many undertake a volunteer placement in a school in the Warwick or Coventry
area.
The Local Enterprise Partnership
Partnership for
economic
development
The University currently has two members of staff on the Coventry and Warwickshire
LEP board, a high-level of university representation in comparison to other LEP
Boards. It plays an active part in helping the LEP develop economic strategy and
successfully bid for funding from the UK’s Regional Growth Fund. The University is
currently involved in working with the LEP to develop a City Deal for Coventry and
Warwickshire focussed on skills in advanced manufacturing and automotive
engineering.
41
Warwick District Council and Coventry City Council
Strategic
partnerships with
Local Authorities
Senior staff from the University and its closest Local Authorities meet on a regular
basis to share information, explore mutual opportunities and work closely on issues
related to economic, social and cultural development in the region. This liaison is a
valuable and effective way of enabling the University to support regional partners at a
strategic level.
The University is currently supporting Coventry City Council’s presence at the major
international development/inward investment fair MIPIM, in March 2013. It is
represented on the Coventry Partnership board, as well as working with our public
sector partners on several thematic groups.
Supporting the local community
Central management
of stakeholder
relations
The University's Stakeholder Relations Team engages with many different community
and local stakeholders - helping keep in touch with local people, listening to their
concerns and updating them about what goes on at the University. Its magazine,
Community, is distributed twice a year to over 5,000 local residents and other
stakeholders in the sub-region.
Every year for the past decade, the University and the Vice-Chancellor invites local
residents, elected officials and officers onto campus for a Christmas Festive Reception.
This annual event is always well-attended and has helped contribute to excellent
relationships and understanding between the University and the local community.
Civic dignitaries are, likewise, a formal part of the University’s bi-annual degree
congregation ceremonies.
University and Students’ Union staff attend a range of different local and community
groups and forums in areas where students live. University and Students’ Union staff
are also represented on the Kenilworth and Leamington Town Centre Partnerships.
Warwick Volunteers
Students and staff
working in the local
community
Over 2,000 students and staff each year sign up as a Warwick Volunteer. Many of these
go on to undertake a volunteer placement in community groups, charities and schools
in Warwick district or Coventry area. With support focussed on schools in
disadvantaged areas, the volunteers support a range of activity aimed at improving
performance outcomes of programme beneficiaries63. The volunteers support a wide
range of projects including:

The Right to Read, volunteers offer an hour a week as a reading volunteer in a
local primary or secondary school. Often targeted at under-performing young
people, this programme assists in improving the literacy, confidence and selfesteem of young people.
63Warwick
Volunteers: http://www2.warwick.ac.uk/about/community/volunteers/
42

Fun with Numbers: an hour a week to helping local primary and secondary
school pupils develop numeracy skills. Delivered in an informal way –
principally through maths based board games, this programme assists in
raising children's mental arithmetic and confidence with using numbers.

mentoring designed to encourage pupils from local secondary schools to
consider going to university. Mentors are responsible for planning and
delivering weekly activity sessions based on a different aspect of university
life or careers, or any other relevant topic to help the pupils realise their full
potential in education.
One study64 has estimated the Volunteers programme makes a contribution to the
local community of almost £1m. This estimate is based on the potential alternative
costs of: raising aspirations, developing reading, language and numeracy skills among
school children as well as increasing cultural understanding and tolerance through
mixing with the local population.
The view of Warwick Students’ Union is that while a student may only be a resident of
the West Midlands for a short time, this should not prevent them from being a
constructive member of their local community. This commitment to engagement in
the local community is evidenced by the increased participation of University of
Warwick students in community organisations, increased volunteering, and
ultimately the large number of students that choose to remain within the region
following their studies. Over recent years an increasing number of students have
taken on roles in local community organisations, be that as a school governor, a
member of their community safety team or as a member of their local residents
association.
Volunteering can contribute to improved job prospects for students as employers
value the skills and learning gained from volunteering. Warwick Volunteers can
manage their own project and gain relevant experience for different careers (e.g.
teaching, finance, law). The ‘soft’ skills (team work, communication, leadership,
organisational etc.) gained from volunteering are also attractive to employers.
Further, Warwick student volunteers can work towards gaining formal
recognition/accreditation for volunteering, for example through certification and
‘Warwick Advantage’65. The latter assists in presenting the skills gained through
volunteering more attractive to graduate employers. There is also external recognition
of the University’s volunteering activities, for example, through the Warwick
Volunteers ‘create a project’ competition funded by Santander Universities for the
development of project for the benefit of the local community.
Overall, we consider the University’s extensive range of volunteering activities and
organised approach to volunteering assists not only the volunteers themselves but
also the local communities which they serve.
64
65
Degrees of value, nef http://www.neweconomics.org/publications/degrees-of-value
https://go.warwick.ac.uk/advantage
43
Widening participation: raising aspirations and achievement
In 2010/11 the University committed to investing over £500,000 in outreach
activities. This will rise to £1.9m by 2016. The University plans to spend in
excess of £1m of its own funds on fee waiver support during the 2013/14
5,000 school pupils receive support from the Chemistry Department. Schools
from within the West Midlands access a range of support from the Access for
All initiative; designed to build confidence in those least likely to go to
University
Each year 50-80 local school pupils from years 10-12 are invited to stay at the
University in order to challenge perceived barriers to attending University
70 schools in the Districts of Warwick or Coventry attended a session run by
Warwick Arts Council, designed to promote artistic and cultural engagement
Over 60 Warwick students have been involved delivering sessions to over 300
school students through the Warwick Inspire programme
22 Local Authorities, including Birmingham and Coventry, participate in a
programme for gifted and disadvantaged children
Pathways to Law supports 50 school students each year through a three year
programme Realising Opportunities, involving 11 other universities – this was
awarded the times Higher Education, Widening Participation Initiative of the
year in 2012.
Warwick scores
highly on a number
of indicators
In 2011, the Government set out its plan to reform Higher Education and a key
objective is to improve the performance of HEIs as ‘engines of social mobility’66. The
University’s Statement of Fair Access 2013-1467 sets out, in part, the steps to be taken
by the University to encourage widening participation, and analyses its recent
performance. The University’s commitment to raising aspiration and achievement is
shown through its’ performance against key benchmarks. The University compared
itself with the 10 UK universities requiring the highest entry qualifications from
applicants:

Warwick has the highest number of state school educated students

it has the second highest proportion of students from the lowest socioeconomic groups

it has the third highest proportion of students from low participation
neighbourhoods.
66Students
at the Heart of the System, The Department for Business, Innovation and Skills, 2011
OFFA Access Agreement for academic year 2013/14
http://www.offa.org.uk/agreements/University%20of%20Warwick%200163%20access%20agreement%202
013-14.pdf
67
44
The University is
investing significant
sums from its own
resources
In 2010/11 the University committed to investing over £500,000 in outreach
activities. This will rise to £1.9m by 2016.68 The University plans to spend in excess
of £1m of its own funds on fee waiver support to Home/EU undergraduate students
during the 2013/14 academic year and expects that more than 15% of Home/EU
undergraduate entrants will receive an award. Targets include:

raise the number of full-time young entrants to the University from state
schools from the 09/10 level of 1,880 to 2,040 by 2020

raise the number of full-time young entrants to the University from the lowest
socio-economic groups from 400 in 2009 to 530 by 2020

raise the number of full-time young entrants to the University from low
participation neighbourhoods from 140 in 2009 to 170 by 2020

