West of England Local Industrial Strategy

July 2019 2 Contents

Foreword 4

Executive summary 7

West of England’s priorities 17

Cross-sectoral innovation 21

Inclusive growth 30

The productivity challenge 40

Innovation in infrastructure delivery 45

The five foundations of productivity

Ideas 50

People 55

Infrastructure 59

Business environment 66

Places 71

Implementation and Evaluation 75

Further information 78

3 Industrial Strategy West of England Local Industrial Strategy Foreword

The West of England — a region renowned for its collaboration, ingenuity and creativity. The place we want to be Growing the talent The West of England is a place where our region needs ideas flourish and businesses grow, The region’s highly skilled workforce is where creative, digital and high fed by four prestigious universities with tech meet traditional industry. It is retention rates among the highest in at this interface that the solutions the country, fostering original ideas, and to the challenges of the future helping to make the West of England a lie. The strength of the UK in the world-leader. Through partnerships that global economy is dependent on are fuelling innovation and breaking dynamic, globally competitive, down barriers, the universities, start- outward looking and creative ups and multinationals work together places like the West of England. to seize opportunities, harness Across the region’s towns and cities, expertise and think differently. there is an independence of spirit The West of England’s ingenuity and pride in the diversity, creativity makes it a major force in the global and ingenuity of local communities. marketplace. Historically, trade put Diversity is valued as an important the region on the map and it remains contribution not only to social a critical gateway to the nation and to cohesion, but also to the success the world. At the crossroads of major and vibrancy of the economy. motorways and rail networks, with From Brunel and Concorde, to the an international airport and port, the latest developments in robotics and region provides the right environment virtual reality, the West of England for businesses to thrive and grow. has long been at the cutting edge Produced by the region, of technology. The region hosts the for the region biggest aerospace cluster in the UK, Developed by leaders and businesses financial and professional services from across the region, working are thriving and the region supports closely with government, this Local a world-renowned creative sector. Industrial Strategy draws on the unique From globally-recognised studios and strengths of the people and places broadcasters to smaller independent across the West of England. It sets out producers, West of England businesses the region’s ambition to be a driving generate a huge range of content for all force for clean and inclusive growth. types of platforms, all over the world.

4 At the heart of this approach This Local Industrial Strategy will are four key priorities: support productivity and business ``Cross-sectoral innovation: growth by setting a West of Strengthening the region’s innovation England Productivity Challenge ecosystem and driving productivity, to encourage all businesses by developing measures that will to improve performance and improve coordination and enable sustainability. It will promote uptake testing at scale. This includes a new of modern technologies, innovation, Global Centre of Innovation Excellence management practices and cleaner and a new West of England Network business models, and a drive to of Living Labs, to test and prepare increase exporting across the small user-centred products and services and medium-sized business base. for market. This will further enhance Green business measures, such as the region’s reputation, nationally long-term sustainability and improved and internationally, as a place of energy efficiency, are central to the innovation and collaboration. region’s ambitions for clean growth. ``Inclusive growth: We want everyone ``Innovation in infrastructure delivery: who lives and works in the region to The West of England is the first have the chance to both contribute region in the UK to develop a joined- to, and benefit from, its economic up strategic planning approach to success. The West of England will set out how it will meet its housing work to help all residents achieve their and transport needs over the next full potential by ensuring that they 20 years. The Joint Spatial Plan and are skilled and work-ready. With the the supporting Joint Local Transport right employment and skills provision, Plan set out a vision where, by 2036, businesses will be able to find the the West of England will be one of talent they need to thrive. Improved Europe’s fastest growing and most physical and digital infrastructure prosperous regions. The region will will efficiently and seamlessly harness its powerful innovation assets support this, linking everyone to deliver these plans in a sustainable to jobs, training and services. way, taking action without increasing carbon emissions. The region’s ``The productivity challenge: The region commitment to tackling climate is home to successful businesses, with change and ensuring quality of life strong growth of scale-ups and high for current and future residents runs rates of business survival. through this Local Industrial Strategy.

5 Industrial Strategy West of England Local Industrial Strategy

Through earlier measures such as insulating homes and local renewable energy generation, the region’s carbon emissions have reduced by 32 per cent since 2005. At the same time, the economy has grown by 45 per cent, demonstrating Rt. Hon. Greg Clark MP that commercial growth and clean growth can go hand-in-hand. Secretary of State for Business Energy & Industrial Strategy Working together to create a better future for all The West of England is continuing a centuries-old tradition of innovation, breaking down the silos that have held industries apart and exploring the possibilities at the frontiers between them. As the world changes around us, we need a plan that Professor Steve West helps us to stay ahead of the curve, Chair of the West of England embracing new technology and Local Enterprise Partnership creating a stronger economy and a better place to live and work for all. Developing this Local Industrial Strategy has been a collaborative effort and has brought us closer together, re-energising and re-focusing our region. We have a plan that will prepare us for a future where technology will be doing things that Tim Bowles we haven’t even dreamt of yet. Our capacity to face the future involves our West of England Mayor people, businesses, regional leaders and government working together so that we continue to succeed.

6 Executive Summary

The West of England has a strong tradition of innovation. It is a place where ideas flourish and businesses grow, where creative, digital and technology meet traditional industry. It is at this interface where the solutions to the challenges of the future lie. Securely founded in robust evidence, the M5/M4 corridor to London, Wales this Local Industrial Strategy represents and Birmingham. It also has important a strong partnership between local and international connections through its national partners and a recognition of port and airport. The West of England the shared ambition and opportunity for is committed to continue working the region. In addition to working closely collaboratively across the national with national government, the West of economy to strengthen transport, England Combined Authority (WECA) business, and innovation links. and the Local Enterprise Partnership The West of England has three distinct have collaborated with a wide range and overlapping ‘sector strengths’ of partners across local government, that drive innovation in the region. business and universities, together with They are supported by their supply the voluntary and community sector. The chains and the region’s four world-class result is a Local Industrial Strategy which universities: advanced engineering identifies the strengths and challenges including aerospace; creative, cultural of the West of England and plans the and digital industries; and financial, foundations upon which the region will business and legal ‘tech’ services. thrive, for the benefit of all its residents. This Local Industrial Strategy looks to The West of England today build upon these strengths to support further cross-sectoral innovation. The West of England is already flourishing. Rich cultural heritage and Despite its strengths, the West of attractive natural assets sit alongside England recognises that there are still thriving businesses and a diverse range challenges to be overcome if the region of industrial clusters, which are often is to meet its full potential. Output per at the forefront of innovation. This person has grown more slowly than partnership of cultural, natural and the rest of the UK since 2009 and the economic assets mean that people region’s population is growing faster live, study and work in the region. than the UK average. Whilst this will However, this does not mean the potentially provide the region with a region is inward facing. The West of large and diverse future workforce, it will England plays a central role in the UK also increase pressure on the existing economy, and is well connected along transport and housing infrastructure.

7 Industrial Strategy West of England Local Industrial Strategy

Therefore, it is important that economic complementary strengths in a broad growth and success is shared across range of specialisms. This is driven in the region and, conscious of the wider particular by three significant sector environmental challenge, is clean. strengths: advanced engineering This Local Industrial Strategy recognises including aerospace; creative, these strengths and challenges. It cultural and digital industries; and will aim to both maximise the West of financial, business and legal ‘tech’ England’s many assets and also remove services. The opportunities that barriers to growth, to ensure that the arise at the interface between these West of England’s economy will be fit sectors are particularly valuable. for the future. In doing so, it will support The West of England’s ambition the aims of the national Industrial is to be recognised globally as a Strategy, government’s long-term place of innovation, where leading plan to boost productivity and earning designers, engineers, scientists power across the United Kingdom. and entrepreneurs combine with West of England priorities industry to create an innovation ecosystem that drives research, The robust evidence base underpinning development and commercialisation this Local Industrial Strategy has – both within and across sectors. identified four main priorities: This Local Industrial Strategy sets out cross-sectoral innovation; inclusive how the West of England will focus growth; addressing the productivity and coordinate the region’s pioneering challenge; and delivering innovation innovation and sector strengths to in infrastructure delivery. These have maximise collaborative innovation. The been recognised as key to the West of West of England, in partnership with England’s economy, and are at the heart local partners, will develop a model for of the West of England’s approach. a Global Centre of Innovation Excellence Cross-sectoral innovation (GCIE) to lead this work, and help Fostering cross-sectoral address some of the barriers to success. innovation from research Alongside this, the West of England through to commercialisation. will consult with local partners and The West of England has long been government to design a locally-led a leader of innovation, born out of its model of a network of Living Labs. substantial innovation ecosystem of Overseen by the GCIE, this programme major research-intensive businesses, will aim to test, develop and prepare four universities, specialist engineering for market new products and services. innovation centres, growing numbers Government will use its expertise to of innovative small and medium-sized provide input into the design of the GCIE enterprises (SMEs) and a diverse model and network of Living Labs. economic base that brings together

8 8 Inclusive growth Government will work with the West of England to ensure interventions Ensuring that growth is inclusive, are focused in the right way, at the with a focus on opportunities for right people and to ensure effective employment and progression for all. partnership working to address Ensuring that economic growth is national and regional priorities. inclusive is at the heart of the West of England’s ambition and vision for Productivity challenge the region’s future. It recognises that Addressing the productivity there are significant barriers to certain challenge, including adopting new communities which constrain access technology and management to the opportunities the region offers. practices and supporting The region has a high proportion businesses to trade. of young people not in education, The West of England is home to a employment or training (NEET), a range of innovative, dynamic and fast- disparity in skills levels and opportunity, growing businesses. Despite this, the and a decreasing take-up of region faces a productivity challenge. apprenticeships, all of which need to be The growth of a large number of addressed. The region’s infrastructure businesses in the region remains slow, also provides challenges with increasing with productivity gains held back by house prices and rents and significant slow uptake of technology and modern congestion limiting opportunity. management practices. The region The West of England has already taken has a particularly pronounced long-tail action to improve inclusive growth of lower productivity firms, which are through the devolved adult education holding back the region from reaching budget (AEB), which is being reformed its economic growth potential. to maximise its impact for the region’s The West of England aims for residents, business and communities. businesses of all sizes in its region This Local Industrial Strategy will build to fulfil their potential, improving on this to target support in communities performance, resilience and facing specific challenges, bringing sustainability, and enabling them together a broader range of budgets to grow and offer a wide range of and interventions linked to addressing good quality jobs. It will ensure that careers advice, worklessness, businesses of all types and sizes in-work progression, and both digital have access to the space, networks and physical infrastructure to better and skills they need to thrive. connect people to opportunities as set out in the West of England Joint Spatial Plan and Joint Local Transport Plan.

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The West of England will therefore be taken to strengthen the Growth encourage greater access to economic Hub and increase the productivity opportunity and more inclusive supply of the region’s businesses. chains. To deliver the productivity Innovation in infrastructure challenge the West of England will delivery continue to co-ordinate regional business support services and build Capitalising on the region’s on Growth Hub funding and provision. innovative strengths to deliver This will ensure that specialist advice the infrastructure necessary is available, tailored to different for future growth. sectors and business life stages. Having the right infrastructure in Government welcomes the West of place – both physical and digital – is England’s approach to their productivity key to unlocking productivity in the challenge and will reflect on and discuss region, connecting rural and urban opportunities to maximise its impact, communities, and driving forward clean including through coordination with and inclusive growth and maximising Be the Business and steps that can the opportunities of the smart region.

Figure 1: The West of England Local Enterprise Partnership geography

AREA MAP BIRMINGHAM 105 MINS

THORNBURY

M5

M4

SEVERN BRIDGE Filton Enterprise YATE Area BRISTOL PARKWAY BRISTOL PORT

M4

Emersons Green University of the Avonmouth EnterpriseArea West of England M5 Severnside University includingBristol & of Bristol Enterprise BRISTOL Bath SciencePark TEMPLE MEADS LONDON PORTISHEAD Area 80 MINS Temple Quarter EnterpriseZone BRISTOL KEYNSHAM

WESTONSUPERMARE BATH SPA Bath Enterprise University of BRISTOL AIRPORT Zone Bath

Junction 21 Bath Spa University EnterpriseArea BATH M5 SOMER VALLEY

SomerValley EnterpriseZone

10 The West of England’s ambition The region will also embed innovation is for the region’s residents to be in action to tackle the infrastructure able to move seamlessly around challenges (including action focused the region, using affordable on the future of mobility, mobility as a transport solutions that minimise service, houses for an ageing population the impact on the environment. and modern methods of construction). The West of England benefits from The West of England is exploring how its strong road and rail links and its it can address mobility challenges international connectivity. However, through a Mobility as a Service pilot as the region’s infrastructure is coming part of their network of Living Labs. under increasing pressure, making it The West of England Smart Home will harder for residents to move around aim to set the bar for new housing the region for work and leisure. design to enable more people to stay Using its innovation assets, the West of in their homes for longer, development England is looking to develop a smart of which will also form part of the region more in tune with the needs Living Lab programme of work. of its residents, one that uses digital The actions identified in this expertise to improve connectivity strategy will support the delivery and that can provide homes that of government’s Grand Challenges can house the ageing population for including the need to drive longer and can be built more cheaply, down carbon emissions. quickly and more energy efficiently.

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Strengthening the foundations of our economy

Ideas In particular, the low carbon energy sector is a space in which the West Contributing towards reaching of England thrives. It has flourishing the national ambition of 2.4 per businesses and commercial expertise, cent of gross domestic product in addition to having strong capabilities (GDP) investment in research and in the aerospace and advanced development (R&D) by 2027, by manufacturing sectors. This expertise, ensuring innovative businesses together with digital skills and high- can access the skills they need and speed data infrastructure, means that that the innovation ecosystem is the West of England is well placed to supported to maximise the benefits take up the opportunities of Smart for the region and the UK. Energy Technology, and benefit from The West of England has a long history the opportunities arising from the of supporting new ideas, new ways global transition to clean growth. of doing things, new products and To support the continued development services and new business models. of ideas within the region, the West Its four universities have a range of of England Employment and Skills research specialisms, and the region Plan recognises the importance also benefits from a substantial number in developing an environment of applied research and technology that cultivates ideas and delivers centres, through collaboration the high-level skills some of the between universities and industry. region’s sectors require. The region’s ideas are also driving business: spinouts and tech start- The government has already agreed ups are rapidly growing in number a series of Sector Deals in partnership thanks to some of the best incubator with industry that will support the support in the world. Government development of ideas and increase Sector Deals will create significant productivity in the West of England opportunities to boost productivity, including in aerospace, artificial employment, innovation and skills intelligence, creative industries, both nationally and in places with a nuclear and offshore wind. significant presence of relevant sectors.

