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University of Newcastle Submission: Senate Select Committee Inquiry Into Jobs for the Future in Regional Areas

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University of Newcastle Submission: Senate Select Committee Inquiry Into Jobs for the Future in Regional Areas University of Newcastle Submission: Senate Select Committee Inquiry into Jobs for the Future in Regional Areas The University of Newcastle welcomes the opportunity to provide a submission to the Senate Select Committee Inquiry into Jobs for the Future in Regional Areas. As a university of our regions, we welcome a policy focus on the future of jobs, skills and innovation in regions. Increasingly, universities play a key role in regional growth and development. Partnerships between universities, civic leadership, government, business and the community can be powerful vehicles for change, with the ability to align opportunity, skills and knowledge in our regions. Global examples of these multi- faceted collaborations abound, and the leaders in the Hunter Region are strong collaborators for change. Our submission follows collaborative discussion between key Hunter Region organisations, including the City of Newcastle, Hunter Business Chamber, Australian Industry Group, Hunter Joint Organisation, Committee for the Hunter, NSW Department of Industry, RDA Hunter and Muswellbrook Shire Council. About the University of Newcastle The University is research intensive and serves more than 37,500 students, 2,580 staff and 140,000 alumni. Built on the principles of equity, excellence and engagement, the University has created a remarkable legacy in education, research and innovation over the last 53 years. Currently, the University is ranked 207 in the world, and it is in the top 8 universities in Australia in terms of research excellence, and top 9 for research income. The University has campuses in Newcastle (Callaghan and City Precinct), the Central Coast, Sydney, Port Macquarie and Singapore. Through our Department of Rural Health, we have a presence in Tamworth, Taree, Moree, and Coffs Harbour, as well as other locations in the Hunter New England and North West region. Our Centre for Rural and Remote Mental Health coordinates services across NSW from Orange. Covering such a large area of the state, we have a significant stake and important role in helping all of our communities to meet the challenges of the future. The University’s student population reflects our regions: • a majority are mature age • 20-25% of the domestic students come via an enabling pathway • 4% of our students identify as Indigenous Australians, the highest proportion in Australia • 25% are from low SES backgrounds. a. New industries and employment opportunities that can be created in the regions Universities are anchor institutions in regions The Hunter Region is undergoing a long process of diversification – from reliance on manufacturing and resources to emerging jobs growth in the service sectors and knowledge economy. 1 Such regional growth and diversification is supported by research-intensive universities serving as anchor institutions, according to international experience: More than just local job engines, anchor institutions are the exact kind of business most communities want in today’s knowledge-based economy, where product value emanates from innovation, not mass production. Medical centers and research universities foster an entrepreneurial climate that attracts other young professionals and leads to spin-off companies in the growing tech economy … [They] provide a knowledge foundation for their home cities ....2 Regional investment in university infrastructure supports the core business of research and teaching creates additional jobs, even if a university is not actively supporting regional development3. Where universities do support regional development, in partnership with regional leaders in other sectors, major economic and industrial transformation can occur. Universities are International Gateways for Regions Like other major regional institutions, universities are able to act as an international gateway, drawing in international talent and fostering international collaboration. In doing so, tourism within the area is promoted, which can in turn support social inclusion and ethnic diversity. Moreover, a region is able to gain international recognition and foreign direct investment due to the profile and promise of its research and entrepreneurial achievements. Entrepreneurial mindsets are critical to remaining competitive in the workplace and the global economy. This promise is not being fully realised in Australia due to a lower entrepreneurial intent compared to other advanced economies, which some attribute to a culture harbouring a fear of failure. Framed in a regional context, these challenges increase in magnitude outside Australia’s capital cities, where there may not be a critical mass of visible entrepreneurs and innovators to emulate, nor an obvious pathway for progressing ventures. The Role of Policy Setting in Regional Growth and Diversification It is important that Federal Government and State Government policy is sufficiently nuanced to leverage the important economic and social role of cities like Newcastle, and its university, that have large regions. Current policy settings based on ABS codes for metropolitan and regional areas do not always reflect the diversity of non-capital universities’ students, communities and industries; nor do they reflect the lived reality of many communities’ experience of social and economic disadvantage. Communities like Windale in NSW, for example, are categorised at metropolitan, but have some of the lowest socioeconomic indicators in the State; communities like Maitland and Rutherford are classified as major cities of Australia while having small population centres and being effected by major resource industry cycles. While the ABS uses sound methodology to create these definitions, policy makers must apply them judiciously where they form part of national policy. 2 Kleiman, N., Getsinger, L. and Pindus, N. (2015), “Striking A (Local) Grand Bargain – how cities and anchor institution can work together to drive growth and prosperity”, National Resource Network – New Solutions for Cities. 3 European Union Regional Policy (EU) (2011) “Connecting Universities to Regional Growth: A Practical Guide”, Smart Specialisation Platform, http://ec.europa.eu/regional_policy/sources/docgener/presenta/universities2011/universities2011_en.pdf 3 Regional universities can create and attract new industries – examples Example: Strategic Planning Universities like Newcastle can shape the future of their regions through concerted effort and long-term planning. The University is currently in the process of renewing its strategic plan through a process of extensive consultation to more closely reflect the needs of its regions. At its centre will be engagement domains (i.e., ‘healthier living’) that reflect both regional need and institutional strength. These domains will help focus researchers and teachers in their engagement with stakeholders, making the University’s strengths more specific to our regions. Example: Integrated Innovation Network: creating new businesses New industries and jobs can be created through partnerships between universities and business. Launched in October 2016, the University of Newcastle’s Integrated Innovation Network (I2N) has a central aim of being a catalyst for regional transformation through innovation and entrepreneurship. In just under three years of operation, the I2N has welcomed more than 6,000 innovators and entrepreneurs from all industries, at different stages of their journey, and regardless of their affiliation with the University. At the heart of I2N are three strategically positioned entrepreneurship centres. They are in Newcastle City, Williamtown (in the airport’s aerospace precinct) and in Muswellbrook. They offer incubation facilities that are complemented by a series of connection events and cohort-based programs to build the enterprise skills and to build a community of practice in entrepreneurship in the region. Since establishment, I2N has launched 2 spin-outs and 16 start-ups. These companies have raised over $1m+ in funding, generated hundreds of thousands of dollars in revenue, and have created dozens of new jobs. All remain headquartered in the Hunter Region, critically diversifying our regional economy. The University and NSW Government have committed a further $10m to the development of a fourth entrepreneurship centre in the I2N. That will have capacity to house more than 120 members. It will be part of an expansion of the University’s Newcastle City campus, which is scheduled to open in early 2021. This networked innovation ecosystem is growing, realising a promise to contribute significantly to the transformational change of the Hunter and Central Coast to a knowledge-based economy. The Federal Government recently announced $18 million in funding towards a new Health Education and Innovation precinct in Gosford, on the Central Coast. Example: Urban Revitalisation: University’s City Precinct The University of Newcastle opened the landmark $95 million NeW Space building in Newcastle’s CBD in 2017. It is drawing students, staff and business into the city centre, with about 5,000 students based at the Coty Campus. This strategy was supported by State and Federal government to drive city centre renewal and re-urbanisation for the Greater Newcastle region. A study by the Hunter Research Foundation Centre in 2016 found the City Precinct would contribute $1.3 billion to the Hunter economy. Example: Central Coast Clinical School and Research Institute A partnership between the University, the Local Health District, and state and federal Governments, the
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