in addition, the University is seeking to increase the proportion of mature UK
learners registered on full-time and part-time programmes from 450 to 600
by 2020.
Some of the main initiatives undertaken by the University are set out below.
Access for All
A follow on to
AimHigher
Access for All is a new initiative targeted on lower socio economic groups who would
have previously received support from Aimhigher69. Unlike AimHigher, support is
targeted at Primary and Secondary school pupils, with additional support available to
pupils with special needs. Activities are designed to not only encourage young people
to consider university but think about the career path that most suits their aspirations;
be that through University study or though taking up an apprenticeship. The
University also runs a residential summer school programme. Each year 50-80 local
school pupils from years 10-12 are invited to stay at the University. This programme
is designed to challenge perceived barriers to attending University and living away
from home. Academic taster sessions are complemented with skills development
sessions, which aim to build the confidence of participants and with it the belief that
University is a place where they could thrive.
Realising Opportunities
Collaboration with
leading universities
Realising Opportunities is a collaboration of 12 leading universities promoting fair
access to higher education and encouraging social mobility, for able students from
under-represented groups. The Partnership was awarded the times Higher Education,
Widening Participation Initiative of the year in 2012. Following the end of the initial
pilot each partner has agreed to support the initiative moving forward through a
financial contribution of £35,000 per annum.70 The programme is targeted at the
‘most able but least likely’ to go to University, and aims to raise aspirations and
68Warwick
Statement of Fair Access: http://www.offa.org.uk/accessagreements/searchresult/?inst=University of Warwick
69 AimHigher was a centrally funded programme recently discontinued
70Realising Opportunities: www2.warwick.ac.uk/study/outreach/.../realisingopportunities/
45
encourage students to demonstrate their potential at a research intensive University.
All participants are asked to attend the programme’s national conference and
complete an assessed task. On the basis of this task, participating Universities have
committed to making reduced UCAS offers. Thus far, over 60 students have chosen to
take-up reduced offers at Warwick following participation in the scheme.
Goal
Programme for
gifted students
In recognition of the particular needs of disadvantaged students designated gifted and
talented, the Goal programme takes a cohort of 100-200 year 10 students through a
four year programme of targeted support. Where possible, support is also provided
to a participant’s parents and teachers, through access to a range of campus based
events. The aim is to provide information on how best to support members on their
journey too, and through HE. At the present time, 22 Local Authorities, including
Birmingham and Coventry, have agreed to participate in the programme involving 50
schools nationwide.71
Gateway for the Gifted and Talented
Network for gifted
children
The International Gateway for Gifted Youth (IGGY)72 was created by the University of
Warwick as a way of supporting the brightest and most creative young people from
around the world to realise their full potential. The aim is to the support the widening
participation agenda on an international level and to train gifted young people. This
takes the form of an international learning and social community, providing online
courses and face-to-face programmes (e.g. international summer schools; providing
contacts with leading academics; and various other programmes with an educational
and social purpose). IGGY members pay an annual subscription, but free memberships
are available for disadvantaged students and schools.
Pathways to Law
Support for students
in association with
the Sutton Trust
Pathways to Law is a national programme developed by the Sutton Trust and the
College of Law, which aims to support school students, particularly from
disadvantaged communities to embark on a career in the legal profession. At Warwick
a cohort of 50 students, who must be attending a state school and live within 50 miles
of the University, each year is supported through a three year programme of support.
A mixture of academic seminars and focussed information, advice and guidance, aims
to assist students make competitive application and access appropriate work
placements, providing them with the stepping stones they need to reach their
potential. The University is considering extending this approach to other degree
subjects.
71Goal:
72
http://www2.warwick.ac.uk/study/outreach/programmes/goal/
https://www.iggy.net/
46
Warwick Inspire
Students working
with schools in low
participation areas
Warwick Inspire, run in conjunction with the Students’ Union, aims to raise
aspirations. Students, after training, are matched with a local school in a low
participation area and design a project that involves sharing their experiences of
university with school students, aged 12-16. Over 60 Warwick students have been
involved delivering sessions to over 300 school students.
Chemistry Schools programme
A major programme
in Chemistry with
schools
Most of the above initiatives are university-wide and some are undertaken in
collaboration with other universities. We also reviewed a successful single
department initiative operated by Chemistry. Over 5,000 school pupils (6-18 years)
each year receive support from the Chemistry Department through their Chemistry
Schools programme. Warwick district and Coventry schools (within a 10 mile radius
of the University) are able to access from a menu of support. There is no cost to
participating schools/students. Key activities include:

in university programmes - schools can bring groups of students to the
Chemistry Department in order to participate in teaching laboratories, tours,
tutorials and workshops

school visits - a visit from the team. Depending on the age of the audience
academic staff can give lectures about research at the University, or teach
some of the basics through a live scientific experiment

work experience placements - secondary school students can apply to take up
a work experience placement at the University.

teacher training - work with teachers for training purposes, including
overseas teacher training in Africa.
Feedback from participants in the programme was positive. One primary school
teacher felt engagement had been crucial to raising the profile of science at their
school, improving engagement, attainment and increasing the number of students that
pursue science subjects following their transition to secondary school.
Warwick Arts Centre
The Arts Centre
working with schools
As well as an artistic and cultural venue, Warwick Arts Centre employs a dedicated
Education team to support outreach activity across the West Midlands. In 2010/11,
the team delivered over 900 sessions, reaching over 15,400 participants. This
programme reached over 70 schools from Warwick and Coventry. Activity is
supported largely through institutional grants and donations. Key funders include
Coventry Children’s Fund, the Arts Council and the Wellcome Trust. The Centre’s
activities are structured around three work streams: Curriculum Enrichment,
Children and Family Workshops and Arts Education Programmes. (See below for
further discussion on the Warwick Arts Centre).
47
Providing services to the community
WMS

around 520 students will be undertaking clinical placements in the
West Midlands at any one time

The Clinical Trials Unit, has provided patients from the West Midlands
with access to cutting edge treatments

The Warwick Healthcare Partnership is to develop solutions, to
chronic diseases that affect resource-poor communities locally and
overseas
Centre for Lifelong learning provides learning programmes and qualifications
for those who may not have had a real opportunity to enter HE when they left
school
A proposed ‘WMG Academy for Young Engineers at the University of
Warwick’ has become a new University Technical College (UTC) project and
will cater for 640 students from the Coventry, Warwickshire and Solihull areas
Warwick’s Institute of Education

admits around 500 students each year. In 2010/11, 178 were working
as teachers in the West Midlands

hosts the West Midlands Centre for Excellence in Teacher Training
which provides information and guidance services to teachers and
trainers and a range of specialist training programmes
The WBS, working with the Institute for Education, has launched the ‘Teaching
Shakespeare’ initiative alongside the Royal Shakespeare Company.
The Warwick Medical School
Around 520 Warwick
students will be
active in health care
providers across the
West Midlands
While much of the research and commercial activity of the University operates at a
national, and international level, this can still generate social benefits in the local
community and the region. This is especially evident in relation to the Warwick
Medical School. The Warwick Medical School is a key regional provider of medical
graduates. Many of these will remain in the region after graduation, but there are
direct benefits generated while training. The School admits 178 students each year
and each will spend four years in total at the University. Around 520 students will be
undertaking clinical placements, either at local hospitals or GP practices in the West
Midlands at any one time.
Regional benefits of
a Medical school
The presence of medical students within healthcare settings brings a number of
benefits for public health outcomes, including improved funding, the capacity to
attract better quality staff (particularly at a senior level), and the adoption of more
modern and innovative approaches. While the School works with Hospitals across the
West Midlands, a particularly close relationship has developed between the University
48
and the University Hospital of Coventry and Warwickshire (UHCW). This relationship
has been instrumental in transforming the quality of clinical practice at the Hospital
from one of the very worst, to one of the very best in the Country.
Establishment of
clinical trials unit
generates benefits
for local patients
A particular development in recent times has been the gradual expansion of the
Clinical Trials Unit, situated at Gibbet Hill; this has provided patients from throughout
the West Midlands with access to cutting edge treatments. Present areas of focus are
Emergency Care, Critical Care and Rehabilitation, and Cancer. Some patients from
UHCW will have access to negative pressure wound therapy in the treatment of an
open fracture of the lower limb. It is hoped that this treatment will lead to a reduced
occurrence of post-fracture infection and improved recovery rates, leading to
improved public health outcomes at a reduced cost to the public purse.
Access to cutting edge facilities, while essential for maintaining the Schools reputation
for research excellence also provides for the improved diagnosis and treatment of
patients. Funded through the Science City Research Alliance, The Human Metabolism
Research Unit houses two of the world’s most advanced Whole Body Calorimeters,
allowing clinicians to reach a much more accurate diagnosis, where patient’s energy
profiles differ from the norm.
Warwick Healthcare Partnership
Global partnership
with Regional
benefits
An innovative partnership has recently been established involving the University, GE
Healthcare, University Hospitals Coventry and Warwickshire Trust (UHCW)73. The
Partnership is also supported by Coventry Council. The aim is to develop solutions, to
chronic diseases that affect resource-poor communities locally and overseas. It is very
early days for the Partnership, but priorities for the Coventry area have been discussed
and activities will begin in the first quarter of 2013.
"This Partnership is closely aligned with GE's healthymagination
aims of providing better health for more people. In this case it's
about analyzing the needs of resource poor communities, and
establishing sustainable programmes that can be driven and
developed locally with continued support from the consortium." Dr.
Alan Davies of GE Healthcare.
More generally, WMS staff are members of NHS, and other Boards, inside and outside
the region and are considered to influence research and clinical agendas more widely
than the specific projects they are involved in.
Centre for Lifelong learning
A major opportunity
for those who
missed out on HE
when leaving school
The Centre for Lifelong Learning (CLL) has changed substantially over recent years.
Previously, an important strand of activity was providing HE level courses to those
whose main motivation was an interest in the subject area. The Government decision
not to fund equivalent Level Qualifications meant that the University could no longer
provide these courses on the same scale. Today, CLL is more focused on providing
learning programmes and qualifications for those who may not have had a real
73
http://www2.warwick.ac.uk/newsandevents/pressreleases/warwick_healthcare_partnership/
49
opportunity to enter HE when they left school. Many of these programmes are
delivered on a part-time basis, sometimes in the evenings, and the vast majority of
learners are from the local areas. Current programmes include:

