Oxfordshire Local Industrial Strategy

A Partner in the Oxford-Cambridge Arc

July 2019 2 Contents

Foreword 05

Executive summary 06

Introduction 12

Oxford-Cambridge Arc economic context 15

Oxfordshire in 2019 20

Building a global innovation ecosystem: 29

Oxfordshire in 2040

The five foundations of productivity

Ideas 38

People 50

Infrastructure 57

Business environment 64

Places 72

Priorities across the Oxford-Cambridge Arc 84

Delivering for communities, business and the UK 92

Implementation and evaluation 96

3 Industrial Strategy Oxfordshire Local Industrial Strategy Foreword

When Howard Florey came to Oxford in 1935 as the newly appointed Professor of Pathology, he arrived to state of the art but largely empty labs in the new Sir William Dunn School. He soon set about recruiting a Oxfordshire’s success, therefore, is research team and – by the early critical to the success of the UK. war years – Florey, Ernst, Chain This Oxfordshire Local Industrial and others had turned over the Strategy sets out an ambitious plan department to making penicillin to build on Oxfordshire’s strong and demonstrating how effective it foundations and world-leading assets. could be against bacterial infections. It will deliver transformative growth Penicillin then seemed nothing and prosperity for all communities short of miraculous, banishing many across the county, supporting the infectious diseases that were some of objectives of the national Industrial the leading killers of the time. Indeed, Strategy. This Strategy looks to build the work of the Oxford team ushered on these strengths and assets to in the modern age of antibiotics. drive R&D and innovation across the Nearly 85 years on, Oxfordshire is region as a pioneering contributor today a global centre of research and to the Industrial Strategy’s target for innovation. It is home to a number of national R&D spending to reach 2.4 world-leading science and technology per cent of GDP by 2027 and three companies which are located across per cent in the longer term. In doing leading business clusters and hubs that so, it will drive Oxfordshire’s ambition form a hive of knowledge intensive to become one of the top three global economic activity and anchor the area’s innovation ecosystems by 2040. strengths in breakthrough sectors. Achieving this bold and ambitious Oxfordshire is the UK’s engine for target will require collaborative innovation: ground breaking R&D is working between all partners across driving the creation of new, dynamic Oxfordshire and Government. We will businesses hungry to grow and scale need to develop the physical, digital, up; cutting edge products and services financial and knowledge infrastructure are solving the challenges in healthcare, of Oxfordshire to foster a successful mobility, energy and communications; innovation ecosystem that is focused and commercialisation of these new on competing at a global level against ideas is delivering manufacturing and our rival international hubs. supply chain opportunities across the length and breadth of our country.

4 This will be supplemented by a opportunities for all; Infrastructure thriving business environment which will enable greater connectivity makes Oxfordshire the playground especially across key growth locations; for innovators and entrepreneurs to the Business Environment will translate big ideas into commercially enable Oxfordshire to become a successful products and services. powerhouse for commercialising Oxfordshire wants to be a pioneer transformative technologies; and for clean and sustainable growth, finally, we will develop Oxfordshire as known as the location which harnesses a living laboratory to help solve the the dynamic potential of its science UK’s Grand Challenges for all Places. and technological innovation for the Everyone has a role to play in benefit of local residents, business making Oxfordshire’s Local Industrial and improved public services which is Strategy successful, real and relevant an exemplar for contemporary living – communities, investors, educators, and design, and delivers sustainable entrepreneurs, innovators and more. and flourishing communities. We invite you to join us in this Most critical of all, Oxfordshire will exciting journey and seize the be relentless in maximising the full opportunities which lie ahead of us. potential of each and every person who lives and works in the county, ensuring that they are equipped with the very best skills which can provide them with the capability to secure the new employment opportunities generated across the innovation ecosystem. The Oxfordshire Social Contract will be central to the ambition Rt Hon Greg Clark MP to drive social mobility and ensure Secretary of State for Business, local residents benefit from the Energy and Industrial Strategy dynamic location which is their home. This Local Industrial Strategy, therefore, presents a long-term framework against which private and public sector investment decisions can be assessed, grouped around the five foundations of productivity. We will use Ideas to establish a globally connected and competitive Jeremy Long innovation economy; our People Chair of the Oxfordshire Local will benefit from a more responsive Enterprise Partnership skills ecosystem creating better

5 Industrial Strategy Oxfordshire Local Industrial Strategy Executive summary

Oxfordshire has been at the centre of innovation in the UK for centuries. National and local investments have built up a network of science parks and innovative firms across the county, and now wider investments in the region offer the opportunity to cement the area’s reputation as one of the best locations in the world to innovate. This Local Industrial Strategy sets Building a global innovation out an ambitious plan to build on ecosystem: Oxfordshire in 2040 Oxfordshire’s strong foundations This Local Industrial Strategy and world-leading assets, to deliver is framed by Oxfordshire’s transformative growth which is clean ambition to be a top three global and sustainable and delivers prosperity innovation ecosystem by 2040. for all communities across the county. It will deliver the aims of the national Oxfordshire will achieve this through Industrial Strategy, government’s long developing the five foundations term plan to boost productivity, by of productivity, as set out in the backing businesses and investing in national Industrial Strategy, and by skills, industries and infrastructure. building on the county’s world-leading science and technology clusters. This growth will be driven by innovation and higher productivity - both in those This will knit together the existing emerging sectors which will harness strengths of the county – in the historic transformative technologies, and in academic assets in the City of Oxford, sectors that have historically driven within dynamic and creative residential the economy. It will be inclusive, place- communities, and across its science sensitive and sustainable, responding and technology parks throughout to increasing concerns around Oxfordshire – into a coherent network, climate change, and will enhance the able to exploit the latest technologies. natural environment and the quality As well as supporting ‘breakthrough’ of life for everyone in Oxfordshire. firms, this will enable growth in the ‘cornerstone’ local businesses that form the backbone of the Oxfordshire economy, providing jobs, essential services and supply chains across the innovation ecosystem and delivering growth in the UK as a whole.

6 Oxfordshire in 2019 This also places it at an increasing disadvantage to its international Oxfordshire has one of the strongest competitor locations in attracting economies in the UK, contributing foreign investors, talent and £23bn Gross Value Added (GVA) to the business investment. UK exchequer in 2017. It is also rapidly growing at an average of 3.9 per cent This Local Industrial Strategy growth year-on-year since 2006. recognises these challenges to the Oxfordshire economy and sets out The county has significant assets in the opportunity to ensure that this research and development (‘R&D’) growth is coordinated county-wide. being home to the top performing It sits alongside the Oxfordshire university in the world, the University Housing and Growth Deal, agreed with of Oxford, as well as Oxford Brookes, a government in 2017, which sets out the leading university in the UK for teaching commitment to deliver 100,000 new and research. These anchor institutions homes across the county before 2031 support an international brand that as well as improvements in necessary draws talent and investment to both the accompanying infrastructure. This City of Oxford and across Oxfordshire strategy looks to integrate the county’s in the number of science, innovation, leading R&D and innovation assets technology and business parks into future housing and infrastructure. located in the county. The Oxfordshire This will provide pioneering solutions knowledge-led economy generates the to deliver transformative and highest number of university spin-out sustainable neighbourhoods that companies in the UK, underlining its prepare communities for the future importance to the national economy. and make Oxfordshire a clean and However, despite Oxfordshire’s many prosperous place to live and work. strengths, it has low productivity relative to many peers. Whilst the Ideas region’s productivity per hour worked Oxfordshire is a global centre is above average for England, in recent of research and innovation. The years it has fallen below the south east. county is home to two renowned Moreover, as Oxfordshire’s economy universities – the University of grows there is an increased strain on Oxford and Oxford Brookes – and the county’s infrastructure. Housing is a number of world-leading science, becoming increasingly unaffordable and innovation, technology and business rail, road and energy infrastructure are parks. This hive of knowledge- not sufficient to meet rising demand. intensive economic activity attracts international talent and investment and encourages the highest intensity of university spin-outs in the UK.

7 Industrial Strategy Oxfordshire Local Industrial Strategy

This engine of innovation in Oxfordshire This will include the launch of the also benefits the wider UK and is ‘Connecting Globally’ platform, key in building innovation excellence a digital platform to showcase across the country and competing success across the region and globally for investment and talent. facilitate collaboration with other This Local Industrial Strategy looks to global innovation ecosystems. build on these strengths and assets People to drive R&D and innovation across Oxfordshire has a highly skilled the region as a pioneering contributor workforce, with 51 per cent of the to the Industrial Strategy’s target working age population educated to for national R&D spending to reach degree level or above. The county’s 2.4 per cent of GDP by 2027, and unemployment rate is over 50 per three per cent in the longer term. cent lower than the UK average, For Oxfordshire to reach this ambition, at 1.3 per cent compared to 2.7 this Local Industrial Strategy recognises per cent nationally. However, the that the county needs to develop its county has pockets of significant physical, digital, financial, knowledge deprivation and wage disparity. and social infrastructure to foster a The priority in this Local Industrial successful innovation ecosystem that Strategy is to build a skills system that competes at a global level. This means better responds to local demand, which ensuring that there is a sufficient provides a range of opportunities pool of leadership talent, funding for all across the county. This will and business premises to support help develop a more responsive skills growing businesses. Oxfordshire will ecosystem to support our innovation therefore support the transformation ambitions. Oxfordshire will take forward of science and technology parks, a series of measures to support and the potential creation of a new business engagement with the skills Global Business District as part of the system through the development of an Oxford Station quarter. Additionally, Oxfordshire Social Contract, including: it prioritises local investment in the breakthrough technologies set ``establishing a Skills Advisory out in the Oxfordshire Science and Panel for Oxfordshire; Innovation Audit and this Local ``championing T levels locally, so that Industrial Strategy to accommodate they map to the county’s technology fast-growing businesses. The county sectors and support local employers will also set out a distinctive global to deliver industry placements and brand to raise Oxfordshire, and the develop new apprenticeships; Oxford – Cambridge Arc’s, international profile for innovation and R&D to attract more investors and talent.

8 ``establishing an Oxfordshire Infrastructure Entrepreneurship Hub to support Oxfordshire has strong transport links students and young people across along the Bristol-Birmingham-London the county to develop business corridors and enjoys close proximity to propositions and develop connections Heathrow and Birmingham airports. The across the innovation ecosystem; county is committed to improving links ``working with the Careers and across the Oxford-Cambridge Arc with Enterprise Company, local colleges the development of the East-West Rail and Oxfordshire County Council, scheme. However, a growing economy to improve social mobility for and population is putting strain on rail and young people by ensuring they road infrastructure, as well as the energy will have greater access to career sector. Housing also faces rising demand pathways within Oxfordshire; and affordability pressures. In order for ``developing OxLife, a targeted Oxfordshire to deliver on the vision to be programme to reskill and upskill older a world-leading innovation ecosystem, it workers and armed forces personnel, must continue to work with government returning to the Oxfordshire workforce, to develop resilient infrastructure that so that they can actively engage can respond to future demands and in the new innovation economy; is sustainable for the environment. ``driving growth in apprenticeships Oxfordshire will do this by: and maximise local take up of the ``identifying opportunities to progress apprenticeship levy through working the ambitions in the Oxfordshire with local employers to maximise their Infrastructure Strategy, supporting usage of their levy allocation; and local plans to improve rail and roads ``working through the Oxfordshire across the area and make space for Growth Board to convene local leaders, sustainable, multi-modal transport; academic experts, businesses and ``working to realise the ambitions of the community organisations to form an Oxfordshire Energy Strategy using Inclusive Growth Commission. This will local funding streams, to harness the consider how Oxfordshire can ensure opportunities of clean growth and put that the benefits of a world leading in place a low carbon energy grid that innovation ecosystem can be equitably supports business growth and leads shared and reach all communities, to the development of pioneering learning from other global ecosystems. new models of energy management and the application of ground breaking battery technologies; and ``developing an ambitious Digital Investment Plan to provide world leading digital coverage.

9 Industrial Strategy Oxfordshire Local Industrial Strategy

Government is supporting these initiatives Government will support this by working through investment in East-West Rail closely with Oxfordshire to develop an and the Expressway and by offering Internationalisation Delivery Plan to policy support on the development of expand on the county’s global brand the Oxfordshire Digital Investment Plan. and attract trade and investment Business environment opportunities to support business growth. Oxfordshire is home to thousands of great Places businesses and is one of the strongest Oxfordshire has a wealth of assets engines for growth in the UK. With over in research, innovation, natural 31,000 VAT registered businesses across capital and cultural heritage. a broad range of sectors. Oxfordshire Towns and villages across the county are has a well-balanced, resilient economy vibrant and distinct, driving a strong and which has been instrumental to its growing tourism industry attracting over track record of continued growth. 30 million visitors a year to Oxfordshire. However, many firms continue to struggle The county is also an increasingly to grow to scale and do not translate attractive place to live and work, but this ideas into business growth as well as success, however, is putting strain on the some other competitor locations. county’s infrastructure – compounded This Local Industrial Strategy looks to by flooding and environmental issues address identified challenges (including that limit housing developments. access to premises and finance) to The vision set out in this Local Industrial ensure the region can maximise its Strategy, therefore, is designed to commercial and innovative potential. help the county retain its distinctive Oxfordshire will enhance its business character, while seizing the opportunities support offer through the Growth of the twenty-first century. It provides Hub to develop a world class ‘Scale Oxfordshire with the opportunity to Up’ programme that provides a single, innovate in place-making, building coordinated and collaborative service healthy and sustainable communities that delivers dedicated support for that are technology-enabled, improve high growth potential breakthrough quality of life, and utilise innovative businesses. Oxfordshire Local Enterprise solutions to the challenges of modern Partnership will establish an ‘Oxfordshire living and respond to the increasing Finance Hub’ as part of the Growth concerns around climate change. Hub, to help firms access finance, Oxfordshire’s communities themselves and will seek further opportunities to have the opportunity to become attract institutional investors such as exemplars of contemporary living Sovereign Wealth Funds into the area. - preparing for technological and environmental change, whilst retaining natural landscape and a high-quality living experience.

10 This will be based on developing new four Local Industrial Strategies technologies with private sector partners, maximises the economic potential coordinated by multidisciplinary teams of the wider Arc region. to respond to the Grand Challenges ``Harnessing the collective strength as set out in the Industrial Strategy. of the Arc’s research base – In addition, government will work in driving greater collaboration on partnership with Oxfordshire to support science and research; and growing the delivery of these new housing the role of the Arc as a global communities, not least through the research and innovation hub. Oxfordshire Housing and Growth Deal, ``Bringing employers and skills and through other initiatives such as providers together to understand the the Local Growth Fund and the Housing current and future skills needs, and Infrastructure Fund. Government planning provision to meet them. also recognises the importance of natural capital assets across the ``Maximising the economic benefits county, including its three Areas of of new transport, energy and digital Outstanding Natural Beauty and seven infrastructure within the Arc. Special Areas of Conservation. ``Developing an improved business Working across the Oxford- support and finance programme for Cambridge Arc high growth companies, a shared approach to commercial premises This strategy is one of a family of and an Internationalisation Delivery four linked strategies covering the Plan to encourage greater trade Oxford-Cambridge Arc (‘the Arc’), and inward investment in the Arc. with the other strategies covering, Buckinghamshire, Cambridgeshire ``Embodying Government’s 25 year and Peterborough and the South Environment Plan and contributing East Midlands. It therefore includes to the Clean Growth Grand Challenge a summary of the wider economic Mission to halve the energy use context and identifies those priorities of new buildings by 2030. within each Local Industrial Strategy Together, the strategies reflect the which can be developed at scale close collaboration and partnership across the Arc, complementing working between Local Enterprise the specific Oxfordshire strategic Partnerships (LEPs) across the region. objectives which sit at the heart of this strategy. This includes: ``Working together collaboratively across all of the foundations of productivity to ensure that the implementation of the

11 Industrial Strategy Oxfordshire Local Industrial Strategy Introduction

Oxfordshire is one of Britain’s success stories. It has one of the highest concentrations productivity outside the gates of science of innovation assets in the world with parks; and that this is delivered while universities and science, technology enhancing, rather than compromising, and business parks which are at cultural, social and environmental assets. the forefront of global innovation This Local Industrial Strategy recognises in transformative technologies and and responds to the challenges facing sectors such as fusion technology, Oxfordshire: its relative wealth and autonomous vehicles, quantum success disguises lower productivity computing, cryogenics, space, than elsewhere in the south east, due life sciences and digital health. to longer hours worked; a stagnating The economy is high-skilled, knowledge- or declining working age population; led and dynamic. The county is one of and housing affordability in the the most popular places in the country region which is among the worst in to live, visit, and pioneer new industries; the country, driving deprivation in the markets for these technologies some areas. The fact that housing are increasingly global and are set for affordability varies across the region rapid growth between now and 2040. suggests simply building more homes Oxfordshire has already created a won’t be enough: they need to be in number of high-tech companies that the right areas, and with advanced have been valued at over US$1bn, transport links to ensure residents which is testament to the ability of the can make the most of the economic innovation ecosystem to nurture and opportunities the region offers. spin out companies. This success is Potentially transformative change not limited to the City of Oxford: the is taking place in Oxfordshire. The region also has some of the highest Oxfordshire Housing and Growth levels of productivity for agriculture, Deal, agreed with government in 2017, and an increasingly mature network of committed up to £215m of national business hubs throughout the county. government investment into the county Oxfordshire can leverage these strengths for infrastructure and affordable homes to become one of the top three to assist in achieving the ambition of innovation ecosystems globally by 2040. planning and delivering up to 100,000 That means ensuring research strengths new homes in the county by 2031. are developed and deepened further; that they accelerate the translation into business innovation and rising

12 Alongside this a Joint Statutory Spatial ``Ideas: Establish a globally connected Plan, coordinating all local authorities and competitive innovation economy; to ensure a county-wide, integrated, ``People: Develop a more responsive sustainable planning framework to 2050 skills ecosystem creating is being prepared for submission in better opportunities for all; 2021. Taken together, this also offers the catalyst for significant transformation ``Infrastructure: Enable greater across the wider Oxford-Cambridge Arc. connectivity and accessibility especially across key growth locations; This Local Industrial Strategy is based on a partnership between representatives ``Business environment: Become of Oxfordshire’s businesses, universities, a powerhouse for commercialising education bodies, local authorities and transformative technologies; and the government. It presents a long- ``Places: Develop Oxfordshire as term framework against which private a living laboratory to help solve and public sector investment decisions the UK’s Grand Challenges. can be assessed, grouped around the five foundations of productivity:

13 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 1: Foundations of Productivity

14 Oxford-Cambridge Arc: economic context

Oxfordshire and the Introduction to the Arc Oxford-Cambridge Arc The Oxford-Cambridge Arc is a world This Local Industrial Strategy for leading economic area, underpinned by Oxfordshire articulates government and a high-quality environment, which has local partners’ shared ambitions for the the potential to deliver transformational area at a sub-regional level, outlining how growth that will create jobs and specific interventions in the local area boost local and regional economies will drive future growth in Oxfordshire for the benefit of existing and future and across the Arc more widely. communities. It currently has 3.7 million residents and over two million jobs, These local ambitions sit alongside a contributing £111bn GVA annually to the range of work which will be progressed UK economy1 and the transformative collectively at an Arc level. economic potential to contribute Each of the Local Industrial Strategies around £191.5bn by 2050. It is a highly across the Arc should be read as ‘local productive and prosperous region with chapters’ of the national Industrial global strengths in science, technology Strategy - outlining not only the and high-value manufacturing. ambitions for the local areas, but also The Arc covers the ceremonial counties how their strengths and assets will of Oxfordshire, Buckinghamshire, contribute to national objectives. Northamptonshire, Bedfordshire The economic opportunity presented and Cambridgeshire. The economic by the Arc is significant. But it will not landscape is covered by the happen by itself. It will take concerted and Oxfordshire, Buckinghamshire and coordinated work by both government South East Midlands Local Enterprise and the local areas to ensure that the Partnerships and the Cambridgeshire Arc remains an economic asset of and Peterborough Mayoral Combined international standing over the coming Authority’s Business Board. decades. This Local Industrial Strategy for Oxfordshire published alongside those for Buckinghamshire, Cambridgeshire and Peterborough and the South East Midlands, shows how this will be done.

