Cornwall & Isles of Scilly Integrated Territorial Investment Strategy

April 2016 Contents Executive Summary

Executive Summary 3 Cornwall and the Isles of Scilly’s economy Our ITI Strategy consists of three key areas of faces a number of challenges which are activity: 1 National Context and Operational Programmes 6 reflected in low wages, low productivity Future Economy What is an Integrated Territorial Investment? 6 and relatively low skills attainment. Investment which will capitalise on National Operational Programme structure and arrangements 7 Cornwall and Scilly’s strengths and The Cornwall and Isles of Scilly ITI objective unique characteristics to exploit new and emerging markets 2 Strategic Context 9 to exceed the expected growth in terms Our economic challenges and barriers to growth 9 of GVA of the overall Cornwall and Isles Growth for Business Employment and economic activity levels 11 of Scilly economy by an additional £338 Investments which will accelerate Enterprise and innovation 11 million shows we have set challenging and increases in productivity and Infrastructure 12 aspirational targets. competitiveness in the area’s Social inclusion and skills 12 businesses Isles of Scilly 13 We want Cornwall and the Isles of Scilly (C&IoS) to Conditions for Growth Isles of Scilly transport connections 14 be geographically and culturally distinct, respected Investments which will address Our assets and opportunities 14 as a unique blend of people and place where the environment is valued both as a business asset and continuing blocks to growth, in an inspiration for life. infrastructure and human potential 3 Our Vision 21 What does success look like in 2020 and beyond? 21 Cornwall and Isles of Scilly should be a place where We have seen many significant investments in businesses and individuals can work together with previous EU programmes. We will work to ensure 4 Strategic Priorities 23 communities that thrive to reach their full potential; existing investments deliver continued growth and Strengths, weaknesses, opportunities and threats analysis 23 confident, outward looking, connected to each continue to build upon the region’s pioneering Additionality 26 other and to the world. The 2014-20 programme spirit and to try new approaches to drive growth Strategic Priority 1: Future Economy 28 needs to focus on increasing productivity, realising and productivity. We will support a new business Strategic Priority 2: Growth for Business 38 market-led opportunities and taking well-judged support delivery model to ensure individual Strategic Priority 3: Conditions for Growth 46 risks if we are to achieve this vision. businesses get the help they need to grow. We will We will use European Structural Investment (ESI) promote Community Led Local Development and champion the use of Financial Instruments rather 5 Integration of Funds 53 funds to deliver sustainable growth through than non-repayable grants. Alignment with other European funds 56 innovation, increasing our competitiveness and consolidating our existing assets and capitalising We aspire to make our investments some 6 Match funding and opt-in model 58 on opportunities for distinct competitive of the greenest in Europe and have actively advantage presented by our natural and cultural Local match funding sources 58 designed sustainability into our delivery resources. We will grow bedrock industries such mechanisms and governance. Sustainable as food, farming and marine and develop a strong development is a core element of this strategy. 7 Outputs and results 60 creative sector with world class art, theatre and It is our intention to become a net exporter heritage. of energy. However, we are not just focused 8 Delivery arrangements 64 We have consulted widely on this strategy and on energy production: we want to help all Technical Assistance 66 engaged with businesses, communities and our businesses reduce their impact on the Financial Instruments 66 local stakeholders, including the Local Nature environment, lower energy costs and decrease Community-Led Local Development 67 Partnership and the Health and Wellbeing Board. carbon emissions. It’s about doing things The institutions and people of Cornwall and the differently and developing skills and knowledge 9 Governance 69 Isles of Scilly support our proposed approach and as much as infrastructure: taking our people along this is reflected in Cornwall Council and the Council this journey and addressing inclusion issues will of the Isles of Scilly’s endorsement of this strategy. be fundamental to our ambition and success. 10 Monitoring and Evaluation 71 We have aligned our approach with the EU 2020 vision and the UK Government’s Industrial Strategy. Annex 1 - ERDF Investment Priority targets 72 So, whilst our vision is rooted in our region, it is global in scope.

2 Integrated Territorial Investment Strategy 3 Berrskrif Gweythresek Executive Summary

Erbysieth Kernow ha Syllan a enep niver a usi gwreydh agan hunros y’gan ranndir, ollvysel yw Our investment model jalenjys yw dastewynnys yn gobrow isel, y les. askorruster isel ha kowlwrians sleynethow Agan Strateji AKS a syns ynno tri lown alhwedh yw, yn kehevelus, isel. a aktivita: Future Growth for Conditions Amkan Kesva Kevarghow Ewngemyskys Ekonomieth Dhevedhek Kevarghow a wra gweytha krevderyow Economy Business for Growth Tiredhek (KET) Kernow ha Syllan, a ha gnasow unnik Kernow ha Syllan rag wordremena an tevyans gwaytys yn kever gweytha marghasow nowydh hag ow FE1 Drive growth in our region’s G4B1 Simplified, single point C4G1 Invest in digital Talvosogeth Keworrys Berrik (TKB) a’n tos yn-mes economy through Research & access to business support: infrastructure and digital skills for erbysieth dhien Kernow ha Syllan gans £338 Tevyans rag Negys Development and Innovation channelling demand to growth milvil keworransel, a dhiskwa ni dhe settya Kevarghowyow a wra uskishe investment to support our appropriate solutions kostennow chalenjus ha gorvynnus. ynkressyansow yn askorruster ha business base (existing and kesstrifuster yn negysyow an ranndir new) in integrating into the Ni a vynn bos Kernow ha Syllan (K&S) diblans yn Ragselyow rag Tevyans supply chains of key identified toroniethel hag yn hwonisogethel, gordhyes avel Kevarghowyow a wra dyghtya lettow a global markets where we can kemmysk unnik a bobel ha tyller mayth yw synsys bes dhe devyans yn isframweyth ha demonstrate a competitive talvosogeth an kerghynnedh avel ha kerth negys galladewder denel. advantage hag awen rag bewnans. FE2 Investment in activities with G4B2 Investments to increase C4G2 Implement support Ni re welas lies kevargh a bris yn towlennow kyns Le may hallo negysyow ha tus oberi war-barth growth potential that develop levels of R&D and innovation programmes to optimise carbon a’n UE. Ni a wra oberi dhe surhe kevarghowyow gans kemenethow a seweni drehedhes aga gallos Cornwall and the Isles of Scilly as across Cornwall and the Isles of management and to improve a-lemmyn dhe dhelivra tevyans a bes ha pesya leun; kyfyansek, ow mires yn-mes, omjunyes an a ‘green and marine’ region Scilly’s business base resources and energy efficiency drehevel war spyrys ragresek an ranndir hag eyl dh’y gila ha dhe’n bys. Res yw dhe’n dowlen assaya towlow nowydh dhe herdhya tevyans hag G4B3 Provision of infrastructure C4G3 Remove physical barriers 2014-20 fogella war ynkressya askorruster, askorruster yn-rag. Ni a wra skoodhya patron including high quality workspace to business growth and improve kowlwul chonsyow ledys gans an varghas, ha gul nowydh a-barth delivrans skoodhyans negys for business growth the economic viability of areas hapwariow breusys yn ta, mar mynnyn kollenwel rag surhe negysyow unnik a gyv an gweres including through infrastructure agan hunros. anodho mayth yw res dhedha rag tevi. Ni a investments Ni a wra devnydhya Arghasow Kevarghewians wra komendya Displegyans Leel, ledys gans G4B4 Increase workforce C4G4 Develop communities Strethurek (AKS) an UE rag delivra tevyans an gemeneth, ha skoodhya devnydh a Doulys productivity through skills and that are economically and sostenadow dre nowythheans, ynkressya agan Arghansek yn le grontow anattyliadow. career development programmes socially resilient, sustainable and kesstrifuster ha dri war-barth agan kerthow inclusive Ni a veder gul dh’agan kevarghowyow bos a-lemmyn, ow kweytha chonsyow a les kesstrifus nebes a’n glassa yn Europ ha ni re dhesinas yn C4G5 Improve progression into diblans hag yw profys der agan asnodhow naturel hweythresek sostenadewder y’gan argerdhow the labour market ha gonisogethel. Ni a wra tevi diwysyansow delivrans ha governans. Displegyans selvenek kepar ha boos, ammeth hag a’n mor, ha sostenadow yw rann gresek a’n strateji. displegya ranngylgh awenek krev gans art, gwariva Financial Instruments hag ertach a vri dreusvysyek. Mos ha bos esporther ylyn a nerth yw agan mynnas. Byttegyns nyns on fogellys marnas Community Led Local Development Ni re geskussulyas yn ledan a-dro dhe’n strateji war askorrans nerth: ni a vynn gweres oll ma ha kesoberi gans negysyow, kemenethow ha agan negysyow dhe iselhe aga effeyth war an kevrenogyon leel, y’ga mysk Keskowethyans Natur kerghynnedh, iselhe kostow nerth hag iselhe Leel, ha Kesva Yeghes ha Sewena. An fondyansow dyllansow karbon. Yth yw a-dro dhe wul taklow ha tus a Gernow ha Syllan a skoodh agan towl yn tyffrans ha displegya sleynethow ha skiansow profys ha dastewynnys yw hemma yn skoodhyans kemmys hag isframweyth: ow kemeres agan tus Konsel Kernow ha Konsel Syllan rag an strateji ma. a-hys an viaj ma ha dyghtya maters a ynkludyans a Ni re alinyas agan towl gans an hunros UE 2020 ha vydh selvenel dh’agan ughelhwans ha’gan sewena. Strateji Diwysyansel Governans an RU. Ytho, kynth