12 People Building on existing provisions Delivering the West of England and those outlined elsewhere in Employment and Skills Plan which the strategy, the West of England sets out an action plan to support is committed to delivering on the residents to achieve their potential ambitions of the Employment and and businesses to find the skills and Skills Plan, which has been developed talent they need to innovate, add alongside this Local Industrial Strategy. greater value and thrive. The people As part of this, the West of England and communities across the West of will work with government through England are the region’s greatest asset. the actions identified in this strategy to support the effective delivery of It is a highly skilled region that attracts T Levels and to drive uptake and a diverse range of people, and has diversifications of apprenticeships a strong, dynamic workforce that to meet the demands of employers drives growth and productivity. in the region and improve equal However, it is not without challenges. opportunities for all residents. The population of the West of England Infrastructure is growing faster than the England average, with the 65+ population Delivering the region’s ground- expected to grow by 24 per cent breaking strategic transport and spatial by 2030. Supporting older workers plans including new homes and jobs who need or wish to remain in work properly supported by infrastructure. will become increasingly important. The West of England’s housing and Moreover, the health of people in the transport infrastructure has come West of England varies between the under increasing pressure over recent most and least deprived areas. The years, constraining growth and making region is focused on improving the it harder for residents to move around health of the workforce, improving the region for work and leisure. quality of life, improving productivity and reducing staff turnover. House prices and rent levels have become increasingly unaffordable, with This Local Industrial Strategy also house prices rising to 9.3 times average recognises there are challenges in the earnings. Congestion is also increasing, region’s skills provision. The region’s with an impact on commuters and the population is well qualified and there environment. Employment locations are is a strong demand for high-level skills also in need of better infrastructure, in particular. However, skills shortages with some being poorly served by and gaps remain at all skill levels physical and digital infrastructure. This which are impacting productivity and Local Industrial Strategy sets out the preventing the effective functioning West of England’s significant ambition of essential public services. to improve connectivity and housing through clean and inclusive growth.

13 Industrial Strategy West of England Local Industrial Strategy

The region is already making headway. This strategy offers an opportunity Their ground-breaking Joint Spatial to build on the existing government Plan (JSP) aims to secure the delivery support in this space such as the of high-quality and sustainable places Transforming Cities fund, funding to live. This sits alongside the Joint for the South West Energy Hub Local Transport Plan (JLTP) which has and discussions with Natural directed government and local funding England around the promotion into major transport improvements to of Green infrastructure. provide the necessary infrastructure to Business environment unlock and accelerate the development of new homes, as well as working to Establishing the West of England promote more sustainable modes of Scale-up Programme to capitalise transport such as cycling and walking. on a rich and diverse business support ecosystem, further targeting To ensure the region’s infrastructure businesses with the potential for drives forward productivity, the West high-growth and providing the of England will embed innovation support they need to flourish. A in tackling major infrastructure refocussed inward investment service challenges following the scale of will target high value foreign direct ambition set out in the JSP and JLTP. investment to add to the region’s These documents are supported by competitiveness and productivity. the Green Infrastructure Strategy, which acknowledges the significant The West of England has a thriving challenges of climate change and the business environment that encourages necessity for clean and sustainable companies to grow. Its scale-up growth through Green Infrastructure. sector is flourishing, supported by a strong network of incubators and Committed to tackling climate change, shared working spaces, a highly- the region will look to contribute to skilled workforce, and a diverse and the Clean Growth Grand Challenge collaborative culture. The region wants mission. As set out in the West of to cement its strength in nurturing England Strategic Energy Framework, high-growth businesses and ensure the West of England looks to build on this is sustained beyond start-up. energy strengths to deliver a diverse, However, there is a gap for finance resilient, and affordable energy system and investment into innovative scale- that enables economic growth whilst ups, and there are difficulties in reducing greenhouse gas emissions. finding appropriate working space and employees with the required skills.

14 This Local Industrial Strategy and help raise the awareness of the sets out how West of England will region’s business opportunities and tackle these obstacles to growth, economic assets overseas through to ensure all businesses are Her Majesty’s Trade Commissioners. supported to reach their potential. Places The West of England will build on the Supporting the development of region’s innovative Scale-up Generator sustainable, thriving places that offer to deliver a high impact enterprise opportunities and enhance the quality scale-up programme, including of life for communities. This will include specialist coaching support, space for helping businesses find premises to suit business growth, and a West of England their changing needs and developing scale-up investment fund. Working an understanding of what prevents with the British Business Bank (BBB), some locations attracting businesses. the region will help SMEs to access the finance they need to grow their The West of England is a vibrant, businesses through considering the diverse and creative region. It includes role of the BBB’s current programmes. the two thriving cities of Bristol and Bath along with diverse towns The region will also work with partners and communities. As a whole, it is to develop a tailored programme of well-recognised as a national and support to address the specific needs of international cultural and tourist hot the different groups of businesses, and spot, with a vibrant mix of urban, will call on the support of businesses rural and coastal areas providing to help to enhance the impact of their an exceptionally diverse cultural supply chains. It will also improve ecology. Quality of place is crucial local government procurement to to economic performance as well increase market access, in line with as social cohesion and well-being. Scale-up Taskforce recommendations. The West of England is working in The West of England will work with partnership with Arts Council England government to attract further high- to develop a Cultural Strategy to value inward investment. The West build on the existing strong offer. The of England will reposition their region is also exploring opportunities Invest Bristol & Bath (IBB) service to to strengthen existing joint working maximise its impact on productivity on tourism to maximise its capacity by focusing on significant investment to support the ambitions set out opportunities. It will work more closely in the Tourism Sector Deal. with the Department for International Trade (DIT) to provide the best service to potential investors and exporters

15 Industrial Strategy West of England Local Industrial Strategy

However, whilst overall the West of Building on the regional Love our England is a prosperous region, this High Streets fund, the West of picture is not universal; there are England will pilot innovative ways pockets of high levels of deprivation, in which to diversify commercial meaning the region’s strengths activity, help to unlock and connect are not benefiting all. This Local locations and sector activity through Industrial Strategy will aim to the provision of the necessary address this challenge, in addition infrastructure, and encourage a to maximising its assets, to support mix of employment premises to the development of sustainable, facilitate innovation. To do this, it will thriving places that offer opportunities also explore opportunities through and enhance the quality of life for national initiatives such as the Future communities across the region. High Streets Fund and the Stronger Towns Fund which could support local areas’ plans to make high streets and town centres fit for the future.

16 The West of England’s priorities

This Local Industrial Strategy is underpinned by a robust evidence base that explores the strengths of the region and the challenges it faces. The evidence base was developed It will help to raise productivity and in collaboration with partners drive economic growth in a way that across the region and highlighted is sustainable and offers opportunity four key priorities partners agreed to all residents. It will support should be at the heart of the the aims of the national Industrial West of England’s approach: Strategy, government’s long-term ``fostering cross-sectoral plan to boost productivity and earning innovation from research power across the United Kingdom. through to commercialisation; Cross-sectoral innovation ``ensuring that growth is inclusive, This Local Industrial Strategy will with a focus on opportunities for confirm the region’s position as employment and progression for all; a globally-significant innovation ``addressing the productivity challenge, ecosystem. The combination of a including adopting new technology diverse economic base, incorporating and management practices and a number of significant sector supporting businesses to trade; and strengths and four universities with world-class teaching, research or ``capitalising on the region’s innovative community engagement, together strengths to deliver the infrastructure with the geographical size of the necessary for future growth. region, supports interaction between Across these priority areas and sectors. This has resulted in world the foundations of productivity leading innovation from Concorde set out in the national Industrial to the application of virtual reality Strategy, the West of England is in business. It is at the interface focused on ensuring actions support between the creative, digital and sustainable, clean economic growth technology industries, and more and tackle climate change. traditional sectors of activity where many of these innovations occur. The West of England Local Industrial Strategy, focused around The West of England will strengthen these priority areas, will secure the innovation ecosystem, the region’s position as the place improve coordination and ensure to develop and test innovative innovation can be tested at scale. solutions to future challenges.

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To support this cross-sectoral innovation ``targeting support in communities and drive productivity the region will: facing challenges. The region will ``establish a Global Centre of Innovation identify a small number of places Excellence to focus the region’s and communities where levels of pioneering innovation and mobilise it deprivation are higher. It will bring to address national and international together and better coordinate a challenges such as an Ageing broad range of existing budgets and Society and Clean Growth; and interventions in those communities to test the impact of aligning the ``establish a West of England Network work of local and national partners. of Living Labs, a programme to test, This will go beyond the region- develop and prepare new products and wide approach to infrastructure services for market. This will happen investment that is already in place. The in a collaborative and user-centred intention is to have a demonstrable way, with focus on the four Industrial impact on indicators such as Strategy Grand Challenges AI and engagement in the labour market, Data, Clean Growth, Ageing Society NEET rate and health inequalities; and Future of Mobility and beyond. ``delivering the West of England Inclusive growth Employment and Skills Plan, which The West of England is determined sets an ambition to ensure people to ensure that all residents have the are skilled, healthy and able to chance to both contribute to and access a ladder of opportunity to benefit from the region’s success. The achieve their potential. This will be West of England wants to remain a fundamental to driving inclusive place where businesses are keen to growth. The plan also reiterates the locate, where people want to live and ambition of the region to ensure where residents have aspiration. employment and skills provision supports businesses to find the skills For many in the region the picture is and talent they need to thrive; and already very positive, but experience varies significantly. Inclusion promotes ``setting out the ambition that the a diverse workforce, sparking creativity region should have the physical and innovation and contributing to and digital infrastructure in place increased productivity. It helps create to link people to jobs, training strong communities and tackle barriers and services in ways that are to community integration. But inclusion safe, affordable, accessible, does not happen without action. There sustainable and low carbon. are already steps in place but the Local Industrial Strategy will build on this by:

18 Productivity challenge ``setting a West of England Productivity The West of England is home to a Challenge to tackle low productivity diverse range of innovative, dynamic, by encouraging all businesses and fast-growing businesses. to improve performance and sustainability. This will promote uptake The region creates successful of modern technologies, innovation, businesses, with strong growth of management practices and cleaner scale-ups and high rates of business business models, and drive increased survival. However, the overall exporting amongst small and rates of start-up are lower than medium-sized businesses; and average, the record on exporting is mixed, and the national challenge ``encouraging greater access to of a ‘long tail’ of low productivity economic opportunity and more firms is particularly acute here. inclusive supply chains through encouraging communities to engage To address this the West of England with business and building on wants to ensure that businesses of progress to widen access to public all types and sizes have access to procurement for small businesses. the space, networks and skills they need to thrive. Businesses must Innovation in infrastructure be able to exploit the productivity delivery benefits of adopting new technology, The West of England is the first region management and leadership in the UK to develop a joined-up practices and increased exports. strategic planning approach to set out In alignment with the ambition of the how the region will meet its housing Clean Growth Grand Challenge, which and transport needs over the next 20 aims to maximise the advantages from years. The Joint Spatial Plan and the the global shift to clean growth for supporting Joint Local Transport Plan UK industry, the West of England will set out a vision where, by 2036, the also support firms to transition to low West of England will be one of Europe’s carbon business models, reducing costs fastest growing and most prosperous and building long-term sustainability. regions with the gap between This recognises that innovative ‘green’ disadvantaged and other communities business approaches and energy closed and a rising quality of life for all. efficiency measures can help boost productivity by reducing costs and increasing employee wellbeing. The Local Industrial Strategy will support productivity and business growth by:

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The West of England will harness ``supporting businesses to drive its powerful innovation assets to: productivity through adopting ``develop a ‘Smart Alliance’ of local new clean technology and energy partners which will enable a step efficiency measures; and change in the region’s ambitions for ``investment in the right infrastructure, a world class digital infrastructure to that reduces energy demand and underpin and enable work to deliver carbon emissions whilst being resilient this Local Industrial Strategy’s vision to the impacts of climate change. for a Smart region and to facilitate the development of a West of England The West of England’s approach Network of Living Labs; and Development of the West of England Local Industrial Strategy has been a embed innovation in action to tackle `` collaborative effort, led by the West the region’s infrastructure challenges of England Combined Authority and (including action focused on the future the Local Enterprise Partnership, and of mobility, mobility as a service, involving a wide range of partners houses for an ageing population and across local government, business Modern Methods of Construction). and universities, together with the Clean growth voluntary and community sector. Extensive research has been carried Commitment to tackling climate change out to explore the foundations of and ensuring quality of life for current productivity in the region, including and future generations is embedded in-depth research into particularly throughout this Local Industrial innovative sectors and the Grand Strategy, recognising the opportunities Challenges. This evidence, published from the global shift to clean growth. in February 2019, provided a basis of It is reflective of a widely recognised common understanding for discussion environmental conscience that is part of on the strategic challenges facing the identity of the place. For example: the region. Through workshops ``proposals to develop a pipeline and online engagement, over 100 of work for the Global Centre organisations from across the region of Innovation Excellence and have had input into development of West of England Network of the strategy. These discussions have Living Labs looking to address led to clear understanding of the clean growth challenges; region’s priorities and the shaping of a ``ensuring communities are collective approach to meeting them. connected to jobs, training and services in a sustainable and low carbon way, addressing air quality and improving health;

20 Cross-sectoral innovation

The West of England has long been a leader of innovation. From Brunel and Concorde to the pioneering application of haptic technology in virtual reality. Innovation in the West of England is driven by the combination of: designers, The West of England’s ambition engineers, scientists, creatives and entrepreneurs; high value research and The West of England is development; and industrial strengths recognised globally as a place in engineering, digital tech, creative of innovation, where leading and professional services. Together designers, engineers, scientists, they make the region unique. creatives and entrepreneurs The region’s substantial innovation combine with industry to create ecosystem includes major research- an innovation ecosystem that intensive businesses and their supply drives research, development chains, four universities with outstanding and commercialisation – both teaching, research or community within and across sectors. engagement, specialist engineering This Local Industrial Strategy innovation centres, growing numbers sets out how the West of of innovative small and medium-sized England will nurture cross- enterprises (SMEs) and a diverse economic sectoral collaboration, research, base that brings together complementary development and innovation strengths in a broad range of specialisms. to drive productivity for the Business research and development spend region and the UK as a whole. is above the national average at £1,022 per employee compared to £811 in England and demonstrates the research-intensive nature of industry within the region. Science and technology account for a quarter of all jobs, having risen since 2009. It is the ‘place’ that makes this ecosystem thrive. As set out in the SQW report on the Bristol and Bath Innovation Cluster, the size of the region is ‘small enough and big enough’ for cross-sectoral collaboration.