15 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 2: Map of the Oxford-Cambridge Arc

The Arc as a whole is a strongly energy and transport systems, and knowledge-intensive economy. It developing world-leading strengths contains ten diverse universities2, in technologies that are shaping the including the Universities of Oxford and twenty-first century. But it has the Cambridge, two of the world’s greatest ambition and ability to go further. and most internationally recognisable Its continued success will be critical centres of learning, and a network of if the UK is to meet its target of cutting-edge science parks, research 2.4 per cent of GDP being spent on institutions, businesses and incubators. R&D by 2027 and its knowledge and The Arc is home to world-leading R&D innovation assets enable the area to and is already renowned as a place be world-leading in industries that of global firsts – pioneering cures for have rapidly growing global markets. disease, forging breakthroughs in engine technology, innovation in future

16 The Arc today: Key The Arc has significant strengths in the growth sectors space and satellite sector. The Harwell Science and Innovation Campus in Transformational growth of the Oxfordshire comprises over 90 space scale envisaged across the Arc organisations employing nearly 1,000 will need to build on the breadth people and is the largest space cluster of existing assets and strengths in Europe incorporating the European found across the local area. Space Agency, the Space Applications The Arc is home to two globally Catapult and the National Satellite renowned life sciences clusters in Testing Facility. This is complemented Oxford and Cambridge – the most by Westcott Venture Park in Aylesbury productive life sciences clusters Vale with a growing space cluster with in Europe, which already compete particular strengths in upstream space, internationally with the global and also home to the National UK leaders in San Francisco and Boston, Propulsion Test Facility. In aerospace, Massachusetts. These clusters feature Central Bedfordshire’s Cranfield prominently in the UK’s Life Science University, which is home to the Sector Deals, published in 2017 and Aerospace Integration Research Centre 2018. The Cambridge life sciences and the UK’s Aerospace Technology cluster alone is home to over 400 Institute, is building a Digital Aviation companies, with 15,500 employees and Research and Technology Centre contributing around £2.9bn annually that will spearhead the UK’s research to the UK economy3. Oxfordshire is into digital aviation technology. home to a world-leading bioscience The Arc is a world leader in advanced cluster, with an estimated 180 R&D manufacturing, with particular companies and over 150 companies in specialisms in high-performance associated industries. It has world-class technology and motorsport R&D facilities, with four new innovation engineering. Silverstone is home to 40 centres at the Oxford BioEscalator, the advanced manufacturing companies, Begbroke Accelerator, Harwell Science testing facilities for materials and and Innovation Campus and Culham vehicles and the iconic F1 Circuit. More Science Centre. Buckinghamshire widely, there are over 4,000 businesses is also home to a growing med-tech operating in ‘Motorsport Valley’4 , which sector and the county also houses extends from Northamptonshire into national facilities such as the spinal Oxfordshire and beyond – a £6bn global centre in Stoke Mandeville. cluster of automotive, motorsport and advanced manufacturing companies.

17 Industrial Strategy Oxfordshire Local Industrial Strategy

The Future of Mobility features heavily Policy Context across the Arc as a whole, specifically Recognising the importance of the area in the research, development and and the opportunity it provides for the commercialisation of Connected and UK, the government has already made Autonomous vehicles (CAV). Key assets significant investment to support local include the RACE Centre at Culham growth and productivity in the Arc Science Centre, which is a UK centre of over recent years. This has included: excellence in robotics and autonomous systems, Millbrook Proving Ground in ``committing over £400m of Local Central Bedfordshire and, at Milton Growth Funding to the LEPs in the Keynes, a hub of the Connected Places Arc from 2015/16 to 2020/21, to Catapult and the UK Autodrive project. fund growth enabling projects; There are several leading creative ``agreeing over £800m of funding and digital clusters within the Arc. In for economic growth, transport and Buckinghamshire, Pinewood Studios skills through the Cambridgeshire and the National Film and Television and Peterborough Devolution Deal; School comprise two globally renowned ``continuing to invest in the four state-of-the-art facilities. Milton Keynes, LEPs’ Growth Hubs to provide Peterborough, Cambridge, Luton, business support across the Arc Northampton, Oxford, High Wycombe, and investment in the Greater South Bucks and Aylesbury all have South East Energy Hub; highly concentrated creative and digital clusters with diverse specialisations. ``supporting the accelerated Oxfordshire is home to a range of development of key sites through strengths including computer games, our Enterprise Zone programme, software development, cybersecurity, including in Science Vale, high performance computing as Northampton Waterside, Aylesbury well as film and TV including the Vale and Alconbury Weald; and new £78m studio facilities at Didcot ``investing, through Innovate UK, opened by Rebellion. In Cambridge, the £670m in 1000 businesses in the Arc information and digital technologies since 2010 to help them develop and cluster is highly concentrated, with a innovate new products and services. strong track record of establishing and It was part of recognising the national growing globally significant companies. importance of the Arc that, in 2016, the This high concentration of modern, government commissioned the National creative, industries, have led to Arc Infrastructure Commission (NIC) to businesses featuring heavily in the undertake a study to strengthen our UK’s Creative Industries Sector Deal. collective understanding of the area’s economic growth potential. The NIC published its report5 – Partnering for Prosperity: A new deal for the

18 Cambridge–Milton Keynes– Oxford Arc Since then, the government and – in 2017, concluding that, with the right local leaders have been working in interventions, the Arc could harbour partnership across the Arc to match transformational growth, even against the level of ambition for the area. This its existing levels of output. It explained includes working collaboratively to that meeting this long-term potential realise the area’s potential through would require both significantly more four inter-related policy pillars: homes to be built and improvements ``Productivity – ensuring businesses in east-west transport connectivity. are supported to maximise the Arc’s In its response to the NIC report6, economic prosperity, including the published in 2018, the government skills needed to enable communities designated the Arc as a key economic to benefit from the jobs created; priority, outlining a breadth of actions ``Place-making – creating places valued to seize the opportunity for growth by local communities, through the identified in the NIC’s report. The delivery of sufficient, affordable government also affirmed its ambition and high-quality homes, to increase to deliver more homes in the Arc, affordability and support growth in supported by measures such as the the Arc, as well as wider services £215m Oxfordshire Housing and Growth including health and education; Deal and the recent confirmation of £445m Housing Infrastructure Funding ``Connectivity – delivering the for the Arc. The government has infrastructure communities need, committed to deliver transformational including transport and digital infrastructure projects to improve east- connectivity, as well as utilities; and west connectivity across the Arc, most ``Environment – investing in notably by completing the £1bn East environmental infrastructure West Rail scheme and the Expressway. and ensuring growth leaves Government is also working with the environment in a better partners to identify what utilities, digital state for future generations. and environmental infrastructure, planning and investment is required. Importantly, the government’s response to the NIC recognised that delivering ambitious growth on this scale had to go hand in hand with environmental enhancement to maximise the benefits to local people, leaving the environment in a better state for future generations.

19 Industrial Strategy Oxfordshire Local Industrial Strategy Oxfordshire in 2019

Oxfordshire is a unique economy in its ``The Future State Assessment which own right and a core part of the Oxford- sets out what Oxfordshire has Cambridge Arc. This chapter sets out the potential to achieve and what further context on the opportunities being a ‘top three global innovation and challenges facing the county’s ecosystem’ could mean for the economy, and the policy framework County, as well as detail on the key under which they are being addressed. industries in which Oxfordshire can Oxfordshire Local Enterprise be globally competitive. It details an Partnership (OxLEP) has produced ambitious economic growth agenda two detailed reports setting out the for Oxfordshire, along with a spatial current state of the Oxfordshire vision to ensure that growth in the economy and future growth potential. County is achievable and sustainable. These reports sit alongside and An Investment Prospectus to inform the approach outlined in this underpin the Oxfordshire Local Local Industrial Strategy. They are: Industrial Strategy, allowing both ``The Baseline Economic Review, public and private investors to exploring how Oxfordshire has understand how they can invest in performed relative to the UK as Oxfordshire to enable the region a whole, as well as the relative to achieve its growth potential, will performance of each district authority be developed during 2019/20. and different types of businesses7 and sectors within the county; and

Oxfordshire’s economic strength

Oxfordshire has one of the strongest high concentration of technology-based economies in the UK. It is a net businesses that are at the forefront contributor to the UK exchequer, of global innovation. The region is contributing £23bn GVA in real terms home to the University of Oxford, in 2017. It is also rapidly growing, with the top performing university in the an average growth of 3.9 per cent world, as well as Oxford Brookes, one growth year-on-year in nominal terms of the leading young universities in since 2006. Oxfordshire is home to the UK for teaching and research. around 678,000 people and 31,000 VAT registered businesses, including a

20 Oxfordshire has the highest intensity This impressive track record of of university spin out companies growth has been delivered through in the country. The University of close partnership working between Oxford continues to generate more government, local authorities, business spin-outs than any other university leaders and universities. Over £600m nationally. Between 2014 and 2015, worth of government and European a total of 136 spin-out companies funds have been secured through generated approximately £147m of Growth Deals, a City Deal, European GVA, supporting 2,421 jobs in the Structural Investment Funds and Oxfordshire economy. On a per-head Infrastructure Funds – all part of basis, the output of local workers is in an overall investment programme the top 20 per cent of English regions, in Oxfordshire worth £2.2bn. and Oxfordshire is leading the way in the UK for ‘good growth’ – Oxford is the highest ranking city in the UK in PwC’s 2018 Good Growth for Cities report, which measures the performance of cities against key economic and wellbeing indicators, such as employment, health, income and skills.

21 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 3: Overview of the Oxfordshire Economy

Economy

GVA generated in real terms £23bn each year

GVA growth in nominal term 3.9% year-on-year since 2006

County areas which are net 1 of 3 contributors to the UK exchequer Poupulation

of working age unemployment population educated to rate in the working 51% degree level or above 1.3% age population

The Baseline Economic Review

The Baseline Economic Review sets out the macro-economy of Oxfordshire: ``The Oxfordshire economy ``Output growth has continued to be supports 417,000 jobs and 31,000 strong since the financial crisis (3.9 VAT registered businesses. per cent per annum since 2007), ``160,000 people live in Oxford. well above national averages. Even during the last recession ``Employment is very high across Oxfordshire continued to grow. Oxfordshire with the participation Total output per worker is 20 per rate being is 82 per cent, cent above the UK average. compared to 75 per cent for UK and 79 per cent for south east.

22 Strengths

1st £600m $1bn Oxford University rank in largest fund for university track record of growing Times Higher Education spin outs in Europe: Oxford businesses with market global rankings 2018 Sciences Innovation values of over US$1bn

30m 50,000 visitors to Oxfordshire new jobs created each year, many of since 2011/12 them international

Challenges 50% 7% higher median house prices full fibre rollout, well behind many than the English average international competitors 3% 55% annual growth in apprenticeships, well increase in population below the UK average of 12.5 per cent aged over 85 by 2031

``Wage growth tracked UK and South 47th and 48th of 379 local authorities). East averages from 2007, but has Oxfordshire’s high incomes therefore accelerated above the national imply that its residents are working averages since 2014, rising at twice longer hours than others elsewhere. the rate of the UK. This is true ``With the exception of the Vale of even adjusting for house prices. White Horse, Oxfordshire’s population ``Despite this, productivity in Oxfordshire has been roughly stable or in decline is slightly below the south east average. since 2014 – the Vale of White Oxford itself has the lowest productivity Horse has seen substantial growth. rate (measured as value add per hour Oxfordshire is already ‘older’ than worked) of the five authorities. South the UK average and will continue and West Oxfordshire perform well (at to age at comparable rates.

23 Industrial Strategy Oxfordshire Local Industrial Strategy

Oxfordshire is rightly ambitious to To maximise the potential of the region, be a leading economic region not investors need to be encouraged to just in the UK, but globally. However, look beyond the university system future growth is being put at risk by to the breadth of world-class assets a number of critical challenges that and knowledge-based strengths that need to be addressed. Physical and Oxfordshire is home to - for example, digital connectivity lags behind global Culham Science Centre, Harwell competitors, and housing affordability Campus and other world-leading and the rising cost of living is detracting assets and locations in the region. from Oxfordshire’s quality of life. The Finally, despite its many strengths, economy is dependent on a highly Oxfordshire has its own ‘productivity skilled workforce that is at risk as puzzle’, underperforming relative the population changes – requiring to many peer regions. The ultimate more action to nurture, attract and objective of this Local Industrial retain talent aligned to business Strategy is to raise productivity, needs. Oxfordshire has pockets of and the five chapters dedicated both urban and rural deprivation, and to the foundations of productivity inequality. This Local Industrial Strategy below set out further analysis and aims to respond to this challenge opportunities to solve that puzzle. and to address inclusive growth opportunities for all of our residents and businesses across the county.

24 Figure 4: Oxfordshire’s Local Industrial Strategy

UK Industrial Strategy Oxfordshire Housing The UK Industrial Strategy is a and Growth Deal region-led approach to growth. It The recent Housing and Growth Deal has seeks to boost Britain’s productivity secured an initial £215m of investment and raise living standards by: over the next five years to build the ``Strengthening the foundations infrastructure and homes we need to thrive. of productivity As part of the deal we have committed to: ``Building long term strategic ``plan for and support the delivery partnerships between industry and of 100,000 homes by 2031 government through sector deals ``develop a Joint Statutory Spatial Plan ``Inviting business, academia and civil ``unlock enabling infrastructure society to tackle the Grand Challenges, to ensure the UK takes advantage of ``produce the Oxfordshire Local Industrial global trends and industries of the future Strategy as a headline commitment under the productivity strand of the Deal.

Oxfordshire Local Industrial Strategy

This Oxfordshire Industrial Strategy is Existing and emerging strategies one of the first Local Industrial Strategies The Oxfordshire Local Industrial Strategy will to be developed and sets out how we align to and build on a number of existing can take forward these ambitions. and emerging strategies. These include: Foundations of productivity: ``2016 Strategic Economic Plan and sister Ideas: to be the world’s most strategies e.g. Skills, Innovation and innovative economy Creative, Culture, Heritage and Tourism. People: to promote a diverse and ``Oxfordshire Plan 2050 (Joint inclusive economy with good jobs Statutory Spatial Plan) and greater earning power for all ``Oxfordshire Infrastructure Strategy (and Infrastructure: a major upgrade NIC First Mile/Last Mile 2050 plan) to the UK’s infrastructure ``2017 Science and Innovation Audit Business environment: to be the best ``Oxfordshire’s Local Transport Plan 5 place to start and grow a business ``Oxfordshire Rail Connectivity Study Places: to have prosperous ``The Local Plans for housing and communities across the UK development for each District Grand Challenges: ``Oxfordshire Energy Strategy ``Growing the artificial intelligence ``Oxford – Cambridge Arc Economic Vision and data driven economy ``Oxfordshire Joint Health & ``Shifting towards clean growth Wellbeing Strategy ``Shaping the future of mobility ``Meeting the needs of an ageing society

25 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 5: Oxfordshire’s critical economic sectors, assets and growth opportunities within the innovation ecosystem

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26 Upper Heyford Creative ``Centre for Fusion Energy 1 City key sectors: creative and Supply Chain Cluster industries inc proposed ``Remote Applications in 130 acres international film Challenging Environment & tv studio complex Centre (RACE) ``3500 homes proposed at Motorsport Valley key sectors: adjacent Culham Smart Village advanced engineering, battery providing testbed for new 2 technology, high performance mobility solutions (linking with motorsport technologies Harwell and Culham), digital health and smart technologies to deliver improved public service outcomes Oxford City Science Area key sectors: Life Sciences, AI 3 Technologies, Digital Health, Quantum Computing, Global CBD Milton Park / Didcot Garden Town key sectors: Life ``Oxford BioEscalator 5 Sciences, Creative Industries ``Old Road Campus Medical ``250+ high technology Research Centre companies employing 9000+ ``John Radcliffe, Nuffield & people, encompassing Churchill Hospitals Quarter leading life sciences cluster ``Centre for Applied ``EZ1 package of 9 Semi-Conductivity separate development ``Oxford Science Park sites totalling 21ha ``Osney Innovation District ``Adjacent to EZ2 Didcot Growth Accelerator offering grow on ``Oxford Northern Gateway space across 102ha of land ``Oxford Station Quarter and ``Testing of new forms of Global Central Business District mobility via Autonomous Vehicles pilot linked to Didcot Garden Town

Culham Science Park key ``International Film & TV sectors: Fusion Energy, Robotics Studios Hub anchored around 4 & Autonomous Systems Rebellion Studios development ``Over 2000+world leading scientists on site working with UK strategic assets

27 Industrial Strategy Oxfordshire Local Industrial Strategy

Williams Innovation & Living Labs Testbed Technology Campus key Undertake smart living pilots 6 sectors: advanced engineering 8 at scale using emerging inc new high-performance technologies integrated into technology campus cluster major housing development to tackle Grand Challenges: ``Bicester Garden Town Harwell Campus key sectors: 13000 homes(inc healthy Health Sciences (med tech, town and EcoTown) 7 life sciences, digital health), ``Didcot Garden Town Space Applications, Energy 15000 homes ``200+ world leading research ``Oxfordshire Cotswolds and technology companies on Garden Village 2200 homes site employing c6000 people ``designated UK Space Agency gateway with Europe’s largest Begbroke Science Park space cluster of 90 companies key sectors: advanced ``location of critical UK strategic 9 engineering, medical tech assets including Diamond Light ``60+ world leading research Synchrotron, Medical Research and technology companies Council, Public Health England employing 900+ staff ``EZ1 development site of 93ha ``Begbroke Innovation ``proposed 1000 new homes Escalator spin out hub as part of Harwell Innovation ``Proposed 4000 homes as Village to pioneer solutions part of wider A44 corridor for grand challenges focused vision to double capacity on clean growth and mobility at Begbroke including new station and linking to Oxford Airport and Oxford Parkway

28 Building a global innovation ecosystem: Oxfordshire in 2040

This provides a ready stream of Oxfordshire’s Vision globally-competitive graduates, Statement post-graduates and researchers in To position Oxfordshire as one of world-leading science, technology the top three global innovation and humanities. The region is ecosystems by 2040, building internationally connected through on the region’s world leading swift rail links to international airports. science and technology clusters Quality of life is already very high. to be a pioneer for the UK The Future State Assessment compares in emerging transformative Oxfordshire to similar areas in other technologies and sectors countries – from Silicon Valley in the USA, Helsinki in Finland and Tel Aviv in Israel to Pangyo Techno Valley in An ‘innovation ecosystem’ describes South Korea and the Zhongguancun the large and diverse nature of Science Park in Beijing, China. participants and resources that are necessary for innovation. Typically, Innovation ecosystems have different innovation ecosystems comprise trajectories of growth and have a flourishing environment for succeeded with different combinations innovation and business creation; of qualities and strengths, but world-leading experts in knowledge they share a number of common and technology development; and a characteristics (see figure 6). dynamic, agile and skilled workforce. Innovation ecosystems also rely on a distinction between ‘Cornerstones Oxfordshire already has many of Businesses’ – forming the backbone the ingredients for success. The of the ecosystem, providing jobs and University of Oxford is considered the critical services to high-technology best in the world, topping the Times’ businesses – and ‘Breakthrough Global University Rankings since Businesses’. The following chapters 2016. Oxford Brookes University is a set out how Oxfordshire will develop top performing young university in these characteristics in the county. the UK for teaching and research.

