Building capacity to deliver PSA regional performance targets John Goddard Deputy Vice Chancellor and Professor of Regional Development Studies Newcastle University 1 As Professor of Regional Development Studies in Newcastle University since 1975, can I add my welcome to the North East? Following a recent public lecture in Newcastle on the role of universities in city and regional development, Jonathan Blackie asked me to provide some background to your visit in terms of the long history of public policy interventions designed to tackle the economic underperformance of this region. Web reference http://www.ncl.ac.uk/events/public-lectures/item.php?the-role-ofthe-university-in-the-development-of-its-city-and-region I will then link these remarks to the current challenges confronting your Board. I must start by emphasising that the region has a long history of pioneering new ways of tackling poor economic performance. My University has played a key role at every stage. The first attempt to help the region catch up with the South East after the great depression was through the building by the state of “advanced factories” in the Team Valley in 1936. My predecessor played a key role in its design and development. In the 1960s the visionary regional leader Dan Smith saw the connection between education 1 Speech to the REP PSA Delivery Board 17 April 2008 -1- and economic development and worked with the University and the Polytechnic in delivering his vision of “education upon Tyne” creating a city centre campus for the universities. In the 1980s I and my colleagues in the University’s Centre for Regional and Urban Development Studies challenged the long term viability of a policy of attracting mobile industry to the region. We persuaded the European Commission to move towards a new policy of support for indigenous development particularly through technological innovation. With support from the European Structural Funds a number of initiatives were launched in the region to build links between industry and the research base in universities. This culminated in the first Regional Economic Strategy which “placed universities at the heart of the regional economy”. While the initial focus was on technology in isolation the region has come to realise the importance of places and the local milieu to fostering innovation. For example our International Centre for Life brings together genetics research, the NHS, business incubation and public understanding of science in one location. By linking regeneration and science funding we provided Gordon Brown with the model for the designation of Six Science Cities. Here Newcastle Science City has built on culturally led regeneration which has attracted and retained creative people to the region and is using the physical assets of the former hospital and brewery sites to bring -2- science and business together. Similar developments are in train in Netpark in County Durham where Durham University is a key actor. In focussing on key sites or what the RES calls innovation connectors, the current policy has resonance with the identification of growth points in County Durham during the 1960s. In summary, economic development and place making have gone hand in hand in this region for seventy years. How has this come about? In my public lecture I highlighted the role played by key individuals in launching local initiatives designed to raise economic performance and also shape national policy from the bottom up. I guess one challenge your Board faces is how to ensure that as more and more organisations are required to support economic development they all have the capacity to act together in a way that contributes to meeting PSA regional targets. In my view capacity fundamentally relates to the skills and competences of individual actors. However much we seek to change the institutional map of who does what where there will still be overlaps of the roles and responsibilities of different agencies. Working together will only deliver conjoint outcomes if people in all the key stakeholder organisations have a common understanding of the drivers behind regional economic performance and how they can contribute in their own domains, not least by working with -3- partners to deliver desired regional outcomes. A key point of that understanding relates to the trajectory of regional development and the success or otherwise of policy intervention. In this regard the proposed local economic assessments could play a dynamic role. Gathering the evidence base and assessing the outcomes of particular interventions should be part of the capacity building process. Moving beyond counting outputs to ensuring the delivery of outcomes will only come from building trust between partners. Understanding outputs from each part of an inter-agency business process in a way that contributes to the delivery of longer term outcomes needs sustained joint working. Evidence gathering must be the responsibility of actors in the process not external researchers/consultants (although advise can be sought in relation to data capture protocols). The actors must understand the linkage between individual interventions and the delivery of outcomes reflected in gross statistics. There must be an acceptance that the outputs from one Agency may contribute to the targets of another to the overall benefit of the region. This emphasis has important implication for the design of scrutiny and public accountability regimes. These need to be developmental rather than judgemental and extend the work of the -4- NAO and Audit Commission more strongly into the inter organisational domain. In delivering on this agenda, the critical actors are those with boundary spanning roles. It should be a key function of HR departments to ensure that these people have the necessary knowledge and skills to work with partners, ideally by running staff development programmes that involve participants from one or more outside organisations. Programmes such as Common Purpose and the Top Management Programme provide good models. Knowledge of others should include understanding their national policy drivers and the skills to undertake conjoint working which seeks to influence these policies in ways that ensure positive regional outcomes. I would like to conclude by illustrating my remarks with the example of my own university in relation to joint working with ONE NorthEast and Newcastle City Council. We have an MOU with ONE and this is detailed in the slides I have handed out. We will be implementing the MOU through a staff development initiative focussing on conjoint planning to enable us to move on from a project by project approach to an agreed rolling programme. A three way partnership around the delivery of Newcastle Science City has also been established which -5- clearly articulates the complementary agendas of the partners. From the university side this has been driven by a recognition that local engagement and contributing to national goals as well as competing globally can be mutually supporting. This approach could be a model for other regional partnerships. Civic universities like my own are seeking to link all of these levels and connect the various domains addressed by the PSA targets. pursuing this we still face barriers at the national level. In For example I was disappointed to find little reference to universities and higher level skill in the SNR. And while the DIUS White paper highlights the importance of place, the role of universities at that level is yet to be clearly articulated. In short, and from the perspective of the contribution of higher education to addressing uneven territorial development, we still have a long way to go in joining up government. -6-