150 students on “2+2” where study is split between the University and a FE
partners

200 part-time undergraduates

200 students on Foundation degrees

a wide range of continuing professional development programmes.
CLL still provides Certificate/ Open Studies programmes and although reduced in
number these still attract around 400 students, almost all from the local area.
WMG Academy for Young Engineers
The University takes
a lead role in school
education
A proposed ‘WMG Academy for Young Engineers at the University of Warwick’ has
become a new University Technical College (UTC) project, approved under the
government’s academies programme. This gives the go-ahead for a new state-of-theart school close by the University of Warwick campus to cater for 640 students aged
14-19 from the Coventry, Warwickshire and Solihull areas. The aim is to provide
young people, with an interest in engineering, a better way of learning and realising
their ambitions. It will deliver a richer array of educational and employment
opportunities to them, and to the local economy. The UTC is supported by JLR, Tata
and 40 other local organisations and WMG was instrumental in assembling the
consortium and its bid
"The growth of Jaguar Land Rover can only be sustained if we and
our suppliers can find the right people with the right skills. WMG
Academy for Young Engineers (at the University of Warwick) will be
right on our doorstep, and is being led by WMG, which is already at
the heart of our collaboration with universities on research and
development and developing high level skills in our workforce. It
will help to address very important issues at the beginning of the
educational cycle, namely exciting young people about careers in
engineering, and developing the pool of talent which we can all rely
upon for future generations to come." Dr Ralf Speth, Jaguar Land
Rover Chief Executive.
Teacher training
66% of Warwick
trained teachers find
employment in the
region
Warwick’s Institute of Education admits around 500 students each year. In 2010/11,
271 students completed their course and 27174 had found employment as teachers. Of
these, 178 (66%) were working in the West Midlands. These new teachers are a major
asset to the local area, providing an influx of new teaching techniques, and a
commitment to improving educational outcomes.
74
Most of the remainder were seeking employment.
50
Warwick also hosts the West Midlands Centre for Excellence in Teacher Training
(WMCETT). This was originally (2007) funded by the Quality Improvement Agency
but has continued to operate post-funding. It provides information and guidance
services to teachers and trainers and a range of specialist training programmes.
An initiative for
teaching
Shakespeare
The Business School, working with the Institute for Education, has launched the
‘Teaching Shakespeare’ initiative alongside the Royal Shakespeare Company (RSC).
This new joint venture, aims to transform the classroom experience of Shakespeare
through delivering high-quality online professional development for teachers. At the
heart of Teaching Shakespeare is a specially-created set of online resources offering
teachers unique access to a rehearsal room to gain confidence in teaching
Shakespeare's plays through the performing arts. The venture aims to provide up to
a thousand teachers a year, from around the world, with access to the RSC's resources
and creative talent. Alongside the bespoke online platform, teachers can choose to
access an intensive one week course delivered in Stratford-upon Avon. The aim is to
transform pedagogical practice through exposure to the real-life rehearsal and
performance process. Both of these courses are designed in order to provide a standalone package, or provide the building blocks for further postgraduate study.
Following attendance of a course, teachers also have the opportunity to work with an
academic tutor to gain their own postgraduate qualification, in the teaching of
Shakespeare, accredited by the University of Warwick, and delivered in conjunction
with the Institute for Education.
Cultural and sporting facilities
The Warwick Arts Centre is the second largest in the UK, 62% of visitors come
from Coventry and Warwickshire
An independent study estimated the total value to the local community from
the Arts Centre to be £27.7 million
The University’s sporting facilities were classified as 5* by the Times Good
University Guide in 2007 - most to non-university residents
Events held on campus include: the International Children’s Games in 2005;
the UK Schools Games in 2007 and the British Transplant Games in 2009.
Warwick Arts Centre
The Warwick Arts Centre is the second largest in the UK and has a major role in the
social and cultural life of the region. This is reflected in the decision by the Arts Council
to award the Centre National Portfolio status. The Centre prides itself on its innovative
contemporary programme, bringing world-class performances to the West Midlands.
In 2010/11 the centre put on nearly 494 individual performances, making up a
combined audience of just fewer than 270,000.75
75Warwick
Arts Centre: http://www.warwickartscentre.co.uk/
51
High demand from
local residents
In 2010/11 the Centre recorded an income of £5.1m and ticket sales accounted for
37% of this income.76 The Centre made available data relating to the residence
address of audience members and analysis shows that the majority of visitors to the
Centre come from the immediate area:

62.4% of the total number of visitors come from Coventry and Warwickshire

11.0% come from the rest of the West Midlands

13.3% from rest of the UK

13.3% were unclassified.
The centre is, therefore, very much a local asset. As well as a source of employment
for 45 people, the Centre itself provides a significant source of expenditure in the
region. More important may be the indirect expenditure impacts as touring parties
increasingly use the Centre as their base of operations.
The Centre also functions as a key element in the University’s venue/conferences offer.
Butterworth Hall is the Centre’s principle venue and now can now support 1,500
people. During 2007-2009 the hall underwent a 6.9m refurbishment programme,
leading to a two-storey extension and total overhaul of its facilities. Supported by
donations from across the private and third sector, this refurbishment will secure the
future of the venue as one fit for the 21st century. The Centre as a whole is seen as a
major asset in attracting potential clients to the wider conference business.
A major economic
contribution to the
local economy
An independent study77 of university impacts estimated the total value to the local
community from the Arts Centre to be £27.7 million.
Sport at Warwick
First class facilities
open to residents
The University’s sporting facilities are extensive and impressive and were classified as
5* by the Times Good University Guide in 2007. They are located on three main sites:

the Cryfield Pavilion has over 60 acres of playing fields

the Westwood area of campus is designed as a mini sports village and has a
three court sports hall with a range of ancillary facilities

the Main Sports Centre houses a 25 metre, six lane swimming pool and leisure
facilities.
Most of the facilities are available to non-university residents. We were not able to
obtain data on their use, but those consulted stated that this was extensive, both by
individuals and teams. Other indicators of regional impact are:
Contribution to the
Regional Sport
Partnership