29 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 6: Building a world-leading innovation ecosystem

Iconic Brand Liveable Place Strong Financing It is essential for a globally- To attract people, business Availability of finance is leading innovation ecosystem and investment, an innovation essential to creating and to have a distinctive ecosystem needs to have commercialising innovation, proposition and a strong thriving communities. These scaling spin-outs and vision that differentiates must be healthy, sustainable, investing in the talent and itself from other ecosystems, provide a high quality of life, infrastructure necessary around which citizens, and support both urban and for innovation to flourish. businesses, leaders and rural living. They must be Investment can come from investors can unite. affordable, well connected, a number of sources. and have a vibrant community and cultural offer.

Commercial Culture Keystone Assets Talent Proposition A strong commercial An innovation ecosystem Talent is integral to the culture is an environment must be anchored by innovation ecosystem. in which entrepreneurship, national or international A strong innovation investment and innovation keystone assets – these ecosystem must have the thrives. It covers broad can range from education ability to attract and retain factors such as regulation institutes, national research world-class talent, as well and competition, as well as facilities, world-class as nurture the talent and cultures of collaboration industry clusters and skills of its own citizens, and knowledge exchange knowledge-intensive assets. developing skills aligned to that encourage innovation business need and across a and commercialisation. number of sectors.

30 Oxfordshire’s breakthrough sectors

Oxfordshire thinks globally. This level These emerging industries will of ambition stems from national provide jobs for generations, and international leadership in providing a sustainable economic transformative industries. These base for Oxfordshire and the country industries are shaping the twenty through the twenty first century. first century and expect rapid In addition – as set out in the business growth in the coming decades. As environment chapter below – well as providing a home for these Oxfordshire is already demonstrating industries, Oxfordshire’s research increasing success in turning ideas strengths give it global leadership on into businesses, helping them grow many underpinning technologies – quickly, and retaining their talent ensuring the county is well-placed to locally rather than losing them capitalise on future industries too. to international competitors. The 2017 Oxfordshire Science and Innovation Audit and the Future State Assessment sets out eight emerging sectors where Oxfordshire has particular research and industrial strengths.

31 Industrial Strategy Oxfordshire Local Industrial Strategy

Case Study: Oxford Nanopore

Oxford Nanopore Technologies was Factors in the ecosystem that originally spun out of the University have enabled growth: of Oxford Chemistry department as ``Proximity to world leading Oxford Nanolabs, in 2005 and since assets: Oxford Nanopore has its foundation it has established IP grown to more than 450 employees collaborations with twenty institutions worldwide, with its HQ at Oxford including Harvard, Boston and the Science Park. The company has University of California. The company taken advantage of cutting-edge has developed and commercialises facilities available on Begbroke and novel and highly disruptive DNA the Oxford Science Park, as well / RNA sequencing technology. as world class facilities suitable Unique in this rapidly-growing market, for manufacturing at Rutherford only Oxford Nanopore provides devices Appleton at Harwell Campus. that are scalable from pocket size, to ``Access to Talent: Oxford is an providing population-scale sequencing, attractive location for the most providing ‘long reads’ (conferring senior employees to the newest wave substantial biological benefits), of talent who may be considering real-time data streaming (for rapid, their first role or a transition from dynamic workflows), and interrogate academia. The reputation as an the DNA or RNA molecules directly intellectual centre of excellence, using electronics rather than light. along with entertainment, schooling, The current and potential applications culture and leisure facilities, of this technology are broad and supports the recruitment and potentially transformative. Following retention of the best employees. the launch of the MinION sequencer, Factors in the ecosystem that nanopore sequencing is now being are constraining growth: used for rapid cancer characterization, ``Cost of living:. With property and infectious disease diagnostics, food other expenses rising inexorably, safety testing, population-scale Oxfordshire has an increasing genomics and myriad other uses. affordability challenge which can To date, Oxford Nanopore has raised make it more difficult to recruit, £451m in funding from international especially more junior staff. investors and selling its technology ``Infrastructure: The A34 and into more than 80 countries. It is other key routes are severely opening a new high-tech manufacturing congested making access to key facility at Harwell in 2019. science parks and hubs increasingly challenging across Oxfordshire.

32 Success in Oxfordshire will help the UK, World leading businesses are supported as a whole, meet Industrial Strategy by strong academic leadership and ambitions: leading on emerging connections across the UK from technologies, raising the share of output Birmingham and Cambridge to Dundee that goes into R&D, and helping us all as well as the Medicines Discovery to respond to the Grand Challenges: an Catapult in Alderly Park. Oxfordshire Ageing Society; Clean Growth; the Future can help the UK compete with areas of Mobility; and Artificial Intelligence such as the Boston Metropolitan (AI) and Data. The close links between Area and the Research Triangle in Oxfordshire and other regions – the North Carolina that uses its research Arc, London, the West Midlands, West capabilities to power biological and of England, and the M4 Corridor – will digital health breakthroughs. generate spill-over effects and supply chain opportunities across the UK. Quantum computing Oxfordshire is leading the way for the Life sciences world in quantum readiness. Oxford Oxfordshire has one of the strongest University is leading a consortium of nine life sciences clusters in Europe UK universities to build the first Q20:20 and is a global hub for life sciences Quantum Computer Demonstrator by entrepreneurship and business. 2020, gaining significant international The region hosts a broad range of advantages. Quantum businesses are strengths including med-tech, pharma, being created locally, underpinned by diagnostics, digital health and biomedical technologies such as cryogenics and engineering, and is shaping the future artificial intelligence that are in turn of the industry using technologies attracting top talent from across the such as artificial intelligence and world to Oxfordshire. Research will machine learning. Oxfordshire is provide an opportunity for rapidly home to numerous national assets increasing links with the Birmingham- including the Rosalind Franklin based Quantum Hub in Sensors and Institute, the Big Data Institute and the Metrology and Quantum Enhanced Structural Genomics Consortium. Imaging (QuantIC) Hub at Glasgow. There are also clear strengths in The UK has a strong global position commercialising life sciences innovation, in the race to develop quantum with three companies that have technologies, competing with the likes previously been valued at over $1bn: of Quantum Valley in Canada, Hefei in Oxford Nanopore; Immunocore; and China, key tech firms, such as Google Adaptimmune, and manufacturing and IBM and start-ups such as Rigetti. opportunities demonstrated by the new Vaccines Manufacturing Innovation Centre announced in the UK Life Sciences Sector Deal.

33 Industrial Strategy Oxfordshire Local Industrial Strategy

Oxfordshire needs to continue to These assets are essential if the UK innovate in quantum technologies is to remain at the forefront of global in partnership with other areas in competition and compete with the the UK, if the country is to continue likes of Silicon Valley, which is home to to compete internationally and the NASA-Ames Research Centre, and attract global investment in these clusters in France, Germany and Beijing. technologies and linked industries. Development of Oxfordshire’s space Space-led Data Applications sector is critical if the UK is to achieve Harwell Campus is the heart of the its target market share of 10 per cent UK’s space industry and the largest of the global space market by 2030. space cluster in Europe. It hosts Robotics and Autonomous over 90 organisations including the Systems (RAS) European Space Agency (ESA) Centre for Satellite Applications and Telecoms; Oxfordshire is at the heart of RAS the ESA Business Incubation Centre; activity in the UK, with RACE at the Science and Technology Facilities Culham Science Centre a key UK Council’s RAL Space Centre; and the centre of excellence. Connected and Satellite Applications Catapult. The Autonomous Vehicles (CAV) are a sector currently employs around a vanguard application of RAS and will thousand people, primarily in high- show us how robots can move people value, knowledge-intensive roles. and goods more efficiently with far- reaching implications across industries. By 2021 Oxfordshire will also be home to the UK National Satellite Test Facility. Oxfordshire is at the forefront of CAV Oxfordshire organisations are involved development: the Oxford Robotics in a wide range of space activities, from Institute kick-started the UK’s CAV designing and building components and programme in 2010; their spin-out satellites to go into space, to developing Oxbotica is leading a UK consortium end-user applications that utilise space to launch a fleet of driverless vehicles data for a wide variety of sectors. to drive from Oxford to London; and RACE is one of the four national CAV Space organisations in Oxfordshire testbeds. Other companies in the are working closely with new space CAV ecosystem include Zeta, Amev, opportunities across Cornwall, Glasgow Nominet, Latent Logic, Williams, Arrival, and the East Midlands and is integral StreetDrone and FiveAI. Public sector to upstream satellite innovation from innovation in CAV has been mirrored Airbus, Surrey Satellite Technologies with Oxfordshire County Council being Ltd, the National Physical Laboratory the first UK local authority to include and the Universities of Surrey and CAVs in the local transport strategy Southampton, with complementary and to have a dedicated CAV team, satellite data analytical capability currently the largest in the UK. from the University of Portsmouth.

34 Oxfordshire is at the centre of the superconducting cable known as the @UK CAV testing area, with London and ‘Rutherford Cable’; companies such Birmingham at each end. The area includes as Innovative Cryogenic Engineering public testing environments including the in Witney and Thames Cryogenics 5G innovation centre, and autonomous in Didcot, a world-leader in the vehicles trials of Nissan (Cranfield), manufacture and supply of cryogenic Oxbotica (Culham), Jaguar Land Rover piping; and the University Technical (Coventry) and Volvo (Drive Me London). College in Didcot, the first school RAS is predicted to impact 15 per globally to install a cryogenics lab. cent of UK GVA worth £266bn Cryogenic technologies developed in to the UK economy by 2035. Oxfordshire are manufactured across Developing Oxfordshire’s RAS industry the UK in areas such as the north east is essential to growth and to remaining of England, creating high value jobs. globally significant, competing with Oxfordshire is world-leading in the areas such as Silicon Valley, where Uber, sector but faces competition from a Google and Tesla are developing CAVs. number of markets including the USA, Japan and France where governments Cryogenics are investing heavily in cryogenic Oxfordshire is the global leader in sub-sectors, recognising the strategic cryogenics – the production and importance of this technology. behaviour of materials at very low temperatures. The blend of academic, Energy research and industrial expertise makes Oxfordshire is at the forefront of Oxfordshire home to the most powerful innovation in energy technologies concentration of cryogenic expertise and systems of the future. The region in the world. Cryogenics is a critical has strengths in areas such as novel enabling technology with sub-sectors batteries; battery management such as cryocoolers, instrumentation systems; and data analytics through its and superconducting magnets. wealth of energy businesses pioneering Cryogenic technologies underpins clean growth, including the Culham around 17 per cent of the UK economy, Centre for Fusion Energy (CCFE) and including many of our high-growth the Faraday Institution at Harwell sectors, particularly space, life sciences, Campus, which is home to 30 industry, energy and quantum computing. academic and public organisations. Oxfordshire is responsible for the majority of the UK cryogenic sector which includes: the world-leading Rutherford Appleton Laboratory at Harwell Campus, which pioneered the development of a multifilament

35 Industrial Strategy Oxfordshire Local Industrial Strategy

This is complemented by leading Digital and creative innovation in local grid systems in Over 3,000 digital and creative the county through Project LEO and businesses are based in Oxfordshire the Energy SuperHub which are generating £1.4bn to the UK economy delivering pioneering smart energy each year. Oxfordshire has strengths management solutions, battery in a range of digital technologies, storage technologies and new low such as cyber security and data carbon ground source heating to analytics – these transferable strengths residential and commercial properties. enable the County to be world- The UK Atomic Energy Authority leading across other industries from (UKAEA) is a lead participant in the space to bio-tech and quantum. co-ordinated EU fusion programme Creative strengths range from managed by EUROfusion and operates animation and digital gaming to the largest fusion device in the world, digital publishing and media. This JET. By hosting JET, UKAEA has has produced a number of spin-outs, developed globally unique fusion notably Natural Motion which was capability, which is creating high value recently acquired for US$500m, jobs and exports across the country. and Rebellion which has recently For example, the robotics capability at announced a £78m new film complex Culham has enabled major contracts in Didcot creating 500 new jobs. worth more than £200m to be won Oxfordshire collaborates within the UK around the UK in the last few years, across the Golden Triangle and with other including supporting hundreds of areas such as Bristol where there are jobs in the north west and north strong creative and digital entrepreneurial east. Oxfordshire is also home to communities. Oxford Innovation has Tokamak Energy and First Light recently opened an innovation centre in Fusion, two of the leading fusion West Belfast, Innovation Factory, to boost start-up companies in the world. start-up development in the region. Despite increasing competition from The UK has a number of global Japan and Canada, Oxfordshire’s competitors in this sector, particularly unique assets and strengths have in the USA where tech and social the capability to push the UK to media giants have disrupted the the forefront of innovation. sector, as Alibaba has done in China. Helsinki is another key competitor, with strengths in digital and gaming, along with a strong start-up culture.

36 Motorsport Oxfordshire is a critical part of the strengths, including in advanced UK’s iconic ‘Motorsport Valley’, a £6bn engines and battery technology, where automotive global cluster of high- companies like Williams and Prodrive performance technology, motorsport have been driving Oxfordshire to and advanced engineering companies. the forefront of global competition Oxfordshire is home to a number for over a decade. Williams is also of world-renowned motorsport responsible for the IP and research names including Williams F1 in and development for HyperBat Joint Grove, Renault Sport F1 in Chipping Venture battery manufacturing Norton and Prodrive and Haas in which is based in Coventry, showing Banbury, as well as global supply how our energy cluster generates chain companies such as SS Tube additional growth across the UK. Technology and Lentus, and the iconic Oxfordshire competes and collaborates BMW MINI manufacturing plant. globally in this industry, as an integral Oxford’s universities are also world- part of the UK’s dynamic motorsport leading centres for education in cluster. There are over 4,000 motorsport engineering, with Oxford businesses operating in ‘Motorsport Brookes providing race engineers Valley’, which extends from Oxfordshire for all the major Formula 1 teams. and into Northamptonshire and beyond. Oxfordshire has a number of research

37 Industrial Strategy Oxfordshire Local Industrial Strategy Ideas

Oxfordshire is a global centre of research and innovation. The region brings together the dense networks of excellent research, knowledge-intensive businesses and skilled workers that are essential to a successful innovation ecosystem. The Oxfordshire Local Industrial Summary of ‘Ideas’ Strategy affirms the area’s ambition to strengths and challenges work with government as a pioneering ``Oxfordshire has long been a world- contributor to the Industrial Strategy’s leading centre for research and target for national R&D spending to innovation across a wide range reach 2.4 per cent of GDP by 2027 of technologies and sectors. and 3 per cent in the longer term. ``It contains the University of Oxford, This chapter sets out Oxfordshire’s ranked number one in Europe for approach to driving up R&D and both research and commercialisation, innovation across the region significant national government and beyond. It prioritises: investments (more £2bn in ``supporting universities, local internationally leading scientific authorities, investors and facilities and assets) especially at developers to deliver world-class Harwell and Culham, leading industry science and innovation hubs clusters in life sciences, scientific throughout the county, to deepen instrumentation and motorsport, collaboration and accelerate the and the largest investment fund commercialisation of new ideas. for university spin-outs globally. This will complement the wider ``Oxfordshire local authorities Oxford-Cambridge Arc economy. collaborate closely with universities ``Driving local R&D investment and and local business to use local growth in the area’s breakthrough innovation to improve public sectors and technologies. service delivery. This provides a base for integrated approaches to ``Internationalising Oxfordshire, address the Grand Challenges. connecting the region’s innovation to world-wide opportunities and ``Many of the science and business parks ecosystems and broadening the are at capacity and lack sufficient established ‘brand’ of Oxford. commercial and innovation space. Innovative industries and businesses are world-leading but face significant competition from established global hubs and other challenger regions.

38 ``Oxfordshire’s brand currently The region has a world leading centres on the university system research base. This includes two and needs to be expanded to renowned universities – the University encompass the entirety and of Oxford and Oxford Brookes – and breadth of opportunities across the high levels of R&D undertaken by the whole innovation ecosystem. private sector. Ongoing investment ``One of the top two barriers from UK Research and Innovation to growth for businesses in (UKRI) continues to support the area’s Oxfordshire is access to markets strengths. Oxfordshire’s business R&D and customers internationally. spending is high, at £1600 per capita (compared to £360 in London). This is World-leading assets the seventh highest rate of 42 upper- Oxfordshire combines the ingredients tier authorities. Recent research by the of a successful innovation ecosystem Enterprise Research Centre has also in a single place – exemplified by the put Oxfordshire as having the highest breakthrough sectors and technologies percentage of firms undertaking R&D set out in the ‘Building an Innovation activity of any local economic area. Ecosystem’ chapter, above.

39 Industrial Strategy Oxfordshire Local Industrial Strategy

The diversity of Oxfordshire’s business Government has also recognised base, coupled with its ability to generate the strategic importance of world- ‘unicorn’ firms (businesses achieving class assets within Oxfordshire, market valuation of US$1billion) at a having invested in key sectors to rapid rate suggests this investment drive the UK’s leadership in new by the private sector in R&D is broad and emerging technologies through based, rather than depending on a the national Industrial Strategy: small number of major firms, which ``£100m for the Rosalind Franklin predominates in other regions. research institute at Harwell This is underpinned by excellent R&D Campus to improve health through and innovation infrastructure where physical science innovation; Oxfordshire is home to a number of ``£65m for the Faraday Institution world-leading science, innovation, at Harwell Campus, charged with technology and business parks that tackling the global energy and form a hive of knowledge intensive battery storage challenge; economic activity and anchor the area’s strengths in breakthrough ``£99m for a National Satellite sectors. These include Begbroke Testing Facility at RAL Space Science Park in Cherwell, Milton Park, at Harwell Campus; Oxford Science Park, and national labs ``£86m for a National Fusion in Culham Science Centre in South Technology Platform at Culham Oxfordshire, the Harwell Campus in Vale Science Centre; and of the White Horse and the University Science Area in Oxford City. Public and ``£68.3m for the Satellite Applications private investment into Oxfordshire in Catapult at Harwell Campus. recent years is bolstering innovation Finally, Oxfordshire combines this capability. The City Deal Programme research strength with the highest and Local Growth Fund resulted in intensity of university spin-out four new innovation centres: the companies in the country. The BioEscalator at the Old Road Campus University of Oxford continues to in Oxford, the Begbroke Accelerator, generate more spin-outs than any the Remote Applications in Challenging other University in the country. There Environments (RACE) Centre at Culham are currently 149 active start-ups Science Centre and the Innovation and spin-outs from the University, Centre at Harwell Campus. Each of with local ambition to accelerate which are now at capacity, underlining this in coming years. Between 2014 the huge demand for innovation space and 2015, a total of 136 spin-out across the ecosystem. Oxfordshire companies generated approximately has also received investment into two £147m of GVA, supporting 2,421 Enterprise Zones, which sit across jobs in the Oxfordshire economy. Milton Park, Didcot and Harwell.

