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A Science & Innovation Audit for the West Midlands June 2017 A Science & Innovation Audit for the West Midlands Contents Foreword 1. Introduction .......................................................................................................................... 1 2. Economic and research landscape .................................................................................... 4 3. The West Midlands SIA Framework ................................................................................. 15 4. Innovation Ecosystem ....................................................................................................... 18 5. Enabling Competencies .................................................................................................... 38 6. Market Strengths ................................................................................................................ 49 7. Key findings and moving forward .................................................................................... 73 Annex A: Case Studies ........................................................................................................ A-1 www.sqw.co.uk A Science & Innovation Audit for the West Midlands Foreword In a year of change and challenge on other fronts, this last year has also been one of quiet revolution. This year has seen a dramatic increase across the UK in the profile of science and innovation as a key driver of productivity and its potential to improve the way our public services are delivered. The potential has always been there, but there has been a recent wave of reports and strategies that have brought this front and centre in the minds of business, policy makers and other science and innovation stakeholders. This is reflected by the central importance of science and innovation in the Government’s Industrial Strategy Green Paper and the CBI report ‘Now is the Time to Innovate’. BEIS has also supported a series of Science and Innovation Audits (SIAs) over the last twelve months, of which the Midlands Engine SIA was one of the first. The West Midlands Combined Authority (WMCA) with its three partner Local Enterprise Partnerships (LEPs) have worked together with Birmingham Science City to produce a supplementary West Midlands report to the Midlands Engine SIA. This report provides a more detailed picture of our strengths and opportunities in science and innovation, and considers the ecosystem factors we LEPs and the WMCA, along with innovation partners, need to address to enable us to realise the potential of our local economy. The critical role of science and innovation is not new to policy makers in the West Midlands. The Strategic Economic Plans of the WMCA and all three of our LEPs, see business innovation as vital to the economic strength of our geographies. Birmingham Science City Alliance has been promoting and supporting innovation in the West Midlands for 11 years, in recent years working closely with the LEPs and WMCA. The West Midlands Science and Innovation Audit (WM SIA) is a report for everyone involved in the innovation ecosystem. By identifying our key market strengths, cross-cutting enabling competencies and innovation ecosystem strengths and challenges, it provides ample evidence to stimulate and steer action and future investment. We fully intend to use it to inform the continued delivery of our Strategic Economic Plans at the LEP and WMCA level, as appropriate. We strongly urge innovation stakeholders across the West Midlands to use this excellent report to inform strategic decision making; evidence and strengthen business cases for investment and funding; and foster increased collaboration between universities, local businesses and the public sector. There is currently a wave of positive awareness in business and government about the role science and innovation as a key driver of business productivity and the reform of public services. The WM SIA shows that, with the right leadership, cooperation and targeted action, the West Midlands has the science and innovation strengths, assets and relationships to seize this moment to further develop and exploit our science and innovation capabilities maximise growth across our economy. Andy Street Jonathan Browning Mayor of the West Midlands Chair of Coventry & Warwickshire LEP Stewart Towe Steve Hollis Chair of Black Country LEP Chair of Greater Birmingham & Solihull LEP www.sqw.co.uk A Science & Innovation Audit for the West Midlands 1. Introduction Context and purpose 1.1 In 2015, the UK Government launched a programme of Science and Innovation Audits (SIAs) to catalyse a new approach to sub-national economic development. SIAs were intended to enable local consortia to analyse their strengths in science and innovation, and identify specific areas of existing or emerging excellence, which can be built on to drive long-term productivity gains and enable local areas to realise their full economic potential. 1.2 The Midlands Engine SIA, developed on behalf of the Midlands Engine Innovation Group, was one of the first to be completed, reporting in September 2016.1 The Midlands Engine SIA focused on a spatial footprint spanning 11 Local Enterprise Partnership (LEP) areas across the Midlands, including internationally significant cities like Birmingham and Nottingham, growing regional hubs like Coventry, Wolverhampton and Leicester, important market/county towns, and large rural areas. 1.3 The Midlands Engine SIA identified the capabilities, challenges, and substantial opportunities for future economic growth across the region. Particular market opportunities were identified around Next Generation Transport, Medical Technologies and Pharmaceuticals, Future Food Processing, and Energy and Low Carbon, supported and underpinned by enabling competences of Advanced Manufacturing and Engineering, Digital Technologies and Data, and Systems Integration. 1.4 However, the Midlands Engine SIA also recognised explicitly that within the large and diverse Midlands Engine geography, there was widespread science and innovation capacity, excellence and opportunity that required a more spatially fine-grained and in-depth analysis. This SIA report for the West Midlands is a supplementary study that complements the Midlands Engine SIA, responding directly to this intent. As such, it is designed to help partners identify and shine a spotlight on the science and innovation assets in the West Midlands. 1.5 Building on the evidence, and energy amongst partners and stakeholders, developed through the earlier activity, the purpose of the West Midlands SIA was to develop a robust and tailored evidence base on science and innovation activity within and across the Black Country, Coventry and Warwickshire, and Greater Birmingham and Solihull. The SIA was undertaken on behalf of the three LEPs, the West Midlands Combined Authority (WMCA), and their innovation partners. 1.6 The West Midlands SIA will be used to help inform both local and national investment priorities. It will help to ‘make the case’ for further public and private investment to unlock and realise the productivity potential of the area, identify where there is scope for developing more pervasive collaborative cultures, and set out the specific opportunities for building a more resilient and outward facing innovation ecosystem. 1.7 This study was funded by the three LEPs, steered by the WMCA Innovation Working Group and managed by Birmingham Science City. 1 A Science & Innovation Audit for the West Midlands Introducing the area 1.8 The area covered by the LEPs of the Black Country; Coventry and Warwickshire; and Greater Birmingham and Solihull is home to four million people, over 6% of the UK total, including some of the most diverse communities in the country, and Birmingham, the UK’s second city. 1.9 Our strategic road and rail networks, including the M5, the M6 and the West Coast Mainline, are of national importance and crucial in the effective transportation of goods and people, and facilitating supply-chain relationships, across the country. HS2, with its headquarters in Birmingham, and Phase One providing a high-speed link between Birmingham and central London, will strengthen further our offer at the centre of the UK’s strategic transport network. Our excellent international linkages are also at the heart of our offer as a place to invest, work, live and play; Birmingham Airport handles more than 10 million passengers annually, and with HS2, will be the UK’s first and only high-speed rail connected airport. Figure 1-1: Map of the study area Developing the SIA 1.10 This SIA draws on an extensive evidence base, and has benefited from considerable testing and validation with partners and stakeholders across the area, including the Innovation Working Group of the West Midlands Combined Authority, with representation from the three LEPs, universities, local networks and Birmingham Science City. 2 A Science & Innovation Audit for the West Midlands 1.11 The SIA process has been shaped through two core strands of complementary evidence: • Data collation and analysis: drawing on publicly available data on science and innovation from national sources (e.g. Research Excellence Framework, Research Councils, Innovate UK), analysis of the Business Register and Employment Survey (using the latest available data), and information provided by local partners. We have also analysed data on research quality and collaborations from Sci Val.2 • Stakeholder engagement: two workshop events were held in January and February
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