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Figure 2: Science and technology accounts for a rapidly increasing proportion of total employment

The attractiveness of the region as a Advanced engineering place to live, work and study means and aerospace people are attracted and remain. The West of England is a high-value The region is renowned for its highly engineering and design heartland, networked, collaborative, open and with major international businesses ‘edgy’ culture. The combination of such as Airbus, GKN, BAE Systems, innovation assets, research intensive Rolls-Royce and Boeing. Their supply industry, supply-chains, a diverse chains are leading the way in aerospace population and cultural assets set research, development and design, the region apart and create a blend feeding the manufacture of aircraft, of innovation and creativity that is helicopters, military transport, satellites unique to the West of England. and communication systems across Sector Strengths the country and on a global scale. 14 of the world’s 15 major aerospace The West of England cross-sectoral giants have bases in the wider South innovation ecosystem is driven by West centred on the cluster in Filton, three distinctive and overlapping South Gloucestershire. This leading sector strengths and their supply engineering design capability is a crucial chains: advanced engineering part of the UK aerospace system and including aerospace; creative, cultural anchors the aerospace sector within and digital industries; and financial, the UK. The sector accounts for over business and legal ‘tech’ services. 28,000 jobs in the West of England. These sectors are globally significant, but the opportunities that arise at the interface between these sector strengths are particularly valuable.

22 Case Study: History of aerospace in the West of England

High-value engineering and design Filton. In the 1960s and 70s, the Bristol capability is grounded in the history aerospace industry based around of the West of England. The origins of Filton Airfield played a significant the Bristol aerospace industry can be role in the design and development traced back to the early 1900s when of leading aircraft such as Concorde. the British Aeroplane Company (BAC) The wings, integrated fuel systems was set up in Filton with the aim of and landing gear for nearly every manufacturing aircraft commercially. Airbus commercial aircraft in its 50 Two World Wars generated year history have been designed and considerable demand for aircraft developed in Bristol, as well as the and the new business grew quickly. manufacture of military aircraft wings. Eventually BAC became BAE Systems It continues to be a world centre of and Airbus, Rolls-Royce and GKN excellence in future wing technology. all have a direct lineage to BAC and

23 Industrial Strategy West of England Local Industrial Strategy

Creative, cultural, and Creative and cultural industries digital industries Creative technology is a growing The Creative Industries Sector Deal and distinctive strength for the describes the West of England as region with a number of nationally a ‘globally significant, high-growth significant projects underway: creative cluster’. It forms a hugely ``Bristol-based Aardman Animations dynamic part of the West of England are part of the successful consortia innovation ecosystem; and works as a awarded funding by UK Research catalyst, providing imaginative, artistic and Innovation through the Industrial and inspired solutions to challenges Strategy Challenge Fund as part across many different industrial sectors. of their ‘Audiences of the Future’ The UK Creative Industries have programme to explore cutting-edge been one of the fastest growing and immersive experiences; and industrial sectors for the past decade ``WECA has secured funding from and this is reflected in the West of the Department for Digital, Culture, England, with 27 per cent growth Media, and Sport to pilot a two-year in digital and creative employment Creative Scale-Up programme that between 2015 and 2017. The ability aims to help creative firms access to combine creativity and technology finance through an intensive business is a significant strength and Bristol is readiness support programme that one of only two cities outside London will commence in autumn 2019. which feature in the top 10 for both creative and high-tech clusters. The region’s four universities play a pivotal role in the creative sector Bristol is one of the BBC’s three via research, investment and key sites, along with London and knowledge sharing. A successful Manchester and the BBC Natural bid was led by the University of History Unit is a core part of the the West of England to become region’s production activity. It will one of eight Arts and Humanities also shortly be home to a Channel 4 Research Council creative clusters – a Creative Hub. Bristol and Bath have partnership aiming to improve the been cited by Tech City UK (2017) performance of the creative industries as the third largest and the most in the region, bringing together productive tech cluster in the UK; with the four universities and industry over 36,000 digital workers to date partners to develop understanding and an £8.1bn digital tech turnover. about user engagement with new platforms including 5G connectivity, virtual and augmented reality.

24 Case Study: Open Bionics

Open Bionics combine advanced turn children with limb differences robotics with Disney designs from into bionic heroes. They have the Star Wars, Marvel and Frozen produced the world’s first medically universes to deliver the Hero Arm certified 3D-printed bionic arm, - affordable, assistive devices that with multi-grip functionality enhance the human body and and empowering aesthetics.

Financial, business and This growth has built on the legal ‘tech’ services strengths of university research and The West of England has a vibrant the opportunities offered by the professional services cluster, employing application of digital tech. Co-location 58,000 people, and these businesses with the region’s strong sectors is are increasingly harnessing the region’s accelerating research, development digital expertise to develop new and commercialisation within the life products and ways of working. Bristol sciences sector, especially health tech is home to the largest cluster and its robotics, and has the potential to set diverse industry offering is coupled the region apart. The region is also with a burgeoning fin-tech community. home to world leading companies Financial and related professional developing the underpinning digital services make a significant contribution technologies such as cybersecurity, to exports, which for the wider south artificial intelligence, high performance west were valued at £4.6bn in 2016, computing and quantum technologies. a 19 per cent increase from 2015. The Our approach: maximising region’s strength in digital technology collaborative innovation is being applied by financial services firms and legal and tax specialists, as Whilst the evidence base for this well as in new and emerging markets Local Industrial Strategy found such as blockchain and in supply chain that the West of England has a technology for recruitment, specialist strong innovation ecosystem, it marketing, and data visualisation. identified a number of barriers to further growth including, above all, a In addition to these existing and challenge to improve its profile and well-established strengths, other improve levels of coordination: sectors are also growing at pace. For example, the number of health and ``R&D investment is below life science businesses has increased government’s national ambition by 25 per cent in the last three years, of investing 2.4 per cent in line with the national average. of GDP by 2027;

25 Industrial Strategy West of England Local Industrial Strategy

``the region’s profile as a place of Low carbon technology innovation could be strengthened To help realise the national pledge for to attract further investment; net zero carbon emissions by 2050 ``greater coordination of the innovation and to address the Clean Growth ecosystem could boost collaboration, Grand Challenge, the West of England the fusion between sectors and is leading the way in the design and technologies, and innovation; trial of innovative technologies from smart energy efficiency measures ``skills shortages in some sectors to the next generation of efficient including artificial intelligence, aeroplane wings. Strong capabilities composites and robotics; in engineering, science, design and ``demand for specialist financial models together with digital business support, and flexible skills, technologies and natural assets employment space is higher mean that the West of England is than existing capacity; and well placed to take advantage of the ``opportunity to test and diffuse global opportunities of clean growth. innovation at scale and pace within Reinforcing the West of communities and ‘real life’ settings. England’s innovation ecosystem Immediate action to support the through the Global Centre West of England’s ambition of Innovation Excellence Building on the region’s distinctive In order to achieve this step-change strengths, as identified in the South in collaboration and profile, the West West England Science and Innovation of England is looking to establish a Audit and addressing the barriers to world class means of driving the West further growth identified, the West of England innovation ecosystem, of England has the opportunity to helping the region to reach its potential, enhance its reputation as a globally and address the barriers to further recognised centre of collaborative growth identified above. It will be innovation through better integration a new approach to innovation and of industrial strengths. This would technology development across the drive further innovation and economic region’s diverse but linked sectors. This success for the region and the UK while Global Centre of Innovation Excellence retaining the UK’s attractiveness to (GCIE) will provide strategic direction investment including from increasingly and coordination across a range mobile global aerospace companies. of different sectors and innovation assets. It will provide the platform for the fusion of ideas, expertise, design and industry innovation and will have government input in its design.

26 26 The GCIE will aim to turn ideas ``seek the expertise of partners across into reality by enabling innovative the innovation ecosystem, including collaboration; helping the region’s at UKRI, to foster a coherent and most innovative designers, engineers, effective approach to capitalising on researchers, scientists, creatives the region’s assets and driving up and entrepreneurs to come together business innovation and applied R&D; and work on a range of complex ``use its convening powers to challenges from new product design enable innovative collaboration for an ageing population to reducing and support for leading industry the carbon emissions of transport. to collaborate and stimulate bids It will help business with every step by local partners into national of the innovation journey, providing competitive funds to secure national tailored and specialist business support and international inward investment; that addresses the current capacity ``stimulate and catalyse a pipeline barrier and enables business to of innovation activity initially innovate, compete, grow and succeed in the Grand Challenge areas in national and international markets. (Ageing Society, Future of It will market and promote the West of Mobility, Clean Growth, Artificial England as a world leading innovative Intelligence and Data); region, attracting inward investment, national and international business- ``provide incubation and scale- to-business collaboration and trade. up support for existing and future exporting businesses; Linking with the business competitiveness proposals, the Centre ``provide affordable, flexible, will support businesses to build a specialised workspace tailored stronger innovation culture. Supporting to the needs of industry; leadership and modern management ``market and promote West of England practices will help businesses to adopt as a world leading innovative region new technologies and to harness the attracting inward investment via innovative potential of their employees. strategic brand coordination; and In response to the barriers to growth ``identify and adopt best practice identified by industry and working with and new approaches. a wide range of partners the Global Centre of Innovation Excellence will: There will be a focus on the region’s above identified sector strengths ``attract increased investment in to maintain and grow their upward research and development; innovation trajectory, especially through collaboration, business incubation, investment in key skills and by attracting investment.

27 Industrial Strategy West of England Local Industrial Strategy

New digital technologies such as 5G, Working in partnership with the the ‘Internet of Things’, and artificial region’s universities, businesses intelligence, are transforming these and research centres, it will align its sectors. Further investment in these ambitions with national policy and learn digital technologies, including digital from national and international best skills development, will enable the practice. The Centre will contribute to region to accelerate innovation and the national ambitions for the UK to capitalise on global demand. be the most innovative country in the Government recognises the world and to drive up R&D investment strength of the West of England’s to 2.4 per cent of GDP by 2027. innovation ecosystem and will input into the design of the GCIE.

Figure 3: The West of England Global Centre of Innovation Excellence

28 West of England network of Living Labs The region has a strong culture of Similarly, there is a local ambition testing innovation in a real-life setting, to create a Future of Mobility Living exemplified in its existing living lab Lab which will develop, test and activity. This includes Knowle West evaluate new modes of transport, Media Centre which is a member of such as driverless cars, helping the European Network of Living Labs, industry to get ready for market. where they use technology and the The Network of Living Labs will arts to come up with creative solutions be overseen by the Global Centre to problems and explore new ways of of Innovation Excellence; working doing things to make positive changes at pace to bring together industry in local communities. However, the innovation with real life living lab opportunity to do more and test and test platforms and accelerating diffuse innovation at scale and pace was the commercialisation process. cited by industry as a barrier to growth. Government acknowledges the The West of England will establish a opportunity that an effective network network of Living Labs to address this of Living Labs could have in addressing barrier, build on best practice and offer local and national challenges and industry and academia the opportunity welcomes the ambition to develop a to test and diffuse innovations at scale, network of Living Labs in this Local in a collaborative and user-centred way. Industrial Strategy. The West of England This will also provide the opportunity to will consult with local partners to help identify the human-centred, regulatory, design a locally-led model that attempts and system constraints that need to be to meet the needs of all partners and addressed as innovations are refined government will input on the design in and that may only emerge when ideas an advisory role. At the national level, are subject to large scale testing. government will continue to ensure The network of Living Labs offers the that the regulatory system supports opportunity to explore solutions to well the rapid and safe introduction of recognised challenges. For example, to technological innovation, as set out help realise the aspirations set out in in the ‘Regulation for the Fourth the Ageing Society Grand Challenge, Industrial Revolution’ White Paper. the West of England is looking to develop a Living Lab that designs and supports people to age well through advancements in technology.

29 Industrial Strategy West of England Local Industrial Strategy Inclusive growth

Ensuring that economic growth is inclusive is at the heart of the West of England’s ambition and vision for the region’s future. Inclusion drives growth through championing diversity, innovation, and increased productivity.

The West of England’s ambition

The West of England values and contributes to increased its people. It is a place where productivity and shared prosperity. residents have the opportunity Infrastructure planning and to both contribute to, and benefit investment ensures people from, the opportunities that across the region are able to come with economic growth. physically and digitally access The region’s diverse workforce the opportunities that exist. sparks creativity and innovation

The West of England is a place where Places facing higher levels of diversity is valued and the contribution deprivation across the region have it makes not only to social cohesion different characteristics. Some are but also to the success and vibrancy urban, some rural, some coastal, of the economy is well understood. and some are located close to Whilst for many residents the region numerous job opportunities and offers opportunity and a high quality housing whilst others are not. The of life, this experience is not shared by variation in the challenge places face all, and significant barriers constrain requires differentiation in response. access to the opportunities the region The actions set out in this Local offers. Across the West of England Industrial Strategy will enable the there are places and communities region to go further in driving inclusion experiencing high levels of deprivation. and addressing inequalities.