40 The county also has capacity to Scotland and are playing crucial grow businesses to values of over roles in delivering new opportunities US$1bn, such as Oxford Nanopore. It around spaceport and in-orbit launch has significant research strengths to services which will revolutionise support future spin-outs, as set out in satellite technologies. The success the breakthrough sectors section above. of Oxfordshire is key to attracting These strengths do not just benefit international talent and investment the immediate county. Oxfordshire’s to the UK, as well as achieving the innovation ecosystem is a national Industrial Strategy’s aim for the UK to asset that drives growth across the UK. be the world’s most innovative economy Ideas that are born here do not stay and driving up R&D investment. in the county, and the collaborations Whilst these strengths provide a between universities and businesses in powerful engine to drive UK growth, Oxfordshire with those in other regions Oxfordshire is aiming to compete are key to building innovation excellence with its global peers. To play its full across the country. For example, R&D role as a global innovation hub and to and innovation activity developed by help meet the UK’s 2.4 per cent R&D the Space Cluster at Harwell is central target, Oxfordshire must continue to to the development of manufacturing be at the forefront for commercialising and supply chain opportunities in the ideas that it generates. the South West, East Midlands and

41 Industrial Strategy Oxfordshire Local Industrial Strategy

Case Study: Evox Therapeutics

Evox Therapeutics is a privately rapidly grow, attract global top held, Oxford-based biotechnology talent and investors, and compete company. It focuses on harnessing on an international stage. Access and engineering the natural delivery to more UK-based sources of capabilities of exosomes to develop significant funding, especially for an entirely new class of therapeutics later stages, would better enable for the treatment of various severe companies to continue to grow. diseases. Evox was founded in 2016 Factors in the Oxfordshire ecosystem based on work coming out in part that have constrained growth: from Oxford University and received £10m in seed funding from Oxford ``Laboratory space: Access to Sciences Innovation (OSI). This funding readily available lab space is a key allowed Evox to lease laboratory constraint to growth. While Evox has space in Oxford Science Park, advance been able to lease a space in Oxford R&D, and grow the team from one Science Park, options to expand are person to thirty over eighteen limited. Lab space might not meet months. In autumn 2018, Evox raised demand in Oxfordshire over the an additional £35m funding from next five years as more companies internationally-known venture capital are spun out of the universities. investors, and re-investment from the ``Connectivity: The science parks University of Oxford and OSI. Evox in Oxfordshire are challenging to anticipates future significant capital serve with public transport. Science raises and further expansion of the parks need to be better connected to team to over 100 employees as it multi-modal public transport options continues to compete internationally. and with direct and easy access to Factors in the Oxfordshire ecosystem the central rail station. This will help that have enabled growth: accommodate the expected growth and enable people to live in outlying ``Access to world-class funding: communities with more affordable OSI’s significant initial funding housing and easily commute to work. was critical to Evox’s ability to

42 Partners across the county will need Due to the acceleration of spin to address a number of constraints outs, analysis from Oxford Sciences facing Oxfordshire businesses looking Innovation (OSI) notes the increasing to innovate and drive-up R&D. importance (and growing deficit) of high-quality leadership, management The right leadership and funding and business strategy skills within the High growth potential businesses senior teams of firms. This may be a frequently struggle to secure long term critical drag on the growth potential patient capital – particularly at early and scale-up plans of businesses stage investment points in the business competing in global markets and lifecycle. Oxford University Innovation seeking to secure future stages in (OUI) has stated that the level and funding or collaboration, as well as duration of available finance will need increased risk of UK firms being sold to be sustained over the long term, or taken over by foreign competitors. in order to maximise the commercial Discussions led by OUI with East and and competitive advantage that high West Coast US investors have raised growth companies can secure. Many concerns about the perceived ability Oxfordshire firms are simply unaware of high growth firms in the Oxfordshire of the support available, or unable to innovation ecosystem to harness access it. Firms continue to underutilise and access the talent required to tax and other fiscal incentives available scale up at pace, compared to other to accelerate the commercialisation of locations competing for investment R&D. The Intellectual Property Office such as Boston and San Francisco has highlighted a continued deficit in in the US and innovation hubs in awareness and understanding among the Far East. These ecosystems high growth firms of intellectual have a faster growing pipeline of property (IP) ownership in international researchers and postgraduates with markets, and the necessary regulatory the skills to commercialise ideas factors which need to be considered. and offer a pool of talent which Innovate UK analysis revealed that gives investors more confidence. Oxfordshire firms across the ecosystem are also below average in their share The county’s wider offer of UK Research and Innovation Oxfordshire also faces a challenge (UKRI) funds and programmes, in with constraints on innovation space. comparison to the range and breadth While Oxfordshire has excellent R&D of R&D assets in the region. infrastructure, many of the science and business parks across the region are at capacity, particularly new laboratory facilities, clean rooms and flexible science working spaces.

43 Industrial Strategy Oxfordshire Local Industrial Strategy

Recent analysis by Bidwells noted To support research and development that Oxfordshire’s critical hubs are across Oxfordshire, local partners struggling to respond to demand for will support the transformation of new premises which is also resulting in science and technology parks and record rental costs. OSI has highlighted creation of new hubs, by acting as a that Oxfordshire currently has 15,000 broker and supporting organisations sq ft of wet laboratory incubator space to access local, regional, and national available to meet demand, compared funds. This will be knitted-together to over 10m sq ft in the Boston by a tailored spatial approach, that Metropolitan Area in Massachusetts. recognises the contrasting roles of Finally, Oxfordshire is globally renowned different assets in the county: with a strong international brand ``Stage 1: Ideation. Research will centred on its world-leading university be driven in and around core system. However, there is less visibility hubs, taking advantage of the and awareness of the region’s other universities and other research core assets, including its innovation, and professional assets. science and technology parks, and ``Stage 2: Innovation corridor. leading businesses. Oxfordshire’s Development will take place in brand needs to encompass the full growing clusters for testing and breadth of the region’s offer, and to developing new businesses. These compete with international rivals who are primarily located within the are investing heavily in brand building. existing innovation corridor which There are general challenges to all extends from Begbroke in the firms in the region that are addressed north to Harwell in the south. in other foundations – including ``Stage 3: Commercialisation region. connectivity, business space, housing A wide-reaching commercialisation affordability, and skill shortages – that area that extends to the whole of will also affect innovative firms. Oxfordshire acknowledging that Delivering the vision business of different scales will contribute to growth from across To address these challenges, the region, the Oxford-Cambridge partners across Oxfordshire will work Arc and the UK economy. This together and with government and recognises the reality that not all of UKRI on the following priorities. this growth needs to be captured Firstly, Oxfordshire has a critical mass within the boundaries of the county. of innovation and R&D assets. But they are currently not acting as the full sum of their parts: both in collaboration and in providing space for businesses.

44 Commercial Space Oxfordshire will encourage university Oxfordshire partners will examine and business collaboration around options to meet its ambition to double these breakthrough sectors at all levels. the floor space at Culham, Begbroke This will include new linkages between and Harwell science parks – the latter the ecosystem’s network of global hubs of which requires land remediation and international clusters to harness the through accelerating a programme opportunities of increasing convergence of local and private funding, and of transformative technologies which support universities, local authorities will create new capacity for innovation and developers to deliver new, well- and collaboration which can spearhead connected world-leading innovation an acceleration in the commercialisation hubs and clusters around key locations of these technologies. including Oxford Technology Centre Oxfordshire will also look to channel at Kidlington, Bicester, Upper Heyford, investment into its breakthrough West Oxfordshire and Grove. sectors from a range of different Linked with this, Oxfordshire will look sources, including successful bids to leverage planned developments into competitive public sector funding which can offer the potential for rounds, levering private sector funding creating a major global business and attracting international investment. district of scale encompassing the This will be enhanced by increased Oxford Station and West End quarter, collaboration between universities creating an iconic global gateway into along the Oxford-Cambridge Arc, the ecosystem for investors, visitors which will support each institution’s and leading talent. This will aim to engagement with businesses as meet the demand and interest of part of their preparation for the new Fortune 500 and NASDAQ company Knowledge Exchange Framework. R&D HQs to locate in the region. The In addition to this, the region will comprehensive redevelopment could deepen greater engagement between generate significant job creation Oxfordshire’s research institutions, for the county and major spill-over universities and ‘cornerstone effects across the Arc and wider UK. businesses’ to drive greater innovation into more mature sectors which can Prioritising breakthrough improve firm level productivity in these technologies markets. The Business Environment The huge growth potential of the chapter sets out our approach to breakthrough technologies set out in commercialising research in our the Science and Innovation Audit and breakthrough sectors and technologies. this Local Industrial Strategy – including quantum technologies, robotics and autonomous systems and space-led data applications – give them a unique role in driving up R&D and innovation.

45 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 7: Proposed network of global hubs and international clusters

Global Health & Life International Space Cluster, Sciences Quarter, Oxford Harwell Campus

Global Business District, Global Quantum Computing Oxford Station & West End Hub, Harwell Campus

Robotics & CAV UK Cluster, Global Innovation Hub, Begbroke Culham Science Centre

Global EnergyTec Cluster, Global Fusion Technology Oxfordshire-wide Cluster, Culham Science Centre

Oxford Science Park Bioscience and Technology Quarter Cowley, Oxford Quarter, Milton Park

Global HealthTec Cluster, Williams Technology Harwell Campus Campus, Grove

Carterton & RAF Brize Norton West Oxfordshire Science Industrial Hub, West Oxfordshire Park, Eynsham

Bicester Eco Zone & Corporate Banbury Industrial HQ Hub, Cherwell Zone, Cherwell

Creative City, Upper Heyford

46 A top global investment Retaining Oxfordshire’s talent destination Finally, Oxfordshire will create a Oxfordshire will help make the UK a top pipeline of talent for businesses destination for international R&D talent looking to innovate through developing and investors. To build Oxfordshire’s a High Flyers programme. This will international brand, local partners will: support early stage post-graduates and local businesses, by placing ``set out a distinctive brand to students in firms to support innovation raise Oxfordshire and the Arc’s commercialisation. This will nurture international profile for innovation and the talent necessary to commercialise R&D, enabling the local area to seize innovation in the ecosystem and new opportunities for international develop leaders who can realise connectivity, trade and investment; impact from R&D activity. Providing ``launch the Connecting Globally new opportunities such as this will also platform. This will include an encourage graduates and those early in integrated digital platform across their careers to remain in Oxfordshire. online and social media, to showcase successes across the region; increase communication and knowledge exchange between firms; and to promote Oxfordshire as a major global hub for investors and innovators. Over time, Oxfordshire will work to build Connecting Globally into a programme to facilitate networking with other global innovation ecosystems, including through trade missions and sponsor visits; and ``work with the Intellectual Property Office to launch a pilot programme to accelerate IP and commercialisation across the ecosystem to help ‘breakthrough businesses’ capture the value of their IP across the business cycle. This will complement an Internationalisation programme – set out in the Business Environment chapter - to support firms understand and manage investment decisions with their IP in key global markets.

47 Industrial Strategy Oxfordshire Local Industrial Strategy

Commitments

Ambition: West Oxfordshire and Grove. To establish a globally connected ``Help make the UK a top innovation economy and destination for international trailblazing region in support of R&D talent and investors by: the 2.4 per cent R&D target. ––setting out a distinctive brand To accelerate progress to raise Oxfordshire’s and towards achieving this the Arc’s international profile priority, Oxfordshire will: for innovation and R&D; ``Drive up R&D through prioritising ––launching the Connecting Globally local investment in the breakthrough platform, an integrated digital technologies set out in the Science platform across online and social and Innovation Audit and this media to showcase successes across Local Industrial Strategy. the region; increase communication ``Support the transformation of and knowledge exchange science and technology parks between firms; and to promote across the county to provide fast- Oxfordshire as a major global hub growing business the space they for investors and innovators; and need, by acting as a broker and ––working with the Intellectual supporting organisations to access Property Office to launch a pilot local, regional, and national funds. programme to accelerate IP and ``Examine options to double the commercialisation across the floor space at Harwell, Culham ecosystem to help ‘breakthrough and Begbroke science parks businesses’ capture the value of through accelerating a programme their IP across the business cycle. of local and private funding. Working with local partners across ``Drive up R&D through prioritising the Arc, Oxfordshire will also: local investment in the breakthrough ``Harness the collective strength technologies set out in the Science of the Arc’s research base will be and Innovation Audit and this essential. The new Arc Universities Local Industrial Strategy. Group will act as the focal point ``Support local authorities, universities from cross-Arc collaboration on and developers to deliver new, well science and research, identifying connected world-leading innovations and delivering joint R&D projects hubs and clusters around key locations and providing a pipeline of talent to including Oxford Station and West knowledge-intensive businesses. End, Oxford Technology Centre at Kidlington, Bicester, Upper Heyford,

48 ``Strengthen its ability for businesses to Accelerator, Remote Applications commercialise ideas coming out of its centre at Culham and the universities and others. Arc partners Harwell Innovation Centre. will also use assets such as Harwell, ––Supporting research and development Silverstone and Cranfield to establish of new transport systems and new networks that support the technologies across the Arc through convergence of technologies across investment by the Centre for Connected sectors and seek to develop emerging and Autonomous Vehicles (CCAV), districts such as West Cambridge. the Office for Low Emission Vehicles ``Seek to grow its role as a global (OLEV), UKRI, Zenzic (formerly known research and innovation hub, acting as as Meridian Mobility) and Innovate UK. a UK magnet for international talent, ––Working with the LEPs within the R&D, Foreign Direct Investment and Arc and other local partners, including research collaborations. The LEPs and England’s Economic Heartland, to: MCA will work with the Department for International Trade, the Arc Universities ``support the delivery of the Future Group and others to channel foreign of Mobility Grand Challenge mission investment in the assets and projects and Road to Zero Strategy: utilising that will make the biggest impact the considerable R&D assets within on Arc-wide and UK growth. the Arc to put the UK at the forefront of the design and manufacturing of Government is working in zero emission vehicles, supporting partnership with Oxfordshire to government’s commitment to end support the delivery of this the sale of new conventional petrol priority by: and diesel cars and vans by 2040; Substantial on-going and capital funding ``build on the Arc’s existing role as a to major national assets. This includes testbed for new transport technologies, developing sites across the county: such as automated vehicles and ––investments into the Harwell drones, working with government and Campus, including £65m for the Zenzic to access existing research and Faraday Institution, £99m for the development support, and identify National Satellite Testing Facility, further opportunities to trial new £100m for the Rosalind Franklin mobility services within the Arc; and research institute and £68.3m for the Satellite Applications Catapult; ``support local authorities within the Arc to implement the Principles of ––£86m for the National Fusion the Future of Mobility Urban Strategy, Technology Platform at Culham providing guidance on design and Science Centre; and planning to ensure new communities ––City Deal and Local Growth Fund are designed and built to enable support for four new innovation new approaches to mobility. centres: BioEscalator, Begbroke

49 Industrial Strategy Oxfordshire Local Industrial Strategy People

Oxfordshire’s Local Industrial Strategy will help to develop a more responsive skills ecosystem and create better opportunities for all. It will help underpin the county’s ``Population growth has remained ambition for a global innovation largely stable over the past decade, ecosystem and provide the talent and – according to current ONS to capitalise on emerging industries. forecasts – working age population will fall by 0.3 per cent per year Summary of ‘People’ by next year. On the other hand, strengths and challenges the over-65 population will rise ``Oxfordshire is effectively at full by two per cent per year. employment. The employment ``Following recent growth, wages rate is 82 per cent - above UK for the bottom 10 per cent of the and south east averages - and population are second highest in unemployment is 1.3 per cent. the country (after Inner London). ``The workforce is also one of the However, social mobility rates are low, most highly skilled in the country, and housing affordability and quality with 51 per cent of the working age in Oxford is driving deprivation. population educated to degree The Oxfordshire economy has level or above. The City of Oxford seen high levels of employment in has one of the lowest levels of recent years, relative to the rest of workers with no qualifications, at the country. Oxfordshire has a 1.3 3.2 per cent, compared with a UK per cent unemployment rate in the average of 8 per cent. However, working age population, which is 50 22 per cent of Oxford residents per cent lower than the UK average have no or low qualifications. for the last two decades. At nearly ``Although Oxfordshire’s workforce is full employment, this has increased highly skilled, there is still a shortage pressure on businesses to be able to of school leavers with STEM skills. find, attract and retain suitably skilled Between 2010-15, Oxfordshire’s workers as they grow and expand. annual growth in apprenticeships The workforce is one of the most highly was three per cent, below the skilled in the country, with 51 per cent UK average of 12.5 per cent. of the working age population educated to degree level or above. All districts in Oxfordshire comfortably exceeded the national average for the proportion of the population with the highest level of

50 qualifications — NVQ4 — in 2017. The City Inclusive Growth of Oxford has one of the lowest levels Oxfordshire is effective at generating of workers with no qualifications, at 3.2 good jobs. Wages for the bottom 10 per cent, compared with a UK average per cent are among best in country of eight per cent, yet also contains – second only to inner London by a high proportion of the workforce 2017. This is a relatively recent with low skills and qualifications. phenomenon (up from 15th of 42 The region is home to two renowned counties in 2008). This headline universities and it is recognised that masks significant challenges: graduate retention and nurturing this ``Oxfordshire’s primary and secondary supply of talent is key to future growth schools fall below the UK average for the wider ecosystem. Across both on a number of measures: at universities the graduate retention A Level, Oxfordshire is below rate is around 23 per cent - placing the average in grades achieved, while area in the mid quartile nationally, but Oxfordshire’s local authorities are behind other locations across the UK also struggling on performance in and internationally. Whilst access to indices of early years education. high value employment is a key driver in retaining talent locally, proximity to ``Convergence on wages has not London and higher salaries and the occurred consistently across cost of housing are key challenges the county with South and West impacting improved graduate retention. Oxfordshire having average salaries at around two-thirds the rate of ONS forecasts suggest that, under the other three authorities. the status quo scenario, Oxfordshire’s population will grow slowly over the ``Although median wages for the next twenty years (from 678,000 in lowest earners in Oxfordshire are 2016 to 720,800 by 2036). However, above the UK average, there are wide this expansion is expected to be income disparities and pockets of driven entirely by a rising over-65 deprivation. Fifteen of the county’s population. The county’s 15-64 neighbourhoods are in the 20 per population is expected to fall by 0.3 cent most deprived in England, per cent per year for the next twenty with these residents increasingly years (compared to an England-wide marginalised from the economy. This growth rate of 0.1 per cent), while the lack of inclusive growth in Oxfordshire over-65 population will rise by two is a key challenge that needs to be per cent per year (compared to 1.9 per addressed if Oxfordshire’s future cent per year). This is compounded growth is to be truly inclusive. by lower graduate retention rates in Oxfordshire than places like London or Manchester, despite high-paying firms reporting difficulty recruiting.