4 Integrated Territorial Investment Strategy 5 1 National Context and Operational Programmes National Context and Operational Programmes

Under the 2014-2020 ESI Fund programme, Cornwall and the Isles of Scilly will This strategy sets out the challenges and National Operational Programme receive €603.7m of ERDF and ESF and £9.4m of EAFRD directly allocated through development needs specific to the geographical Structure and Arrangements the England Growth Programme. area and aims to address the challenges in an integrated way. It includes indicative financial The England ERDF and ESF Operational allocations, investment plans, outputs and delivery Programmes outline the main territorial challenges As the only Less Developed Region in England, • Government will work with Cornwall & Isles of elements for ESI fund. C&IoS will have an ITI for England with specific references to Cornwall with distinct challenges and opportunities, Scilly to develop a locally tailored and branded Board comprised of local partners and Managing and the Isles of Scilly. The ITI Strategy identifies Cornwall and the Isles of Scilly will have its own suite of business support, taking into account Authorities which will advise the Managing local needs and drivers of growth that align to the Integrated Territorial Investment (ITI) to guide the national programme branding protocols where Authorities on how the money will be used, on Operational Programmes. It ensures an integrated investment of EU funds in the region. This ITI is appropriate; call development and on which projects have approach at C&IoS level, including identification of underpinned by this document – the Integrated • Government will continue to support the strategic fit with the ITI Strategy. The Managing appropriate implementation arrangements. Territorial Investment Strategy. development of a revolving community Authority has designated Cornwall Council as an There are nine (including Technical Assistance) The ability for Cornwall and the Isles of Scilly to infrastructure fund as a Financial Instrument; Intermediary Body which will seek advice from priority axes within the ERDF Operational deliver its EU funding through this mechanism • Government will explore with Cornwall and the the ITI Board in the same way as the Managing Programme and three within the ESF Operational was agreed through the Cornwall and Isles of Isles of Scilly the potential for cooperation with Authority would. The ITI Board will therefore Programme. The financial allocations for C&IoS Scilly Growth Deal1. The Growth Deal set out the public bodies which deliver the priorities in the provide advice to the Intermediate Body and/or against these priority axes are shown below. following agreements in relation to European LEP’s Strategic Economic Plan. the Managing Authorities as appropriate and as set Further details of each priority axis can be found funding: out in the written agreement with the Intermediate in the respective ERDF and ESF Opertational • Cornwall & Isles of Scilly will be offered a seat What is an Integrated Territorial Body (IB). C&IoS partners will work with local Programmes. businesses, the public sector and the VCSE sector on the Growth Programme Board and the ERDF Investment? and ESF Programme Monitoring Committees; to develop projects which will drive productivity An ITI is a delivery mechanism that enables the and wage growth in Cornwall and the Isles of Scilly • Cornwall & Isles of Scilly will have a seat on the implementation of a territorial strategy in an with ITI development, management and delivery Government negotiating team for the ERDF integrated manner while drawing funds from supported by Technical Assistance. and ESF Operational Programmes to support the relevant priority axes in the same or different discussions on Cornwall & Isles of Scilly issues; It seeks to bring all of the EU Structural and programmes. In Cornwall and the Isles of Scilly, Investment Funds together at a local level, ensuring • Government will work with Cornwall & Isles the ITI is the main delivery instrument for the alignment with other programmes, such as Defra’s of Scilly on the fast track implementation of implementation of the ERDF and ESF Operational national Rural Development Programme. This Community Led Local Development to ensure Programmes with complementary investment from co-ordinated approach to sustainable economic it meets the needs of local communities, as set EAFRD. growth, set within a specific local context, whilst out in this strategy; In Cornwall and the Isles of Scilly, the ITI contributing to both national and EU growth and • There will be a complementary local Technical Strategy builds upon and replaces the ESI Fund productivity targets, is complemented by a strong Assistance Strategy for the administration of the Strategy that was developed by the C&IoS community focus. The emphasis is on supporting Structural Funds in Cornwall & Isles of Scilly; Local Enterprise Partnership in 2013. The ITI growing businesses to ensure the region’s growth includes complementary components that is smart, sustainable and inclusive. • The delivery of the Cornwall and Isles of Scilly are financed from national and local budgets. elements of the communications strategy To ensure effective delivery, the monitoring and This includes national Growth Funds, Regional for the Structural funds, funded by Technical reporting arrangements set up under the ITI Growth Funds, Cornwall Council match funding Assistance and undertaken within EU legislative provide for the identification of operations and and other economic development funds. The requirements, will be devolved to local partners; achievements by Operational Programme priority C&IoS ITI includes the use of non-repayable axis. C&IoS Partners will monitor and influence • Where possible, the Growth Programme will grants, repayable assistance as well as financial project level performance and outputs. be aligned with other EU funds such as Horizon instruments and CLLD. 2020;

1Growth Deal: a formal agreement between the Cornwall and Isles of Scilly Local Enterprise Partnership and National Government.

6 Integrated Territorial Investment Strategy 7 National Context and Operational Programmes 2 Strategic Context

ERDF Priority Euros (€)

PA1 Research and Innovation 91,100,210 Economic challenges and barriers to growth PA2 ICT 19,037,608 C&IoS has a GDP which stands at 64% of the EU average (2011 figures). Despite strong growth rates before the recession (peaking at 78% in 2006), structural PA3 SME Competitiveness 172,145,709 weaknesses remain within our economy. The main economic characteristics of PA4 Low Carbon 57,898,855 the region are set out below: PA5 Climate change adaptation 11,679,514

PA6 Environment and resource efficiency 12,847,466 GVA per person (2011) Skills - economically active (2012) PA7 Sustainable transport 57,925,547 38.4% Cornwall and IoS 34.2% PA8 CLLD 14,837,826 UK UK PA9 Technical Assistance No specific C&IoS allocation Cornwall and IoS

TOTAL 437,472,735 £13,848 £20,873

6.2% 4.4% ESF Priority: Inclusive Labour Markets NVQ4+ No qualifications Investment Priority Allocation (€) 8. Employment 116,494,783 Innovation - R&D spend / GDP No. of people at risk of poverty 1.1 Access to employment for job-seekers 36,442,452 (2009) (and not on benefits) (2012) and inactive people Note 1 UK 1.2 Young People 13,296,893 Detail goes here 1.85% Detail goes here

9. Inclusion 56,555,000 Note 1 Cornwall and IoS 1.4 Active Inclusion 59,200,438 0.19% 26% of households (59,900) 1.5 Community-led local development 7,555,000 (CLLD) Average income (2012) % people economically inactive ESF Priority: Skills for Growth (16-24) UK Cornwall and IoS Investment Priority Allocation (€) £21,473 27.2% (89,000) UK 10. Skills 49,739,346 Cornwall and IoS £17,389 23% 2.1: Enhancing equal access to lifelong 26,380,318 learning 2.2: Improving the labour market 23,359,028 relevance of education and training systems TOTAL 166,234,129

8 Integrated Territorial Investment Strategy 9 Strategic Context Strategic Context

The region’s economy has benefited from investments in the added-value food processing The progress achieved in GVA has not, however, has an ageing population, in line with the national significant EU funding since 1994, through the sector have not had time to impact on historical significantly closed the gap with other areas. trend, but more marked in terms of percentages LEADER I, LEADER II, Objective 5b, Objective One, GDP figures. C&IoS has been recognised as a Less Our economy generates less added value per of the total population and a larger percentage Convergence and Rural Development Programmes Developed Region from 2014 - 2020 and still faces head than other areas and is less productive; this of its population aged 65 years and older. This and these have had a positive local impact. In real economic challenges. is characteristic of our peripherality and small creates both market opportunities and structural some cases, transformational investments such business base – a clear weakness in the economy economic weaknesses, having direct impacts on as Combined Universities in Cornwall, Superfast and an area of focus for future investment. It is levels of productivity and GVA per head. Broadband, Innovation Centres, Wave Hub and important that our ITI Strategy enables a step Employment is still predominantly in lower change in our economy contributing to improving value added sectors, such as tourism and agri- GVA and productivity. food and drink, although most sectors have The “Economic Productivity in Cornwall – lower productivity than the UK average, with a GDP growth rates % constraints and challenges” report prepared by continuing dependence on part time and often Between 2000 and 2007 GDP Cornwall Council (May 2010) highlights constraints seasonal employment and continuing issues of 20 in C&IoS increased with an and challenges to economic productivity in our low pay. Overcoming this is a key challenge and overall growth rate of 6.1%. region. It identifies that there is no one single investment in increasing the number of those 15 Subsequent output has cause of low productivity, but this is likely to be a businesses in these sectors that have higher than declined with average growth combination of factors including the lack of large average productivity should be the focus for this 10 rates of -3.6%. Growth in the employment units, an above average level of part- investment. period 2000 to 2007 was time workers, a lower proportion of the population 5 higher than growth at a UK In relation to pay, earnings can be used as an with NVQ4+ and relevant competitive skills, a lack level, but lower after 2008. indicator of the competitiveness of the economy. 0 of labour mobility and competition, capital stock In general, there has been an upward trend in and industrial structure, travel time from London employee earnings in C&IoS, although earnings -5 and the lack of urban areas. This is supported by for both males and females still remain low when Cornwall & IoS an OECD Report – “How regions grow 2009” which -10 compared to UK figures. UK suggests that policies that will help to promote regional growth should include a combination of 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 investments in infrastructure, human capital and Enterprise and innovation innovation. Micro, small and medium sized enterprises are an integral and central component of our economy Employment and economic activity and a key driver of growth and employment. £million Cornwall & IoS (nominal) levels 99.8% of the 21,105 registered enterprises in C&IoS in 2012 are classified as small and medium sized 8,000 Economic activity rates in C&IoS have shown enterprises (of these 88.7% are micro enterprises, 7,000 Total GVA was rising during growth in the 2000’s and are now similar to the UK 10% are small enterprises and 1.2% medium the period 2004 to 2008, average. Unemployment levels are lower than the enterprises). 6,000 at which point it peaked. UK. However, this needs to be set in the context of This high percentage of SMEs is similar to the In nominal terms, GVA employment growth levelling off in recent years. 5,000 national position, although an important factor is fell in 2009, rose in 2010 A continuing challenge is that the percentage of 4,000 that C&IoS has a lower proportion of employees but in 2011 and 2012 fell economically inactive people in C&IoS is higher in the larger sized businesses than the UK average. 3,000 back below the 2009 total. than the UK average. This presents the continuing challenge of ensuring C&IoS total Gross Value 2,000 C&IoS’s population has continued to grow and is priorities and actions identified to support Added (GVA) stood at £7bn now 534,500 (2011 census). This growth is largely businesses are relevant and accessible to SMEs and 1,000 in 2012. driven by in-migration, which is dominated by micro enterprises. As the dominant size of firm, it 0 people of middle to older working age. This is is considered that a ‘small improvement in their adding to the number of economically active productivity could have a significant effect on 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 people in the medium term, but will lead to a the economy’2. The ability of these enterprises to higher number of older (generally economically access finance and, in particular, working capital is inactive) people in the longer term. C&IoS already therefore vital to ensure that businesses reach their