30 Figure 4: Deprivation in the West of England

Skills One possible result of this is that The West of England has a high the region currently has a high employment rate (79 per cent) proportion of young people not in which has continued to increase education, employment or training over the past three years and the (NEET), particularly in the City of region has a highly skilled workforce Bristol where almost 10 per cent of with 48 per cent of the working age 16-17 year old males are NEET and in population having an NVQ4+ (an North Somerset, where NEET levels undergraduate degree or equivalent). are above the national average. NEET levels for young people with Special However, the job market is changing Educational Needs or Disabilities (SEND) and the region has seen a shift are higher than average in Bristol and towards high-skilled jobs with in Bath and North East Somerset. an increase in employment for professional, associate and technical occupations and a decline in sales and customer service occupations.

31 Industrial Strategy West of England Local Industrial Strategy

What’s more, all four of the West of ``Future Bright Programme: Helping England authorities have a larger residents to progress in their careers attainment gap at Key Stage 4 between through a government funded £4m disadvantaged pupils and all other pilot programme launched in Spring pupils than the England average, 2018. It will support 3,000 residents, participation rates in Higher Education who are in paid work and claiming among young people in some parts benefits to top up their incomes, and of the region are low and take-up of 400 businesses across the region. apprenticeships has decreased over the Career Progression Coaches work past three years. In some communities directly with residents, focusing on across the region, health outcomes increasing their confidence, knowledge, need to be improved, ensuring the skills and/or incomes. The programme region has an active and healthy also works with employers, promoting workforce in the years to come. good employment practices and Action to address skills related helping them develop approaches barrier to inclusion is already to learning and development that underway, the proposals set out in will grow their businesses and this strategy build on this work. progress their employees. ``West of England Careers Hub: Action to increase participation Supporting people to improve and improve outcomes for career opportunities by developing residents and businesses understanding of the range of future ``Adult Education Budget: Using opportunities available to them. devolved responsibilities and funding Following recent expansion, the Hub to ensure the provision of adult skills is now working with all schools and equips residents with the skills to colleges to support improvements take advantage of local employment in career opportunities and work opportunities, realising their productive experience for young people, allowing potential. The adult education budget them to make more informed choices. (AEB) is devolved to the West of The Hub will help schools and colleges England from the start of the 2019- improve links with employers, develop 20 academic year. A transition (with a Hub network to enable good scrutiny) year of delivery will pave the practice to be shared, and provide way for more fundamental evidence- support from Enterprise Advisors. led changes to delivery from 2020- 21 onwards and a more strategic relationship with a smaller number of AEB providers, helping to maximise impact for the region’s residents, businesses and communities.

32 ``Women into Digital: In March 2019, the The cost of renting a room in South West of England secured £238,000 Gloucestershire has increased 10 per funding from the Department for cent over a two-year period, over the Digital, Culture, Media and Sport same period the increase was 9 per for a new programme to support cent in Bath and North East Somerset women into digital jobs, education and (compared to four per cent nationally). training (WIDJET). The programme Housing development rates need to launched in Spring 2019 with taster increase substantially to meet the need sessions and courses offered in skills of the growing population as well as including virtual reality, VFX design and addressing affordability of all tenures. software development. WIDJET will Transport and congestion can also work with women across the region, present a barrier to inclusion. The providing digital skills and training National Infrastructure Commission from entry-level taster sessions recognises parts of the West of England through to high-level industry specified as among the most congested places in courses. Participants can take part the country. Bristol is the seventh most in a range of skills courses, training congested place outside London. As or seminars designed directly with well as the cost to the local economy business needs in mind, with the aim (approximately £300m per year), it also of them securing jobs in digital roles. negatively impacts the environment Infrastructure and health of residents. Congestion decreases the geographical range The West of England is an attractive of employment options available to place to live with a diversity of people some residents and the affordability, and places and a rich cultural offer. reliability and reach of public transport Between 2011 and 2017 the population can limit access to opportunities for of the region grew by 6.9%. This, individuals in both rural and urban along with good economic growth areas. Work is underway to provide between 2011 and 2017 has increased new transport infrastructure and the pressures on housing and travel options, as well as renewing infrastructure which have struggled existing provision across the region. to keep pace with rising demand. The region is developing infrastructure House prices and rents have increased plans to ensure residents have access significantly, with the average house to clean, safe, accessible, affordable price now 9.3 times average earnings, and reliable transport and housing rising to 16.5 times earnings for the in locations where they can access lowest 10 per cent of earners. Rents skills and employment opportunities. have increased significantly, in particular in the lower quartile. In Bristol, lower quartile rents have increased by 24 per cent in the last two years.

33 Industrial Strategy West of England Local Industrial Strategy

Infrastructure and inclusion ––enabling equality and improving To deliver inclusive growth, the West accessibility, including ensuring of England is focused on implementing both urban and rural communities infrastructure plans that ensure have access to transport services places across the region are well that will enable regional growth to connected, so that residents are reach all parts of the conurbation; linked to employment opportunities ––addressing poor air quality and and a diverse range of vibrant taking action against climate change, communities are supported to flourish: delivering a transport system that improves quality of life and health ``The West of England Joint Spatial outcomes for all residents; Plan, which is currently being assessed, sets out priorities that ––contributing to better health, will drive inclusive growth. The wellbeing, safety and security, plan sets out ambitions to: ensuring road safety is improved for transport users, particularly ––ensure more homes are built those most at risk; and of the right type and mix, and ––creating better places, including in sustainable locations that ensuring the transport network people and businesses need; supports neighbourhood renewal ––support businesses to be able to and regeneration of deprived areas. locate where they can be most In delivering on the ambitions of efficient and create jobs; the Plans set out above and in this ––enabling people to live, rent and Local Industrial Strategy, the West of own homes in places which are England will give positive consideration accessible to where they work; and to putting the building blocks in ––ensure regional transport and place to support the development of infrastructure provision enables all zero carbon homes. Consideration residents and communities to access will be given, where viable, through opportunities across the region. the planning system and local ``The draft Joint Local Transport procurement routes, ensuring the Plan sets a vision to deliver a region is developing the skills needed transport system that connects to build these homes and supporting people and places for a vibrant the innovation and technological and inclusive West of England. development required to move this This strategy is focused on: type of development squarely into the ––supporting sustainable and inclusive mainstream. This will contribute to economic growth, including addressing the Clean Growth Grand ensuring all residents have access Challenge mission to at least halve the to transport systems that enable energy use of new buildings by 2030. them to access good employment;

34 Digital infrastructure can connect The West of England is already taking communities to training and job action to address disparities in skill opportunities but access is not levels and opportunity by actively consistent across the region, supporting residents through action connectivity ‘not spots’ and variable such as the devolved adult education speeds create barriers to access budget and programmes such as for some communities, including Future Bright and West of England in rural areas. Access alone is not Works. The proposals set out in sufficient to enable people to benefit this strategy build on this work. from digital connectivity, digital The region is focused on ensuring skills are crucial - both basic skills the building blocks of an inclusive to access services online and take economy are in place and accessible advantage of savings and out of hours to all residents, addressing barriers access as well as high-level skills for to employment and economic employment opportunities into some inclusion. This includes focusing on of the new and emerging sectors. careers information and employability Immediate action to support the training. Where needed, the alignment West of England’s ambition and integration of support around these issues will be an important Developing solutions to the challenges area of focus for the region. faced by the West of England – and ensuring a focus on inclusive To ensure challenges are effectively growth is at the heart of regional addressed, the West of England activity - depends on a thorough will test the impact of aligning understanding of the range of barriers services, investment and support to and requirements of the diverse range communities in a small number of of communities across the region. places. Bringing together a range of provision to help address the barriers The West of England is already taking people face to taking advantage of active steps to address the issues the opportunities growth brings. that hold back inclusive growth. This will go beyond the alignment The success of Bristol’s bid to host in infrastructure investment that is one of the Channel 4 creative hubs already in place across the region. is an example of this. The decision reflected an understanding that the region would support Channel 4 to access a diverse workforce, and a broad talent base across the region.

35 Industrial Strategy West of England Local Industrial Strategy

The region will work with the priority The Plan details a range of priority communities identified with the aim groups the region will work to support, of having a demonstrable impact including retention and retraining on indicators such as increasing among the over 50s, improving engagement in the labour market, engagement in the labour market (particularly for under-represented for people facing complex barriers to groups), reducing NEET rate, and work, and ensuring people of Black, addressing the health inequalities Asian or minority ethnic (BAME) origin, being experienced by people living women and those with disabilities are in areas of higher deprivation. supported to progress in employment. Opportunities to bring together As well as working with residents to existing funding sources will be taken, help improve employment and skills focusing activity on the needs of opportunities, the region will work with local people. This will include existing major employers to ensure the voice funding sources such as the regional of business is central – developing Love our High Streets Fund, and the the skills base employers in the recent successful bids to the national region need both now and in the Strength in Places Fund, as well as future. For example, the region will: other interventions such as the Living Labs programme will be taken forward ``work with business to improve work to maximise impact. The aim will be experience by building direct links to understand the impact genuinely between employers, communities, aligned investment, intervention and schools and training providers – in the community engagement can have on first instance targeting this activity addressing the region’s objectives. in communities which currently experience challenges in linking to To address the skills barriers to inclusive the local labour market. Alongside growth, the West of England has this, the region will promote a wide developed an Employment and Skills range of skills opportunities, such as Plan alongside this Local Industrial the introduction of T levels, ensuring Strategy. Delivery of the plan will developments such as industry be informed by a newly established placements to support local needs; Skills Advisory Panel that will provide expert oversight and advice. ``continue to deliver support for employees and employers to ensure health and well-being is prioritised in the workplace;

36 ``build on the new West of England pockets. Government committed Institute of Technology, led by £4m to the Future Bright fixed-term Weston College, which draws innovation pilot in the West of England together industry, education and which is now in its second year and research, to design and deliver will engage with local partners to flexible higher-level technical learning learn the lessons from the pilot and to equip young people and those other trials to inform future policy; already in work with the skills to ``employment support for groups fully exploit new technologies and facing challenges in accessing the digital innovation. The Institute will labour market: There are a number be funded by a share of £170m of of groups across the region that government funding through the are underrepresented in the labour Institutes of Technology programme; market, including women, people ``work with major employers and SMEs from BAME groups, and those to develop procurement practice, with disabilities. Within the West of ensuring local SMEs are able to England, those facing challenges to access contract opportunities, and access the labour market currently helping SMEs to develop the skills and receive preparatory, wraparound experience needed to be successful in and additional employment and winning contract opportunities; and skills support through provision ``build strong links between funded from the European Social businesses and schools to ensure Fund in addition to local Jobcentre the voice of business helps shape Plus services and mainstream adult the offer to young people. Raising education budget funded provision. aspiration among young people The West of England and government in the region is recognised as a will continue to work together challenge that requires action through ongoing engagement with from a wide range of partners. local Jobcentre Plus services to prioritise support for these groups. Government and the West of England Government and the region will will work together to support: also work together to better target ``continued collaboration on support for these groups by utilising employment programmes: The the analysis provided to the newly West of England and government formed Skills Advisory Panel; recognise that in-work progression is a significant challenge for the region, as is unemployment in some

37 Industrial Strategy West of England Local Industrial Strategy

``effective partnership working to ``implementation of the devolved adult address national and regional education budget: Government will employment and skills priorities: also continue to work with the West An important part of the regional of England to consider the impact of support system is Jobcentre Plus. the devolved adult education budget Government and the West of England as it transitions to a commissioning- agree that Jobcentre Plus must, with led approach, including its important employers and learning providers, role in delivering against regional play a central role through the Skills ambitions to support local residents Advisory Panel in enabling more to upskill, get back into work, retrain strategic conversations across key and undertake apprenticeships stakeholders to drive prioritisation, and T levels to build the skills innovation, and collaboration with needed across the economy; and other local partners, especially ``effective retraining opportunities around the uptake of apprenticeships, to support enhanced productivity T levels and traineeships; growth across the region: Whilst the ``a strong and well-targeted Careers West of England is a prosperous city- Information Advice and Guidance region, productivity has flatlined, and system (CIAG): Government there is a skills shortage impeding recognises the importance of a growth in sectors including advanced- strong and well-targeted system of manufacturing, construction and Careers Advice and Guidance and creative and digital. A significantly welcomes the use of Skills Advisory enhanced and digitally enabled Panel funding by the West of England workforce will help address the to develop a detailed understanding challenges posed by new disruptive of existing CIAG provision within product developments. Government the region. This analysis will allow and the West of England will continue the West of England to prioritise to support the development of the their local intervention according National Retraining Scheme, which to strategic need. To support a will help local people to respond to sustainable and strategically focused the changing labour market, redirect careers advice offer, government their careers and secure better jobs. will continue to ensure strong Getting the region’s skills and coordination with important actors in employment provision right will improve this space including the Careers and access to jobs and lift residents’ earning Enterprise Company, Jobcentre Plus potential. And healthy, more highly and the National Careers Service, skilled workers will be better prepared to best align their work with local for the evolving world of work. priorities as set out in the West of England Employment and Skills Plan;

38 39 Industrial Strategy West of England Local Industrial Strategy The productivity challenge

The West of England is home to a diverse range of innovative, dynamic, and fast-growing businesses. However, the growth of a large number of businesses in the region remains slow The West of England’s ambition with gains held back by the slow uptake of technology and modern management Businesses of all sizes in the West practices. Challenges also remain of England will fulfil their potential, in the diversity of entrepreneurship improving performance, resilience within the region. Businesses could do and sustainability, and enabling more to take the opportunities to lift them to grow and offer a wide their productivity, and to spread the range of good quality jobs. benefits of growth to their employees. The West of England will set a The national Industrial Strategy productivity challenge for the recognises that the country has some region’s businesses to improve of the most productive businesses, their performance by putting people and places in the world but modern technology, inclusion, also a ‘long tail’ of underperformance, and leadership practices at the which is constraining productivity. heart of their operations. This national challenge is particularly pronounced in the West of England.