51 Industrial Strategy Oxfordshire Local Industrial Strategy

All five lower tier local authorities are Oxfordshire’s Social Contract in the top performing half on the Index In addition to the SAP, Oxfordshire of Multiple Deprivation. However, the will take forward a series of measures City of Oxford itself is in the bottom to support business engagement quartile for deprivation related to with the skills system. The SAP will housing and air quality. This includes provide a greater understanding measures of affordability, overcrowding, of the labour market which will be housing quality, and homelessness. used to develop our Oxfordshire’s Delivering the vision Skills Priority Statement in early 2020, in response to the challenges The evidence paints a picture of a identified in the SAP and LIS. highly effective, skills-led economy in Oxfordshire. However, it is one that As part of the development of the Skills is at risk as the population ages, and Priority Statement local partners will which does not distribute opportunity develop a Social Contract which will equally. This Local Industrial bring together local teachers, education Strategy therefore prioritises: professionals, the County Council and businesses. The Social Contract will ``getting the fundamentals right – go beyond simply orientating skills building a skills system that better provision around employer demand: it responds to local demand; and will consider how to improve student- ``making the most of all our people business mentoring programmes; and – with longer and more flexible how businesses can become more careers for older workers, and involved in local schools. Its overall improved access to emerging objective will be to equip pupils with jobs for younger people. the skills they need to understand the Key to this will be establishing a emerging employment opportunities new Skills Advisory Panel (SAP) being created within Oxfordshire’s for Oxfordshire which will support innovation ecosystem, the new OxLEP to fulfil its local leadership technologies being pioneered which role in the skills system by helping will transform future skills, careers the local area understand current and education pathways and the and future skills needs and labour interrelationships and interdependencies market challenges, and strengthening with which businesses across the the link between public and private ecosystem are increasingly working. sector employers, local authorities, Excellent performance in higher colleges and universities. education is not matched at Key Stage 3 and Key Stage 4 in Oxfordshire, and this is reflected in lower-than- average rates of social mobility.

52 Employers in Oxfordshire agree Finally, Oxfordshire will continue that there is a lack of STEM- working with local partners to establish related skills, and that this is a an Oxfordshire Entrepreneurship Hub barrier to scaling up local firms. to support students and young people To address these twin challenges, across Oxfordshire to develop business Oxfordshire will work with the propositions and develop connections Department for Education to champion across the innovation ecosystem, T levels locally so that they map to in close collaboration with the Said our technology sectors, as part of the Business School. The Oxfordshire Oxfordshire Social Contract. The LEP Entrepreneurship Hub will be primarily will play a key role in supporting local focussed on students and young people employers to deliver T level industry in Oxfordshire. It will provide open placements. In addition, Oxfordshire sessions and targeted advice to support will increase business leadership and young people to develop ideas, business engagement to create pathways and propositions and entrepreneurship. support social mobility for young people It will be a place where people from by working with companies across across the innovation ecosystem Oxfordshire to maximise the benefit of can connect to share ideas, and the apprenticeship levy and develop where they can be directed and new apprenticeships in emerging supported to take advantage of technology-based opportunities. opportunities across the ecosystem. Through the Social Contract, Retaining and retraining Oxfordshire will work with the Careers older workers and Enterprise Company, local colleges To maintain and improve productivity, and Oxfordshire County Council to to reflect the pace of technological improve social mobility for young change and to continue to be a net people by ensuring they will have contributor to the UK exchequer, greater access to career pathways Oxfordshire recognises the need within Oxfordshire, to promote to support people to continue to opportunities to access coaching contribute to the economy into later life and mentoring with world-leading through longer and flexible careers. businesses across the ecosystem. This Oxfordshire will therefore promote will improve social mobility for young workplace health and well-being, people who will have greater access to continuing to develop a programme career pathways within Oxfordshire; it to support residents to participate would also enable skills development in the workforce: OxLife. to align to business need and promote more tailored skills that will release pressure on the tight labour market.

53 Industrial Strategy Oxfordshire Local Industrial Strategy

This will be designed to include Delivering inclusive growth support for those furthest from the Oxfordshire wants to better understand labour market and people with long the impacts of how growth is currently term illness and disabilities to actively distributed in the county and what engage in the economy, building on can be done differently to ensure existing community learning initiatives that, in future, those benefits are through working with Jobcentre more fairly distributed. Through the Plus. It will also support retention and Oxfordshire Growth Board, Oxfordshire progression for local residents aged will convene local leaders, academic 50+ and armed forces personnel experts, businesses and community returning to the Oxfordshire workforce. organisations to form an Inclusive This will be increasingly important Growth Commission. This will consider as technologies disrupt the labour how the county can ensure that the market and changing job needs which benefits of a world leading innovation will mean increasing the importance ecosystem can be equitably shared of re-skilling and development of new and reach all communities, learning capabilities. Retraining and upskilling from other global ecosystems. opportunities for Oxfordshire’s residents will support inclusive growth, enabling more people to continue to contribute to the local economy.

54 Commitments

Ambition: ``continuing work with local partners Oxfordshire’s Local Industrial Strategy to establish an Oxfordshire will help to develop a more responsive Entrepreneurship Hub to support skills and employment ecosystem and students and young people across create better opportunities for all the county to develop business propositions and develop connections To drive progress towards across the innovation ecosystem. achieving this priority, Oxfordshire will: Make the most of all of our people Get the fundamentals right by ``Continue to develop OxLife, a developing a demand-led skills system targeted programme to reskill that meets the needs of employers and upskill workers and armed and breakthrough business sectors forces personnel returning to the Oxfordshire workforce so that they ``Take forward a series of measures can actively engage in the economy. to support business engagement with the skills system under the Support Inclusive Growth Oxfordshire Social Contract, including: ``Oxfordshire will convene local leaders, ––establishing a new Skills Advisory academic experts, businesses and Panel (SAP) for Oxfordshire; community organisations to form an Inclusive Growth Commission. ––championing T levels locally so that they map to the county’s Working with local partners across technology sectors and the Arc Oxfordshire will also: supporting local employers, to ``Review labour market intelligence deliver industry placements; across the Arc, to gain a better ––working with technology companies understanding of how skills provision across Oxfordshire to maximise the is currently delivered and funding use of apprenticeship levy to develop utilised. This will include working new apprenticeships in emerging closely with the Department for technology-based opportunities; and Education and providers across the Arc to consider how local provision ––working with the Careers and supports the objectives set out Enterprise Company, local colleges throughout these strategies. and Oxfordshire County Council to improve social mobility for young people by ensuring they will have greater access to career pathways within Oxfordshire;

55 Industrial Strategy Oxfordshire Local Industrial Strategy

``Work with local employers to increase Government is working in apprenticeship uptake across partnership with Oxfordshire the Arc, supporting employers to to support the delivery maximise their Apprenticeship Levy of this priority by: contributions and drive social mobility. ``Providing £142.5m of Local Growth ``Work with local employers to Funding to support local growth in support the effective role of T levels Oxfordshire, which has invested in: and utilise local labour market ––The Advanced Engineering and intelligence to work with providers Technology Skills Centre which to consider how the local T level will supply skilled technicians offer will support local businesses. at Harwell and elsewhere in ``Establish an Arc-wide skills Oxfordshire supported by £3.8m marketplace, enabling the LEPs Local Growth Fund investment; continue to build on the positive ––The Livestock Innovation Centre which working relationships with the will focus on delivering the high-tech Careers and Enterprise Company skills needed to meet the sustainable and other careers services. This will agriculture, food production and utilise the evidence provided by each precision farming agenda across Skills Advisory Panel, connecting Oxfordshire, supported by £1.13m businesses with skills providers and Local Growth Fund investment; and people with targeted support including apprenticeships, STEM skills, T levels, ––The Oxford Centre for Technology technical and degree apprenticeships. and Innovation which will address skills shortages across engineering, electrical, design, and emerging technologies, supported by £4.5m Local Growth Fund investment.

56 Infrastructure

To successfully deliver on the vision to be a world leading innovation ecosystem, Oxfordshire will continue working with government to develop a resilient and responsive physical infrastructure, connecting all communities to future economic opportunities and ensuring the benefits reach all parts of the county. Summary of ‘Infrastructure’ provide connections to the west, the strengths and challenges midlands and the north. Oxfordshire The county has strong is close to Heathrow and Birmingham transport links along the Bristol- airports as well as southern ports, Birmingham-London corridors. within an hour of international transport hubs and connections to global Oxfordshire has a higher proportion markets – buoyed by the success of of adults (44 per cent) participating the new Chiltern rail service to London in active travel (walking and cycling) Marylebone from Oxford and the new compared with similar counties station at Oxford Parkway. With the and England, as a whole. development of East West Rail and the Economic success is placing Oxford-Cambridge Expressway, there significant stress on transport and will be new and improved connections energy infrastructure. Rail demand across the Arc and the Golden Triangle has risen 70 per cent in the ten with Cambridge and London. years to 2017. This is well above The region is working together the UK average of 53 per cent. across the public and private sector Energy capacity constraints are to innovate in transport and mobility, already biting and will be increased with multi-modal transport solutions by rising housing demand and and pro-public transport policies. pushes towards renewable energy. Oxfordshire is home to companies such as the MobOx Foundation, which brings Whilst seven per cent of premises together local government, academia in Oxfordshire have full fibre and industry to lead on innovation in connectivity – which is double the mobility-related issues in Oxfordshire. national average – it remains well It also has the first dedicated CAV behind many global competitors. team within any UK local authority, Oxfordshire enjoys a central location based at Oxfordshire County Council. that is well connected across the UK and internationally, with fast rail links to London, Birmingham and Bristol which

57 Industrial Strategy Oxfordshire Local Industrial Strategy

Case study: ‘PICKMEUP’ demand responsive bus service

PickMeUp is the UK’s largest city has a high quality bus network intelligent demand responsive bus and a large portion of the public service and was launched in June are open to using bus services. This 2018 by Oxford Bus Company. has made it easier to achieve the PickMeUp has shown strong growth, behavioural change necessary for and by the end of its 24th week of people to embrace this new service. operation had carried over 50,000 ``Investment: Oxford Bus Company passengers, with more than 16,000 provided an investment of over people having downloaded the app £800k to start the service and and registered an account. Factors employed 20 dedicated staff in the Oxfordshire ecosystem to support the operation. that have enabled growth: ``Strong business networks: the ``Strong public transport: The design of the service was informed local authority has a track record by extensive consultation with of supporting public transport major employers and stakeholders and effectively managing private in the area, facilitated by OxLEP, car use in the city, back to the the Chamber of Commerce establishment of the UK’s first Park and local authorities. & Ride site in 1973. As a result, the

58 Constraints holding connectivity and choice in some Oxfordshire back urban and rural areas also negatively Infrastructure in Oxfordshire is under impacts access to public services, strain and the projection for the increasing inequalities in the county. Oxfordshire economy to double in size Housing is under pressure and and create 108,000 additional jobs unaffordable, due to demand from by 2040, means infrastructure must the expanding labour market. Median be improved to relieve the existing house prices are 50 per cent higher in pressure and accommodate future Oxfordshire than the English average, growth, while responding to increasing and the price to earnings ratio is concerns around climate change. one of the highest in the country at Demand for rail travel has also grown 12:1, with some parts of the county rapidly, with a 70 per cent increase rising to 17:1. This has led to a cost of in journeys to and from Oxfordshire living challenge for many residents stations in the ten years up to 2017. The as well as pockets of deprivation growing economy is placing significant across the county which is explored stress on the existing infrastructure. in more detail in the Places chapter. Growth has been higher at stations Digital connectivity in Oxfordshire other than Oxford (which rose below has significantly improved in recent the UK average at 40 per cent), years. The Better Broadband for suggesting rising commuter travel Oxfordshire programme has enabled has been the main driver of demand over 96 per cent of premises across growth. This is likely to continue rising, the county to have access to superfast given increased levels of housing broadband. However, whilst 7 per cent growth and planned rail investments of premises in Oxfordshire have full - including Crossrail from Reading. fibre connectivity – which is double the Moreover, given Oxfordshire’s largely national average – it is still well behind rural nature, there is still heavy reliance many of the region’s global competitors. on car travel between housing and Oxfordshire’s energy network is heavily employment locations. This contributes constrained, both for additional load to severe traffic congestion on key and for new generator connections. routes, such as the A34 and the Future growth will be restricted unless A40. The A34 is a key route to the energy infrastructure responds to southern ports and often becomes changing requirements and next- congested with north-south freight generation needs of energy-intensive traffic servicing the UK. Increasingly, science and technology assets. congestion affects workplace productivity, health and well-being, quality of life and the environment, and may deter prospective investment in the region. Lack of transport

59 Industrial Strategy Oxfordshire Local Industrial Strategy

To meet the scale of demand, Complementing the projects set Oxfordshire will look into multiple out in the Oxford-Cambridge Arc energy sources and new service chapter, Oxfordshire will take models. The region will also encourage forward existing plans including: innovation in low carbon solutions and Digital Investment Plan: Oxfordshire ways to reduce demand – currently only will work with regional partners 10 per cent of Oxfordshire’s energy is to develop an ambitious Digital from renewable sources in comparison Investment Plan to scope locally led to 25 per cent for the UK average. options to accelerate the roll out The Garden Town developments at of full gigabit fibre to premises and Didcot and Bicester, and the emerging public assets, 5G and next generation Oxfordshire Cotswold Garden Village, telecommunications across the provide the opportunity to develop innovation ecosystem to provide world- new and innovative energy solutions leading digital coverage in urban and to begin addressing these challenges. rural areas, with government taking Delivering the vision a challenge and advisory role on this work. The Digital Investment Plan will This foundation, therefore, focuses work across planning authorities to on developing the critical physical have a formal, standardised approach infrastructure that underpins to the use of public sector assets for the ecosystem. This will increase deploying digital infrastructure in connectivity, mobility and order to combine with street furniture competitiveness both within Oxfordshire investment to support the roll out of and out to the rest of the UK, and Internet of Things and 5G networks to gateways to the world. To do this, and provide high quality connectivity Oxfordshire will identify opportunities across the county. It will provide the to implement the Oxfordshire digital foundation to support the Infrastructure Strategy, the Oxfordshire Living Lab approach and deliver an Energy Strategy, and develop an uplift in services to communities. ambitious Digital Investment Plan which Improving Oxfordshire’s digital is genuinely world-leading and rivals infrastructure is critical to enable other global innovation ecosystems. connectivity between sites whilst This will highlight opportunities to preserving the natural environment, provide high quality connectivity ensuring residents in Oxfordshire across the ecosystem and meet the benefit from greater connectivity and additional capacity requirements of digital technological advancements economic growth. Better infrastructure and that Oxfordshire remains will improve Oxfordshire’s quality of competitive with respect to other life for residents and its attractiveness world-wide innovation ecosystems. as a location, to attract top talent and encourage talent to stay.

60 ``The Oxfordshire Infrastructure ``Government and Oxfordshire are Strategy: Oxfordshire will work already progressing this, including with local and national partners to through the recently announced identify opportunities to progress £218m support from the Housing its infrastructure ambitions as set Infrastructure Fund for Didcot out in the Oxfordshire Infrastructure Garden Town, enabling growth at Strategy (OxIS). The OxIS identifies, Culham, Harwell and Milton Park. maps and prioritises Oxfordshire’s ``Oxfordshire Energy Strategy: As strategic infrastructure ambitions outlined in the Oxfordshire Energy up to 2040, bringing together all the Strategy, local partners will seek strategic infrastructure that supports to deliver a new market place that local plans. These ambitions include connects the grid, suppliers and road, rail and bus rapid improvements consumers. The Energy Strategy will for sustainable, multi-modal transport, commit to a 50 per cent reduction of along with new stations and Park CO2 Emissions by 2030 compared and Ride hubs which would better to 2008, with the ambitions to connect the ecosystem, supporting achieve net zero emissions by 2050. business growth, innovation and In addition to this, it aims to roll out commercialisation including: the UK’s first ‘Zero Emission Zone’, ––plans for the development of the in Oxford City Centre from 2020. Oxford Station National Rail Hub This will provide a strategy that will (new track, platform and station seek to secure investment to meet capacity) to realise its strategic the additional capacity requirements potential with critical connections of economic growth, innovate in throughout the UK, Arc wide under low carbon energy products and East-West Rail and through enhanced services and seek ways to reduce countywide services and stations energy demand, both in new and connecting housing sites, science existing communities where novel and technology parks with a world- solutions can be applied. In support class gateway to the proposed of this, UKRI has announced £60m Global Business District; and of funding for two energy systems ––growth of the Didcot and Bicester demonstrator projects in Oxfordshire. Garden Towns, Oxfordshire Cotswold Garden Village and expansion of science parks. This would address the critical connectivity issues that are hindering growth of the ecosystem and release the pressure on existing infrastructure that is causing congestion, pollution and extensive commuting times.

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Commitments

Ambition: ``Encourage innovation in low carbon To successfully deliver on the vision solutions and ways to reduce demand. to be a world-leading innovation The Garden Town developments at ecosystem, Oxfordshire aims to relieve Didcot and Bicester, and the emerging the pressure on its infrastructure Oxfordshire Cotswold Garden Village and connect all communities to provide the opportunity to develop future economic activity. new and innovative energy solutions to begin addressing these challenges. To drive progress towards achieving this priority, Working with local partners across Oxfordshire will: the Arc Oxfordshire will also: ``Work with regional partners to ``Collaborate with Department for develop an ambitious Digital Transport, Highways England, East Investment Plan to scope locally led West Rail Company and England’s options to accelerate the roll out of Economic Heartland to expand the full gigabit fibre to premises, 5G and economic benefits of planned strategic next-generation telecommunications, transport links and improvements to with government taking a challenge the Major Roads network across the and advisory role on this work. Arc and develop the first-mile-last- mile connections across the Arc. ``Work with local and national partners to identify opportunities to progress ``Work with government to develop a its ambitions in the Oxfordshire shared evidence base for the current Infrastructure Strategy (OxIS), which and future energy needs of the Arc, identifies, maps and prioritises the including through the identification county’s strategic infrastructure of opportunities to test new energy requirements up to 2040. policies or approaches within the Arc. ``Work with local and national partners ``Work with government to identify to realise the ambitions set out in and diffuse best practice on digital the Oxfordshire Energy Strategy infrastructure planning in the Arc using local funding streams, which and explore opportunities to align will put in place a low carbon new transport infrastructure with energy grid to support growth digital infrastructure in the Arc. and lead the development of new This will aim to support industry to models for energy management. accelerate the roll-out of full fibre networks, enabling accelerated growth of 5G technologies across the Arc.