10 Integrated Territorial Investment Strategy 11 Strategic Context Strategic Context

growth potential and increase productivity. identifying and investing in those businesses within growth, but also for individuals. Skills are an Isles of Scilly existing sectors with promising growth potential. important consideration within the arena of Proxy indicators for levels of entrepreneurship social inclusion, providing access to employment, The Isles of Scilly lie 28 miles off the mainland show that C&IoS is developing a strong position. personal advancement, increased earnings and, and incorporate 5 inhabited islands. The islands Self-employment levels are high when compared Infrastructure for some, a route out of worklessness. Progress have a population of 2,203. Resident numbers are to the UK average (one in five of the workforce is Peripherality remains a continuing constraint for has been made on increasing skills, but challenges relatively stable but with an increase since 2001. self-employed, compared to one in eight across C&IoS, with distance from markets a key issue remain with an imperative for further investment in The population is ageing. the UK). Start up and survival rates, over a five and a number of gaps in the strategic transport skills at lower and higher levels. The Island’s economy is heavily reliant upon year period, are also high at 49% compared to the network including: 45% UK average. The Isles of Scilly has the highest A total of 10% of the population of C&IoS live in tourism and agriculture and estimates suggest • congestion points in the road network acting number of enterprises per head of population areas of social deprivation and in some areas this that 85% of the economy is tourism related. The as a block to the development of employment outside London, although in some cases this is as a is linked to the decline of historically significant tourism sector also supplies the critical mass for space, economic growth and productivity result of a lack of employment opportunities with industries. infrastructure such as ports and air. The economy is including through extended travel times; large scale employers. dominated by micro and small businesses. This deprivation is particularly evident in towns • the need to encourage more sustainable forms The UK Competitiveness Index provides a and this has resulted in some specific areas Other economic factors: of travel; benchmark or proxy for innovation. Based upon an being the focus of previous and current funding • High levels of self-employment- treble that of integrated measure of competitiveness focusing • the location of the Isles of Scilly as a group of programmes. It is, however, noted that issues of the South West and England on both the development and sustainability five inhabited islands, 28 miles from the coast rural deprivation are also of importance where • A higher percentage of people working at or of businesses and the economic welfare of of Cornwall. smaller ‘pockets’ exist in dispersed locations; from home than that of the South West and individuals, ranking for C&IoS shows levels of an issue exacerbated by a lack of employment Cornwall’s lack of a single dominant centre in England competitiveness as being low, with a rank of 314 opportunities in these areas and by a lack of access terms of population and functionality impacts out of the 379 local authority areas, down from 309 to public transport and digital connectivity. • Some local residents have a number of part-time upon its economy and future growth potential. in 2009. or seasonal jobs, but there is also considerable C&IoS is dominated by a dispersed network of key Worklessness and low wages impact upon child underemployment, reflecting the limited career An analysis of sector make up over time shows town based economies surrounded by a network poverty. 18.4% of children aged under 16 lived opportunities available and the seasonal nature that the economy has changed, with some sectors of rural villages, hamlets and communities. The in poverty in C&IoS in 2010, a total of 16,460 of employment declining whilst others are expanding. Business interrelationships within this settlement pattern children. Although this is lower than the England services, retail, distribution, hotels and catering, are different from most other rural areas as we lack average of 21.1%, there are geographic variations • Incomes are significantly lower than the construction and food and drink processing still the agglomeration effect of a large city region. across Cornwall, ranging from just 2.5% to 56.2% national and regional averages, due to the dominate and there is a high dependence on There is, therefore, a need to invest in appropriate (nearly three times the England average). The preponderance of low paid, part time and agriculture and tourism which cannot be overlooked infrastructure to underpin growth. solutions to this are complex and require a joined seasonal jobs when developing investments to increase up approach across all funding streams as well as Significant progress has been made in the • High costs of living are associated with scarcity productivity. The evidence base, however, suggests the use of mainstream and more bespoke delivery previous European Programmes in relation to of accommodation and transportation of freight that no one sector, or group of existing sectors, mechanisms, such as CLLD. employment workspace to address a shortfall in to the islands and the cost of travel to and from offers greatest potential for growth. Our focus, provision and issues of poor quality stock but, as the islands therefore, is on emerging high value sectors and The percentage of people with higher level skills a Less Developed Region, further investment in of NVQ4+ has increased by over 10% over the last Previous EU programmes have addressed a infrastructure is required. Such investment should 8 years. This has moved closer towards the UK number of the larger investment needs on the support businesses to grow their quality jobs and average, but the challenge remains to increase islands. increase productivity. These businesses should also the number of people with NVQ4+ to the UK be supported with a wider package of business The 2014-2020 C&IoS ITI strategic priorities and level or higher. At the other end of the scale, the and skills investment. identified areas for investment are relevant to percentage of people with no qualifications has the whole Less Developed Region including remained relatively static. Social inclusion and skills the Islands. Skills and workforce development programmes and the business support framework Access to the labour market and skills levels are key will deliver both on the mainland and on the components of addressing social exclusion and Islands and activity will be tailored to meet the addressing economic issues within C&IoS. distinct needs of the Isles of Scilly. A number of The skills profile of the area is important as it forms outstanding investments as identified in the Isles a building block, not only for overall economic

12 Integrated Territorial Investment Strategy 13 Strategic Context Strategic Context

of Scilly Economic Plan ‘Island Futures’ will be Key For illustrative purposes only addressed over the programme period. There will be an emphasis on delivering Smart Islands with Tidal currents >1.75 m/s a coordinated approach to energy production, Tidal range >8m management and use to develop truly sustainable Offshore wind zones island solutions. This will be through a number Wave resource Lynmouth Bristol of funding sources including ESI fund and Rural test site Development funding. ESI funding from the West of England C&IoS ITI Strategy will be used to complement LEP investments from other sources on the Islands. Heart of the Isles of Scilly transport connections South West LEP the © ERDF supply Convergence chain. Communications This will require Team a market-led Transport connections to the Isles of Scilly have approach to ‘Smart Specialisation’. experienced a number of challenges since 2012. Our offshore renewable potential is significant Cornwall and There is a need to secure long term connectivity to Plymouth the islands and address issues around inter-island with 34GW of potential in the wider South West. the IoS LEP This provides a focus for future investment and travel. Capital investment in this vital infrastructure Wave Hub we anticipate collaborating with our partners can make the links commercially viable without yle lmouth revenue subsidy and further infrastructure to deliver the vision of the South West Marine Ha Fa

investment is vital to the future economic Energy Park and the Plymouth City Deal. This FaB test 20 km N wellbeing of the islands. sector has the potential to deliver 1,400 jobs by 2030 but the real potential will come in the export Channel Some large investments have been made through Isles of knowledge, products and services to a global previous programmes including airports and market. Fr St Mary’s Quay which address a number of ance the pressing issues. Further investment in the Cornwall and the Isles of Scilly already produces