Figure 5: The West of England has more low- productivity firms compared to the UK

Productivity distribution at firm level for 2014:

1.5% West of England UK 1.0% London

0.5% Density of Firms (%) 0.0% -30 -15 0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 GVA per Worker (£)

Source: Regional firm-level productivity analysis for the non-financial business economy, ONS

40 This long tail of lower productivity Growth Hub and Invest firms risks holding back the region’s Bristol & Bath growth, wages and living standards. The region’s enterprise and inward This is a complex challenge, but investment services are delivered research undertaken on both a local through the West of England Growth and national level have highlighted Hub and Invest Bristol & Bath. a number of factors that may be The Growth Hub offers free and contributing to this situation: impartial support to all businesses, ``slow technology adoption, and slow linking them to the best providers to uptake of modern management help them invest, export, innovate practices. Step changes in these areas and grow. This year, the Growth can reduce costs, improve outputs Hub hosted the region’s first Scale- and make businesses more efficient; Up Summit, bringing together over 70 entrepreneurs with finance ``companies with a more diverse and business growth experts workforce are more likely to produce to harness the potential of the strong financial results suggesting region’s high growth businesses. increased diversity can improve productivity. With a diverse population Invest Bristol & Bath, funded through and communities, the West of the West of England City Deal, provides England has a real opportunity here; a range of free services to businesses who are looking to locate or expand ``only 39 per cent of start-ups were in the region. It targets international based in the 50 per cent most businesses that fit with the region’s deprived areas of the West of England capabilities and which will help in 2018. The ambition outlined in the address the priorities of this strategy, ‘Inclusive Growth’ chapter recognises managing a diverse and substantial the importance of ensuring everyone pipeline of leads, leveraging its strong has access to opportunities; and relationships with existing business ``total exports of goods and services networks, sectors and clusters. Services in the region are estimated at 26 per include support on accessing land and cent of gross value added, compared property, skills and talent, funding and to 33 per cent for Great Britain as a expert advice for existing businesses. whole. This relatively low level of trade may contribute to low productivity. However, exports of services from the region are fairly strong, with the most valuable categories being insurance and pension services, travel and financial services.

41 Industrial Strategy West of England Local Industrial Strategy

Immediate action to support the ``fostering networks that allow West of England’s ambition businesses to learn from trusted To address this challenge, the West peers, based on specific places of England will expand and tailor the or across sectors, including new support available to businesses. By technology demonstrations from the supporting management and leadership region’s business innovators, and within businesses, the region will virtual and face-to-face communities encourage stronger strategic direction to allow SMEs to share best practice and more innovative and growth- and collaborate (aligned with Be oriented cultures within firms. This will the Business’s insights to building help firms to raise their competitiveness collaborative peer networks and resilience by adopting practices elsewhere in the country); to improve staff performance, ``the West of England will work with embracing more efficient technology, Be the Business to develop a plan increasing exporting and creating to support firm-level productivity more sustainable business models. growth and to provide the The West of England will deliver a suite inspiration, practical tools (including of new products and services building benchmarking) and guidance to on existing Growth Hub provision deliver through the West of England and coordinating with a range of Growth Hub to encourage SMEs existing regional programmes, such to become more productive; as Enterprising West of England. The ``strengthening engagement in evolution of the West of England business and entrepreneurship across Growth Hub will be key, so that it can diverse communities by extending deliver enhanced services including: outreach into harder-to-reach groups ``tailored specialist advice, masterclasses, via ‘pop-ups’ at community hubs. For and SME export support; example, building on work with the Department for Business, Energy ``specialist technical support and and Industrial Strategy through exemplars of technology to SMEs Better Business for All to explore on resource efficiency, building on the issues faced by first generation the West of England Low Carbon BAME-led businesses in accessing Challenge Fund and specialist low regulatory business support; and carbon business support facilities the region’s current programme such as Filwood Green Business Park that brings together Engine Shed to drive clean growth. Working with as and Ashley Community Housing to wide a range of businesses as possible provide business support outreach will be critical for identifying and to less engaged communities; and sharing effective models of reducing the region’s carbon emissions;

42 Case study: Productivity through People programme

The Productivity through People Participants in the first two cohorts programme at University of Bath, reported that the course helped delivered with Be the Business, is an them transform their businesses innovative example of how partners through the empowerment of across the region, including large their workforce. Sarah Rodgerson, and small businesses, can work managing director of BIE Magnum, together to improve performance an engineering firm in Bristol, took The programme delivers ‘mini-MBAs’ part in the programme and has since to small-business leaders. Sponsored significantly improved the business’s by major employers including EDF, practices. ‘The company had done Cavendish Nuclear, Leonardo, and things the same way for many BAE Systems, the course combines years and I was finding it difficult to benchmarking of the business, initiate change. Productivity through practical masterclasses and online People has given me a clear picture learning, best practice visits to of what good looks like and helped major businesses, critical review me make a plan to get there.’ through action learning sets, and mentoring from business experts.

``communication of the offer in terms ``benchmark performance that speak more effectively to all the compared with peers which will region’s businesses and residents. This help target support effectively will cover both start-ups and more and demonstrate progress; established businesses to ensure that ``work with existing strong private support is sustained, encouraging a sector networks, business incubators, more diverse range of entrepreneurs and trusted intermediaries, these and businesses to grow. networks will help bring together To deliver the Productivity Challenge, leading companies with small the West of England will: firms, to share their expertise and ``continue to co-ordinate regional demonstrate how new working business support services and build practices can be implemented; on Growth Hub funding and provision. ``encourage community leadership; and This will ensure that specialist advice ``test ways of building capacity, is available, tailored to different including strengthening the strategic sectors and business life stages; role of boards for larger firms given the importance of leadership skills.

43 Industrial Strategy West of England Local Industrial Strategy

The West of England will encourage value approaches supporting local greater access to economic opportunity employment and small businesses. and more inclusive supply chains. The region will continue to drive The region will ensure that more towards the government’s planned of the collective spending power of target for a third of all its spending the public sector and universities to be with small businesses and civil (estimated at £1.7bn annually in the society organisations by 2022; and region) can be accessed by the SME ``exploring how social value base. This will include local initiatives: procurement can maximise the ``exploring the scope to establish employment and supply chain a ‘good employment standard’, benefits of WECA’s own spending. engaging with key employers in the Government welcomes the West of region to promote good practice, England’s Productivity Challenge employment diversity, involvement in and will reflect on and discuss skills planning such as apprenticeships opportunities to maximise its impact. and T levels, and inclusion and The West of England Growth Hub will sustainability across supply chains. play an important part in addressing This will build on relationships and the region’s productivity challenge, tools established with the Future and its key ongoing role in helping Bright programme and Careers Hub to deliver a range of strong public and will help provide exemplars for and private sector support to the others across business networks. region’s businesses. Government and Helping business to engage more the West of England will continue to proactively with stronger regional review how the existing activities of SME supply chains will help to build the Growth Hub can be strengthened greater resilience and efficiency; to meet shared objectives. ``widening the access for SMEs to Focusing activity on increasing public procurement by building the the productivity of the region’s capacity of SMEs to bid for contracts businesses will benefit a large and facilitate a ‘consortium based’ number of firms across the region. bidding approach. This includes Relatively small productivity gains support to access lower-tier contracts, in each have the potential to have both through leadership skills and a significant impact on the overall practical steps such as bid writing and productivity rates in the region. accreditations. Local Authorities in the region have developed strong social

44 Innovation in infrastructure delivery

The West of England benefits from strong links to other economic centres, at a crossroads on the motorway network and with fast rail connections to London, Birmingham and Cardiff. Infrastructure assets such as the port and airport provide strong The West of England’s ambition international connectivity. However, in recent years the infrastructure within Residents of the West of England the region has come under increasing will be able to move seamlessly pressure, constraining growth and around the region between work, making it harder for residents to home and leisure activities using move around the region for work and affordable transport solutions leisure and impacting on air quality. that minimise the impact on the Through the West of England Joint environment. range of housing Spatial Plan (JSP) and supporting Joint types will be available that are Local Transport Plan (JLTP), the West high-quality and more affordable. of England has set out a clear strategy Having the right infrastructure in to address many of these challenges. place – both physical and digital – is The details of these Plans are set out in key to maximising productivity in the ‘Infrastructure’ chapter. The region the region, connecting rural and will use its strengths in innovation to urban communities and driving deliver these priorities and help address forward clean and inclusive some of the UK’s Grand Challenges. growth and maximising the Immediate action to support the opportunities of the smart region. West of England’s ambition The scale of ambition set out in the JSP and JLTP, alongside For example the region has the region’s powerful innovation long-term ambitions to: ecosystem, offers the opportunity ``develop a world class digital to embed innovation into tackling platform which enables smart major infrastructure challenges. technologies and innovation;

45 Industrial Strategy West of England Local Industrial Strategy

``build low carbon sustainable homes, Recognising the government’s with embedded smart technologies ambition for the UK to be a world adaptable to the changing needs leader in 5G technology, the region of an ageing population; and will establish a Smart Alliance between ``trial and develop solutions in support local partners to identify strategic of the Future of Mobility Grand priorities and guide future investment Challenge, keeping the region moving plans and funding bids. This strategic and helping the UK to be a leader in approach to digital infrastructure the way people, goods and services design principles includes developing move. The region’s longer term vision a joined-up approach to exploiting is to be a place where private car public assets to maximise investment ownership is greatly reduced as a in and early roll out of next generation regional mobility service would allow wireless and broadband connectivity, movement around the area in a more including 5G and fibre to the premise. efficient and cost-effective way. Developing a world class digital The specific actions identified platform will help the region to realise in this chapter will contribute its ambition to become a Global Centre to, and complement, these of Excellence for Innovation and to long-term ambitions. develop a West of England Network of Living Labs. It will build on the Smart region existing strengths of the region, with At the heart of the region’s innovation the ambition to position the West infrastructure delivery ambitions lie of England as a globally significant developments in digital technology for demonstrator for digital technologies which the region is well recognised. and existing proposals around the Building on the success of ‘Bristol is Future of Mobility and Smart Homes Open’ which delivers research and to support an Ageing Society. It is also development initiatives that contribute an important stepping stone to the to the development of a smart city, the realisation of the AI and Data Grand West of England is developing ambitious Challenge, developing and normalising plans to become a Smart region. the technologies, in a safe and ethical way, that will support the roll out of Central to realising this ambition is the AI-enabled services now and in the digital infrastructure which will provide future, helping to put the UK at the the platform for future activity. The forefront of the AI and data revolution. region has already demonstrated its strength in both wireless and fixed next generation connectivity with the government and industry funded 5G testbed and smart tourism trial and regional engagement on fibre and broadband stimulation programmes.

46 Future of Mobility ``considering trialling a range of new The West of England is exploring modes including micro-mobility options for a local Mobility as a Service solutions and dynamic demand Living Lab that will co-design and responsive travel - using autonomous test replicable transport innovations technologies where feasible. that can improve connectivity, In opening up the West of England to enhancing regional productivity, transport innovations, the region aims widening access to employment to harness the market opportunity and creating globally significant offered by future mobility, which is use cases to drive investment. estimated to be £1.4 trillion by 2030. Building on the JLTP, the West of With global industry players interested England will consider the role of a to demonstrate locally – including Future Mobility Living Lab concept in Nissan, Uber, Ola and Enterprise developing, testing and evaluating new Cars – the West of England is well modes of transport. This will support primed for inward investment and the local ambition to better connect growth from this growing market. people and places to create a vibrant Smart homes for an and inclusive West of England, whilst Ageing Society helping industry to prepare for new modes and models of transport. As the population ages, consideration must be given to how housing and In developing the Future of Mobility health technology adequately meets Living Lab concept, the West of England need, both now and in the future. will work with local communities, stakeholders and international Enabling more people to stay in innovators to trial and demonstrate their homes for longer, the West innovation solutions that can help to of England Smart Home will aim to overcome these challenges, through: set the bar for new housing design, delivery and retrofit, and provide a ``using data analytics, enhanced new industry standard for housing data collection techniques and developments, equipped for home data simulation to develop a working, independent living and energy deeper understanding of network efficiency and contribute to addressing performance and responsiveness; the Clean Growth Grand Challenge ``exploring a Mobility as a Service mission to at least halve the energy use solution, including how mobility of new buildings by 2030. Development credits could be used to improve of this proposal will form part of the access to employment and skills; and Living Lab programme of work.

47 Industrial Strategy West of England Local Industrial Strategy

Developer appetite for investment The region will continue to support in Smart Homes technology is innovation in housebuilding and growing and innovation in design and accelerate the development of carbon application can already be found within neutral homes, supporting the Clean the region. For example, SPHERE, a Growth building mission. This will large research collaboration led by include exploring ways to encourage the University of Bristol involving and incentivise sustainable building the development of home sensors. practices and retrofit, for example via incentives for developers. Innovation in construction To support the ambition to drive WECA has set up a pioneering Joint innovation in this space, WECA will work Assets Board (JAB). The JAB enables with businesses to help them develop collaboration across the public ambitious and competitive bids into sector to use land more efficiently, the government’s £170m Transforming transform services and strengthen Construction Fund and Home Building local communities. Through the Joint Fund. These national funds aim to Asset Board the West of England is modernise construction processes developing an ambitious approach and techniques to support SMEs, to modern methods of construction Custom Builders and developers using (MMC) and other housing innovations innovative methods of construction e.g. co-living communities, smart who cannot access finance elsewhere. homes, carbon/energy efficiency homes. A West of England Small Sites These actions will ensure the West (Housing) Strategy is being developed, of England’s significant innovation which is likely to be expanded to strengths are used to explore new provide a wider MMC strategy. approaches to addressing infrastructure challenges. They will embed pioneering To maximise the potential for new thinking and product development in innovations in housing, the West of the delivery of the region’s vision for England will work with government the future of housing and transport. to ensure continued engagement in the JAB. Government and the JAB will work together to bring about the provisions contained within the West of England’s Devolution Deal particularly working across departments to consider innovative approaches to public sector land.