76
77
the former Director of Sport and Physical Education acted as Chair of the
Regional Sport Partnership. This enabled a diverse range of individuals and
groups from Coventry & Warwickshire (e.g. schools, youth groups, retired
Warwick Arts Centre, Annual Report 2010/11
Degrees of Value op cit
52
people, disability groups and elite athletes) to benefit from the facilities and
expertise available at the University. There are also relationships with local
sports clubs and in particular, Godiva Harriers Athletics Club, based at
Westwood campus.
Hosting national and
international events

national and international events held on campus include: the International
Children’s Games in 2005; the UK Schools Games in 2007 and the British
Transplant Games in 2009. In summer 2012 the University hosted the
Coventry, Solihull and Warwickshire Schools Games and in 2013 the
Corporate games will be held in Coventry attracting over 4,000 competitors,
with the majority of the events taking place on campus. The University of
Warwick made a major contribution to bringing the International Olympic
Committee to Coventry which resulted in the city hosting the London
Olympics 2012 volunteer and training events and football training in Coventry
city.

other events held and organisations using the facilities include: the Football
Association, England Women's National U17 Training Camps; the NIKE
Premier Cup; the Football Association, England Men's National U19s Training
Camps; the Premier League referees national training venue; the Glenn
Hoddle Football Training Camp; Kelly Holmes Athletics Camp; British
Universities & Colleges Sport (BUCS) National Tennis Finals; the Birmingham
County Football Development Education Programme; and the UK
“Transplant” Games.

there are outreach programmes e.g. people from local community use the
Tennis Centre (including disabled people for wheel chair tennis). Funding is
received from the Lawn tennis Association and Sports England for tennis and
other programmes.

the University supports the Sports England “Playground to Podium” initiative
which encourages young people including those with disability to participate
in sport. The University provides the facilities and other services.
Concluding comments
Civic and public engagement is an impact channel which has been given less, and more
recent, attention in the UK than knowledge exchange and training. In part, this reflects
the difficulty of identifying and assessing impacts. Students and staff will contribute
to their local communities through membership of voluntary and statutory
organisations and can bring distinctive skills and experience to complement inputs
from other residents. Much of this activity is, however, not recorded, much less
evaluated78. The discussion above does, however, suggest that the University is
This is changing with improved recording of voluntary and community activities across the HE sector.
Attempts have also been made to value these impacts through imputing costs to student and staff time.
However, such estimates are subject to fairly obvious difficulties.
78
53
making significant and valued contributions to the region and local communities
arising through:

staff and student time. In one sense, the University is no different from other
organisations in this respect, but there has been a focus on raising school
student aspirations and access to HE and universities are obviously uniquely
placed to contribute in this way. We would also note that the involvement of
foreign students and staff in this type of activity may add another dimension

in the case of the Medical School, building on research excellence to deliver
improved services in the Region

providing additional skills for the Region as a result of mainstream academic
activities. This arises both through local involvement as part of the academic
training programme, for example teacher training and the Medical School, and
retention in the Region after qualification, The Centre for Lifelong Learning is
a further example and also contributes to widening participation through its
Foundation Degree and part-time provision

the Arts and Sports Centres making facilities available to residents (and other
visitors).
54
5. Global presence and connections
Overview
34% of academics are international, from 72 countries
Over 8,350 international students
500 Warwick undergraduates are expected to participate in an international
exchange during 2012/13
Over 200 exchange partners in 40 countries
Over 45,000 alumni are resident in 193 countries
Tata Motors European Technical Centre (TMETC) is based at the University
The University has two major alliances, with:

Monash University in Australia

Centre for Urban Science and Progress an applied research institute,
led by New York University and industry partners which include major
multinationals
The International Student Barometer indicates high levels of satisfaction from
Warwick’s international students.
A globally connected
university can act as
a ‘window’ on the
local region to the
rest of the world,
contributing to
improved image and
reputation of the
region
As is the case with private sector firms, universities are increasingly operating in a
globally competitive market. For universities, this relates to student recruitment,
attraction of academic staff, research and teaching, knowledge/technology transfer
etc. Universities are not ‘mobile’ like firms and can act as a stable ‘anchor’ for attracting
resource to the local area. Research for the European Commission (2011)79 indicates
that a globally connected university can act as a ‘window’ on the local region to the
rest of the world, contributing to improved image and reputation of the region.
Further, the study reports that this can benefit the development of the region in
various ways: connecting people from all over the world into the region, acting as a
vehicle for future cooperation; attracting researchers who may contribute to the
development of new technologies, resulting in new and innovative activity; and acting
as a lever for international investment to the region.
In addition, evidence published by the OECD (2008) states that investment in
universities is more effective in generating research intensive foreign direct
investment (FDI) than financial incentives to foreign investors:
European Commission, DG Regional Policy, Connecting Universities to Regional Growth: A Practical Guide,
2011.
79
55
Among the factors related to the host country the empirical
evidence available suggests that the main location drivers are the
availability of world-class research infrastructure and skilled
labour as well as the dynamism of the national innovation system,
that is, the degree of interaction and collaboration among different
firms and other “knowledge producing and diffusing
organizations”…the availability of world-class researchers is
arguably a more critical location driver [than financial incentives]
for R&D-intensive FDI’80 .
The University is ‘globally connected’ and has a strong international presence. This
has contributed to Warwick’s rise in world rankings of universities. As evidence, we
present below some of the main areas in which the University achieves this.
Warwick – a globally connected university
Global
connectedness is a
key element of the
University’s strategy
The University is rising through international rankings to achieve its goal of becoming
one of the world’s top fifty universities by 2015. Its strategy is to “make Warwick an
international beacon by embedding internationalism into every area of the
University’s mission”. The University also makes the point that “international
engagement provides competition for home students, and international
benchmarking for research, and access to international research funding”. Further, it
is an explicit mission of the University to attract international students and for all
students to have the opportunity for multicultural experience. This reflects the
academic and employer benefits of “globally aware” students: “global employers value
global students” and that working in inter-cultural teams whilst at university prepare
students for work in the “real world” after university.
The University has linkages with over 200 institutions around the globe and is
involved in various research collaborations and international alliances. The profile of
overseas students and staff, as well as some of the main international related activities
are noted below.
International students and staff
Approximately onethird of students are
from outside the UK
There are over 8,35081 international students at the University of Warwick. There are
also many international staff working at the University (academics, researchers and
other staff). Key statistics include82:
There are many and
diverse connections
between students
and staff and the
international
community

of the total overseas student population, just over 3,460 are undergraduates
and just over 4,890 are postgraduates (research and taught)
Guimon, Government Strategies to attract R&D Intensive FDI. OECD, Global Forum on International
Investment, 2008. See also: IPPR North, Beyond Bricks and Mortar Boards – Universities and the Future of
Regional Economic Development, 2012.
81 University of Warwick, Key facts on international activity, May 2012. (Note: international student figures
from this source are based on total student population estimates which are different to those stated elsewhere
in this report).
82 The University of Warwick.
80
56


A major initiative
with global
connections
approximately one-third of Warwick academics are international from 72
countries/nationalities (52 non-EU plus 20 EU)
over 40% of Warwick Volunteers’ members are international students

World@Warwick83 aims to integrate UK and international student
communities on campus. It is the third largest Students’ Union society at the
University – over half of its members are international students. In addition,
there are currently 38 Students’ Union cultural societies.