2014-2020 programme is required at mainland 330MW from existing renewables and this is just 40 km destinations and with mainland integration of the start. We will encourage the sector, utilising 31-35 kw/m 26-30 kw/m 21-25 kw/m 15-20 kw/m transport services as identified in this strategy and existing assets such as the Wave Hub and Fab Test, C&IoS Strategic Economic Plan. but we will also provide business support, invest in research and development and support inward We have structural economic weaknesses and threats to Our assets and opportunities investment. There are also significant opportunities growth, but we also have compelling opportunities which We have structural economic weaknesses and Heat Flow map threats to growth, but we also have compelling of the UK / cornwall will shape our future economy. opportunities which will shape our future (Arup 2012) economy. Our SWOT analysis forms part of our headline evidence base (see section 3) and sets out associated with developing a local energy market. revolution and we will aspire to be at the heart our emerging strengths and existing assets. of the green revolution, as we move towards a Our natural environment has the potential to low carbon economy. We will build on this proud We have made bold investments in higher generate a nationally significant proportion of tradition, but this isn’t about looking back. Our education and research infrastructure that will renewable energy in developing markets such as mining heritage has left us a strong engineering continue to be at the forefront of our business offshore marine and geothermal energy. The scale skills base and a world class reputation that could growth strategy. Skills levels and participation have of our geothermal asset is significant, with recent support the development of other engineering increased and we have an opportunity to build estimates indicating that the temperature resource based sectors, including aerospace. Strategic on our academic assets and invest in front end in Cornwall could produce as much as 4GW of investment in Newquay Cornwall Airport (NCA) research, development and innovation, making electricity, 5% of the total UK average electricity has taken place under the 2007-13 programme sure the value of the R&D is leveraged throughout demand. to enhance this key infrastructure provision, with C&IoS was at the heart of the first industrial complementary investment arising from the

14 Integrated Territorial Investment Strategy 15 Strategic Context Strategic Context

designation of the area as an ‘Enterprise Zone’ now opportunities for additional investment to employment locations has addressed (EZ). The EZ is the largest development site in the further capitalise upon world class connectivity some of the previously identified need. region; it has created 175 jobs to date and has and to support businesses and communities to However, in addition we have identified a the potential to create over 2,000 more. This is in make full use of the opportunities presented. In requirement for grow on space and flexible an R&D intensive sector, with high productivity order to specialise in digital markets and to grow workspace. The Cornwall Local Plan and earnings 46% higher than the UK average. our vibrant creative industries, it is essential that Employment Land Review (2010) estimates A large runway, clear airspace and a developing our connectivity remains competitive. that a supply of around 150ha is needed cluster make the Aerohub a key part of our future Previous investments in world class research to meet demand. Due to the economic investment plan. facilities, such as the Environment and downturn, only 7.6ha of additional workspace was delivered between 2009 A number of infrastructure advances have been Sustainability Institute and the European Centre and 2012, and this is only a third of what set in motion to improve productivity, including for Environment and Human Health, provide was required. We anticipate the next the creation of three innovation centres, the Wave us with a distinct advantage in terms of cutting programme period coinciding with an Hub and rail and road improvements. A further edge research and development potential. These upturn in demand, resulting in a continued key investment has been in digital infrastructure, assets will provide researchers with access to requirement for intervention to bridge the with the roll out of Superfast Broadband. unrivalled resource and facilities to ensure our spirit © ERDF Convergence Communications Team ‘cost-value’ gap and unlock development This investment has significantly reduced the of innovation and inventiveness thrives. These opportunities. music, but also film, television and radio, digital challenges associated with our peripherality research institutions, combined with our distinct media, architecture, design and designer fashion. by decreasing distance to markets for both rural geography and excellent broadband facilities, Our economy is dominated by micro businesses Nationally the Creative Sector has grown at twice local businesses and inward investors as well as open opportunities for business growth in the employing fewer than ten employees and whilst the rate of the economy as a whole and is well providing additional social and environmental growing e-health and e-wellbeing and wellbeing the majority of these organisations remain placed for continued growth as demand for benefits. By the end of the rollout period in 2015, markets. relatively stable in employment and growth terms, creative content grows. According to ONS 2011 95% of homes and businesses in C&IoS are set to The development of workspace (including the a small proportion of ‘high growth’ companies data, the second fastest growing sector since 1999 benefit from access to fibre broadband. There are Innovation Centres and R&D facilities) at key have a disproportionately beneficial effect upon in the region is ‘arts, entertainment and recreation’ the wider economy. at 8.2%, reinforcing the potential in this market. Recent analysis by NESTA suggests that high Wave Hub Installation, Hayle Cornwall and Isles of Scilly is unique amongst growth companies accounted for 1.9 million new rural areas in the UK, and potentially in the wider UK jobs between 2002 and 2005 (out of a total of European context, in that it supports a density 3 million) and 1.3 million out of 2.4 million new of creative businesses normally found only in jobs between 2005 and 2008. These companies fell urban environments. The 10,000 FTEs working in within the definition of SMEs and were more likely the sector benefit from, and contribute greatly to grow organically and create employment rather to, the quality of amenity, quality of life and than grow through acquisition (as is often the case distinctiveness of C&IoS. Recent improvements for their larger counterparts). These high growth in the digital infrastructure and higher education SMEs enjoy rapid growth over short time periods as provision mean that the sector is well placed to a result of their ability to innovate and react quickly improve the value and reach of its Intellectual and competitively to market opportunities, either Property, products and services. by themselves or within various tiers of larger supply chains. We will invest in those businesses The agri-food sector is a key element of the demonstrating high growth and the potential to economy of C&IoS. In percentage terms, grow and encourage productivity improvements 11.3% (compared to 4.5% for GB) of Cornwall’s through a culture of innovation and the provision employment is in core agri-food and 29.1% of high quality business support, access to finance (compared to 15.0% in GB) in all food and drink and export assistance. related sectors. In addition to underpinning the employment base of C&IoS, it also represents over To our long-established national and international 6.5% of GVA (the equivalent figure for the UK is 3%) reputation in the arts we can now add evidence and manages over 80% of our land mass. C&IoS of growth on the broader front of the Creative is the second most important area in the UK in Industries. These include the more traditional terms of quality pasture land and in the top ten visual arts, crafts, performing arts, literature and in Europe. It is therefore not surprising that dairy © ERDF Convergence Communications Team 16 Integrated Territorial Investment Strategy 17 Strategic Context Strategic Context

farming is the most important form of primary Aerohub Enterprise Zone and our expanding low private investments in new technologies offer a ranking has changed little; productivity measures food production in the region, producing some of carbon economy. This will require investment springboard for the testing and development of are still below the national average and there are the foods most associated with Cornwall, such as to support people to progress towards gaining a future economy. With green and marine at its continuing challenges in relation to basic and Cornish Clotted Cream, Cornish Yarg and Cornish employment and support for all skills levels. heart, focus will also extend to the potential of higher level skills. Blue Cheese. health and wellbeing sectors. There has been a reduction in the number of We have an opportunity to use EU funding and Despite considerable growth in the agri-food younger people (aged 16-29) leaving C&IoS. The C&IoS ITI Strategy builds on and reflects the our unique geographical, cultural and economic sector, average productivity levels remain low (51% Fewer have left over the last ten years - aided lessons learnt from previous Structural Fund conditions to turn our challenges into opportunities to 68%) compared to national averages, providing by the greater provision of higher education programmes and this knowledge and experience for future economic growth. a key opportunity for growth in the future. Our opportunities. We will make the most of this is a key asset in itself. There is evidence of success All future investment in C&IoS will take into account strong agricultural assets and the legacy from success by continuing to invest in higher level skills in the shape of high quality HE and research the legacy of investment from the Objective One previous programmes will allow us to deliver a closely linked to the skills needs of our business facilities, award-winning innovation centres and and Convergence programmes. suite of activity designed to promote the adoption base in general and our high value bespoke workspace. However, the area’s relative of best practice and an investment in agri-tech sectors in particular. designed to elevate the practical and technical Opportunities exist to further support our skills of the primary production sector, its advisors Some of the strategic linkages to these investments are explored in the table below. businesses, to develop sustainable supply chains and the wider supply chain. and make investments which support growth for Whilst our business base is diverse, it is not large business so that they are equipped to improve and we are realistic about potential absorption levels of innovation and increase contributions Previous investment Future potential investment Links to ITI Strategy rates. That’s why we plan to identify businesses to growth and productivity targets. Underlying Higher Education undergraduate Undergraduate requirement Additional investment from any sector with the potential to move towards weaknesses and threats remain and we must create provision via Combined Universities in now fulfilled. CUC Universities opportunities relate to improved productivity and increased growth and the right conditions for growth. Areas of focus will Cornwall: the creation of higher education continue to create additional higher level research support them on their journey. include investing in key economic and transport learning opportunities have been created courses and opportunities based skills linked to business However, unless we give our people and infrastructure and addressing pockets of social under the Objective One and Convergence upon this infrastructure (from needs (see below: communities the skills to benefit from these exclusion. Programmes through investment in physical other funding sources). research capacity) investments, we will have achieved little. The area’s unique location, physical geography, age infrastructure. Consequently, we must connect people to our profile, industrial and cultural heritage, clustering Research Capacity: Convergence investment To further the linkages between Future Economy growth sectors and economic assets such as the has provided a baseline of new physical our existing business base of research expertise and previous public and Growth for Business assets (European Centre for Environment and (and our identified Smart Human Health, Academy for Innovation and Specialisation markets) and Research, Environment and Sustainability the capabilities of the research Institute, Peninsula Medical School) centres in order to support business growth Superfast Broadband: significant To ensure digital infrastructure Conditions for Growth investment in digital infrastructure to enable and speeds are at the heart of 95% fibre broadband coverage. addressing our peripherality to provide access to markets for our businesses and to encourage inward investment (with additional social and environmental benefits) Innovation Centres: investment under the To take these benefits to a Growth for Business Convergence Programme into 3 Innovation wider business base, support Centres (linked to identified Priority Sectors) innovation outreach and further that have created good quality, connected exploit these investments workspace for over 150 businesses and which have provided a supportive business incubation environment to nurture growth