62 ``Work to standardise public data ``Investing in the Oxfordshire Housing where possible, and with support from and Growth Deal, committing to government policy experts, to ensure deliver up to 100,000 homes by 2031, that the opportunities to collect and with up to £215m of investment. capitalise on data are utilised – with a This includes £60m for affordable view to addressing Grand Challenges houses and £150m over five years around the future of mobility, the for infrastructure – and builds on ageing society, and clean growth. £340m of housing and infrastructure ``Work with government across the funding committed by Oxfordshire wider Oxford-Cambridge Arc to councils over the period. explore proposals for new approaches ``Funding Oxfordshire to develop to funding infrastructure, as set its local energy strategy and out in Government’s response to supporting implementation via National Infrastructure Commission the South East Energy Hub. Report at Autumn Statement 2018. ``Working, through Network Rail, with Government is working in Oxford City Council, Oxfordshire partnership with Oxfordshire County Council, OxLEP and local to support the delivery developers, to take forward of this priority by: the Oxfordshire Rail Study. ``Investing in significant new transport infrastructure through East West Rail and the Expressway, and first-mile- last-mile connectivity, as detailed in the Joint Statement on the Arc published at Spring Statement 2019. ``Investing £200m of funding through Oxfordshire’s Growth and City Deals, supporting a wide range of road and public transport schemes, as well as design and testing facilities for new transport technology and broadband funding.

63 Industrial Strategy Oxfordshire Local Industrial Strategy Business environment

Oxfordshire: a powerhouse for commercialising transformative technologies. Central to this Local Industrial having the fastest growth in Strategy is creating the right business scale-up firms in the UK. environment to support a world-leading ``In 2015, 69 per cent of firms said innovation ecosystem. Oxfordshire skills gaps were inhibiting growth has great businesses and is one of – but growth has accelerated the strongest engines for growth in markedly since then, in spite of this. the UK, but it does have scope to be even more productive by driving ``The region has a strong productivity gains in businesses across financial support offer, with OSI a number of sectors. This indicates (Oxford Sciences Innovation) the region could be better translating raising over £600m in private ideas into tangible business growth equity to fund spin-outs. and support other parts of the UK. Through this Local Industrial Summary of ‘Business Strategy, Oxfordshire aims to enable Environment’ strengths businesses to capture new growth and export opportunities that result and challenges from commercialisation, and thus ``Stochastic Frontier Analysis can increase productivity. It will support be used to assess the economic businesses to grow to scale more efficiency of businesses in Oxfordshire quickly and enable the creation of more relative to the rest of the UK. The unicorn businesses in Oxfordshire. Analysis forms part of the Economic Baseline Review and suggests Oxfordshire’s business models Oxfordshire has higher than- usual In the Building a Global Innovation volumes of both highly efficient Ecosystem section above, we and highly inefficient firms. introduced the distinction between ``The region is showing net business ‘cornerstone businesses’ and growth and rising business density, ‘breakthrough businesses. and there are clearly successful scale-ups – with five ‘unicorns’ spun out of the university in recent years. ``The Scale Up Institute’s latest figures show Oxfordshire as

64 Cornerstone businesses are the Oxfordshire is known in the UK for its backbone of the economy and provide high concentration of breakthrough the platform for economic growth. businesses. These companies are Their performance is closely linked to growing rapidly, with 9 per cent year- the performance of the economy as on-year growth in the number of a whole, as they tend to be in mature businesses. The region benefits from sectors, including education, health, high levels of R&D investment, and a professional services, transport, large number of start-ups and spin logistics, retail, leisure and tourism. outs. Several of these spin-outs have Nearly all of Oxfordshire’s businesses grown into unicorn businesses, with are more productive than their UK market values of more than US$1bn. counterparts. Cornerstone business The City of Oxford ranks in the top sectors are also steadily growing, with ten cities nationwide for number 2.4 per cent year-on-year growth in of patent applications per resident, the number of businesses operating according to Centre for Cities in within them. Oxfordshire’s strong 2018, and the University of Oxford base of cornerstone businesses is continues to generate more spin- essential to future growth. They are outs than any other university in the the sectors which have contributed UK. Oxfordshire aims to help more to historical growth in Oxfordshire of its businesses to grow to scale. – for example, contributing to over Moreover, Oxfordshire has a higher 50,000 new jobs created since 2011/12 concentration of businesses in – and they underpin and support transformative technologies than in the Oxfordshire’s strong economy. rest of the UK. Approximately seven per Breakthrough businesses tend to rely cent of jobs in Oxfordshire were located on innovation and transformative in the four science and technology technologies. These technologies, sectors as identified in the Science and and the innovation spurred by the Innovation Audit (SIA), compared with convergence of technologies across four per cent in the UK. The markets industries, have the potential to drive for transformative technologies are economic growth at scale and will rapidly growing, and Oxfordshire is increasingly drive productivity across well-placed to tap into this potential all sectors. These businesses tend for growth. The SIA suggested that, to be riskier but have the potential by 2030, transformative technologies for accelerated growth, becoming could contribute 800,000 jobs to ‘gazelles’ (businesses that grow by the UK economy, eight per cent of 20 per cent for a period of four years which could be in Oxfordshire. consecutively) or ‘unicorns’ (businesses with a market value of over US$1bn).

65 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 8: Cornerstone v Breakthrough Businesses

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R Oxfordshire E N

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2.4% 9% growth year-on-year in growth year -on-year in the number of businesses the number of businesses

CORNERSTONE BREAKTHROUGH

Cornerstone businesses support Breakthrough businesses stimulate breakthrough businesses, growth throughout the economy providing them with essential and can transform cornerstone services and supply chains. business models through sharing innovation and technology that can improve productivity.

66 However, Oxfordshire also has Access to Finance challenges to address, to ensure the There remains a complex and confusing region can maximise its potential finance market with continued to commercialise and innovate challenges for high growth potential transformative technologies. businesses being able to secure long- There is room for productivity to term patient capital – particularly increase. Whilst the region’s GVA per at early stage investment points in hour is above average for England, in the business lifecycle. Furthermore, recent years it has fallen below the the nascent technologies which the south east. This is driven by a high Oxfordshire ecosystem is pioneering are number of hours worked on average cutting edge. There is a particular lack in Oxfordshire, so although net GVA of long-term patient capital available is high, productivity per hour is lower. to firms to develop to scale and grow The Economic Baseline Review also and enable ideas and innovations to shows that Oxfordshire firms are quite develop as new products and services. polarised in their productivity. There Both Oxford University Innovation are larger than expected numbers of (OUI) and the Oxford Investment low productivity and highly efficient and Opportunity Network have identified productive businesses when compared the continued gap in early stage with the UK as a whole. Oxfordshire investment and seed capital within the aims to provide the best conditions ecosystem and its lack of capacity when possible for high-potential businesses to compared to other global ecosystems. grow, while supporting low-productivity Oxfordshire’s future success will business to bridge this productivity gap. require a more coherent and long- Access to premises term financing landscape, with a range of finance options for high- Recent analysis by Bidwells highlights potential businesses at different that Oxfordshire’s critical hubs are stages of their growth cycle. struggling to respond to demand for Local partners are committed to new premises, leading to record rental undertaking further analysis of the costs. Despite plans to expand, it is financial marketplace to further uncertain whether the development of understand the key factors affecting new facilities will meet the scale of the the ecosystem in order to put in place ecosystem’s need, which will have a solutions which can enable greater major impact on its ability to increase access to flows of business finance. investment in R&D activity overall. In particular, Oxfordshire lacks flexible laboratory and innovation space as well as Grade A office space, which are critical to attracting foreign direct investment and secure international business headquarters in the region.

67 Industrial Strategy Oxfordshire Local Industrial Strategy

Transformative technologies are, by This Local Industrial Strategy prioritises: their nature, evolving and nascent: 1. bringing even more high- businesses within the ecosystem potential firms into Oxfordshire’s have expressed the need to de-risk innovation ecosystem; and investment opportunities in these high risk, high-value markets to make them 2. attracting further market investment more attractive for firms to attract and into infrastructure and businesses, accelerate investment in R&D activity. to ensure Oxfordshire businesses In order to achieve the step change grow with the grain of the market. proposed by the government’s 2.4 per The Growth Hub cent R&D investment target, measures need to be put in place which factor To bring high growth firms in to the in the overall risk level involved for innovation system, Oxfordshire will firms and offers a better calibration enhance the offer of the Growth Hub of the long term trajectory of product through ESIF investment, to enable it development and testing which can to deliver more support for businesses. be put in place to incentivise business The Growth Hub remit will expand to investment alongside UKRI funds. deliver more targeted support and advice to different types of businesses: Foreign Direct Investment from high-growth and high-potential Foreign Direct Investment (FDI) has firms to those with lower levels of grown steadily over recent years. productivity but substantial potential to 2017/18 saw a record 98 new investors improve. Working alongside partners landed primarily due to the opening of Oxfordshire will develop improved, the £440m Westgate Shopping Centre joined-up business support, including: and expansion at Bicester Village. ``establishing a Scale-Up Programme, Notwithstanding expansion in the to support breakthrough visitor economy Oxfordshire’s core FDI businesses to grow to scale faster. strengths lie in life sciences, space and It will draw on successful global satellite and advanced manufacturing models to support innovators to which collectively account for the transition from idea-creation to majority of recent investments. The accessing funding and beginning chart below shows Oxfordshire’s growth to prototype and commercialise in FDI over a seven year timeline. technology and innovation. This Delivering the vision will also provide leadership and management training; and Partners across Oxfordshire will work together to create the best conditions possible for the next generation of high-growth firms: the best place in the UK for businesses and sectors that do not exist yet.

68 Figure 9: Total Reported FDI Successes in Oxfordshire

100

80

60

40

20

0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Westgate Opnening / Average Baseline (excluding Bicester Village Expansion Westgate opening/ BV expansion

``providing support to firms seeking Access to finance to increase their productivity by To boost financial support for high- adopting innovative business models growth businesses, working with and accessing management skills. partners in the Oxford-Cambridge Arc, This will focus on helping firms reach Oxfordshire will establish an Oxfordshire the prototyping and commercialising Finance Hub to support access to stage more quickly to capture value finance by providing advice and support from innovation and ideation. It in commerciality, business planning, will be based on mentoring rather Intellectual Property (IP) adoption than training, building on successful and investment. The Oxfordshire university-based models such as Finance Hub will work closely with the the Creative Destruction Labs in Oxfordshire Growth Hub to provide Toronto. Where relevant, this will finance advice and support to both draw on insights from existing breakthrough and cornerstone networks and mentoring schemes businesses. This will enable businesses run by Be the Business and others. to receive the support they need to accelerate IP adoption and investment in research and development.

69 Industrial Strategy Oxfordshire Local Industrial Strategy

Internationalisation This will help institutional investors Oxfordshire will continue to to identify propositions with low strengthen its role as a destination for risk, fast return and potential for international trade and investment. global recognition. Oxfordshire Working with the Department for will seek to prove that market International Trade, Oxfordshire’s funding can be effectively utilised to Internationalisation Delivery Plan develop infrastructure solutions. will be included as a chapter of Business space the wider Arc Internationalisation Plan to maximise investment and Oxfordshire will also support business trade opportunities, linked to key growth through addressing the lack of sectors and global locations. business and innovation space. It will look to leverage planned developments Working with our partners in the which can offer the potential for Oxford-Cambridge Arc, Oxfordshire creating a major business district of will develop a proposition to establish scale, as a new commercial hub. This will an investment case to attract Wealth aim to meet the demand and interest Fund investment, complementing of Fortune 500 and NASDAQ company other UK funds, dedicated to R&D HQs to locate in the region. improving infrastructure across the Oxfordshire innovation ecosystem.

Commitments

Ambition: ––providing support to firms seeking Oxfordshire as a powerhouse to improve their productivity by for commercialising adopting innovative business models transformative technologies and accessing management skills. To drive progress towards ``Establish an Oxfordshire Finance Hub to support access to finance achieving this priority, by providing advice and support in Oxfordshire will: commerciality, business planning, IP ``Work alongside partners in the adoption and investment, which will Oxford-Cambridge Arc as part of work closely with the Growth Hub. the wider drive to develop improved, joined-up business support, including: ``Oxfordshire will diversify its investment strategy to attract the ––establishing a Scale-Up Programme private investment to support the to support breakthrough businesses delivery the infrastructure identified to grow to scale faster; and in the Oxfordshire Infrastructure Strategy and other enablers

70 required for economic growth market failures in creating new (including key technologies and commercial premises within the innovation). This will provide the Arc, bringing together a range of investment and funding necessary analysis already being undertaken for infrastructure improvements locally, regionally, and nationally. and expanded business support for ``Work with the Department for start-ups and scaling businesses. International Trade to encourage ``Support business growth through greater trade and inward investment, addressing the lack of business building on existing engagement and innovation space, looking to at LEP level and including the leverage planned developments development of an Oxford-Cambridge which can offer the potential for Arc Internationalisation Delivery Plan. creating a major business district of scale as a new commercial hub. Government is working in partnership with Oxfordshire ``Establish an investment case to support the delivery to attract institutional investors of this priority by: complementing other UK funds, ``Providing £142.5m of Local Growth dedicated to improving infrastructure Funding to support local growth in across the Oxfordshire innovation Oxfordshire, which has invested in: ecosystem and the Arc. ––Centre for Applied Superconductivity Working with local partners across - a new centre of innovation on the Arc Oxfordshire will also: the Harwell Campus and at the ``Work with government, within existing Culham Centre for Fusion Research budgets, to develop improved, Campus, supported by £4.5m Local joined-up business support for Growth Fund investment; and high-growth firms across the Arc, ––Disruptive Innovation for Space developing an Arc-wide offer to Centre which will provide access to different kinds of business. equipment and expertise to help UK ``Work with the British Business Bank companies innovate and accelerate to help SMEs in the Arc to access the development of new products the finance they need to grow and services, supported by £3m their businesses. Local partners Local Growth Fund investment. across the Arc will also explore the ``Continuing to support the Oxfordshire existing landscape and any gaps in Growth Hub to provide high quality finance for businesses, as well as business support across the county. the establishment of an Arc-wide business angel network to better ``Supporting the development engage with early-stage investors. of two Enterprise Zones at Didcot and Science Vale. ``Work with government to develop a shared understanding of

71 Industrial Strategy Oxfordshire Local Industrial Strategy Places

The previous chapters, above, set out how the foundations of productivity will support businesses, universities, schools, colleges, research institutes and local authorities work to make Oxfordshire one of the world’s best places to build an innovative business. This final foundation illustrates how ``providing the enabling multi-level this will play out across the county. physical and digital connectivity As agreed as part of the Oxfordshire that uses sustainable, multi-modal Housing and Growth Deal with transport - within Oxfordshire government, the six Oxfordshire local connecting housing and growth authorities – Cherwell District Council, locations; across the Oxford- Oxford City Council, Oxfordshire Cambridge Arc by rail and road; and County Council, South Oxfordshire to the rest of the UK and beyond. District Council, Vale of White Horse Figure 10 Identifies key assets District Council and West Oxfordshire in the Innovation Ecosystem District Council - have committed to underpinning this Local Industrial producing a joint statutory spatial plan, Strategy in more detail, comprising known as the Oxfordshire Plan 2050. the three stages of Oxfordshire’s This will provide an integrated business lifecycle (Ideation, strategic planning framework and Innovation, Commercialisation) evidence base to support sustainable set out in the Ideas chapter. growth across the county to 2050, Although different areas are capable of including the planned delivery undertaking all stages of the business of new homes and economic lifecycle, some will be more suited than development, and the anticipated others. The map shows a concentration supporting infrastructure needed. of innovation from Begbroke to Harwell Underpinning this spatial vision is: and Culham, distributing out from this central area to the rest of the ecosystem. ``a polycentric network of innovation It also shows an expansion of commercial clusters: creating workplace activity across the region that can create and housing communities employment and business growth where across the county which are land is less constrained, rippling out innovative-by-design; and across the Oxford-Cambridge Arc and the rest of the UK. This solution seeks to retain the natural landscape and living experience as a major Oxfordshire asset.

72 Ultimately, businesses will seek to ``Output per head varies significantly locate near each other and where across the county, with averages they feel they can best capture supply being highest in Oxford at £41,000, chain and agglomeration benefits. and lowest in West Oxfordshire Summary of ‘Places’ at £27,000 – West Oxfordshire strengths and challenges has the highest employment rate, at nearly 84 per cent. ``Housing costs are around 50 per ``The county can be split between cent above the English median ‘out-commuter’ districts with in four of Oxfordshire’s five relatively low paying in-district jobs, authorities. Affordability (the ratio and ‘in-commuter’ districts facing of wages to housing) is higher high-value labour shortages. than the south east average – despite relatively higher wages. ``Affordability has deteriorated with the ratio, on average, of 12:1, and rising to 17:1 in some parts of the county - the highest in the country.