One World Week84 is the largest annual event held on campus, with over 200
student volunteers – it is claimed by Warwick Students’ Union to be the
world’s largest student-run international event

over 45,000 international alumni are resident in 193 countries. A network of
115 alumni ambassadors or representatives are associated with alumni
groups in 49 countries.

just under 500 Warwick undergraduates are expected to participate in an
international exchange during 2012/13. The number of outgoing exchange
students matches the number of incoming students from overseas.

there are over 200 exchange partners (161 European and c. 45 non-European)
in 40 countries.
Tata Motors European Technical Centre (TMETC) at the University illustrates the
benefits of major investment to the regional and local economies. The Indian-based
Tata group comprises over 100 operating companies in seven business sectors and in
more than 80 countries. The TMETC was established at the University in 2005,
collaborating with the Warwick Manufacturing Group on automotive research, design
and development. It works with European equipment manufacturers, first-tier
suppliers and engineering consultancies.
It can be argued that the presence of Tata at the University contributes in a major way
to the improved image and reputation of the West Midlands region and specifically
Coventry, as a centre for high value-added R&D activity in the automotive and
engineering industry. The presence of a major inward investor like Tata gives a
positive signal to other major firms to consider investing and potentially locating in
the West Midlands.
Over time, there may also be wider benefits in the form of economic agglomeration
effects – i.e. economic benefits arising from spatial proximity between companies
within the same industry (also referred to as ‘localisation economies’). In our view,
agglomeration effects are likely to arise, although further evidence would need to be
gathered to demonstrate this.
83
84
http://www.warwicksu.com/worldatwarwick/home/
http://www.oneworldweek.net/
57
International alliances
Two of the main academic alliances are highlighted below.
Institutional alliance with Monash University in Australia
An international
alliance to produce
graduates with a
global education,
and undertake
research that aims to
address worldrelevant and
strategically
important problems
This new formal institutional alliance aims to meet the increasing student, industry
and government demand for universities to produce graduates with a global
education, and undertake research that aims to address world-relevant and
strategically important problems. The aim is to enable and develop collaborative
ideas. The financial contribution is £3m per institution per year. Some main initiatives
under this institutional alliance already underway include:

‘£500,000 has been awarded by the UK Engineering and Physical Sciences
Research Council (EPSRC) under its 'Building Global Engagements'
programme to build connections in the physical sciences in the year to endMarch 2013

£66,000 has been received from the Australian Government to support
student mobility

£200,000 Australian Research Council grant to build collaborations in
engineering

Green Steps, Monash University’s award-winning sustainability education
programme has run its first international course for students at Warwick in
July with a larger programme planned for 2013

students from both universities will co-produce Reinvention, Warwick’s online peer-reviewed journal, dedicated to the publication of high-quality
undergraduate student research from all disciplinary areas

joint PhD agreement – joint course applications and regulations are being
finalised to enable recruitment from late 2012’.
Centre for Urban Science and Progress (CUSP)85
An international
alliance with public
and private partners
This is an applied science research institute which will be a partnership of institutions,
led by New York University (NYU) and NYU-Poly alongside a consortium of
universities including: Warwick, Carnegie Mellon University, The City University of
New York, The Indian Institute of Technology, and The University of Toronto. The
industry partners include: IBM, Cisco, Siemens, Con Edison, National Grid, Xerox, Arup,
IDEO, and AECOM. The University of Warwick is the only European university
involved in CUSP.
85
http://www2.warwick.ac.uk/fac/cross_fac/gpp/sustainablecities/cusp/
58
International student survey
Warwick scores
highly in terms of
international student
feedback
The International Student Barometer86 (ISB) is the largest online annual survey of
international students in the world. The survey obtains feedback from international
students on their university experience. Table 5-1 shows the proportion of Warwick
respondents that would recommend the University and comparisons with all UK and
global respondents. A high proportion of Warwick respondents would recommend
the University and an even greater proportion of Warwick respondents are satisfied
overall with the University.
Table 5-1: Proportion of students recommending their university and reporting overall
satisfaction
Global
ISBSB
UK
Warwick
2012
2012
2012
2011
2010
Recommendation
79%
80%
83%
81%
81%
Overall satisfaction
87%
88%
90%
89%
Not found
Base
51,367
44,712
22,44
934
791
Source: University of Warwick. Note: ISBSB covers institutions from the UK and overseas.
Table 5-2 shows the proportion of students satisfied with their university in relation
to ‘learning’, ‘living’ and ‘support’ overall. Again the results for Warwick are positive.
Table 5-2: Proportion of students satisfied with their university in relation to ‘learning’,
‘living’ and ‘support’ overall
Global
ISBSB
UK
Warwick
2012
2012
2012
2011
2010
Learning overall
85%
85%
86%
84%
87%
Living overall
86%
87%
88%
85%
88%
Support overall
89%
89%
92%
90%
90%
Base
51,367
44,712
22,44
934
See Note
(2)
Source: University of Warwick. Note: (1) ISBSB covers institutions from the UK and overseas; (2) Base for ‘learning’
=835; Base for ‘living’ =812; and Base for ‘support’ = 724.
The results on ‘reflection’ (Table 5-3), support the satisfaction levels reported above.
Table 5-3: Reflections of the student
Global
ISBSB
UK
Warwick
The University experience has lived up to my expectations
81%
82%
86%
My course of study has been worth the investment of money
79%
80%
81%
My course of study has been worth the investment of time
87%
87%
90%
Base
51,367
44,712
22,44
86
http://www.i-graduate.org/services/international-student-barometer-and-student-barometer/
59
Source: UoW. Note: (1) ISBSB covers institutions from the UK and overseas; (2) one response category has been
deleted as not directly relevant.
We conclude that the Warwick respondents consider the institution and the place
positively and would recommend it to others. This may in turn encourage other
students to study and also visits by family and friends. It is interesting to note the wide
range of countries from which respondents originate: Far East, Indian-subcontinent,
Europe and elsewhere.
From international to local impact?
From the ‘snapshot’ of the University’s international activities it can be seen that the
University is already a progressive international institution. The question is to what
extent this generated local benefits too. To the extent that the international links
strengthen the University as whole, there will be local benefits arising through the
channels described elsewhere in this report. More specifically:
The Region benefits
from: fees paid by
international
students and their
spend in the local
economy; foreign
language skills in the
Region; home
student’s awareness
of other countries,
research excellence
through international
collaborations; and,
the contacts
established with
alumni and foreign
collaborators

international student fees benefit the University and their spend in the West
Midlands, brings additional income to the region, as does visits by family and
friends to the region87

employers are looking for foreign language skills, inter-cultural skills and
Warwick has a high proportion of international students who have these skills

there are benefits for home students that they are better prepared for an
internationally competitive job market by having had international
experiences and working in ‘international teams’

a large proportion of international students are ‘Warwick Volunteers’, thus
contributing to social benefits for the local area

more international students tend to stay on for postgraduate studies
compared to home students and they are an important research resource

home students benefit from inter-cultural interaction

and of course research excellence requires international collaboration.
Another important initiative is the Higher Education Foundation Programme (HEFP)88
This is a pre-university course that prospective international students can enrol on to
help them prepare you higher education study in the UK (equivalent to A-level). The
Programme has been running for 30 years and attracts students from over 50
countries. There are 300 places every year and applicants are in the 16-17 years old.
Courses are offered in: biomedical science, business studies, law, science and
engineering, social science. Two local colleges deliver the courses: Stratford-uponAvon College and Warwickshire College. Fees for the course are around £13,800 p.a.
For example, a study for the University of Sheffield reports that international students make a net
contribution to Sheffield’s economy of £120.3 million, rising to £136.8 million for the region (Yorkshire &
Humber). Oxford Economics (2013) Economic Costs and Benefits of International Students. A Report for the
University of Sheffield.
88 http://www2.warwick.ac.uk/study/hefp/
87
60
(one year programme) so some employment at the University and participating
colleges is created. From the HEFP, around 50% go onto higher education in the West
Midlands.
Concluding comments
The above mentioned activities and impacts point to the benefits of
internationalisation. The international reach of the University raises the international
profile of the region which may help in facilitating international business contacts for
local firms. Probably more important, it increases the attractions of the region to
inward investors, especially for those which require links to a university, but also for
those which consider a leading university will add to the quality of life in the area. We
are confident that this is the case. Given the OECD finding that investment in
universities is more effective in generating research intensive FDI than financial
incentives to foreign investors, the examples of investment in the region from Tata and
other organisations demonstrate that the University is playing its role in making the
West Midland’s offer attractive to foreign investors.
A further second point is that international alumni often take up influential positions
in business or government in their home countries or elsewhere. The contacts
established while at the University can be long lasting and valuable. We have not been
able to identify tangible evidence of such impacts, but would note that, in particular,
both WMG and WBS have substantial numbers of international alumni. The literature
identifies longer-term intangible benefits on local economies (often referred to as
‘catalytic effects’)89 as a result of international students having a favourable attitude
towards a university’s region, including after the students have progressed to
influential positions in their careers.
The scale and quality of the University’s international linkages through its: foreign
students,
links
with
businesses
overseas
and
inward
investors,
partnerships/networks with other universities and organisations, indicates it is well
positioned to exploit the economic, cultural and social benefits for the regional
economy in the future. Further, the University can be considered to be contributing to
the ‘five drivers of productivity’ that interact to underpin long-term productivity
performance of an economy: investment, innovation, skills, enterprise and
competition.
See for example: Oxford Economics, The economic impact of London’s international students, 2007.
http://www.londonhigher.ac.uk/fileadmin/documents/OxfordEconomicsReport.pdf
89
61
Annex A: Estimating expenditure impacts
Definition of local and regional areas
A.1
A.2
In order to fully estimate the impact of the University, it was necessary to analyse the effects
of expenditure at three different scales: local, regional and outside the region.