48 The five foundations of productivity

49 Industrial Strategy West of England Local Industrial Strategy Ideas

The Industrial Strategy sets out how science, research and innovation are critical to increasing productivity and boosting earning power across the UK. The West of England has a long Boosting the pipeline of high-level history of supporting new ideas, new skills is vital to sustaining the growth ways of doing things, new products of the innovation ecosystem, and in and services, and new business particular Science, Technology, Arts, models. The region’s universities, Engineering and Maths skills (STEAM). industries and strong sectors where Each university has applied research ideas are born and skilled workforce and technology centres that support contribute to the development of the region’s industrial strengths. Their ideas that have changed the world. research specialisms range from The ‘Cross-sectoral Innovation’ engineering and manufacturing and chapter sets out the West of applied mathematics to the ‘Internet England’s approach to nurturing of Things’ and virtual reality. The cross-sectoral collaboration, research, universities collaborate closely with development and innovation. This other universities and businesses chapter sets out the foundations around the world helping to fuel this activity will build on. industrial innovation in the region. Research base The West of England has a substantial number of applied research and The West of England’s ecosystem is technology centres. These include: underpinned by a strong public and private R&D base, centred around major ``Bristol Robotics Lab - a collaboration research-intensive businesses and their between the universities of Bristol and supply chains, universities and specialist the West of England and is the largest engineering innovation centres. academic centre for multi-disciplinary robotics research in the UK; The West of England’s four universities and further education colleges provide ``National Composites Centre - highly skilled graduates as well as the world leading authority on cutting edge research and development composites. It works in partnership to support these sectors. Over 53 to accelerate the adoption of high- per cent of students study STEM value, sustainable engineering (Science, Technology, Engineering solutions in composites. It is and Mathematics) subjects, compared owned by the University of Bristol with 46 per cent per cent nationally, and is part of the national High and many are staying in the region. Value Manufacturing Catapult;

50 ``Institute for Advanced Automotive ``Bristol VR lab - a collaboration Propulsion Systems - led by the between the universities of Bristol and University of Bath and opening the West of England and Watershed in 2020, this specialist hub will providing a co-working space for support collaborative research companies and individuals working with the automotive industry to in the fields of virtual, augmented develop future generations of ultra- and mixed reality technology. low and zero emission vehicles; The universities are a significant ``Bristol Digital Futures Institute - source of new business, with successful Government has recently invested spinouts and tech start-ups growing £28.9m for a new institute at in number. These are supported by the University of Bristol with world leading incubation support co-investment of £71.9m from including a University Enterprise industrial partners. This supports Zone and SETsquared Centres in government’s wider work to support Bristol and Bath – the world-leading innovation in digital technologies; University-run incubators. and government is committed to continuing to work closely with the University of Bristol to further develop plans for the Institute; and

51 Industrial Strategy West of England Local Industrial Strategy

Although imperfect, patent applications ``t h eArtificial Intelligence Sector provide one measure of the number Deal, which identifies how research of ideas being translated into viable and development partnerships can innovations. The West of England support national growth. For example, makes patent applications at more than the University of Bristol is providing twice the rate per person than the UK research expertise in a five year average, the 11th highest area, above programme with BT to create artificial Inner London. Patents in the region intelligence-powered next generation are focused around aviation and civil data infrastructure for the UK; engineering, highlighting the strength ``t h eCreative Industries Sector of this sector and its contribution Deal, which recognises the West of to innovation within the region. England’s ‘globally-significant, high- Sector Deals growth creative cluster’. As part of the deal, the government has committed The Industrial Strategy recognised to investing £21m to support digital the role sectors play in driving companies and start-ups across the productivity and the importance of UK via a series of support hubs; two removing barriers to sector success. hubs will be based in Bath and Bristol; The government has agreed a series of Sector Deals in partnership ``t h eNuclear Sector Deal, which with industry that will support the proposes a national advanced development of ideas in the West manufacturing and construction of England. These deals will create programme for nuclear. Both the significant opportunities to boost University of Bristol and the University productivity, employment, innovation of the West of England are partners and skills nationally and in places with in the National Centre for Nuclear relevant sector strengths including: Robotics, a collaborative research project focussed on developing cutting- ``t h eAerospace Sector Deal, edge technology to solve the problem which highlights the significant of nuclear waste. And the construction contribution made by the West of Hinkley Point C in neighbouring of England. It includes a potential Somerset presents an opportunity to £125m of government funding make use of the region’s engineering for innovative projects under the and construction strengths. The West Future Flight programme. In the of England and Heart of the South West of England, Airbus has already West LEPs are working together to invested in an Advanced Wing maximise these opportunities; and Integration Centre in recent years, with support from the government, to build on the region’s capability in the design and testing of wings;

52 ``t h eOffshore Wind Sector Deal, Low carbon innovation which will fund research, development Government estimates that the low and demonstration activities in the carbon economy could grow 11 per sector, with focus on next generation cent per year between 2015 and 2030, technologies. The deal supports the four times faster than the projected West of England’s existing strengths in growth of the economy. The region’s research institutions and businesses; strong capabilities in energy, high for example, the National Composites value design and innovation, together Centre has recently delivered a with an ambitious and engaged state of the art Large Scale Resin community sector means it is well- Infuser which will improve offshore placed to address the Clean Growth wind manufacturing capabilities. Grand Challenge and benefit from Skills for innovation the opportunities arising from the global transition to clean growth. To support the continued development of ideas within the region, the West of The region has thriving businesses and England Employment and Skills Plan commercial expertise in the low carbon recognises the importance of developing energy sector. These include: DNV GL, an environment that cultivates ideas a global renewable energy consultancy; and delivers the high-level skills some OVO Energy; and other innovative of the region’s sectors require. The and sustainable firms such as Thrive Employment and Skills Plan sets out Renewables, Aspire Technology, Pure the region’s ambition to support key Planet, Ecocetera and Solarsense. Growth Sectors and its innovation Many of the region’s law firms, planning ‘ecosystem’, and “ensure that the region’s and engineering consultancies have residents are able to access pathways of a strong renewable energy expertise, opportunity to achieve their potential” by: and Triodos Bank delivers finance on social and environmental criteria. ``investing locally to ensure a steady pipeline of talent/skills Aerospace and advanced to support regional competitive manufacturing is playing its part in both advantages (including the Global industry and academia. The region is Centre of Innovation Excellence home to one of the largest clusters detailed in this Strategy); of composite materials researchers and engineers in the world, working ``maximising the value of the West together to deliver lighter-weight of England Institute of Technology, and more energy efficient aircraft, which will deliver a range of vehicles and ships. For example, Airbus new technical higher skills and is designing the next generation of training programmes; and aeroplane wings, making them more ``addressing Digital Diversity fuel efficient and reducing emissions. through Women into Digital Jobs, Employment or Training (WIDJET).

53 Industrial Strategy West of England Local Industrial Strategy

While In partnership with University ``the proposed Global Centre of of Bristol, Italian helicopter company Innovation Excellence which Leonardo won a national award for will coordinate local innovation innovation for its ‘green’ electric activity and raise the profile of drive rotor blades, reducing the the West of England as a world environmental impact of helicopters. leader in innovation, maximising its Strong capabilities in energy, together potential to attract R&D investment, with digital skills and high-speed data enabling ideas to flourish; infrastructure such as 5G, means ``a network of Living Labs to that the West of England is well test and diffuse innovation placed to take up the opportunities to address local and national of Smart Energy Technology, which challenges at scale and at pace; is starting to transform energy ``development of the skills needed for systems across the world. the region’s innovative businesses Research and development growth using the devolved adult education budget, the new Institute of The Industrial Strategy sets a target to Technology and other targeted skills increase investment in R&D across the programmes such as WIDJET; and whole economy to 2.4 per cent of gross domestic product by 2027. The action ``promoting the take up set out in this Local Industrial Strategy and development of low will ensure the region contributes to carbon technologies. delivering the national target through:

54 People

The strong and dynamic people and communities across the West of England are the region’s greatest asset, driving growth and productivity. The West of England is a highly a university degree), while 36 per cent skilled region that attracts a diverse of its new recruits have this level of range of people, it is an area with qualification. Half of local jobs are highly high employment rates, a strong skilled, which is reflected in average pay labour market and diverse economic being higher than the national average. development, but this is offset by This highly skilled workforce is the some weaknesses that hold it back. foundation for enabling some of Just as the government’s modern the UK’s most prestigious, globally Industrial Strategy sought to build recognised and technologically on Britain’s strengths and tackle its advanced companies to thrive in the weaknesses – such as utilising the region – engineering giants such as UK’s world class higher education Rolls-Royce and GKN Aerospace, or institutions to meet national future major financial services companies skills needs, and transforming the UK’s such as AXA Life, Lloyds TSB. underperforming technical education Engineering, tech, financial services, system so it too is world class – this local creative design - these are the jobs of Industrial Strategy aims to do the same today that are only set to grow as the for the West England. This strategy is Fourth Industrial Revolution is set to about reinforcing the West of England’s change the change the nature of work advantages, but most crucially about and the economy. The West of England tackling the disadvantages that is has these jobs in abundance and is well holding its people and businesses back. placed to thrive as digital technology, The West of England artificial intelligence and biotech regional strengths becomes more and more abundant. The UK is a higher education The 65+ population of the West of superpower, and the West of England England is expected to grow by 24 is at the core of that global strength. per cent between 2017-2030 and the The strength of the West of England’s ageing demographic of many workers, higher education provision is reflected particularly in key sectors such as in its labour market, with nearly half of advanced manufacturing and aerospace, its workforce with a NVQ4+ qualification is a major risk to future productivity (higher skill level qualification – usually that needs to be addressed through

55 Industrial Strategy West of England Local Industrial Strategy support for older workers who need or engaging a range of employers, wish to remain in work will and replacing including SMEs, in the provision the skilled workers that are being lost. of high-quality apprenticeships In order to meet the future demand, and industry placements as part the region’s universities will need to of T level delivery, building on produce even more of the STEM skills the region’s existing employer- that these sectors crave to meet future led Apprenticeship Ambassadors skills demands, but given that most Network, regional Apprenticeship of the 2030 workforce are already in Hub, and a new Skills Advisory Panel. work today then supporting the local The West of England population to reskill into these new regional challenges roles will be particularly essential. While the West of England has many To maintain the region’s strength and strengths, it also faces challenges in support people across the region education outcomes and employment to contribute to the economy of outcomes in many parts of the region. tomorrow, the West of England will: Like England more widely there is a ``build on the new West of England gap in outcomes for people from more Institute of Technology which will disadvantaged backgrounds (including draw together industry, education and those with SEND and care leavers). research, to design and deliver flexible What’s more, fewer young people higher-level technical learning to equip who grow up in the area go on to young people and those already in study at a higher level. Poor outcomes work with the skills to fully exploit new for people from disadvantaged technologies and digital innovation. backgrounds is holding the entire region back from fully prospering. ``promote the uptake and effective delivery of T levels to meet the This disadvantage in the West of demands of employers in the England is exacerbated in the transition region’s strong sectors - advanced between education and work. About engineering, financial and business forty per cent of school leavers enter services, and creative and digital. the workforce with qualifications below Government and the West of A-levels and a small but not insignificant England will work together to 3.5 per cent have no qualifications at reflect on initial impact and assess all. In a region with a greater number of employer needs to support the higher skilled jobs, employment rates for effective delivery of T levels; and those with lower skill levels are about 15 per cent lower than for those with higher ``use its regional leadership role to qualifications. The region also has a support its businesses (utilising its higher number of young people not Growth Hub and Invest Bristol & Bath in education, employment or training services) to engage with and inform (NEET) than the England average. the local skills offer. This will include

56 This problem is a particular challenge for The region is focused on improving the West of England as the number of the health of the workforce, improving low and mid skilled jobs in the region are productivity and quality of life and lower than the England average, and this reducing staff turnover. With 24 per number is only set to shrink by 2030. cent of sickness absences nationally This means fewer opportunities for its caused by musculoskeletal conditions low skilled population to take advantage and 11 per cent by mental health issues, of, which could lead to them falling even including work-related stress, there further behind. Amongst adults, there is scope to reduce these absences by remain 128,500 people without a Level introducing workplace interventions. 2 qualification which means that higher In order for the region to continue to numbers of skills gaps are reported thrive, the weaknesses in the system for lower skilled occupations. The lack need to be addressed. To do this the of lower level skilled workers mean West of England has developed an that the productivity of many of the Employment and Skills Plan alongside region’s businesses and the efficiency this Local Industrial Strategy ensuring of public services are also suffering. the region is focusing on developing These social mobility challenges the skills and support required to translate to ethnicity too, with meet the needs of residents and employment rates for the region’s employers across the region. Black, Asian and minority ethnic people lower than other workers in The West of England the region. This is particularly true in Employment and Skills Plan the creative industries where there is The vision set out in the Employment a distinct lack of ethnic diversity which and Skills Plan highlights that the plan does not reflect local demographics. will play a role in driving a sustainable, inclusive and diverse economy, providing Health a high quality of life, prosperity and Mirroring the national picture, the opportunities for residents and health of people in the West of England employers across the region. varies between the most and least The plan is fundamental to the deprived areas. While Bristol performs region’s ambition to drive clean below the England average for a and inclusive growth. To support large number of health indicators, residents across all parts of the inequalities exist across the region, region to reach their potential. for example there is a nearly 10 year age gap between the life expectancy for men between the least and most deprived parts of North Somerset.