18 Integrated Territorial Investment Strategy © ERDF Convergence Communications Team 19 Strategic Context 3 Our Vision

Previous investment Future potential investment Links to ITI Strategy The C&IoS vision What does success look like in 2020 Wave Hub/FabTest: investment into world To invest in further R&D Future Economy The Cornwall and Isles of Scilly Local Enterprise and beyond? class technologies to support R&D in relation Partnership were tasked by Government in April We will have realised our vision and achieved to marine renewables technologies linked 2013 with the development of a strategy for the our ambition when C&IoS has harnessed the to these physical assets to support sector investment of European Structural and Investment energy to drive change: powering our future from growth, individual business growth and Funds. renewables; switching small businesses on to big development of local supply chains to embed The LEP developed their strategy in partnership ideas and plugging Cornish innovation into global the benefits within C&IoS with other stakeholders in C&IoS. The overarching markets. Newquay Cornwall Airport (NCA): To further the opportunities Future Economy vision for this work reflected the vision of the Investment in projects and programmes which investment was made to enable this facility for economic growth (new Growth for Business Economic Growth Strategy for Cornwall & Isles of increase productivity will have helped us move to become a Civil Aviation airport. Investment businesses moving in, existing Scilly (2012–2020): towards our goal of the GDP per head being above has opened up opportunities to create an business growth) within this 75% of the EU average with a significant increase Aerohub (now also a designated Enterprise location. in SME productivity and higher paid jobs. Zone) that seeks to develop a cluster of “To make C&IoS the Links to Smart Specialisation related business uses. We will have pioneered new industries that make (aerospace assets) natural place to grow great the most of the region’s special environment Food Innovation Centre: investment was To invest in businesses so that Growth for Business businesses, by focusing and developed new, innovative and commercial made into a centre that could work with they can use the services and renewable energy technologies and markets. We food processing businesses to develop new facilities provided at the Food investment on inspiring will have built on existing European investments, products, test new production and packaging Innovation Centre to aid their businesses to achieve such as Wave Hub and harnessed untapped processes, etc business grow and improve resource in geothermal energy. Earnings will have productivity their national and global increased as a key economic asset as these high Duchy College Future Farm: investment in To invest in Agri-tech related Future Economy potential, creating great value sectors flourish and new businesses start. a state of the art dairy unit with the added activity that will support research Growth For Business We will have upgraded the energy grid facilities that will enable herd scale research activity in ruminant animals careers, creating value out infrastructure and collaborated with local and demonstration activity to be undertaken of knowledge and using communities, utility companies and world class Business support: Investment in business To build on Convergence Growth for Business technology developers to make Cornwall a support interventions (with a focus on investment in business support, the environment as a key leader in the development of Smart Grids. Our accelerating the productivity of high- growth focusing activities on accelerating businesses will be more efficient as a result, with businesses/ those characterised by high value the productivity of those economic asset.” GHG reductions down and low carbon practices, added products and services) has resulted in businesses able to make the processes and products widespread. As outlined, C&IoS successfully secured an an increase in job creation and GVA beyond greatest contribution to C&IoS’ We will see exemplar collaborations between original contracted targets. economy. Integrated Territorial Investment in July 2014 as part of the LEP’s Growth Deal with Government. community and commercial organisations in green Various added value food processing units To further increase added value Growth for Business The Cornwall and Isles of Scilly ITI Strategy has technologies and will support both businesses and e.g. Trewithen Dairy, Dairy Crest, Cornish processing capacity and drive been developed using the LEP’s original vision and individuals to realise the benefits of a low carbon Cheese Company etc: investments designed further improvements in the ESIF Strategy. economy. Production will be up and so will the to increase the processing capacity of these productivity of their supply number of firms bringing new products to market. businesses chains Our new workspaces will be high quality and flexible. Businesses already expanding through our network of Innovation Centres at Pool (ICT), Truro (health/wellbeing) and Falmouth (creative and environmental technologies) will have grow-on facilities which match their ambitions.

20 Integrated Territorial Investment Strategy 21 Our Vision 4 Strategic Priorities

Investments to unlock areas with economic We will have increased the number of businesses This section sets out how our supporting evidence base has informed our strategic potential and reduce physical infrastructure actively innovating by investing in world class priorities. barriers will have connected our skilled workers research and development, linked to the region’s with our key economic assets. We will have unique natural assets and sectoral strengths. Strengths, weaknesses, opportunities and threats analysis improved linkages for the Isles of Scilly, met This will be aligned with the needs of businesses challenges associated with our peripherality and The following table provides an overview of the headline evidence base: and the focus on offshore renewables, agri-tech, distance to market and stimulated private sector e-health and e-wellbeing and the digital economy investment in previously unviable sites. will have ensured we are exporting knowledge Strengths Weaknesses Our region will have contributed to increasing UK as well as products and services. This will be productivity through maximising investments in complemented by enhanced access to ICT and Improvements in our HE/FE infrastructure: better Peripherality and distance from markets Further and Higher Education to support widening supporting enterprises to develop products and facilities, breadth of courses, increased student contributing to low GDP and GVA participation, social inclusion, knowledge transfer services via ultrafast broadband. and research capacity within world class research and higher skills provision which links to the clusters Our bedrock industries, such as agriculture, food, needs of our businesses and builds strong linkages fisheries and tourism will have taken advantage Strong Cornwall brand, increasingly linked to Low levels of R&D investment, innovation and between research and development and business. of best business management practice, new high quality values and positive external image competitiveness contributing to low earnings We will have a more equal society, with less technologies and new market opportunities to nationally and internationally (81% of UK average) economic inactivity and increasingly resilient increase overall business competitiveness and A rapidly growing third sector facilitating Overall levels of low productivity and seasonal communities, better able to solve their problems productivity. innovative delivery (emerging Social Enterprise dependence on low skilled jobs (including and meet future challenges. Our cultural and creative industries will be Zone) significant ‘bedrock’ sectors such as tourism and EU funding will have supported the region’s flourishing, providing high value jobs, promoting agri-food) strategic skills priorities and closed the gap with learning and strengthening the sense of place. Our Vibrant creative sector which can drive innovation High and persistent levels of worklessness and the UK in terms of those qualified at NVQ Level vibrant cultural offer supported by our outstanding pockets of severe deprivation (including those 2 and NVQ Level 4. Our apprenticeship and natural environment will give C&IoS a distinctive associated with health issues) scholarship programmes will have increased the edge and an international profile. number of people progressing through the labour Unique natural resources with significant food and Skills levels that are below the national average market and participating in education and training. energy production potential (basic and higher level) Long history of collaborative partnership working Lack of regulatory framework for renewable energy project development (geothermal/local energy markets) One of the best digitally connected rural areas in Low levels of business productivity, numbers of the world exporting businesses, innovation and product development High levels of self-employment Concentrations or clusters in technologies (e.g. marine renewables, e-health and wellbeing, agri- tech, digital economy) Strong and long established enterprise culture

22 Integrated Territorial Investment Strategy 23 Strategic Priorities Strategic Priorities

Strengths, weaknesses, opportunities and threats analysis (cont.)

There is a direct link from our evidence base and SWOT analysis through to our 3 Strategic Priorities and Opportunities Threats the outputs C&IoS will deliver. The following table maps our strategic priorities against the ERDF and ESF Capitalise upon FE and HE infrastructure Internal and external connectivity; Failure to Operational Programmes. to increase R&D, innovation and create the address bottlenecks in strategic infrastructure that conditions for improvements in productivity and will then ‘block’ further development to support ITI Strategic Priority ERDF Operational Programme ESF Operational growth economic growth and reduce resilience Programme Priority Axis Investment Priority Investment Emerging markets and sectors (e-health and Failure to address low levels of research and Priority Axis Priority e-wellbeing/ renewables/agri-tech) leading to innovation could lead to a further decline in Future Economy PA1: Research and 1b PA2: 2.1 opportunities to increase productivity and shape relative competitiveness Investment to capitalise Innovation Skills for the future economy on Cornwall and Scilly’s Growth Exploit our existing competitive advantage in Failure to address climate change impacting on strengths and unique PA4: Low Carbon 4a, 4c, 4e and relation to superfast broadband to facilitate resilience characteristics to exploit 4f growth for business by improving content and new and emerging access to markets markets where we have Abundant environmental assets to increase Failure to address the productivity of bedrock and identified competitive productivity and growth in key low carbon sectors industries compounding overall economic advantage. We will utilise performance RD&I to drive growth

Large numbers of agile SMEs and impressive Continuing barriers to finance for SMEs Growth for Business PA3: SME 3a, 3c and 3d PA2: 2.2 business survival rates create potential for Investments which will Competitiveness Skills for accelerated growth for business if appropriate and Growth bespoke support can be delivered accelerate increases in productivity and Existing physical assets and social capital which Lack of flexibility and join up in national competitiveness in the have the potential to grow (Innovation Centres/ approaches leading to sub optimal outcomes region’s businesses Aerohub/Wavehub) with further infrastructure investments to enhance conditions for growth Conditions for Growth PA2: ICT 2a and 2b PA1: 1.1, 1.2, 1.4 Potential to develop replicable pilot/research Inability to exploit our natural resources for Investments which will Inclusive and 1.5 projects to lead the UK/EU future economy (smart renewable energy due to constrained grid address continuing PA5: Climate change 5b Labour energy infrastructure) capacity blocks to growth, in adaptation Market Increased national and international competition infrastructure and human and globalisation of trade potential PA6: Environment 6d and 6f PA2: 2.1 and resource Skills for efficiency Growth