Coventry City

Warwick district

Leamington Spa comprising of the following ward areas: Brunswick, Milverton,
Manor, Crown, Claredon and Willes

Kenilworth comprising of the following ward areas: Abbey, St Johns, Park Hill

Coventry and Warwickshire (Local impact) comprising of the following local
authority districts: Coventry, North Warwickshire, Nuneaton and Bedworth, Rugby,
Stratford-on-Avon and Warwick

the rest of the West Midlands (Regional impact) comprising of the following local
authority districts: Birmingham, Bromsgrove, Cannock Chase, Dudley, East
Staffordshire, County of Herefordshire, Lichfield, Malvern Hills, Newcastle-under-Lyme,
Redditch, Sandwell, Shropshire, Solihull, South Staffordshire, Stafford, Staffordshire
Moorlands, Stoke-on-Trent, Tamworth, Telford and Wrekin, Walsall, Wolverhampton,
Worcester, Wychavon and Wyre Forest.

the rest of the UK.
A small number of postcodes were unavailable. These were recorded in the subsequent
analysis as ‘unclassified’ and included postcodes outside of the UK.
Sources of local expenditure and their treatment
A.3
A.4
To calculate the direct impact, we analysed the following data:

University expenditure on goods and services

University expenditure on staff salaries

Students’ Union expenditure on goods and services

Students’ Union expenditure on staff salaries

Student expenditure data, using student data from the University and the department
of Innovation, Universities and Skills ‘Student Income and Expenditure Survey’
(2009).
Data was obtained from different departments of the University, including HR, Finance and
the Students’ Union, using lead contacts supplied by the University. As many of the
departments collect the data in different timescales, e.g. financial year, academic year we have
A-1
used the most recent dataset available, and specified these where possible. For each type of
expenditure, postcodes were also specified which allowed the impact to be estimated at the
appropriate geographic scale. Each of these sets of data is discussed further below.
A.5
Each dataset was built into an economic model, to allow the full impact of expenditure to be
estimated. We used the data to calculate the total direct expenditure occurring from each
source. We then removed any expenditure which took place outside the local economy to
estimate the direct expenditure impacts at a local level. A similar exercise was then conducted
at a regional level. Once the direct impacts had been calculated, we then applied multipliers
to establish the indirect impacts. Below, we discuss the impacts arising from each expenditure
source in turn.
University expenditure
A.6
We analysed details of University expenditure for 2011/12 (covering the period 01/08/201131/07/2012). This included details about the values and the location of expenditure, as well
as the number of vendors. The data covers all purchases made by University (excluding the
Students’ Union) and was analysed by postcode. The results are shown in Table A-1. Where
purchases did not include a location for the supplier, they have been categorised as
‘unclassified’ in our analysis.
Table A-1: Summary of University purchases data, 2011/12
Area
Total
expenditure
2011-12
% of total
value (201112)
Number of
vendors (201112)
% of vendors
(2011-12)
£3,359,973
1.2%
269
4.0%
£26,798,533
9.2%
504
7.6%
Leamington Spa
£1,772,275
0.6%
93
1.4%
Kenilworth
£1,279,940
0.4%
109
1.6%
Coventry & Warwickshire
(Local impact)
£47,494,142
16.3%
1,096
16.5%
Other West Midlands
£21,069,500
7.2%
250
3.8%
Total West Midlands
(Regional Impact)
£68,563,642
23.6%
1,346
20.3%
£170,062,075
58.4%
4,293
64.6%
Rest of World
£13,561,967
4.7%
942
14.2%
Unclassified
£38,890,486
13.4%
62
0.9%
£291,078,170
100.0%
6,643
100.0%
Warwick district
Coventry
Rest of UK
Total
Source: SQW calculations, using University of Warwick data covering the academic year from (01/08/2011- 31/07/2012)
N.B. Numbers may not sum due to rounding.
University expenditure on staff salaries
A.7
For this analysis, we used payroll data accurate to the 2011/12 (financial year), which was
supplied by the University of Warwick. Payroll data was provided for all employees (excluding
those working at the Students’ Union) and detailed their full-time equivalency, their gross pay,
their net pay, and their postcode of residence where available.
A-2
A.8
This enabled us to establish the impact of University employment by geography. Table A-2
summarises the data, providing by geographical residence: the number of employees, full time
equivalent jobs, gross pay total and average, and net pay total and average.
A.9
Table A-2 shows that the University provided some form of employment to over 5,700 people
in 2011/12. Taking into account part-time arrangements (and additional responsibilities),
this is equivalent to over 5,000 full-time equivalent jobs.
Table A-2: Summary of University payroll data, 2011/12
Area
Numbe
r of
Staff
No. of staff
(FTE)
Gross pay
Average
(£)
Gross pay
Total (£)
Net pay
Average
(£)
Net pay
Total (£)
Warwick district
1,192
1,086
£39,426
£42,812,566
£27,570
£29,938,162
Coventry
2,544
2,191
£24,172
£52,959,777
£18,364
£40,234,137
Leamington
Spa
480
443
£40,293
£17,851,980
£27,929
£12,373,800
Kenilworth
494
446
£39,232
£17,495,234
£27,472
£12,250,960
4,433
3,904
£29,876
£116,623,90
3
£21,819
£85,172,350
457
411
£35,497
£14,588,152
£24,378
£10,018,618
4,890
4,315
£30,412
£131,212,05
5
£22,063
£95,190,968
Rest of UK
761
698
£38,626
£26,956,747
£26,919
£18,786,635
Unclassified
67
55
£20,773
£1,146,129
£15,950
£880,027
5,718
5,068
£31,438
£159,314,93
2
£22,665
£114,857,62
9
Coventry and
Warwickshire
(local impact)
Other West
Midlands
West Midlands
(Regional
impact)
Total Staff
Source: SQW calculations, using University of Warwick Students’ Union data covering the financial year from (01/04/2011 to
31/03/2012) N.B. Numbers may not sum due to rounding.
Students’ Union expenditure
A.10
Purchase data received from the Students’ Union covered the period from 01/08/11 to
27/05/12. It is likely that the Students’ Union expenditure will be minimal over the summer
months, when the students are on holiday, and so we do not think it would be prudent to gross
these figures up to 12 months. The impacts have therefore been calculated using the more
conservative 10 month figures. A summary of the Union’s purchase data is shown in Table A-3,
broken down by geography.
Table A-3: Summary of Students’ Union purchases data, 2011/12
Area
Warwick district
Coventry
Leamington Spa
Kenilworth
Total expenditure 2011-12
(10 months)
% of total value (2011-12)
£17,314
0.7%
£1,078,864
42.4%
£10,770
0.4%
£2,832
0.1%
A-3
Area
Total expenditure 2011-12
(10 months)
% of total value (2011-12)
£1,239,823
48.8%
£246,860
9.7%
Total West Midlands (Regional
Impact)
£1,486,683
58.5%
Rest of UK
£1,056,421
41.5%
Total expenditure
£2,543,105
100.0%
Coventry & Warwickshire (Local
impact)
Other West Midlands
Source: SQW calculations, using University of Warwick Students’ Union data covering a ten month time period (01/08/201127/5/2012). N.B. Numbers may not sum due to rounding.
Students’ Union payroll data
A.11
Payroll data received from the Students’ Union covered the period from 01/08/11 to
27/05/12. As with Students’ Union expenditure, the Students’ Union payroll data has been
analysed using data from a 10 month period. The data was analysed by geography, using
residential postcodes of staff. A summary of the direct expenditure impacts arising from
Students’ Union staff wages in each of the relevant geographies is shown in Table A-4.
Table A-4: Summary of Students’ Union Payroll expenditure, 2011-12
Area
FTE jobs
Payroll (£)
Warwick district
35.7
£591,549
Coventry
63.4
£1,261,496
Leamington Spa
33.6
£523,522
0.5
£7,532
104.6
£2,021,853
Other West Midlands
5.2
£190,437
Total West Midlands (Regional Impact)
110
£2,212,290
Rest of UK
6.0
£126,787
Total FTEs
115.8
£2,339,077
Kenilworth
Coventry & Warwickshire (Local impact)
Source: SQW calculations, using University of Warwick Students’ Union data which covered a ten month period from
01/08/11 – 27/05/12. N.B. Numbers may not sum due to rounding.
Student expenditure
A.12
The presence of the University of Warwick implies that there is an additional influx of students
within the local area, which may not have otherwise existed without the University. As such,
the expenditure of students is a direct impact of the University and we have estimated this
using the assumptions below (Table A-5).
A-4
Table A-5: Assumptions used in the calculation of student expenditure
Issue
Assumption
Calculating student
numbers
There were 29,225 students in total (i.e. including all UK and overseas
students) for the 2011/2012 academic year. See also Annex B.
[Note: these figures are based on student numbers provided by the University
in August 2012 and represent an approximate count of students at that time.
The total figure includes students who were subsequently not counted in the
final HESA return (due to non-enrolment, non-attendance, non-eligibility,
etc.). The final headcount to HESA was 27,442 for 2011/12]
The student expenditure impact calculations are based on the data supplied
to us in August 2012 (i.e. total count of 29,225 students).
Calculating number
of full time and part
time students
The Department for Innovation, Universities and Skills (now the Department
of Business, Innovation and Skills) Student Income and Expenditure Study
2007/2008 study (published 2009)90 notes that expenditure for full time and
part time students differs. Therefore, we calculated the number of full and part
time students at each geographic scale to estimate the full impact of the
University.
Distance learning
students
These students have been discounted on the assumption that they are very
rarely on campus and as such do not spend additionally as a result of the
University’s existence.
Choosing local or
regional universities
HEFCE 2009-10 indicates that the 86% of students from the West Midlands
choose to study from within the region.91
Our calculations based on University of Warwick data indicates:
Amount of
expenditure