57 Industrial Strategy West of England Local Industrial Strategy

It will: To achieve this: ``ensure the region is developing ``the West of England will explore the skills needed to deliver on the locally-led enhancement of existing ambitions of the Local Industrial regional provision such as the West of Strategy, linking residents to England Apprenticeship Hub to offer opportunities and promoting a brokerage system, enabling levy inclusive growth, for example transfers for the benefit of employers addressing health-related barriers who do not pay the apprenticeship to employment and progression; levy, helping to develop the supply ``ensure employers across the chain of apprenticeships and region are able to access the skills recognising the high proportion of they need both now and in the SMEs within the regional business future, helping businesses grow; base. Government will provide policy advice in the design of this system, ``ensure there is a strong talent signposting to national best practice; pipeline of high-skilled people contributing to future growth in the ``through the forthcoming, locally high-value sectors that are key to funded, West of England Workforce the regional economy, ensuring the for the Future programme (focused West of England remains a region on supporting SMEs develop the where innovation flourishes; skills they will need for future growth) the region will explore the ``ensure the region has the opportunity to use an apprenticeship skills required to deliver on its brokerage system to enhance infrastructure ambitions while also the apprenticeship brand in the supporting clean growth by exploring marketplace leading to an increase opportunities to promote clean in the take-up of apprenticeships construction and retrofit skills, leading across the SME base; and the way in developing techniques that will have global reach; and ``government and the West of England will work together to ensure there ``address health-related barriers to is a two-way flow of information work and progression, supporting to ensure development of regional the aspiration for a long-term apprenticeship provision is well- reduction of pressures on health informed and responsive to the needs and social care services. of employers and residents, using As well as the actions set out in the forums such as the Skills Advisory Employment and Skills Plan, the Panel to facilitate conversations West of England will look to drive between key stakeholders. increased uptake and diversification of apprenticeships within the region.

58 Infrastructure

The West of England’s housing and transport infrastructure has come under increasing pressure over recent years, constraining growth and making it harder for residents to move around the region for work and leisure. House prices have risen to 9.3 times Good digital infrastructure can enhance average earnings and rental levels have the attractiveness of employment also become increasingly unaffordable. locations outside of favoured areas Congestion is increasing: two-thirds but speeds are variable across the of commutes are by car and two out region and ‘not spots’ remain. of five of those journeys are of less The natural environment is an than two kilometres, contributing to asset that contributes to quality of significant greenhouse gas emissions life and promotes health and well- and a cost of congestion of £300m being amongst residents. It makes a year. With a 25 per cent increase the region attractive, encouraging in trips projected by 2036, the residents to stay in the area and regional infrastructure and public attracting people from elsewhere. transport provision must improve if the economy is to keep moving.

59 Industrial Strategy West of England Local Industrial Strategy

It’s not just the region’s natural assets The JSP is the first such joint planning that make it an attractive place to approach in the UK. It considers the live, work and visit; Bristol and the impact that development in one area wider region has been named Britain’s has across council boundaries. The Coolest City by Rough Guides, this JSP sets the strategic framework to accolade was awarded due to the deliver 105,000 homes of all types, first-rate nightlife, thriving creative and including affordable homes, across the tech industries and proximity to the region by 2036, linked to the necessary great outdoors. This attractiveness transport infrastructure as set out in as a place to live is one of the factors the Joint Local Transport Plan (JLTP). leading to the region having access to The JSP will be supported by a locally the range of workers businesses need developed Infrastructure Investment to thrive, encouraging businesses to Delivery Plan to maximise public locate in the region. Solutions to the investment and deliver the plan infrastructure challenges facing the priorities. The region is exploring a region must therefore be designed to strategic partnership with Homes avoid compromising natural assets. England, to bring together the capacity, Climate Change presents clear risks to expertise and investment of partner the region, including flooding and the agencies on shared priorities to drive loss of habitats. North Somerset, the housing supply. This will include a city centres of both Bristol and Bath focus around strategic settlements and the Severnside Enterprise Area are in line with National Infrastructure at risk of flooding. Local Authorities Commission recommendations. across the region have recognised the The Combined Authority has long-term climate change challenge and joined the ambitions to improve connectivity and pledge to be net carbon neutral. To help increase housing supply in the region. realise this aspiration work is already This includes plans to bring about underway to increase energy efficiency, major improvements to Temple Meads grow renewable energy generation, Station and the A4 strategic growth improve air quality, protect habitats and corridor (between Temple Meads and biodiversity and grow green industries. Keynsham). These ambitions have been A strategic approach to developed in partnership with Network planning and transport Rail, the University of Bristol and other public and private sector partners. The West of England is leading the way nationally in aligning strategic The specific actions identified in transport and spatial plans to deliver this chapter will contribute to, and much needed new homes and complement, these long-term ambitions. jobs supported by infrastructure, while promoting sustainability and maintaining the environmental assets and quality of life unique to the area.

60 The JSP aims to secure the delivery The West of England is committed to of high-quality and sustainable places delivering high-quality places through that respond to and enhance the the JSP. WECA has committed to natural, built and historic environment. produce a Placemaking Charter, which It states that: ‘...new development will set out quality standards expected must contribute towards / minimise in the region, which developers, energy demand and maximise the use architects and house builders will be of renewable energy, where viable encouraged to sign up to. WECA is also meeting all demands for heat and power supporting partners to develop a new without increasing carbon emissions’. independent review service to support high-quality design, called Design West.

Figure 6: The Joint Spatial Plan in summary Industrial Strategy West of England Local Industrial Strategy

Work on the JSP and JLTP is supported This includes £59.3m investment into by a Green Infrastructure Strategy Metro West Phase 1 including support setting out the evidence base, strategic from government through the Local measures and mechanisms to assess Growth Fund, which will see the re- Green Infrastructure at a regional opening of the Portishead Line and and Local level, embedding the enhanced local passenger train services benefits into local planning policy. on the Severn Beach and Bath to Bristol lines. The plans include a new rail station Green Infrastructure at Portishead and the reopening of The West of England will grow its the former station at Pill. The West natural capital by supporting locally of England has locally-led ambitions identified priorities to support nature to further improve the suburban recovery, ensure gains in green rail network, including exploring the infrastructure and biodiversity, viability of moving towards ‘turn up and maximise the multiple benefits and go’ services. Local partners will of green infrastructure. This will continue to maximise the impact of help meet the aspirations set out discuss these ambitions with Network in the 25 Year Environment Plan, Rail, GWR and other partners. including the ambition for ‘leaving The JLTP includes local ambitions for our environment in a better state new and expanded rapid and mass than we found it’ and ‘connecting transit services across the wider Bristol people with the environment to area including over Local Authority improve health and well-being’. boundaries to the North and East as well Working in partnership with the West as to Bath and the airport. The vision of England Local Nature Partnership, would be transformative, providing which includes Natural England, the fast and reliable journeys for residents West of England will explore forms of and visitors. It will be supported by support for this ambition, including comprehensive walking, cycling, bus access to better quality open-sourced and rail networks that enable people data to help enable the identification to get to stops and stations quickly and of local green infrastructure priorities. easily. The quality and coverage of this Keeping the region moving supporting network is critical, as the first and last mile of any journey is often the Significant investments have already most important factor in determining been made into addressing the local choice of transport. To further promote transport challenges improving a modal shift from the privately-owned connectivity and alleviating congestion car towards more sustainable modes of through the Transforming Cities Fund transport WECA is developing a Local and the WECA Investment Fund. Cycling and Walking Infrastructure Plan.

62 Case Study: GENeco

GENeco was created by its parent From this waste, GENeco produces company, Wessex Water, in 2009 enough renewable energy to to help it become more sustainable. power over 10,000 homes, and It now treats huge volumes of heavily reduces the environmental varied wastes and transforms impact of local businesses and the them into useful products. This community. The by-product of its includes the food waste recycling recycling processes is a nutrient- from all of Bristol and Bath’s rich biofertiliser which is used on residents, and sewage sludge farms in the region, keeping valuable from over one million people. bio-resources in the local area.

63 Industrial Strategy West of England Local Industrial Strategy

The JLTP includes the locally- It seeks to keep energy prices low and led ambition to address poor air invests profits in the local community quality and act against climate including local renewable energy change. The region will explore: generation. Looking to the future, ``new technology on older Bristol aims to bring £1bn investment buses to reduce emissions; into the city’s energy system through ``110 new gas-powered buses; its pioneering City Leap initiative which is looking to strategically develop, co- ``improvements to cycle ordinate, deliver and facilitate a smart, accessibility; and interconnected energy system. ``support to taxi operators to move to low emission vehicles. South Gloucestershire Council is working with Horizon Nuclear The specific actions identified Power to deliver new generation, in this chapter will contribute low carbon, and affordable nuclear to, and complement, these power. Bath and North East Somerset long-term ambitions. Council’s Keynsham Civic Centre, Energy opened in 2015, is a low energy consuming public building. Commitment to tackling climate change and ensuring quality of life for current Building on the regional energy and future generations is part of an strengths, the West of England Strategic environmental conscience that is part Energy Framework sets out the region’s of the identity of the West of England. ambition for a diverse, resilient, and As a result, the region is home to a wide affordable energy system that enables range of energy efficient initiatives, economic growth whilst reducing including some of the UK’s leading greenhouse gas emissions. An action community not-for-profit energy co- plan to achieve this is in development. operatives. Since it was established in Whilst the level of housing growth 2010, Bath and West Community Energy, identified in the JSP will increase has played a role in the development of energy demand across the region, there community-owned renewable energy, is also an opportunity through modern and now generates enough capacity to methods of construction and other meet the equivalent annual electricity innovations to minimise energy demand demand for around 4,000 homes. and maximise the use of renewable In 2016 Bristol City Council launched energy, where viable. The aim is to meet Bristol Energy as a ‘force for social all demands for heat and power without good’, a gas and electricity supplier increasing carbon emissions and while providing enough energy to power contributing to the Clean Growth Grand around 10,000 households and Challenge mission to at least half the businesses across the UK. energy usage of new buildings by 2030.

64 South West Energy Hub This will drive a move towards a more The West of England Combined sustainable low carbon economy and Authority hosts the South West result in reduced greenhouse gas Energy Hub. This £3.5m project, emissions in the West of England. funded by government, supports The national Industrial Strategy projects that reduce energy use and highlights the importance of high- increase clean energy capacity. quality infrastructure in enabling The Low Carbon Challenge Fund growth and prosperity. The West of England has agreed investment The Low Carbon Challenge Fund strategies that will set the foundation (LCCF), a £4.2m European Regional of productivity growth for the long Development Fund, awards grants, term. A better-connected region will in addition to technical support and open up opportunities for businesses advice, to support the delivery of to collaborate, innovate, and grow, projects of the following types: with access to a wider range of ``SME energy efficiency projects skills. By improving environmental delivering greenhouse gas savings; infrastructure, and driving cleaner energy use, the region will remain an ``community-led small-scale attractive place to live and work and renewable energy generation will be resilient to future challenges. schemes, delivering additional MW

output and CO2 savings; and ``programmes of works, or specific projects, to improve the energy efficiency of public sector buildings, including housing. The project will run for a three-year period from spring 2019 to spring 2022. It will benefit SMEs who implement energy efficiency measures to their premises or business operations; entities bringing forward small-scale renewable energy schemes; and public-sector organisations (and wider resident communities) or social landlords bringing forward projects to improve the energy efficiency of public buildings and housing.

65 Industrial Strategy West of England Local Industrial Strategy Business environment

The West of England has a thriving business environment that encourages companies to grow. The UK and global economy is growing scale-up firms than almost transforming, as digitisation, anywhere else in the country. This autonomous systems, and the success has been supported by high- challenges of climate change cut across performing incubators and accelerators, traditional industries and create new strong business networks and business models. Business cannot stand interactions with local universities, and still, and with the region’s innovative well-established inward investment and mentality and dynamic workforce, there business support services. The West is a significant opportunity to exploit. of England will need to reinforce this In recent years, the region has seen ecosystem to ensure that innovative a greater rise in the number of fast- and disruptive new businesses can continue to grow in the region.

Figure 7: Growth in the number of scale-up businesses was higher in the West of England than in comparator areas between 2014 and 2017

66 Scale-ups ``Future Space, in the University Enterprise Zone, has offices, The West of England wants to workshops and lab-space for science cement its strength in nurturing and technology-based businesses, high-growth businesses and ensure and has been explicitly designed to this is sustained beyond start-up. encourage innovation, collaboration The West of England has a thriving and inspiration. Future Space supports scale-up sector which will be businesses working in high-tech important for future growth. Scale- areas including robotics, digital and up businesses expand quickly and creative technologies, health tech have high turnover or employment and biosciences. It is estimated that growth. Scale-ups are on average it will bring an economic boost of 42 per cent more productive than £85m, as well as over 450 new jobs their peers. Support for scale-ups is to the region over the next 10 years; therefore a priority for the region. ``This year’s work started on the new The West of England has a large scale- food and drink innovation centre, up population with the sixth largest FoodWorks SW, at the heart of the number of scale-ups per person of all Junction 21 Enterprise Area, in LEP areas in 2017. Scale-up success North Somerset. Funded through is partly explained by the range of the Local Growth Fund, it will provide established innovation spaces such a range of specialist facilities such as SETsquared, Engine Shed, the as product testing space, and Guild and the Bristol Robotics Lab technical support for food and drink which provide employment space manufacturers across the region; and support to growing businesses. ``A collaboration between Bristol City Other factors such as the highly-skilled Council, the University of Bristol and workforce, attractiveness as a place the West of England LEP, Engine Shed to live and diverse and collaborative is a unique hub where businesses, culture, also help to attract new entrepreneurs, academics, social businesses and employees. innovators, and corporates collaborate. Engine Shed showcases the strengths An influential network of and innovations of the region by incubators and accelerators providing space, creating encounters, The region has developed a strong and running projects that inspire, network of incubators and shared enable, and challenge. Phase 2 will working spaces that have been influential provide additional space and grow- in supporting new and innovative on capacity for fast growing firms. It businesses. These have increasingly also hosts the University of Bristol’s helped to ensure the availability of SETSquared Centre, with its four employment space that meets the partner centres including in Bath needs of a fast-growing business base: (below) currently the world number one University Business incubator;

