Broadening the Perspective: Tying the local to the global in the knowledge economy The Challenge Leighton Group – July 2007 • The Nor th Eas t is the sma lles t an d poores t Eng lis h Reg ion North East – moving with a population of 2.4 million • Traditional Industrial base of Mining, , Heavy Engineering, from an industrial economy Manufacturing and Iron and Steel – all closed or in decline to a knowledge economy • GVA per head in the North East stands at around 80% of the UK average • Productivity of those in work is below the national average • The nu mber of people of w orking age in employ ment is below the national av erage • Only 48.7% of students in the North East achieve five A* to C GCSEs against a national Paul Callaghan average of 52% Chairman of the Leighton Group • Only 24% of young people in the region enter , significantly below the national Deputy Chairman of the University of target of 50%. Board Member of ONE North East (Regional Development Agency) Chairman of Sunderland Software City

The Strengths of the Region Innovation Connectors Developpjpments/Projects that provide a stron gggpg geographical focus for , innovation and • The Nor th Eas t has five Un ivers ities creative activities and drive forward internationally competitive capacity in universities and – Newcastle, , Sunderland, Durham and within businesses. • The region has a great tradition of innovation in science and technology • Drive regional growth and stimulate the regeneration of deprived communities; • Strong reg iona l iden tity • Enable the development of new world class facilities and new approaches to • Committed and Focused Regional Development Agency integrating business and universities, and engagement with the community. • Acceptance of a need for change and a determination to move from industrial economy to Each Connector encompasses: know ledge economy • university research; • technology based businesses; • supportingg( activities (such as emplo yygyability, training and skills development ); • key facilities. Innovation Connectors Newcastle Science City Substantial new capabilities and activities in respect of the development and commercialisation of science, particularly in the following areas: • Ageing; • Stem Cell s an d R egen er ativ e m edi cin e; Energy Centres • Energy; Newcastle • Molecular Engineering. Science City The core o f the Sc ience City w ill b e in the wes tern area o f N ewcas tle a t th e former Newcas tle Brewery Site, Newcastle General Hospital and the areas around the . Sunderland Software City Other sites will be developed that directly link to this agenda. Newcastle Science City will developppp innovative approaches to the education of ygppgyoung people in science throughout the Netpark Energy Centres region. at

Teesside Digital City

Wilton

Energy Centres Teesside Digital City Network of research and innovation facilitfacilitiesies throughout the region concerned with new and Partnership between the University of Teesside and individual businesses , taking a key role in the development of new, more sustainable • Developing research, facilities and business in respect of new media, approaches to the use of energy by businesses, public organisations and domestic users. particularly games and animated film; These include: • Developing new facilities for business in central ; • (New and Renewable Energy Centres) centre at Blyth; • Furthering the development of the innovative cluster of related businesses • CREEL (Centre for Renewable Energy from Land) at the University of Newcastle already established in this area. • GREAT Institute (Geothermal Research Education and Training) at Easington; • Fuel Cell Application Centre and Centre for Biomass and Biodiesel in ; • New technology for oil and gas, including carbon capture, in Tees Valley. Wilton Centre NETPark at Sedgefield The most significant new materials related research, development and innovation cluster in Centre for research and development, building strengths in the area of novel electronics . Europe. Opportunities for existing and new businesses in the region, building on the strengths of the In the last five years, the decline of R&D previously associated with the chemicals industry Universities of Durham and Newcastle, process industry businesses located primarily in on Teesside has been reversed and Wilton is now the largest private research Tees Valley and electronics and electrical engineering businesses. concentration in the UK. The key project: Major investments currently being implemented include: • PETECH Centre (Plastics Electronics Technology Centre); • The National Industrial Technology Facility; • Major research and engineering facility for plastic electronics technology and • The hub of the National Nano-Particulates Network. devices.

Sunderland Software City Conclusion Developed with private sector leadership and to build upon the strengths of the region’ s AtA partnershi hibtp between: universities, particularly Sunderland, and businesses in respect of software development for business applications. • Government; The project will seek to develop new and existing businesses engaged in software • Universities; development. It will provide: • Private Sector. • start up and grow on facilities; Regeneration based on: • intensive coaching; • traditional industrial strengggyp;ths such as energy and process industries; • access to research, finance and markets. • new industrial specialisations such as bioscience and software. A strategy and implementation policy to produce dramatic change in the region within a generation.