18.8% of University of Warwick students are from the West Midlands
region. Therefore, we discounted 16.2% (86.0% x 18.8%) of the student
expenditure on the assumption that their contribution to the economy is
not additional.

10.6% of University of Warwick students are from the Coventry and
Warwickshire region. Therefore, we discounted 9.1% (86.0% x 10.6%) of
the student expenditure on the assumption that their contribution to the
economy is not additional.

4.9% of University of Warwick students are from Coventry. Therefore, we
discounted 4.2% (86.0% x 4.9%) of the student expenditure on the
assumption that their contribution to the economy is not additional.

1.4% of University of Warwick students are from Leamington Spa.
Therefore, we discounted 1.2% (86.0% x 1.4%) of the student
expenditure on the assumption that their contribution to the economy is
not additional.

0.7% of University of Warwick students are from Kenilworth. Therefore,
we discounted 0.6% (86.0% x 0.7%) of the student expenditure on the
assumption that their contribution to the economy is not additional.
We have used the average student expenditure taken from the BIS Student
Income and Expenditure Study 2007/2008 study92. The expenditure was as
follows:
Full time students:
Living costs £7,131 per year
Housing costs £2,695 per year
Participation costs £3,459 per year
Children costs £167 per year
Source: Department for Innovation, Universities and Skills now the Department of Business, Innovation and
Skills(2009), ‘Student Income and Expenditure Survey 2007/08’
http://www.bis.gov.uk/assets/BISCore/corporate/MigratedD/publications/D/DIUS_RR_09_05.pdf
91 Source: HEFCE (2010) 2009-10 Regional profiles West Midlands
http://www.hefce.ac.uk/media/hefce/content/pubs/2012/201207/WestMidlands.pdf
92 Ibid.
90
A-5
Issue
Assumption
Total £13,452 per year
Part time students
Living costs £11,551 per year
Housing costs £3,575 per year
Participation costs £2,075 per year
Children costs £841 per year
Total £18,042 per year
These figures have had GDP deflators applied, to convert the 2007/2008
prices to 2011/12 prices (i.e. 2007/8 values multiplied by 1.098).
Expenditure back to
the university
We have discounted expenditure on accommodation for those that live in
university-owned accommodation. This is not an additional impact, and will be
taken into account in the university’s own spending.
Living at home
We have disregarded those that live in their own home, their parent’s home or
their marital home because it is assumed that whatever these people spend
on housing they would have spent regardless of attendance or nonattendance at the university.
Seasonal impact
Students do not attend the university all year, and as such we have assumed
the spending of students to be calculated on a basis of eight months.
Students’ Union
spending
Students also spend money within the Students’ Union. The Students’ Union
tradable income will take account of this and as such, this has been
deducted.
Source: SQW calculations using University of Warwick data.
A.13
The key data used are outlined in the following table (Table A-6):
Table A-6: Student expenditure summary
Stage of calculation
University of Warwick student
expenditure in total: (calculated by
multiplying number of part time and
full time students by appropriate
expenditure in BIS study)
Data
Regional (West Midlands)
Expenditure on:

Living = £164,158,125

Housing = £59,933,665

Participation = £70,222,012

Children = £5,362,380

Total = £299,676,182
Local (Coventry & Warwickshire)
Expenditure on:

Living = £145,566,448

Housing = £53,864,721

Participation = £65,479,794

Children = £4,235,776

Total = £269,146,739
Coventry:
Expenditure on:

Living = £96,463,468

Housing = £36,012,041

Participation = £44,808,548
A-6
Stage of calculation
Data

Children = £2,577,832

Total = £179,861,889
Leamington Spa:
Expenditure on:

Living = £36,052,380

Housing = £13,468,699

Participation = £16,544,984

Children = £16,789,291

Total = £82,855,354
Kenilworth:
Expenditure on:
Student expenditure reduced for
seasonal impact (eight months)