73 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 10: Key locations within the innovation ecosystem

74 Oxfordshire’s communities However, as Oxfordshire becomes Oxfordshire already provides a high an increasingly attractive place to quality of life and healthy communities. live, work and visit, it has developed Towns and villages across Oxfordshire a number of challenges that are now are vibrant and distinctive, and restricting economic growth. The urban Oxford is the highest ranking city in area of Oxford is contained within a PwC’s 2018 Good Growth for Cities tightly drawn Green Belt that prevents Index, which measures cities in the significant expansion around the city UK against a range of indicators for and limits housing supply. Flooding economic success and wellbeing. and other environmental issues limit the options for growth beyond existing Oxfordshire’s natural capital and cultural boundaries. Local towns are able to and heritage assets are uniquely rich ease housing pressure for the city but and diverse, including three Areas of there are challenges in connecting Outstanding Natural Beauty, seven these hubs to core economic activity Special Areas of Conservation, rivers located elsewhere in the country. and the canal, parks and other green A strategic approach to long-term spaces, as well as a range of world- planning is needed across Oxfordshire class museums and libraries. These to coordinate housing growth and are important parts of what makes infrastructure investment – as set out Oxfordshire a place where people want in the Housing and Growth Deal. to live and businesses want to locate. This constrained housing supply is Oxfordshire is a global destination with making Oxfordshire increasingly international reach. It is increasingly unaffordable, increasing the price of attractive to visitors across new housing to buy and rent. The 2017 markets, attracted to Oxfordshire by median house price in Oxfordshire its considerable tourist offer including is now 50 per cent higher than the the City of Oxford, Bicester Village, English average. Oxfordshire also the Cotswolds and Blenheim Palace. In has a housing to income ratio of 12:1, 2017, the county welcomed nearly 30 which rises to 17:1 in some parts of million visitors, with many of these from the county. This has created a cost of international locations. The tourism and living challenge for many residents, hospitality industry supports 10 per affecting the City of Oxford especially cent of all employment in Oxfordshire, in the Index of Multiple Deprivation. contributing £2.17bn to the economy. Increased investment in areas such as high grade hotel stock and international conferencing facilities could boost this offer, complement Oxfordshire’s global brand, and create more accessible, permanent jobs for the wider community

75 Industrial Strategy Oxfordshire Local Industrial Strategy

This is exacerbating the inequality These living labs, as illustrated below within Oxfordshire, making the region and in figure 11, will provide a platform less attractive to global top talent, and for the region’s world-leading science less able to retain recent graduates and technology clusters to work with from our universities and provide local communities to see how their affordable housing for key lower and products work in practice and deliver middle-income workers upon which new innovations in place shaping the economy depends. This lack of and sustainable communities. ability to attract and retain talent can also hinder business growth and Living Lab Building restrict investment into the region. Blocks in Oxfordshire The key building blocks for world Delivering the Vision leading Living Labs already exist in Ambitions for growth in the area Oxfordshire with partners collaborating mean that Oxfordshire can go further, across local authorities, universities pioneering new communities that and local businesses, to deliver integrate cutting-edge technologies into innovative projects that demonstrate sustainable and attractive surroundings. the Living Lab concept. For example: Working between local authorities, ``A community of senior leaders public service providers and private across industry, academia and developers gives the region the local public services who are opportunity to design a globally recognised as market leaders in recognised sustainable, high quality, complementary disciplines, united liveable place utilising new technologies by the opportunity that Living Labs and services developed in Oxfordshire. present for the UK both to resolve These will be designed in partnership national challenges and generate with businesses and communities knowledge to build export markets. to tackle the four Grand Challenges ``Pro-active community engagement set out in the Industrial Strategy. enabling individuals to participate To achieve this, Oxfordshire will work and feedback at all levels enabling with industry partners to develop local communities across the County pioneer communities that act as to be part of the solution process. living labs, preparing communities ``Fundamental and translational for technological and environmental research taking place at the change including the advent University’s Hospitals and Science of connected and autonomous Parks underpinning the national effort travel, all electric energy, smart across science and engineering in homes and sustainable living. academia and industry. 20 per cent of the programmes at the Diamond and ISIS accelerator facilities focus on energy R&D and UKAEA on long

76 term energy solutions with its present ``Exploration by engaging all focus on fusion and robotics. stakeholders, especially user ``Accelerated product development communities, at an earlier stage for local companies in the Oxford, of the co-creation process to Harwell, Milton and Culham Science discover emerging scenarios, Parks across critical sectors, together usages, commercial models and with strategic partnerships with major behaviours through live scenarios companies including Siemens, Bosch, in real or virtual environments. EDF Energy, Immunocore and BMW. ``Experimentation that implements ``The presence of future- appropriate technological artefacts ready innovation test beds in vivo to benchmark live scenarios pioneering and accelerating the involving large number of users whilst, creation of new solutions. in parallel, collecting data for analysis. ``Significant opportunities to ``Evaluation that assesses innovative accelerate public – private investment concepts as well as related in R&D, supporting wider UK technological artefacts in real-life ambitions to increase R&D to situations through various dimensions 2.4 per cent of national GDP. such as socio-ergonomic, socio- cognitive and socio-economic ``Complementary infrastructure aspects. It is the observation of development through the Oxfordshire what happens when technology Housing & Growth Deal, integrated confronts user value models that with the emerging transport strategy roots a Living Lab in real feedback being developed by England’s rather than experimental learning. Economic Heartland and the spatial vision emerging for the Arc. Oxfordshire will work in the short-term to establish: Each living lab will bring together multidisciplinary, multi-sector teams ``A Data and Mobility Living Lab, and supply chains to collaborate including (but not limited to) to explore opportunities for: at Culham Smart Village, West Oxfordshire, Oxford City and Didcot ``Co-creation of solutions by bringing Garden Town. These will explore new together technology push and market- solutions and technologies, such pull factors across a diverse range of as autonomous vehicles and smart viewpoints, constraints and knowledge infrastructure to support improved levels to sustain the exploration of connectivity and mobility across the new scenarios, concepts, related ecosystem. They will explore the use potential products/services, of integrated transport services that business models and solutions. reduce reliance on private vehicles, while promoting independent living and reducing congestion.

77 Industrial Strategy Oxfordshire Local Industrial Strategy

``A Clean Growth Living Lab, Harnessing Healthy Place Shaping working with Oxford-Cambridge There is growing evidence that Arc partners at sites including significant benefits for local people can Harwell, Bicester Garden Town and be achieved through bringing together Culham Smart Village to pioneer planning for housing, infrastructure new forms of locally generated low and the economy with planning carbon energy technologies and for residents’ health and wellbeing. solutions. Oxfordshire will work with Integrating health and wellbeing partners to develop, evaluate and into the growth agenda across pilot innovative low-carbon energy Oxfordshire seeks to simultaneously technologies and solutions for new improve productivity and workforce housing settlements and business productivity and deliver better locations including the development longer-term outcomes for people. of off-grid and new fuel services. These labs will support Oxfordshire’s Local partners will work collaboratively commitment to a 50 per cent with local healthcare providers to reduction in CO2 emissions by 2030 integrate the concept of Healthy Place compared to 2008, and its wider Shaping into the Living Lab approach. vision for net zero emissions by 2050. ``A Health and Wellbeing Living Lab, linked to the Global Health and Life Sciences Quarter. This will provide pioneering resources and innovation, and support other life sciences hubs across the ecosystem, including Milton Park and Harwell, into health services within existing communities and the new Garden Towns, Garden Village and other settlements with a focus on delivering improved outcomes arising from an ageing society.

78 Case study: Bicester Healthy New Town

The Healthy New Town Programme at The programme aims to improve Bicester is a place-based prevention both the physical and mental health programme, using the opportunities of everyone in Bicester – the existing presented by population growth community as well as those moving to test innovations in the built to the town – by enabling residents environment, new models of to adopt healthy behaviours. care, and community activation Businesses have been actively to improve health and wellbeing. engaged in promoting healthy The aim is that Bicester becomes workplaces, introducing evidence- a place where healthy behaviour based workplace interventions aimed is easy, fun and affordable - where at improving the health and wellbeing being active, eating healthy food, of employees. Tailored guidance and being a good neighbour has been offered to businesses on are part of normal daily life. how best to support employees The programme has adopted a to improve health and ultimately systems-based approach to delivering improve productivity. Good local work change, working closely with a wide opportunities that enable residents range of partners including schools, to choose active travel and to work businesses, health and care providers, in healthy workplaces are supporting the voluntary sector, housing the development of Bicester as a developers and academic partners, thriving community – a place where with Cherwell District Council people want to live and work. acting as the lead organisation.

79 Industrial Strategy Oxfordshire Local Industrial Strategy

Figure 11: Living Lab ‘Life Cycle’

We will co-create solutions through public-private-people partnerships, working closely with universities, investors, developers and local communities We will explore Solutions will be technology-enabled people-focused solutions to the UK’s and integrated into Grand Challenges, communities to exploring the enhance quality of life convergences between and liveability. People technologies to create will be at the centre new products of the design and and services Oxfordshire testing process as a living laboratory

Multidisciplinary The living lab will collaboration will bring demonstrate proof of together areas of concept and scalability of specialism, including solutions to governments, technological innovation, industry and investors, social science, policy, which will benefit the wider planning and data science UK market New products, services and solutions will be safely developed and tested at speed in real-world environments, by real people using data driven evaluation

80 Case study: Culham Future Development

The announcement of the new Thames local employers and investors. River crossing between Didcot and Furthermore the 3,500 new housing Culham is a significant investment in settlement identified in the South South Oxfordshire that is designed to Oxfordshire Local Plan adjacent to relieve the A34 west of Abingdon and Culham Railway Station would be well Oxford; link the major centres of high served by the new road and also the tech employment growth at Harwell, Didcot-Oxford mainline railway and the Milton Park and Culham; relieve local underutilised Culham Railway Station. congestion south of Abingdon; enable This new settlement, which for now is housing development at Didcot and being called Culham Science Village, Culham; crystallise the western end provides a rare opportunity to explore of the Oxford-Cambridge Arc and, in digital-enabled living by building an time, connect seamlessly to CrossRail, inclusive all age connected-community; Heathrow and the City of London. shared mobility ownership and first- This investment in infrastructure also mile-last-mile intermodal transport; underpins two globally attractive Living integrated data services including Lab opportunities. The first builds a community data trust; drone and on the Connected and Autonomous autonomous vehicle delivery services Vehicle (CAV) work being conducted linking local retail and community around Oxford and centred on the facilities with larger hubs in Oxford UKAEA’s RACE facility at Culham. and Didcot/Reading; digital health/ Oxfordshire proposes establishing GP services; integrated education with a CAV service between Culham and the adjacent European School; off grid Harwell via Culham Railway Station, energy, water, recycling and sewerage. Didcot Parkway and Milton Park. In These Living Labs will leverage the parallel with using existing rural roads, Housing Infrastructure Fund investment this CAV service would also use the by resolving local congestion issues, new road and bridge. New CAV Test building high-need housing as well Bed facilities at RACE provide an ideal as attracting multi-national attention location for the ‘CAV Depot’ along and investment. Companies including with the multi-disciplinary teams who Siemens, EDF, Bosch, Williams, would want to develop the service Oxbotica, Arrival, Amey, Telefonica, exploring all aspects from user Nominet would join UKAEA, University requirements and real use, experience of Oxford and Oxford Brookes and pricing; insurance and regulation; University in creating a world-class integration of many stakeholders cluster building on the huge depth of including technology developers, scientific capability and capacity. councils and highways agencies,

81 Industrial Strategy Oxfordshire Local Industrial Strategy

Commitments

Ambition: Working with local partners across Capitalising on innovation and the Arc Oxfordshire will also: infrastructure investments, Oxfordshire ``Consider ways to contribute towards will become a ‘polycentric network of the government’s Clean Growth Grand innovation clusters’. This will be based Challenge mission to at least halve the on exemplar new housing communities, energy use of new buildings by 2030, linked to innovation parks and assets supporting the Arc’s wider ambition throughout the county and country. to create clean, energy efficient and sustainable communities for all. To drive progress towards achieving this priority, ``Ensure that the environment in Oxfordshire will: the Arc is left in a better state for future generations: ``Work with industry partners to develop pioneer communities that act ––embodying England’s 25 Year as living labs, preparing communities Environment Plan which sets out for technological and environmental our comprehensive approach to change including the advent of improving landscapes and habitats, connected and autonomous travel, and the aspiration to move to a policy all electric energy, smart homes and of net environmental gain in future; sustainable living. This will include: ––engaging with government to ––a Data and Mobility Living Lab, co-design a local natural capital including Culham Smart Village, planning approach for the Arc, West Oxfordshire, Oxford City ensuring that the wider work and Didcot Garden Town; on productivity is aligned; ––a Clean Growth Living Lab, including ––using intelligent and sensitive Harwell, Bicester Garden Town design in new housing and and Culham Smart Village; and infrastructure developments; and ––a Health and Wellbeing Living ––considering ways to maximise Lab, linked to the Global Health environmental expertise across the and Life Sciences Quarter. Arc and to empower the business community to champion and ``Work with local healthcare providers support the Arc’s natural assets. to adopt the principles of Healthy Place Shaping as part of the development of Living Labs across Oxfordshire.

82 Government is working in partnership with Oxfordshire to support the delivery of this priority by:

To drive progress towards ``Providing £142.5m of Local Growth achieving this priority, Funding to support local growth Oxfordshire will: in Oxfordshire, which has invested ``Investing in the Oxfordshire Housing in, for example, Oxford North, a and Growth Deal, committing package to improve transport in to deliver up to 100,000 homes the north of the city and enable by 2031, with up to £215m of the Oxford North development investment, including £60m for which will provide business and affordable houses and £150m over research space and new homes, five years for infrastructure. with £5.9m Local Growth Funding. ``Investing £218m of Housing ``Recognising significant natural Infrastructure Fund in Didcot capital assets across the county, Garden Town, to support up to including three Areas of Outstanding 13,411 new homes, alongside over Natural Beauty, seven Special £500m of further investment from Areas of Conversations, world- Homes England since 2010. class museums and libraries.

83 Industrial Strategy Oxfordshire Local Industrial Strategy Priorities across the Oxford-Cambridge Arc

This Local Industrial Strategy has started to set out how shared priorities for Oxfordshire fit with a wider range of activity being taken forward locally, regionally and nationally. The Oxford-Cambridge Arc cuts across Ideas boundaries and affects each of the The Arc has unrivalled science and four areas in the Arc in similar ways. technology capabilities – from the These offer government and local renowned research centres in Oxford partners the opportunity to act at scale and Cambridge, to their surrounding with a consistent approach across technology campuses such as the Arc and, as with the preceding Harwell, and commercial testbeds local priorities, they can be structured in the ‘Connected Core’ of the Arc. around the foundations of productivity. Bringing these many assets together ``Ideas – Innovation, including at scale would create a driver of the Future of Mobility. growth and innovation for the UK. ``People – Skills. However, the Arc is not yet a single innovation ecosystem and has potential Infrastructure - Energy and Digital. `` to drive greater economic growth ``Business environment. and productivity: more can be done ``Places – including Environment. to connect its numerous assets in a manner which demonstrably adds Local partners will work together value. Achieving this will involve both collaboratively across all of these building existing strengths such as Foundations to ensure that the life sciences and providing the best implementation of the four Local environment possible for the emergence Industrial Strategies maximises of disruptive technologies. The prize is the economic potential of the higher R&D investment in support of the wider Arc region as a whole. Industrial Strategy’s 2.4 per cent R&D target, UK leadership in transformative technologies, and a continued post- EU Exit future as a global centre for science, research and innovation.

84 In order to achieve this, Arc partners As outlined earlier, the Arc’s R&D will work with government, UK strengths also makes it well placed Research and Innovation and to address the Future of Mobility others on the following priorities: Grand Challenge, with many assets ``Harnessing the collective strength such as Culham, Cranfield, Millbrook of the Arc’s research base will be and Silverstone playing an important essential. The new Arc Universities role in developing and testing Group will act as the focal point new transport technologies. for cross-Arc collaboration on To achieve this, government will science and research, identifying work with the LEPs within the Arc and delivering joint R&D projects and other local partners, including and providing a pipeline of talent to England’s Economic Heartland, to: knowledge-intensive businesses. ``utilise the considerable R&D assets ``The Arc will strengthen its ability for within the Arc to meet the Future businesses to commercialise ideas of Mobility Grand Challenge and coming out of its universities and government’s Road to Zero strategy. others. Key to this will be a network This will put the UK at the forefront of ‘Living Laboratories’ that both of the design and manufacturing of trial technologies linked to new zero emission vehicles, supporting developments across the Arc and government’s commitment to end help address the Grand Challenges, the sale of new conventional petrol developed by industry and local and diesel cars and vans by 2040; partners across the Arc. Arc partners ``build on the Arc’s existing role will also use assets such as Harwell, as a testbed for new transport Silverstone and Cranfield to establish technologies, such as automated new networks that support the vehicles and drones, working with convergence of technologies across HMG and Zenzic to competitively sectors and seek to develop emerging access existing research and districts such as West Cambridge. development support, and scoping ``Finally, the Arc will seek to grow further opportunities to trial mobility its role as a global research and services within the Arc; and innovation hub, acting as a UK ``support local authorities within the magnet for international talent, R&D, Arc, as set out in the Future of Mobility FDI and research collaborations. Urban Strategy, by providing guidance The LEPs and MCA will work with on design and planning to ensure new the Department for International communities are designed and built to Trade, the Arc Universities Group enable new approaches to mobility. and others to channel foreign investment in the assets and projects that will make the biggest impact on Arc-wide and UK growth.

85 Industrial Strategy Oxfordshire Local Industrial Strategy

People Whilst recognising the strong overall The Arc is starting from a strong position employment position of the Arc, it is with a well-functioning labour market also essential that work to drive growth - across the Arc employment is high across the region considers how best compared to national averages and to address inequalities and challenges education attainment rates are generally certain groups face in accessing and good. The Arc is home to many world- progressing in the labour market. leading higher education institutions Delivering transformational growth that drive the knowledge rich economy. necessarily requires actions to support the key growth sectors identified in the It is vital that the Arc continues to economic context chapter above. But build on this solid foundation in doing so in an inclusive and sustainable order for all people and communities way will also require all partners to across the Arc to have access to consider how best to: encourage these opportunities and businesses good quality employment across the have access to the workforce they whole economy; support progression need to meet future ambitions. for those in low pay and low skilled Businesses across the Arc consistently employment and, support workers to cite attracting and retaining a stay in employment when they are at sufficiently skilled workforce as a risk of losing their jobs due to issues particular challenge. Through the newly such as age, health or automation. established Skills Advisory Panels, To do this the LEPs will continue to build LEPs will bring local employers and on the well-established relationships skills providers together to understand with local partners to address these current and future skills needs and put deep-rooted challenges. This will include in place activity to address these local ongoing engagement with Jobcentre challenges. Through these Panels the Plus, local education providers four LEPs and government will work and community organisations. together to understand the challenges that businesses across the Arc face in securing the workforce they need to meet their future ambitions.

