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MIDLANDS ENGINE LEP PROFILES Black Country LEP

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MIDLANDS ENGINE LEP PROFILES Black Country LEP MIDLANDS ENGINE LEP PROFILES Black Country LEP October 2019 BLACK COUNTRY LEP Introduction This document profiles the Black Country Local Enterprise Partnership (LEP) area, providing insight and data across key areas of the economy, namely through the five foundations of productivity outlined in the government’s industrial strategy: Ideas, People, Infrastructure, Business Environment and Places. Benchmarking is provided in the context of the Midlands Engine, allowing comparison between the Black Country and other LEP areas within the region. The Black Country The Black Country is at the heart of the Midlands Engine. It is the smallest Midlands Engine LEP area in terms of the number of hectares (35,693) but the third largest in terms of population. It is home to global businesses and a diverse set of innovative, adaptable supply chains across that work across sectors. The Black Country includes the local authority areas of Wolverhampton, Walsall, Sandwell and Dudley. Black Country LEP remains committed to its long-term ambitious, evidence-based vision. At the core of that vision is a commitment to growing our population, raising incomes, achieving a more balanced population and transforming the quality of our environment. The Black Country LEP has worked with the Greater Birmingham and Solihull LEP, Coventry & Warwickshire LEP and the West Midlands Combined Authority in the development of a Local Industrial Strategy for the West Midlands. The West Midlands Local Industrial Strategy (WM LIS) was launched on 16th May 2019, making it the first area in the country to publish a LIS. 1 BLACK COUNTRY LEP Contents This LEP profile collates insight within the five foundations of productivity: Ideas, People, Infrastructure, Business Environment and Places. A section is provided for each of these which can be navigated by the contents table below. A summary of key statistics is presented first, before the full foundation sections begin. Data relating to the Black Country is highlighted in blue in each graph. Infographics at the start of each section present key statistics in the area. The statistics are then contextualised in the graphs and text that follows. Black Country Key Statistics ……………………………………………………………………………………. 3 Foundations of Productivity ……………………………………………………………………………………. 4 Ideas ………………………………………………………………………………………………………….……... 6 People ……………..……………………………………………………………………………………………..… 12 Infrastructure ……………………………………………………………………………………………………. 17 Business Environment……………………………………………………………………………….………… 22 Place ……………………………………………………………………………………………………….……….. 29 2 BLACK COUNTRY LEP Black Country Key Statistics 3 BLACK COUNTRY LEP Black Country LEP area Employment Forecast by sector 2017-2030 (000s) 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Agriculture etc Mining & quarrying Manufacturing Electricity, gas & water Construction Distribution Transport & storage Accommodation & food services Information & communications Financial & business services Government services Other services Source: Cambridge Econometrics (2019) Midlands Engine Employment Forecast by sector 2017-2030 (000s) 1600.0 1400.0 1200.0 1000.0 800.0 600.0 400.0 200.0 0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Agriculture etc Mining & quarrying Manufacturing Electricity, gas & water Construction Distribution Transport & storage Accommodation & food services Information & communications Financial & business services Government services Other services Source: Cambridge Econometrics (2019) 4 BLACK COUNTRY LEP GVA Forecast Black Country 2017-2030 by sector (£2016 millions) 6000.0 5000.0 4000.0 3000.0 2000.0 1000.0 0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Agriculture etc Mining & quarrying Manufacturing Electricity, gas & water Construction Distribution Transport & storage Accommodation & food services Information & communications Financial & business services Government services Other services Source: Cambridge Econometrics (2019). Notes: Total GVA includes ownership of dwellings. GVA Forecast Midlands Engine 2017-2030 by sector (£2016 millions) 60000.0 50000.0 40000.0 30000.0 20000.0 10000.0 0.0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Agriculture etc Mining & quarrying Manufacturing Electricity, gas & water Construction Distribution Transport & storage Accommodation & food services Information & communications Financial & business services Government services Other services Source: Cambridge Econometrics (2019). Notes: Total GVA includes ownership of dwellings. 