67 Industrial Strategy West of England Local Industrial Strategy

``The SETsquared University of Immediate action to support the Bath Innovation Centre supports West of England’s ambition entrepreneurs, start-up and scale- Alongside the region’s wider support up companies across a range of for innovation and skills, the West high-tech and high-growth areas of England will explore options for a of activity including sustainable locally funded high impact enterprise technologies, digital platforms, scale-up programme – focused on advanced engineering and social coaching, investment and working enterprise. It has helped over space. The programme will design and 1,000 start-ups to raise more deliver a co-ordinated regional scale- than £1bn of investment; and up programme, delivering the kind of ``Unit DX is a science incubator based support that has been identified by in Bristol city centre, providing companies as critical and shown in specialist laboratory facilities evaluations to be effective. It will build and science-focussed business on the region’s innovative Scale-up support. It was established in 2017 Generator and will complement the and has rapidly grown to house Creative Scale-Up programme being 32 businesses. It also works with delivered by WECA and the Department Engine Shed and Ultrahaptics to for Digital, Culture, Media and Sport. provide science outreach days Government acknowledges the to students at local schools. importance of supporting scale- These facilities complement the region’s ups to drive productivity and the network of Enterprise Zones and Areas. impact that a programme like this would have in the West of England. However, there are barriers for high- This programme will include: growth and innovative businesses: for example, local organisations ``specialist coaching support – have identified a gap for finance and targeting businesses identified as investment into innovative scale-ups. high growth potential with strategic Furthermore, businesses report that advice to develop a cohesive growth finding flexible and affordable working strategy for realising opportunities; space can be difficult, and certain ``a West of England scale-up investment sectors report a shortfall in employees fund - to provide scale-up firms with with the skills that they require. access to risk capital and provide As scale-ups grow their workforce guidance on access to finance, driving rapidly, skills shortages present a growth and attracting additional particular constraint on growth. private sector investment. This will There is a strong demand for high provide highly innovative and creative level skills in particular, reflecting businesses support for expansion. the large proportion of knowledge The West of England will explore intensive businesses in the area. mechanisms for this including existing

68 regional funding and working in To increase performance further, Invest partnership with neighbouring areas Bristol & Bath will become an even and the private sector. The West of closer partner with the Department England and the British Business Bank for International Trade to promote will work together to help SMEs in the the area’s strong and emerging West of England to access the finance sectors, and to ensure businesses they need to grow their businesses. receive the right support at the right They will consult with and consider the time so they can invest and grow. role that the British Business Bank’s Invest Bristol & Bath will be current programmes play, considering structured around: in particular the Bank’s equity programmes such as the Regional ``a team dedicated to selling the region Angels Programme, Enterprise Capital as a destination for investment; Fund and British Patient Capital; and ``an enquiry handling service which ``space for business growth - specialist will assemble virtual multi-agency ‘grow-on’ space and facilities and disciplinary teams to encourage focussed on Enterprise Areas and firms to invest in the area; and Zones and other strategic locations, ``an expanded account management and in sectors where the region service for existing foreign has competitive advantages. investment, high value indigenous The West of England and the companies and fast-growing firms government are committed to increasing to help them trade and growth trade and investment performance within the West of England. across the region. To achieve this the Centred on a strong alliance West of England will continue to deliver between local authority partners, Invest Bristol & Bath – the region’s the service is funded by the region’s inward investment service – with the dual Economic Development Fund. focus of attracting and supporting high- growth potential firms, and ensuring any The West of England will work with subsequent foreign direct investment Her Majesty’s Trade Commissioners enhances the region’s existing business and their teams to help raise the base and delivers social benefits. awareness of the region’s business opportunities and economic assets The service was established to attract overseas. The government’s action new businesses to the area. It has through the Export Strategy presents achieved a great deal and worked an opportunity to join up and enhance well with government to secure the region’s Growth Hub and Invest significant foreign direct investment. Bristol & Bath support to businesses.

69 Industrial Strategy West of England Local Industrial Strategy

This will help to ensure more Together, these measures will ensure businesses can access the right scale-ups can fulfil their potential, support at the right time. strengthen their productivity and grow The West of England will work with successfully, enabling them to offer partners, (including public and private a wide range of good quality jobs. sector providers, universities and Fostering start-ups from a wider range chambers of commerce) to develop of communities across the region will this tailored programme of support create more innovative businesses to address the specific needs of and employment opportunities. the different groups of businesses, and will call on the support of businesses to help to enhance the impact of their supply chains.

Figure 8: The West of England’s approach to building business competitiveness will provide specialised support to different segments of the business population

70 Places

The West of England is a vibrant, diverse and creative region, which includes the two thriving cities of Bristol and Bath. The diverse towns and communities The West of England is working in across the wider region make the partnership with Arts Council England West of England a place that attracts to develop a Cultural Strategy which people from across the world. defines the role of culture in driving While overall the West of England is economic growth, identifies new a prosperous region, this picture is mechanisms for funding cultural activity not universal. In some areas, such and articulates the role of culture in as parts of South Bristol, central supporting wellbeing. This will deliver Weston Super Mare, and parts of Bath, a narrative and framework that will high levels of deprivation are found. help to prioritise regional activities The actions set out in the inclusive that build on distinctive strengths growth chapter and throughout and address key weaknesses. this Local Industrial Strategy will Progress so far has seen: help to address these challenges. ``A 5G Smart Tourism Project, Culture and Tourism led by WECA and part-funded by DCMS, brought together 19 While some places across the West of organisations and oversaw the England face challenges, the region as a creation of a testbed to demonstrate whole is a well-recognised national and 5G capability and its potential to international cultural and tourist hot transform tourism and commercial spot. During 2018, Bristol airport had activity in the region as well as 8,699,529 passengers and there were supporting the emergency services over 4.1 million visitors to attractions in and managing safety at events. Bristol and the UNESCO World Heritage site of Bath in 2018. The diversity and ``The £40million Discover England Fund, depth of cultural activity is one of the launched by DCMS in 2016, has also defining features with the vibrant cities funded the development of a range complemented by the range of natural of bookable tourism products in the environment to both the north and West of England, aimed at international south of the region. This mix of urban, visitors. These include England’s rural and coastal areas provides an Originals, which links up a number exceptionally diverse cultural ecology of England’s most historic cities - and the attractiveness of the region including Bath - via rail itineraries. and the range of cultural activities are Similarly, England’s Great West Way reflected in a vibrant tourism sector. is a touring route following the Avon

71 Industrial Strategy West of England Local Industrial Strategy

Figure 9: Enterprise Zones and Areas in the West of England

AREA MAP BIRMINGHAM 105 MINS

THORNBURY

M5

M4

SEVERN BRIDGE Filton Enterprise YATE Area BRISTOL PARKWAY BRISTOL PORT

M4

Emersons Green University of the Avonmouth EnterpriseArea West of England M5 Severnside University includingBristol & of Bristol Enterprise BRISTOL Bath SciencePark TEMPLE MEADS LONDON PORTISHEAD Area 80 MINS Temple Quarter EnterpriseZone BRISTOL KEYNSHAM

WESTONSUPERMARE BATH SPA Bath Enterprise University of BRISTOL AIRPORT Zone Bath

Junction 21 Bath Spa University EnterpriseArea BATH M5 SOMER VALLEY

SomerValley EnterpriseZone

and Kennet canal from London to Culture-led placemaking the centre of Bristol, featuring many There is a strong history and track- of the area’s top attractions. record of re-purposing industrial spaces The region is also exploring as part of culture-led placemaking. opportunities to strengthen existing WECA has established a locally funded joint working on tourism to maximise £10m Love our High Streets fund to its capacity to support the ambitions support work with communities to set out in the Tourism Sector Deal. transform key high streets and support The Tourism Sector Deal sets out wider regeneration through pilot how the government and industry projects in Bath, Kingswood and Bristol. will work in partnership to boost productivity, develop the skills of the UK workforce and support destinations in developing their visitor offer.

72 Enterprise Zones and Areas The West of England has established development on Filton airfield; three Enterprise Zones and four ``the Junction 21 Enterprise Area is Enterprise Areas. They free up key North Somerset’s major employment, development sites, consolidate innovation and enterprise location. infrastructure, attract business and It is home to the Food WorksSW, create jobs. These areas deliver a regionally significant food and long-term, sustainable growth based drink development centre that on cutting-edge technology and is currently being developed; enterprise. They are priority growth locations and play a major role in ``Avonmouth/Severnside Enterprise creating the right conditions for Area is currently a mix of industrial business to thrive. These include: and former industrial areas and greenfield sites immediately ``the Bristol Temple Quarter adjacent to the M5 and M49 Enterprise Zone is home to rapidly motorways. Warehousing and growing clusters of small and Storage, Large Scale Distribution start-up businesses, particularly in and Logistics and Environmental the creative, digital and high-tech technologies will benefit from its sectors. It is one of the largest urban infrastructure and connectivity; and regeneration projects in the UK, covering over 100 hectares of land; ``Emersons Green Enterprise Area home to the Bristol and Bath ``Bath and Somer Valley Enterprise Science Park which includes the Zone offers much needed land for already highly acclaimed National contemporary workspace, new Composites Centre, providing a homes and supporting cultural and focal point for the coming together leisure facilities which will boost the of science, innovation, technology, economic success of Bath and North creative and digital media. East Somerset and the region; ``the Filton Enterprise Area is home to the UK’s largest aerospace cluster. Plans are underway for a new aerospace park with a focus on high value design, advanced manufacturing, defence and research, and major

73 Industrial Strategy West of England Local Industrial Strategy

Developing sustainable, thriving places As part of the ambition to ensure the Building on the lessons learned and benefits of a successful economy are relationships established through shared, the West of England will support the £10m Love our High Streets the development of sustainable, fund, the region will look to: thriving places that offer opportunities ``pilot innovative ways in which to and enhance the quality of life for diversify commercial activity in communities across the region. This some locations, such as high streets, is critical to those that live or study in industrial estates, office parks; the West of England, to visitors and to a workforce which is increasingly ``help to open up and connect mobile. Quality of place is crucial to locations and sector activity economic performance as well as through the provision of the social cohesion and well-being. necessary infrastructure; and Plans include a range of co-ordinated ``encourage a mix of employment activities to help businesses find premises to facilitate innovation. premises to suit their changing To do this, it will also explore needs. Building on the Employment opportunities through national Land Assessments produced by initiatives such as the Future High the Local Authorities and business Streets Fund and the Stronger Towns intelligence gained through the Fund which could support local Growth Hub; the West of England areas’ plans to make high streets and the Local Authorities will and town centres fit for the future. develop an understanding of the issues which prevent some This Local Industrial Strategy locations attracting businesses. will support the development of sustainable, thriving places across the West of England so residents are able to access opportunities and enjoy an enhanced quality of life.

74 Implementation and evaluation

Implementation and collaboration This Strategy does not represent all the This Strategy sets out the government’s priorities and action being developed and the West of England’s view of in the West of England. As detailed in opportunities for the region, as this Strategy, the West of England will well as the challenges that need to regularly review the latest evidence to be addressed to enable increased continue designing the most effective productivity and growth. approaches and interventions to be at the forefront of the future UK economy. This Local Industrial Strategy does not include any new spending commitments The actions set out here will be outside of existing budgets. Instead, implemented alongside existing plans it will inform the strategic use of local and broader regional strategies, funding streams and, where relevant, including the Joint Spatial Plan spending and decisions at the national which is currently being assessed, level. It will also help the West of the Joint Local Transport Plan and England decide on its approach to West of England Employment and maximising the long-term impact of the Skills Plan. The West of England will new UK Shared Prosperity Fund once regularly review the latest evidence to its details and priorities are announced continue designing the most effective following the Spending Review. approaches and interventions to be at the forefront of the future UK To demonstrate progress towards economy. This Strategy sets out long the long-term vision set out by this term ambitions and will continue to Local Industrial Strategy, the Strategy evolve as the economy changes. contains a number of specific actions. Where these actions are locally-led, Successful implementation of this these will be drawn from local budgets Strategy will require the coordinated which exist for those purposes; where efforts of a wide range of partners, actions are shared between the West including local and national of England and government, they government, business, wider public will be funded from existing local and services, universities, and community departmental budgets, with funding and voluntary organisations. The allocated for those specific purposes. Local Industrial Strategy is therefore a further route to strengthening the focus of the strong partnerships in place within the region.

75 Industrial Strategy West of England Local Industrial Strategy

Implementation of this plan will also ``Results will be reported annually depend on collaboration with partners through existing West of England beyond the regional boundaries. The reporting arrangements both West of England will engage with locally and to government, partners in neighbouring regions, including reporting to the national along key routes, such as the M4 Industrial Strategy Council. corridor and within strategic groupings A wider review on the impact of the such as the M9 group of Mayoral strategy will be included alongside Authorities to ensure the success the scheduled five year ‘gateway’ of this Local Industrial Strategy in reviews of the WECA Devolution Deal. driving clean and inclusive growth within the region and beyond. Evaluation The West of England will put in place an evaluation programme for this Local Industrial Strategy. This will form part of the existing overall regional Monitoring and Evaluation Framework agreed with government. The framework will be reviewed annually and will include: ``Project evaluations for the specific schemes that are implemented as part of this Local Industrial Strategy; ``All projects funded as part of the Local Industrial Strategy will be subject to robust evaluation. Wherever possible and proportionate, cutting-edge independent evaluation methods will be used from the outset of programmes. The results of these evaluations will be published to meet the requirements already set out in the West of England’s assurance frameworks; and

76 77 Industrial Strategy West of England Local Industrial Strategy Further information

In preparing the Local Industrial Additional sources include: Strategy, the West of England has ``West of England Joint Spatial Plan developed a substantial evidence base, identifying the region’s ``West of England Joint current position and opportunities Local Transport Plan against the five foundations of ``West of England Employment productivity. This evidence was and Skills Plan published in February 2019 and ``South West England and South East formed the basis of discussions to Wales Science and Innovation Audit develop the region’s priorities. The full reports can be found here: West of England Local Industrial Strategy: evidence base

Image credits-

Cover Crane Dance Bristol, by Laura Kriefman, Hellion Trace Ltd. Lighting by Studio Three Sixty. Credit: © Jon Rowley P 16 Upfest. Credit: Paul Box P 59 The Bristol Port Company P 77 Bath Southgate, Bath. Credit: BID

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Industrial Strategy West of England Local Industrial Strategy

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