PA7: Sustainable 7a and 7c transport & bottlenecks

PA8: Community Led 9d Local Development

24 Integrated Territorial Investment Strategy 25 Strategic Priorities Strategic Priorities

Additionality Policy area ITI strategy contribution This Strategy recognises the need to comply with Plan (SEP). The C&IoS SEP is an overarching plan combining several tools to enable effective delivery. C&IoS Strategic Economic The C&IoS SEP is an overarching plan to guide economic development European Union additionality principles, as laid out Plan in C&IoS for which the ITI is a key delivery mechanism. in Article 86 of the common provisions regulation The key financial opportunity from 2014 to 2020 is (COM(2013) 246 final). Although we understand not the ESI fund on its own. This is not sufficient for EU 2020 Smart Investment in widening participation and knowledge transfer, driving that it is for the Member State to demonstrate our successful transformation. Consequently, the ITI innovation through capitalising on world class R&D and innovation and compliance with the regulation, this Strategy details Strategy includes complementary components that growing productivity through enterprise to boost productivity and the added value from EU funded investments. are financed from national and local budgets. The skills levels The selection of investment activities also takes SEP equally outlines additional and complementary EU 2020 Sustainable Focus on development of growth, using unique natural characteristics account of links with other EU, national and regional changes and tools that are required to deliver C&IoS and activities that encourage energy efficiency and low carbon growth economic goals and to optimise our contribution to priorities and this is summarised in the table over EU 2020 Inclusive Investment to ensure that those in deprived areas and in poverty are UK growth and development. the page. Activities and investments that C&IoS engaged in finding solutions to local barriers to growth and better paid intends to implement will complement national The three Strategic Priorities in the C&IoS ITI Strategy jobs programmes and will not duplicate provision. are replicated in the SEP seamlessly linking these Common Agricultural Policy The use of EAFRD (via the ESI Fund, LEADER and future rural The C&IoS ITI Strategy sits alongside and is closely two documents in their priorities and ambitions. development programmes) will be key to the delivery of aims across integrated with the C&IoS Strategic Economic the SIF investment activities, and these align with the six broad priorities of the Rural Development Regulation and support the delivery of Defra’s four priorities, as identified in the national EAFRD programme Industrial Strategy (IS) The ITI Strategy identifies key sectors that might be selected for the Smart Specialisation approach. Engaging with the IS in a Less Developed Region is challenging: however, we are embracing the approach of working with the sectors set out in the IS, through the proposed set of interventions in the ITI Strategy Smart Specialisation Key sectors have been identified and are the focus of indicative activities in the ITI Strategy Witty Review of Universities Identifies key local research strengths in areas such as agri-tech and and Growth marine sciences, being deployed through Smart Specialisation and investment in supply chain development UK Strategy for Agricultural Our focus on agri-tech will support the UK vision to become a world Technologies leader in agricultural technology, innovation and sustainability, exploiting opportunities to develop and adopt new and existing technologies, products and services to increase productivity and contribute to global food security and international development Connecting Cornwall 2030: Promoting sustainable transport and removing bottlenecks in key Local Transport Plan network infrastructure, strengthening the response to gaps in the strategic transport network and lack of access to public transport Cornwall Local Plan Ensuring housing growth is predicated on economic growth and jobs, through creating the conditions for growth along with investment in business and the future economy Health and Wellbeing A focus on e-health and wellbeing as part of the Smart Specialisation Strategy approach, along with specific investment activity to develop communities that are economically and socially resilient, sustainable and inclusive Cornwall Council Economy Creating the conditions for growth, the future economy and growth for & Culture Strategy business

26 Integrated Territorial Investment Strategy 27 Strategic Priorities Strategic Priorities

2013) shows that only 20 local businesses (out Strategic Priority 1 Rationale for intervention: Due to low levels of 5464) successfully applied for the national of investment in R&D, competitiveness and Technology Strategy Board (TSB) funding. When it productivity, C&IoS will seek to deliver a step comes to the value of grants the position is marked, Future Economy Objectives change in the economy by investing in areas where with only £4 million out of £922 million being it has the potential to achieve high growth through secured locally. Future Economy 1 Research, Development and Innovation (RD&I) investment in both existing businesses and start- It is, therefore, critical that those businesses with This priority sets out how C&IoS aims to To drive growth in our region’s economy through RD&I investment to support our business base ups, capitalising on exporting opportunities and the greatest growth potential are given necessary target investment into growth markets (existing and new) in integrating into the supply through attracting high growth companies to the support (academic, commercial or financial) to where we have an identified business chains of key identified global markets where we region. improve their innovation strengths so they are in a position to compete for national funding. and infrastructure base. It specifically can demonstrate a competitive advantage. We will achieve this through adopting a Smart seeks to drive growth through Specialisation approach and following the The key markets that have been identified for C&IoS Future Economy 2 investment in research, development European Smart Specialisation guidance to where we have both the assets and potential for To invest in activities with growth potential that develop our framework. This is essential to boost growth are: and innovation with the support of regional innovation and reflect the ex-ante support Cornwall and the Isles of Scilly’s transition 1. Agri-tech conditionality of EU Structural and Investment further and higher education partners. to becoming a ‘green and marine’ region. 2. Digital Economy funding. We have identified four key thematic areas 3. E-health and e-wellbeing for Smart Specialisation investment along with 4. Marine Tech two key assets. There are several ‘enablers’ which Context and key challenges natural resources, innovation clusters and 5. Space/Aerospace cut across all of the Smart Specialisation areas and cutting edge infrastructure investments. C&IoS Smart Specialisation is a European approach are important to support growth in our identified is well placed to develop new technologies and In developing our approach to Smart Specialisation, to addressing new growth opportunities. It is areas. These include digital, big data, skills and a create high-value; knowledge based low carbon we have worked with local stakeholders and also based on regions identifying a limited number Smart Energy Programme. economic growth. Other investment in sustainable engaged with a range of national organisations to of priorities for investment where they have a transport will support this and also address issues competitive advantage based on where they Cornwall and the Isles of Scilly’s emerging Smart assess C&IoS’ areas for investment. relating to our geographical peripherality. Specialisation Framework has identified key have physical, knowledge and enterprise assets. During the development process for this strategy, markets where the area has, or can develop, a In order to build an innovative and sustainable partners in C&IoS met the Technology Strategy C&IoS has the lowest levels of productivity competitive advantage. In order to address some economy, Cornwall and the Isles of Scilly aim Board (TSB) to discuss their early thinking on Smart of any of the LEP areas in England. This is a of our underlying innovation issues, it is important to prioritise targeted support to companies Specialisation. Following these discussions, the reflection of very low levels of research and that we provide the right mix of financial and that have the potential to exploit new market TSB agreed that the identified areas of intervention development (R&D) expenditure and declining non-financial support to assist our enterprises to opportunities and also those who can deliver are credible and that we are building on our competitiveness. This is partly caused by the innovate. This will increase the innovation and the ambition to be a ‘green and marine’ region. physical, knowledge and enterprise assets. Partners predominance of SMEs and the lack of large commercialisation capacity of businesses in C&IoS, also engaged directly with the Agricultural and businesses which generally have the propensity to help them access and exploit new knowledge These strategic ambitions will be Horticulture Board who identified areas where they and resources to invest in R&D. As businesses in and ideas and to enable them to compete in felt C&IoS had a nationally competitive advantage C&IoS spent only 0.18% of GDP on R&D in 2008 delivered through two key objectives: increasingly global markets. (a fall of 44% since 2005) and its competitiveness and encouraged investment accordingly; these It is important that investment will position our recommendations have been accepted by partners is in decline, a different approach to investment Future Economy Objective 1: in research and innovation is required. businesses so that they can benefit from national and have formed the basis for our Agri-tech To drive growth in our region’s R&I funding programmes e.g. Innovate UK and specialisms. C&IoS will address historic poor performance in Horizon 2020. The most recent evidence (2010- R&D through adopting targeted investments. economy through RD&I investment In addition, partners also met with the National We plan to tackle this by capitalising on to support our business base Space Agency who confirmed that Goonhilly (a Cornwall and the Isles of Scilly’s strengths (existing and new) in integrating fully operational satellite communications teleport based near Helston in West Cornwall) is seen as a and unique characteristics to exploit new into the supply chains of key and emerging markets and sectors in which key national asset and confirmed that as space is we have a competitive advantage. identified global markets where now a Government priority there are significant we can demonstrate a competitive opportunities to develop capacity and expertise For many years we have been acknowledged as a in this area. leader in low carbon technologies with excellent advantage.

28 Integrated Territorial Investment Strategy 29 Strategic Priorities Strategic Priorities

the major focus will be on cattle (dairy and beef) and The developing areas for investment have been linked to the UK Industrial Strategy to demonstrate how 1. Agri-tech speciality crops where the region provides a climatic local priorities will help to deliver national ambitions. These linkages are set out in the table below. advantage and added value.