Living = £2,017,612

Housing = £677,201

Participation = £597,649

Children = £597,649

Total = £3,890,110
Regional (West Midlands)
£199,784,121 (£299,676,182 / 12 x 8 months)
Local (Coventry & Warwickshire)
£179,431,159 (£269,146,739 / 12 x 8 months)
Coventry
£119,907,926 (£179,861,889 / 12 x 8 months)
Leamington Spa
£55,236,903 (£82,855,354 / 12 x 8 months)
Kenilworth
£2,593,407 (£3,890,110 / 12 x 8 months)
Student expenditure after discounting
for non-additional student expenditure
Regional (West Midlands)
£167,502,425 (£199,784,121 reduced by 16.2%)
Local (Coventry & Warwickshire)
£163,131,504 (£179,431,159 reduced by 9.1%)
Coventry
£114,844,509 (£119,907,926 reduced by 4.2%)
Leamington Spa
£54,549,338 (£55,236,903 reduced by 1.2%)
Kenilworth
£2,577,915 (£2,593,407 reduced by 0.6%)
Student expenditure after discounting
for living at home expenditure and
Regional (West Midlands)
£143,310,977 (£167,502,425 - £24,196,482)
A-7
Stage of calculation
Data
expenditure on university
accommodation
Local (Coventry & Warwickshire)
£138,940,056 (£163,131,504 - £24,196,482)
Coventry
£103,935,387 (£114,844,509 - £10,896,478)
Leamington Spa
£50,465,971 (£54,549,338 - £4,078,635)
Kenilworth
£2,241,842 (£2,577,915 - £335,683)
Student expenditure after deducting
expenditure back to Students’ Union
Total regional impact (West Midlands)
£138,527,101 (£143,310,977 – £4,783,876)
Total local impact (Coventry & Warwickshire)
£134,156,180 (£138,940,056 – £4,783,876)
Coventry
£101,778,100 (£103,935,387 - £2,154,338)
Leamington Spa
£49,658,482 (£50,465,971 - £806,385)
Kenilworth
£2,175,383 (£2,241,842 - £66,368)
Source: SQW calculations based on University of Warwick data for the academic year (01/10/2011 – 30/09/2012).
A.14
Following these assumptions, the estimated total impact of student expenditure for 2011/12
is as follows:
•
£134.2 million at a local level (Coventry and Warwickshire)
•
£138.5 million at a regional level (West Midlands).
Impact estimates
A.15
Combining all the different types of expenditure discussed above, gives us the total direct
impact arising from expenditure associated with the University of Warwick. A summary of
these impacts at both a local and regional level is shown in Table A-7.
Table A-7: Direct impacts, 2011/12
Local impact
(Coventry &
Warwickshire)
Regional
impact (West
Midlands)
Coventry
Leamington
Spa
Kenilworth
University
payroll
£85,172,350
£95,190,968
40,234,137
12,373,800
12,250,960
University
purchases
£47,494,142
£68,563,642
26,798,533
1,772,275
1,279,9401,
279,940
A-8
Local impact
(Coventry &
Warwickshire)
Regional
impact (West
Midlands)
Coventry
Leamington
Spa
Kenilworth
Students’
Union payroll
£2,021,853
£2,212,290
1,261,496
523,522
7,532
Students’
Union
purchases
£1,239,823
£1,486,683
1,078,864
10,770
2,832
£134,156,180
£138,527,101
101,778,100
49,658,482
2,175,383
£270,084,348
£305,980,684
171,151,130
64,338,849
15,716,648
Student
expenditure
Total impact
Source: SQW calculations, using University of Warwick data N.B. Numbers may not sum due to rounding.
Multipliers
A.16
In addition to the direct impacts, there will also be knock-on effects that occur through respending locally and regionally (indirect and induced). In other words, after the direct
expenditure impacts through purchases, staff wages and student spending, there will be
further rounds of spending. For example, staff spending their wages on goods and services in
the economy, generating further business and employment. The purchases made will create
employment in businesses, for which employees will be paid wages, which in turn will be
spent in the local and regional economies. These knock-on effects are measured using
economic multipliers.
A.17
The evidence on the value of multipliers varies widely. The Department for Business,
Innovation and Skills (BIS) published evidence (2009)93 on multipliers (indirect and induced)
at a sub-regional and regional level, based on evaluation data across a range of intervention
types. At a sub-regional level the range was very wide (1.00 to 2.71), with the overall mean
multiplier value of 1.25 (based on 137 observations). Similarly, at a regional level, the range
was wide (1.00 to 3.25), with the overall mean multiplier of 1.45 (based on 326
observations).
A.18
Further, evidence from Universities UK (2010)94 gives a ‘regional output multiplier’ for the
West Midlands of 2.01 (applied to university output). This value we consider to be relatively
high and would wish to adopt a more conservative approach to arriving at appropriate
multipliers.
A.19
Taking into account this evidence and based on our own judgement we have used the
following multiplier values: 1.30 for local level, and 1.70 for regional level. These
multiplier values we consider to be reasonably conservative and appropriate for calculating
the knock-on effects from the direct impacts associated with the University and students.
A.20
Following from this, we applied a multiplier of 1.70 for West Midlands and 1.30 for Coventry
& Warwickshire. In the absence of relevant multiplier for smaller geographies - Coventry,
Department for Business, Innovation & Skills, (October 2009) BIS Occasional Paper No. 1, Research to improve the
assessment of additionality. http://www.bis.gov.uk/files/file54063.pdf (see Tables 7.1 and 7.2).
94 U. Kelly, D. McLellan, Iain McNicoll, The University of Strathclyde for Universities UK (2010), Making an economic
impact: Higher education and the English regions.
http://www.nwua.ac.uk/Publications/Reports/Docs/Making%20an%20economic%20impact%20%20Higher%20education%20and%20the%20English%20regions%20(June%202010).pdf
93
A-9
Leamington Spa and Kenilworth - we applied the same local level multiplier of 1.30 to estimate
the impacts associated with these geographies.
A.21
Applying regional and local multipliers to the direct impacts gives the total economic impacts
shown in Table A-8.
Table A-8: Total direct, indirect and induced impacts, 2011/12
Local impact
(Coventry &
Warwickshire)
Regional
impact (West
Midlands)
Coventry
Leamington
Spa
Kenilworth
University
payroll
£110,724,055
£161,824,645
52,304,378
16,085,940
15,926,248
University
purchases
£61,742,385
£116,558,191
34,838,093
2,303,958
1,663,922
Students’
Union payroll
£2,628,410
£3,760,893
1,639,945
680,579
9,791
Students’
Union
purchases
£1,611,770
£2,527,361
1,402,523
14,001
3,682
£174,403,033
£235,496,072
132,311,530
64,556,026
2,827,998
£351,109,653
£520,167,163
222,496,469
83,640,504
20,431,642
Student
expenditure
Total impact
Source: SQW calculations, using University of Warwick data N.B. Numbers may not sum due to rounding.
Impact on local and key regional employment
A.22
The University itself and the Students’ Union directly employ residents of the local and
regional area. This amounts to 4,425 FTE jobs to residents in the West Midlands. However, in
addition there are jobs generated in the local and regional economies through the University
(incl. Students’ Union) and student expenditure. We calculate this impact by dividing the total
direct and indirect impact (subtracting University and Students’ payroll expenditure) by the
GVA per filled job figure. In our calculation we have used a GVA per filled job value of
£38,19395, sourced from the Office for National Statistics. The results in Table A-9 below
indicates that the presence of the University creates a further 6,910 FTE jobs to residents in
the local area and over 11,069 FTE jobs to residents in the region.
This is calculated from GVA and employment figures for 2011 taken from ONS (2013), Regional Economic Indicators,
GVA per filled job, Table1 Updated Regional GVA/Job and updated Regional GVA/Hour.
http://www.ons.gov.uk/ons/search/index.html?newquery=gva+per+job
95
A-10
Table A-9: Total impact on jobs, 2011/12
Total jobs at
University of
Warwick
Total jobs at
Students’ Union
Extra jobs created
as a result of
expenditure
associated with the
University and
Students’ Union
Total jobs
Local impact
(Coventry &
Warwickshire)
Regional
impact
(West
Midlands)
Coventry
Leamington
Spa
Kenilworth
3,904
4,315
2,191
443
446
105
110
63
34
0
6,910
11,069
4,739
1,852
214
10,918
15,493
6,993
2,329
660
Source: SQW calculations, using University of Warwick data, based on full-time equivalent (FTE). N.B. Numbers may not
sum due to rounding
A-11
Annex B: Student data
Number of students
The University of Warwick provided data on the number of students for the academic year
2011-12. Analysis of these data indicate that there are a total of 29,225 students of which
19,512 live in Coventry & Warwickshire and 21,368 live in the West Midlands, during term
time. A full breakdown of student numbers by geography is presented in Table B-1.
Table B-1: Student numbers at different geographic scales (resident during term time)
Area
Warwick district
Coventry
Leamington Spa
Kenilworth
Coventry & Warwickshire (local impact)
Other West Midlands
Total West Midlands (regional impact)
Rest of UK
(Unclassified)
Total Students
Number of
students (F/T)
Number of
students
(P/T)
Total
number of
Students
5,125
401
5,526
12,617
562
13,179
4,735
198
4,933
108
108
406
18,058
1,454
19,512
644
1,212
1,856
18,702
2,666
21,368
1,197
4,031
5,228
855
1,774
2,629
20,754
8,471
29,225
Source: University of Warwick data.
These figures are based on student numbers provided by the University in August 2012 and
are an approximate count of students at that time. These include students who were
subsequently not counted in the final HESA return (due to non-enrolment, non-attendance,
non-eligibility, etc.) and we understand from the University that the final headcount to HESA
was 27,442 (for 2011-12).
B-1