5 BLACK COUNTRY LEP The UK’s Industrial Strategy stresses the importance of the UK being a global leader in science and research. Key policies include: a target to raise total R&D investment to 2.4% of GDP by 2027 increasing the R&D tax credit rate to 12% the creation of the £725 million Industrial Strategy Challenge Fund. Based on the available data, the Black Country performs modestly on innovation indicators compared to other Midlands Engine LEPs in terms of business innovation funding secured and the value of research funding received. However, analysis by the Smart Specialisation Hub suggests the Black Country performs above average for Higher Education Spending on R&D.1 1 Smart Specialisation Hub: LEP Profiles Data 6 BLACK COUNTRY LEP Business Enterprise Spending on R&D Black Country 84 Coventry and Warwickshire 3107 D2N2 1159 Greater Birmingham and Solihull 451 Greater Lincolnshire 64 Leicester and Leicestershire 365 Stoke-On-Trent and Staffordshire 311 The Marches 143 Worcestershire 508 0 500 1000 1500 2000 2500 3000 3500 Business Enterprise Spending on R&D (£/FTE) (2015) Figure 1 Source: BERD data analysis, Smart Specialisation Hub Value of H2020 Projects by LEP 2014-2018 (Euros) Black Country 2,322,381 € Coventry and Warwickshire 56,158,404 € D2N2 35,221,676 € Greater Birmingham & Solihull 53,590,192 € Greater Lincolnshire 4,914,179 € Leicester and Leicestershire 22,413,561 € Stoke-On-Trent and Staffordshire 9,814,038 € The Marches 390,200 € Worcestershire 1,258,033 € 0 € 10,000,000 € 20,000,000 € 30,000,000 € 40,000,000 € 50,000,000 € 60,000,000 € Value of projects (€) Figure 2 Source: EU Open Data Portal (2018) Value of research council/ UKRI awards 2012-2021 Black Country £23,410,064 Coventry and Warwickshire £864,635,745 D2N2 £606,622,880 Greater Birmingham and Solihull £997,002,402 Greater Lincolnshire £36,176,658 Leicester and Leicestershire £321,286,264 Stoke-On-Trent and Staffordshire £48,999,532 The Marches £24,323,672 Worcestershire £18,236,057 £0 £200,000,000 £400,000,000 £600,000,000 £800,000,000 £1,000,000,000 £1,200,000,000 Value of awards (£) Figure 3 Source: UKRI (2019) 7 BLACK COUNTRY LEP Innovation Benchmarks: 2014-16 Highest Lowest Black Country Business Practices 50 45 Process innov Work Organisation 40 35 30 25 20 Innov. Sales 15 Marketing 10 5 0 Radical Innov R&D Product/Service Innov. Design Co-operation Figure 4 Source: Roper and Bonner (2019) Charts are derived from the UK Innovation Survey. Details of derivation of data can be found in the ERC Innovation Benchmarks Report. Charts relate to a series of 10 metrics which provide an indication of the proportion of firms in each area engaged in each type of innovation. Assets Even with just one university – Wolverhampton – analysis by the Smart Specialisation Hub suggests the Black Country performs above average for Higher Education Spending on R&D (ranked 5th out of all English LEP areas).2 Figure 2 indicates that over 2 million euros worth of Horizon 2020 projects was secured between 2014 and 2018. The University of Wolverhampton provides a focal point for Black Country research, innovation and the development of ideas. As a key local asset, the university contributes world-leading research, strong business links and state-of-the-art facilities, such as: A large and diverse Science Park including a Technology Centre, a Creative Industries centre and the new Science and Prototyping Centre - a unique combination of laboratories, workshops and office space for science and technology-based companies. Statistical Cybermetrics Research Group, one of the UK’s leading centres for research on software methods to exploit web-based sources for social sciences research. The Research Institute in Healthcare Science, providing a platform for the development and promotion of healthcare science research activities. 2 Smart Specialisation Hub: LEP Profiles Data 8 BLACK COUNTRY LEP Brownfield Research and Innovation Centre (BRIC), developing cost effective and sustainable solutions to brownfield developments Beyond the University, the Black Country has a cluster of innovative firms delivering cutting-edge solutions to everyday problems, utilising technology to drive progress. For example, Dudley-based Westfield Technology Group is one of the UK’s leading autonomous vehicle provides. The Westfield POD, developed in partnership with Heathrow, is the UK’s first fully autonomous vehicle for first mile – last mile transportation. The regional innovation ecosystem supports Black Country firms to innovate through a variety of projects and programmes. Figure 4 indicates that the Black Country performs very well in terms of the proportion of firms introducing new methods of work organisation. Roper and Bonner (2019) rank it 1st of 39 LEP areas for this indicator. The area also performs strongly in relation to the proportion of firms collaborating for innovation (ranked of 39 LEP areas
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