Development of the agri-tech sector will support The importance of disease (and pest) minimisation and Smart Specific Market Opportunities Identified Links to the UK Industrial our existing agricultural and food strengths in management for crops and livestock continues to be Specialisation Strategy and the 8 Great C&IoS by identifying where we could demonstrate a supported as a major component of the proposed work Area Technologies competitive advantage as part of a wider agri-food programmes, as a major contributor to the reduced development programme for the ESI fund and Rural efficiency of use for all inputs (land, water, energy, Agri-tech Animal health and welfare in dairy cattle Agri-science Development Programme. nutrients etc). It is now envisaged that the work to be done will be integrated across three scales of operation: Resource use efficiency in the production Agri-technology The importance of this sector is demonstrated by the optimised land and water management for sustainable process Big Data fact that agri-food and agri-tech make up 8 of the crop and livestock production, resource-efficient Plant health top 20 sectors by locality quotient (2012) for C&IoS. whole farm management and innovative tools and Robotics and autonomous systems Agri-tech is also the only ‘hit’ we have on the Witty technologies for resource-use efficient farming. heat maps, once again demonstrating the local Digital Economy Digital media / gaming Information economy importance of this sector. Local Strengths and Software development Big Data Agri-science is one of the Eight Great Technologies Competitive Advantage Pervasive media (content application services) Information economy that have been supported by a national agri-tech strategy. Emerging capability (agri- tech centres Physical Assets E-health and E-wellbeing – using digital technologies to Information economy of excellence, emerging Horizon 2020 Innovation E-wellbeing improve health outcomes Duchy College – one of the largest specialist Big Data Partnerships, etc.) are building strong national land colleges in the UK, with previous investment End to end skills programme capacity by supporting regional specialisation. The Education (exporting) agri-tech sector crosses boundaries so there is real in applied research facilities, dairy production, potential to encourage/facilitate partnership and animal management and land based technologies Marine Offshore renewables (wave and floating wind) Offshore Wind Energy collaboration. Environment and Sustainability Institute – Technology Advanced marine paint technologies Advanced materials and nano- Finally, there are already well established local and new facility on the Penryn Campus delivering technology Green ship technologies national partnerships in this area. These include the world class research and knowledge exchange Energy and its storage Cornwall Agri-food Council, the Peninsula Partnership programmes for Rural Environment, The Centre for Rural Policy Food Innovation Centre - based at Duchy Space and Goonhilly – satellite management and Aerospace Research and the Food Security and Land Research Aerospace Assets applications College, the Centre works with businesses to Space Alliance. Partners also have established strong links deliver innovative solutions across all areas of Newquay Cornwall Airport – long runway; free with the Agricultural and Horticultural Development Robotics and autonomous systems food processing airspace; unmanned vehicles Board and it is through working with these partners Big Data that the specific investment activities have been Climate and geography – warm maritime identified. climate enabling early production of crops, fruit Enablers: these include digital, big data, skills and a Smart Energy Programme. and vegetables The agri-food sector represents 6.5% of our total GVA and 25% of total employment. Therefore, productivity Diverse agricultural land– with significant In C&IoS we will look to make the most of these investments from previous programming periods. gains that are derived from innovation will have production of dairy, fruit and vegetables Smart Specialisation opportunities by providing Key assets have been identified as part of the Smart significant benefit locally in addition to providing support to drive excellence and exploit our Specialisation sector analysis process. These are Marine environment – with sea on 3 of our 4 benefits and economic opportunities at a national competitive advantage in key markets and develop significant capital assets and this strategy intends borders, we have a rich fishing and aquaculture and international level. an innovation ecosystem across the whole of our to allocate revenue to maximise these assets and heritage economy to drive growth through innovation. activities that further contribute to the strategy. The current collective thinking gathered from meetings with stakeholder groups is that our agri- Each of the Smart Specialisation areas are detailed The rationale for each of these markets is detailed tech activity will centre on the theme of “Resource further below, identifying our local strengths below: Use Efficiency” but with a distinct and different and competitive assets including maximising the sectoral focus in different areas of England. In C&IoS, leverage from the legacy of strategic assets and

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Knowledge Assets High performance computing – facilities at the addition, Cornwall has an engaged voluntary and 2. Digital Economy Environment and Sustainability Institute (linking community sector, which is involved in a number Duchy College Future Farm – new dairy unit to the Met Office) of ongoing innovative programmes providing

and research facility illustrative case studies. Examples include Cornwall’s C&IoS’s unique positioning in the context of the Duchy College Rural Business School – Knowledge Assets Pioneer Programme working with the frail elderly information economy is that it benefits from the most currently delivering the largest knowledge to improve independence and resilience. C&IoS can extensive commercial and residential deployment of Falmouth University – expertise in gaming exchange programme under RDPE in the UK demonstrate the value of these services to extreme superfast broadband in a rural setting in the UK (and (supported through an FP7 project and an ERDF remote island, rural and urban communities and to Rural Business Research – the most possibly the world). Connectivity in Cornwall and the graduate start up programme), digital design, vulnerable populations. This will become increasingly comprehensive data collection and analysis Isles of Scilly is comparable or superior to broadband digital media and digital creative important when the dichotomy between reducing resource for farm businesses in the UK connectivity in central London. This makes Cornwall University of Exeter – expertise in data science/ resources and increasing demand becomes ever and the Isles of Scilly an ideal Digital/ Information data analysis and high performance computing Plymouth University Centre for Agriculture harder to bridge using more traditional approaches to Economy ‘test-bed.’ and Rural Sustainability (CARS) – a cross Plymouth University – expertise in data healthcare. - disciplinary team developing sustainable The implications for this in a digital age are significant. security, programming (2000 computing solutions to key agricultural and rural challenges ICT and software businesses in the digital creative graduates p.a.), digital creative and artificial Local Strengths and Exeter University – research excellence in industries/interactive media can now operate intelligence Competitive Advantage plant health, and emerging research expertise and remain as competitive in rural Cornwall as in through the Environment and Sustainability Media City or London. As a result, many successful Enterprise Assets Physical Assets Institute businesses are choosing to operate in Cornwall. The growth and expansion of the ICT and creative digital • Rapid growth in the digital sector – between European Centre for Environment and Human Knowledge assets outside of C&IoS – industries in Cornwall and the Isles of Scilly has been 2009 and 2014 employment has increased by Health – research centre focussing on the links research excellence from other areas including significant in recent years, being two of the few 26%, with turnover increasing by 24% between human health and the environment; includes business collaborations, new product Rothamstead Research at North Wyke which growth sectors during the recession. • Over 1,000 small and micro businesses in the development and evidence based solutions. focusses on grassland management. digital sector The benefits of superfast broadband are already The Centre also has key staff in e-health and Enterprise Assets being seen as presenting a huge advantage to • Cluster of world leading software and e-wellbeing businesses in the developing digital and creative digital science businesses – these include Health and Wellbeing Innovation Centre – • 25% of the workforce is employed in the sectors. The opportunities for innovations exploiting Headforwards, Avanti, Altcom, Sullivan Cuff and situated within a developing health cluster, the agriculture and food processing sector (over the broadband infrastructure will be broad and Geoscience 12,000) with many leading national and wide ranging, impacting on sectors as diverse as Centre offers support to new and expanding • Cluster of globally competitive creative industries international brands e-health and wellbeing; smart grids; smart buildings; businesses in the health and wellbeing sector and digital creative businesses – these include space related industries; the creative industries and Extensive fibre optic broadband network • Cornwall Agri-food Council - strategic Dogbite, TigerX, ikandi and Spider Eye partnership bringing together the public and specialist design and manufacturing. – providing appropriate connectivity for individuals and businesses to benefit from private sectors 3. E-Health and E-Wellbeing Local Strength and e-wellbeing technologies • 600 dairy farmers (131,000 dairy cattle – 6%

of the national herd) with an estimated 120 Competitive Advantage C&IoS is uniquely positioned to become a centre Knowledge Assets farmers in a position to benefit from intensive of expertise in e-wellbeing, building on its existing research and innovation developments Physical Assets Plymouth University – expertise in user-led assets. With single authorities that have co-terminus Fibre optic broadband network – by 2015, E-health and e-wellbeing, social robotics and • Cluster of food production and food processing boundaries in health, social and primary care, computer aided diagnostics and dentistry businesses, actively involved in research and 95% of C&IoS will have access to the fibre economic development and local government, C&IoS innovation. These include Trewithen Dairy, optic network. can develop new approaches to public and private Exeter University – expertise in electronic Ginsters, Tulip, WC Rowe, Riviera Produce, Academy for Innovation and Research – a health and wellbeing that are integrated, innovative monitoring, mathematical modelling and social Winchester Growers and Rowe Farming new £8m investment providing the home and can be adopted in other regions and countries. sciences • Teagle Farm Machinery – the largest for business research and collaboration for Cornwall has internationally recognised research University of Exeter Medical School - expertise independent farm machinery manufacturer in Falmouth University, specialising in the digital expertise in this field in the Universities of Exeter, in medicine and research into areas such as the UK with a number of patented machines economy and sustainable design Falmouth and Plymouth, a responsive education and personalised care and healthy communities Pool Innovation Centre - an £11m innovation training sector and a dynamic, skilled SME community Falmouth University – particular expertise in centre targeting digital technology businesses with appropriate IT and other infrastructure. In