86 Across the Arc, through Skills technical and degree apprenticeships. Advisory Panels, the LEPs will There will also be continued collaboration work with government to: across the higher education sectors ``Review labour market intelligence through the Arc Universities Group to across the Arc, to gain a better ensure alignment between the higher understanding of how skills provision education offer and the emerging is currently delivered and funding needs of breakthrough businesses, utilised. This will include working including top quality leadership and closely with the Department for management training supported Education through local Skills by the business school network. Advisory Panels and providers across the Arc to consider how local Infrastructure provision supports the ambitions set The Arc as a whole is already out throughout these strategies. experiencing infrastructure constraints – especially in energy, transportation, ``Work with local employers to increase water and housing. Realising shared apprenticeship uptake across ambitions around economic and the Arc, supporting employers to community growth will require the maximise their Apprenticeship Levy development of the right infrastructure contributions and drive social mobility. to meet the needs of existing and ``Work with local employers to new communities, supporting the support the effective role out of T economy of the Arc and championing levels and utilise local labour market the UK’s global competitiveness. intelligence to work with providers As well as getting the basics right, there to consider how the local T level is the opportunity for a step-change offer will support local businesses. in connectivity. Government and Arc ``Coordinate the work of Skills partners are working to deliver East- Advisory Panels to bring together West Rail and the proposed Expressway training providers from across the which are central to enabling the long- Arc, with a view to establishing an term housing and business growth Arc-wide skills marketplace. This will ambitions within the Arc. However, build on the LEPs’ positive working greater connectivity will not be fully relationships with the Careers and delivered without the challenge of the Enterprise Company and other ‘first-mile-last-mile’ being addressed. The careers services, and work to improve Arc suffers from significant congestion provision across the Arc. This will which local partners are looking to utilise the evidence provided by each address through innovations such as the Skills Advisory Panel, connecting proposed Cambridge Autonomous Metro businesses with regional and and Luton DART (Direct Air Rail Transit). national skills providers and people with targeted support including apprenticeships, STEM skills, T levels,

87 Industrial Strategy Oxfordshire Local Industrial Strategy

The LEPs have already produced The growth anticipated across the Arc local energy strategies, documenting gives us a chance to test innovative the energy needs of their local areas. approaches to: improving digital and These will be the starting point to data connectivity; minimising energy consider the energy needs of the Arc demand and increasing energy supply; as a whole; drawing in new evidence, and addressing the Grand Challenges. joining up local energy strategy delivery The scale of growth also offers and using the opportunities created the chance to explore new ways of through the growth of the Oxford- coordinating and funding the delivery Cambridge Arc as a catalyst for a of new infrastructure across the Arc. To transformation of energy generation, seize these opportunities, the Arc Local distribution and use across the Arc. Industrial Strategies announce that: Digital and data coverage in the Arc ``local partners will collaborate with is good relative to much of the UK Department for Transport, Highways – with world-leading infrastructure England, East-West Rail Company in some of the region’s specialist and England’s Economic Heartland facilities – though it remains patchy, to expand the economic benefits of especially in rural areas. This holds planned strategic transport links, back growth given the opportunities improvements to the Major Roads for knowledge-intensive home-working network and the first-mile-last- and 5G-enabled innovations in the mile connections across the Arc; rural economy throughout the Arc. ``government and local partners will The area’s natural capital and conduct a review of recent evidence environmental infrastructure underpins work at local, regional and national- and supports the local economy, level, to develop a shared evidence offering flood protection and providing base for the current and future energy clean water and natural spaces. The needs of the Arc. This could provide changing climate will affect existing opportunities to test new energy infrastructure resilience and future policies or approaches within the Arc; infrastructure needs, requiring us to ``government and local partners will create climate resilient places and work to identify and diffuse best infrastructure. In addition, the Arc practice on digital infrastructure presents a unique opportunity to deliver planning in the Arc and explore flood risk and water management opportunities to align new through strategic activity across local transport infrastructure with digital authority and LEP boundaries. infrastructure in the Arc. This will aim to support industry to accelerate the roll-out of full fibre networks, enabling accelerated growth of 5G technologies across the Arc;

88 ``local partners will work to standardise Central to the Arc’s approach will be public data where possible - such developing a Global Growth Network as through the opportunity of internationally-focused businesses, created by local government scale-ups and sectoral clusters. Together, unitarisation in Buckinghamshire and this will foster a breakthrough growth Northamptonshire - and with support region and a driver for the UK economy. from government policy experts, to ensure that the opportunities to Partners across the Arc will work collect and capitalise on data are with government and others utilised. This will be done with a view across the following priorities: to addressing Grand Challenges ``local partners will work with around the Future of Mobility, the government, within existing budgets, Ageing Society, and Clean Growth. to develop improved, joined-up business support for high-growth ``Government and local partners firms across the Arc. Central to will work together across the wider this will be a network of the four Oxford-Cambridge Arc to explore Growth Hubs across the Arc, who proposals for new approaches to will work and with existing support funding infrastructure, as set out in programmes to develop an Arc-wide government’s response to National offer to different kinds of business. Infrastructure Commission Report They will profile the firms that can at Autumn Statement 2018. deliver the biggest shift in growth, Business environment productivity and exports in places, The Arc is home to a dynamic business diagnosing barriers to growth in base and a range of high-growth and the firm’s capacity to innovate innovative firms. However, businesses and increase productivity. As part across the Arc still encounter barriers of this, Arc partners will identify to growth, particularly in accessing new ways to establish peer-to- the support they need to scale-up peer networks linking firms within rapidly, securing the right finance and between sectoral clusters; and access to the right commercial ``local partners and the British Business premises to start and grow. Bank will work together to help SMEs The Arc’s collective ambition is to in the Arc to access the finance they become a world-leading ecosystem need to grow their businesses. Local for high-growth businesses: with partners across the Arc will also an environment that enables them explore the existing landscape and to commercialise technologies, any gaps in finance for businesses, as grow to scale, and export. well as the establishment of an Arc- wide business angel network to better engage with early-stage investors;

89 Industrial Strategy Oxfordshire Local Industrial Strategy

``local partners will work with analysis of available data on success government to develop a shared across the Arc by sector and market. understanding of market failures in Each of the partners will work with the creating new commercial premises Department for International Trade within the Arc. This will bring together to develop a LEP-level ‘chapter’ for a range of analysis already being the Internationalisation Delivery Plan, undertaken locally, regionally, and based on the priorities and assets set nationally. This will ensure that the out in their Local Industrial Strategy. right premises are planned for, prioritised locally within any bids for Places future government funding, and built; Taken as a whole, this package of Arc-wide interventions, which sits finally, partners across the Arc `` alongside existing interventions being will work with the Department for progressed by government and local International Trade to encourage partners, will support sustainable greater trade and inward investment. growth across the region, benefitting This will build on existing engagement its residents, communities, businesses at LEP level and include the and the country more widely. Delivering development of an Oxford-Cambridge transformational growth in this way Arc Internationalisation Delivery will create opportunities across the Plan and inward investment group. Arc – spreading the benefits both However, much more needs to be to its prosperous centres and its done if the Arc is to reach its potential more deprived communities, and as a global player able to compete across its urban and rural areas. with innovation-growth zones like Seoul, Helsinki, San Francisco Doing so will require a holistic and Toronto. This will include an approach and partnership working with Arc presence at MIPIM Cannes in government and industry, to achieve March 2020 and an updated capital growth and improve place-making, investment led Oxford-Cambridge developing sustainable, resilient and Arc Brochure and Investment culturally vibrant communities. This Prospectus which identifies investable aims to provide a high quality of life for opportunities. Work will also continue residents - now and in the future. The to better integrate Arc sector scale of growth envisaged across the propositions into the Department Arc also offers the opportunity to plan for International Trade’s sector and for and build exemplar developments market priority campaigns, linking with high design standards; places the Arc’s key sectors into the ten where people want to live and work. highest potential export and inward Heating and powering buildings investment markets to drive Arc accounts for 40 per cent of the growth globally. This will involve total energy usage in the UK.

90 By making new communities within the ``England’s 25 Year Environment Arc more energy efficient and embracing Plan sets out our comprehensive smart technologies, energy demand and approach to improving landscapes household bills can be cut, and economic and habitats, and the aspiration to growth boosted while meeting the move to a policy of net environmental country’s targets for carbon reduction. gain in future. The policy for the Conserving and enhancing the natural Arc should embody this approach environment is at the heart of ambitions in line with national policy, so local for the Arc; growth offers an opportunity partners will work with government for environmental enhancement, in to explore opportunities for local turn driving productivity and innovative delivery of the Plan within the Arc, place making. Government and local including considering issues such as partners have agreed to embed climate resilience, water management ‘natural capital’ thinking throughout the and biodiversity net gain; approach to the Arc; harnessing nature ``local partners will also engage with to adapt to climate change, manage government to co-design a local flood risk and deliver broader benefits natural capital planning approach to businesses and communities. for the Arc, ensuring that the wider work on productivity is aligned; Working through existing partnerships, government and ``intelligent and sensitive design partners across the Arc will: should be used in new housing and infrastructure developments ``consider ways to contribute towards to create or enhance habitats in the government’s Clean Growth Grand line with national policy; and Challenge mission to at least halve the energy use of new buildings by 2030, ``government and the LEPs will supporting the Arc’s wider ambition also consider (i) ways to maximise to create clean, energy efficient and environmental expertise across the sustainable communities for all. Arc, creating opportunities to share best practice across public and private As the national Industrial Strategy set sectors; and (ii) how to empower the out, we will work not just to preserve, business community to champion but to enhance our natural capital and support the Arc’s natural assets, – the air, water, soil and ecosystems working together to attract and retain that support all forms of life – since the skilled workforce of the future. this is an essential basis for economic growth and productivity over the long term. To ensure that the environment in the Arc is left in a better state for future generations, local partners and government agree that:

91 Industrial Strategy Oxfordshire Local Industrial Strategy Delivering for communities, businesses and the UK

This Strategy will deliver inclusive growth in Oxfordshire, improving sustainability, productivity, prosperity and quality of life. This is not limited to Oxfordshire: it will also deliver transformative growth for the rest of the country.

For Oxfordshire’s communities ``An improved skills and education Improved productivity will lead programme will make Oxfordshire to better jobs, higher wages and a place of opportunity for all increased prosperity for Oxfordshire’s residents, creating more pathways residents, ensuring growth is to provide young people and inclusive, so that it brings benefits to local communities with the skills all residents across Oxfordshire. needed to access new employment ``As communities become more opportunities. Opportunities technology-enabled, they will be for re-skilling and upskilling will enabled to improve health and ensure everyone is able to engage wellbeing as well as quality of life. with the economy as it grows. Travel will be safer and smoother; the ``Oxfordshire will be a more affordable, environment cleaner; digital health sustainable and inclusive place to live, technologies will improve health reducing the levels of deprivation and outcomes and better meet the needs marginalisation from the economy. of an ageing society, delivering better Building on the Housing and Growth more efficient public services. Deal and Local Plans we will deliver ``Improved infrastructure and well-designed additional affordable connectivity will make Oxfordshire a housing, reducing the cost of living more accessible and better place to challenge in the county. This will live. The infrastructure improvements ensure a healthier, more sustainable we want to deliver will improve Oxfordshire for future generations. physical and digital connectivity. Reduction in congestion and travel times will improve quality of life for people and communities.

92 Case study: Greater Change

Greater Change is an Oxford-based to buying the target purchase. It start-up. It is a social enterprise aimed enables giving in a cashless society, at providing financial support to those increases the pool of potential givers, who are homeless, providing a way and provides those who are ‘street for them to fund long-term savings homeless’ with a safe way of saving. goals. People who are homeless So far, Greater Change has raised work with a support worker to agree over £10k and supported twenty a target purchase and budget for people to achieve their long-term this. Members of the public then savings goal. Greater Change has fund the goals of individual people now received confirmation of scale up directly through the Greater Change funding and will use this to expand its app and website, and money is sent services to more areas across the UK. directly to a charity that commits

93 Industrial Strategy Oxfordshire Local Industrial Strategy

For Oxfordshire’s businesses: ``Oxfordshire’s businesses will be pathways, including for technical and supported to integrate technology vocational training, will provide new and innovation to increase their opportunities for residents and help productivity and profitability. provide businesses with the specific ``New investment will create new skill sets they need to succeed. It opportunities for Oxfordshire’s will also help increase the number businesses – to compete of graduates who choose to stay internationally, and better and live and work in Oxfordshire. commercialise and capture value ``Increased public and private R&D from innovations. Oxfordshire’s spending will support businesses to strong global proposition will continue the research and innovation bring new investment into necessary to compete globally. Oxfordshire’s businesses, The Oxfordshire Local Industrial supporting them from innovation Strategy will help the UK Government through to commercialisation deliver on its commitment to work and international distribution. with industry to boost spending ``A better connected innovation on R&D to 2.4 per cent of GDP by ecosystem, with seamless digital 2027, championing cross-sector and physical connectivity, will help collaboration and innovation. businesses operate more smoothly ``Businesses will have an important and make it easier for employees role in solving challenges and creating to travel across Oxfordshire. benefits for the local population Better connectivity and more that will in turn support their own affordable housing will improve needs. Both breakthrough and high Oxfordshire’s quality of life for potential businesses will benefit residents and its attractiveness from new investment opportunities, as a location, to attract top talent technological adoption and innovation and encourage talent to stay. uptake. Both types of businesses ``Improved skills provision at all levels will have a critical role to play in in Oxfordshire will create a more innovating to solve local and UK-wide skilled labour market, aligned to challenges, developing solutions industry needs, for Oxfordshire’s that benefit local communities. businesses to recruit from. Developing new apprenticeship and career

94 For the country ``Innovation and technological ``Oxfordshire can increase its developments in Oxfordshire will contribution to the UK exchequer and deliver benefits and new supply continue to drive the UK’s economic chain opportunities across the growth. Oxfordshire is already a UK. Oxfordshire’s strengths in net contributor to the exchequer. transformative technologies Improving productivity and generating already have spill over benefits transformative growth in Oxfordshire for the rest of the UK will increase Oxfordshire’s total ``Industries and businesses across contribution to the UK economy. the UK will benefit from increased ``Oxfordshire’s strengths in access to international investment. transformative technologies will be Oxfordshire’s internationalisation applied to develop solutions to the strategy and development of global UK’s Grand Challenges that can then networks with other global innovation be used across the UK. Oxfordshire is ecosystems will draw attention a centre of innovation in technologies to the UK from the international that are shaping our futures. investor community. Oxfordshire Innovation in these technologies can will become a centre of excellence be applied and tested in Oxfordshire for international investment in to develop solutions to some of the transformative technologies for biggest challenges that are facing the UK, channelling investment the UK, including clean growth, our into key industries across the UK. ageing society, mobility and artificial intelligence. These solutions can then be used across the UK and internationally, solving real-world problems and improving lives.

95 Industrial Strategy Oxfordshire Local Industrial Strategy Implementation and evaluation

This Local Industrial Strategy will set the direction for Oxfordshire’s economy. Built upon solid foundations of clear evidence, it highlights where Oxfordshire and government will work together to maximise key strengths and tackle major challenges. Governance on place-making, connectivity and At the local level, the OxLEP Board will the environment, as well as central lead the implementation of this Local government’s national governance Industrial Strategy through its existing structures, including the Local governance and delivery structures, Industrial Strategy Implementation embedding the Strategy’s priorities Board and the cross-Whitehall Oxford- into its annual Delivery Plan and Cambridge Arc inter-departmental wider programme of activity. OxLEP board and Arc advisory group. will also work closely through the Funding Oxfordshire Growth Board to ensure the ambitions of the LIS are fully This Local Industrial Strategy does not aligned with wider growth aspirations, include any new spending commitments as set out in the Oxfordshire Housing outside of existing budgets. Instead, and Growth Deal. The Cities and Local it will inform the strategic use of local Growth Unit will work with OxLEP funding streams and, where relevant, to engage government in delivery spending and decisions at the national at the local level as necessary. level and provide a catalyst for UK and international investment from At a regional level, the three LEPs the private sector. It will also help and MCA, supported by the Ministry Oxfordshire decide on its approach of Housing, Communities and Local to maximising the long-term impact Government Oxford-Cambridge of the new UK Shared Prosperity Unit and Cities and Local Growth Fund once its details and priorities Unit, will collaborate through the are announced at Spending Review. Productivity Group of the wider These and other components will Oxford-Cambridge Arc governance inform and underpin an Investment arrangements to deliver the shared Prospectus to be developed by local Arc-level commitments, set out in all partners allowing both the public and four Local Industrial Strategies for private investors to understand how the Arc. This work will report to the they can invest in the region to achieve Arc Leader’s Board, ensuring this Oxfordshire’s economic potential. workstream is aligned to shared work

96 To demonstrate progress towards Monitoring Outcomes the long-term vision set out by this As well as setting out specific short- Local Industrial Strategy, the Strategy term actions, this Local Industrial contains a number of specific actions. Strategy has also set out Oxfordshire’s Where these actions are locally led, long-term aspirations and the specific these will be drawn from local budgets outcomes local partners are aiming which exist for those purposes with to achieve. These will help guide the objective of leveraging private future action and evaluate progress. investment and other resources; where actions are shared between By 2040, Oxfordshire will Oxfordshire and government, they aim to have secured: will be funded from existing local and ``its position as a globally leading departmental budgets, with funding innovation ecosystem in pioneering allocated for those specific purposes. transformative technologies which are This Strategy does not represent powered by dynamic and successful all the priorities and action being businesses in highly integrated developed in Oxfordshire. As detailed science and technology clusters, in this Strategy, Oxfordshire will delivering international market regularly review the latest evidence to leadership for the UK and creating continue designing the most effective growth and supply chain opportunities approaches and interventions to in Oxfordshire and across the country; be at the forefront of the future UK ``a dynamic approach to growth economy. This Strategy sets out long- which is inclusive and ensures that term ambitions and will continue to all communities across Oxfordshire evolve as the economy changes. have access to and benefit from the Oxfordshire will comply with all of the new employment opportunities and monitoring and evaluation requirements prosperity generated by a world- of each particular funding source, in leading innovation ecosystem; addition to the wider requirement to ``recognition as a location which monitoring the implementation of the harnesses the dynamic potential Local Industrial Strategy as a whole. of its science and technological innovation for the benefit of local residents, business and improved public services and an exemplar for contemporary living and design which delivers sustainable and flourishing communities;

97 Industrial Strategy Oxfordshire Local Industrial Strategy

``an employment and skills system Evaluation which responds to local demand and The government is committed to harnesses business leadership to drive devolution where there is a strong social mobility across Oxfordshire, evidence-base, robust governance creating pathways into employment and delivery track-record in place. and new careers opportunities into Robust evaluation is an essential the global innovation ecosystem; and element of demonstrating the effective ``recognition as a location supporting use of existing public funding. progress towards carbon neutrality Oxfordshire proposes that progress in a way that improves quality of in meeting the area’s Local Industrial life for residents, minimises the Strategy ambitions is monitored productivity impact on current through a two-pronged framework. businesses and maximises commercial First, there will be a set of SMART opportunities across Oxfordshire. LEP deliverables, which will be In order to ensure the opportunities measured and reported on as part in this Local Industrial Strategy are of the LEP’s Annual Delivery Plan. met, Oxfordshire will monitor the Second, there will be a set of wider progress of the outlined commitments economic indicators, which the LEP by developing a local Implementation can track and report on, and which Plan setting out clear milestones, will – if deviating from projected deliverables and timings for the trajectories – serve as a prompt for actions set out in this strategy. discussions with the OxLEP Board, Programme Sub-Group, government and other stakeholders around possible corrective action. It will examine opportunities to embed evaluation into programmes and policies where possible. The LEP will also continue to assess the latest evidence on ‘what works’ for interventions, in collaboration with independent experts.

98 References

1. Interim findings from Oxford- 5. Partnering for Prosperity: a new Cambridge Arc economic evidence deal for the Cambridge-Milton study (2019) AECOM and Oxford Keynes-Oxford Arc, National Economics. Taken from https:// Infrastructure Commission, 2017. assets.publishing.service.gov.uk/ Available at: https://www.nic. government/uploads/system/ org.uk/publications/partnering- uploads/attachment_data/ prosperity-new-dealcambridge- file/785869/Oxford_to_Cambridge_ milton-keynes-oxford-arc/ Arc_-_government_ambition_ 6. Government Response to and_joint_declaration.pdf “Partnering for Prosperity: a 2. Anglia Ruskin University, new deal for the Cambridge- Buckinghamshire New University, Milton Keynes-Oxford Arc”, 2018. Cranfield University, Oxford Brookes Available at: https://www.gov. University, The Open University, uk/government/publications/ University of Bedfordshire, cambridge-milton-keynes-oxford- University of Buckingham, arcstudy-government-response University of Cambridge, 7. https://www.oxfordshirelep. University of Northampton com/sites/default/files/uploads/ and University of Oxford. Oxfordshire%20Baseline%20 3. AstraZeneca and MedImmune Economic%20Review.pdf (2018), Cambridge: driving growth in life sciences: Exploring the value of knowledge-clusters on the UK economy and life sciences sector. 4. Silverstone Park (2017), https:// silverstone-park.com/media/latest- news/silverstone-park-commercial- director-roz-bird-confirmed-as- one-of-grant-thorntons-100- faces-of-a-vibrant-economy/

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