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user interface design, digital design and smart of this wave generation is likely to be secured Local Strengths and Peninsula Research Institute for Marine systems in the water off C&IoS. By deploying this level Competitive Advantage Renewable Energy (PRIMaRe) - £12m joint of generation it will also provide C&IoS with the venture between Exeter and Plymouth Truro and Penwith College – working with opportunity to create a diverse local energy Universities to develop academic excellence and BT Cornwall to develop new telehealth and market and continue to grow its position in the Physical Assets knowledge exchange telecare skills programmes commercialisation of wave energy generation. Wave Hub - £40m offshore facility for Health and Wellbeing Board – Strategic the testing and deployment of offshore Marine renewable technologies are still in the pre- Enterprise Assets partnership with a remit for e-health and technologies commercial stage and a number of devices have e-wellbeing • Concentration of research and innovation already been tested off the coast of Cornwall. The FaB Test – fast, flexible, low cost solution - led companies operating in the offshore European Centre for Environment and Human aim in the 2014-20 period, as detailed in the C&IoS for testing of wave energy technologies, renewables field, including Mojo Maritime, Fred Health – key staff in e-health and e-wellbeing Marine Renewables Roadmap, is to see devices components, moorings and deployment Olsen, RCH Marine Renewable and Seacore being tested and moved from device deployment procedures. • Device developers are now using the Wave Hub Enterprise Assets and testing into pre- commercial and commercial Hayle Marine Renewables Business Park - a facility to test prototypes; encouraging evidence applications. • BT Cornwall – strategic partnership between pre-commercial test site for offshore renewable that developers are moving from testing to BT and Cornwall Council to deliver E-health There is an opportunity to capitalise on the energy technology devices as well as workspace deployment and wellbeing and develop a national centre of innovation and knowledge that has been for related businesses • Concentration of marine technology companies excellence developed in Cornwall locally: the unique South West Moorings Test Facility - designed in the Falmouth and Penryn area with a demonstrator and test facilities on offer in • Health is the second largest contributor to the to develop a thorough understanding conservative estimate of at least 100 businesses Cornwall and Plymouth, the world class academic local economy, providing huge scope to identify of mooring system behavior of Offshore in the supply chain, employing over 1,500 expertise and the emerging cluster of supply chain new, cost-effective models of delivery Renewable Energy systems in real conditions as people; this is further evidenced by ‘repair and businesses in Cornwall with potential to access well as to improve computer simulation models maintenance of ships and boats’ being the top • Cluster of internationally recognised companies international markets and grow exports. There sector by location quotient (2012) for C&IoS working within the digital health sector – is also potential to co-operate closely on wave Falmouth Marine School – provides includes Carnego Services, Sullivan Cuff and energy research with Wales and Scotland and other technology and innovation solutions for the • Globally competitive businesses in ship Microtest regions, e.g. with the European Marine Energy marine supply chain repair and ship building – including A&P and • Large adult care sector engaged in the Centre in Orkney, so that C&IoS and its partners Falmouth Harbour – 3rd largest natural Pendennis (both named companies in the e-wellbeing agenda can collectively emerge for UK PLC as world harbour in the world and one of the largest ship ‘Strategy for Growth for UK Marine Industries’) technology leaders in wave and tidal energy. repair complexes in the UK – accommodating • Private sector-led research and development 4. Marine Technology We intend to create an environment where vessels up to 100,000 tonnes projects currently underway including new technology developers can flourish. By drawing Plymouth University tank test facilities - ship paint/anti-fouling products and green ship

together and coordinating the best research, physical model testing with combined waves, technologies The UK Renewable Energy Roadmap is seeking supply chain companies and expertise, we will currents and wind, offered at scales appropriate some 27 GW from wave and tidal devices by 2050. support the development pathway for technology for device testing, array testing, environmental 5. Space / Aerospace Assets C&IoS has the potential to become an international innovators, working with national organisations modelling and coastal engineering market leader in this sector, given its unique such as Offshore Renewable Energy Catapult Space and aerospace assets have been included location and marine energy resources including (OREC), we will strengthen links with the broader Knowledge Assets within the Cornwall and Isles of Scilly Smart significant potential for renewable power UK innovation landscape and ensure the sector Specialisation framework as it is recognised that generation. as a whole learns more efficiently, collaborates to Plymouth University – expertise in marine we have assets of national significance by the UK leverage funding and cements the UK’s position as management, marine engineering and As reflected in the South West Marine Energy Park’s Space Agency. (SEMEP) Outlook and Long Term Ambition to 2030 a world leader in MRE. hydrodynamics The two assets are Goonhilly Earth Station and documents, the economic and energy generation We will also build on our long established tradition Exeter University – founder member of the Newquay Cornwall Airport (NCA). potential from the wave energy sector by 2030 is of boat building and repair to develop new Marine Renewable Energy Group, with expertise significant. It is anticipated wave generation could technologies providing one of our most influential in wave prediction and energy conversion, Goonhilly Earth Station is seen by the UK Space reach 15-20 MW by 2020, 50-100 MW by 2025 and sectors the opportunity to capitalise on its research marine operations and moorings and surface Agency as a key national asset and is a fully up to 300-500MW by 2030, across the region. and innovation strengths and open up new, global and subsea electrical systems operational satellite communications teleport. Given the available wave resource the majority markets.

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Goonhilly Earth Station Ltd and Avanti both run of localising the benefit of energy, whilst dealing exposure to increasing fossil fuel prices, with crude operations from the Goonhilly site and there are Future Economy Objective 2: with constraint issues through technologies such oil prices expected to rise to $150 per barrel by 2020. ambitious plans to link Goonhilly to the Harwell To invest in activities with growth as storage, will become ever more important. There is a chance to take the brakes off the C&IoS Space Catapult Centre. These smart technologies also offer a significant recovery by addressing transport sustainability potential that develop Cornwall economic opportunity for C&IoS, with global barriers to growth. High levels of dependency on Strong academic links exist at Goonhilly, with and the Isles of Scilly as a ‘green markets in these technologies estimated to be private cars and a constrained road network, in Universities of Leeds, Oxford, Hertfordshire and worth around $33-$36bn and worth between $400 conjunction with transport poverty, act to restrict Manchester all developing research and training and marine’ region and $500bn by 2020. individuals’ access to employment and education. programmes. With increasing fuel prices, intervention is required Rationale for intervention: Over a third of the Transport fuel costs and price inflation acts as Newquay Cornwall Airport offers one of the to prevent disadvantaged individuals from being UK’s economic growth in 2011/12 came from a constraint on economic growth. The C&IoS longest runways in the UK and is able to support locked out of economic activity that could the Low Carbon Environmental Goods and economy can benefit from the transition to more aircraft of any size. It has uncongested airspace contribute to both their wellbeing and C&IoS’s growth. Services (LCEGS) sector. The low-carbon economy efficient Ultra Low Emission Vehicles (ULEVs), and a and also a comprehensive air traffic control system. represents a real engine of growth for C&IoS. This greater focus on alternative fuel types, reducing NCA is part of the Newquay Aerohub which has includes areas such as clean-tech development Enterprise Zone status. and innovation and can enable C&IoS to capture Both Goonhilly and NCA are assets that could value from the transition to a low-carbon • Implementing innovative approaches provide Cornwall with a competitive advantage. economy. Additionally, unlocking the unique Activities for investment within Future to maximise sustainable growth for local The airport, for example, already has linkages with opportunities for energy generation and value Economy 1 include: communities and the local economy Wales to develop unmanned vehicles. Although creation presented by our deep geothermal and • Delivering low carbon economic growth (including agri-food) it is fully recognised that we are not at a point to marine energy endowments provides significant fully exploit these assets today, there is an ambition opportunities to generate substantial amounts • Sustainably and responsibly increasing • Implementing innovative approaches to to fully understand the economic potential of the of renewable energy, whilst building a leading generation and use of renewable energy facilitate and mitigate harbour developments assets and to invest accordingly. position in these technologies. It is also important • Supporting the development of technology • Supporting an increase in higher level skills that C&IoS exploits the opportunities associated and innovations to develop the transition to to underpin economic growth linked to Activities for investment within Future with renewable heat, including the development a low carbon economy identified Future Economy priorities Economy 1 include: of heat networks. • Developing the renewable energy and • Supporting the development of technology • Developing and supporting appropriate Local energy solutions, which include the environmental technologies sectors and and innovations to enable the transition to a models that encourage research localisation of energy ownership, generation, supply supply chain in C&IoS low carbon economy, improve environmental and markets can also benefit C&IoS through and innovation to develop business • Using Smart Energy infrastructure to unlock management and support ambitions for retaining more of our energy spend within the opportunities in the identified growth and drive growth environmental growth markets local economy on the journey to developing a local energy market. Research has estimated that up to • Encouraging the adoption of low carbon • Investing in climate change adaptation to • Undertaking collaboration with centres of 69% of Cornwall’s electricity spend can be localised transport solutions increase business and community resilience excellence to support growth within and by 2030, retaining up to £351m in the economy, exploit market opportunities • Investing in the responsible management • Investing in environmental growth to whilst presenting opportunities to increase energy of our natural environment that leads to increase economic potential linked to natural • Making investments to build upon current security and resilience. economic growth goods and services physical and knowledge assets, maximise It is also important to promote innovative approaches investments made under Objective to energy efficiency in our homes and public One and Convergence and address estate, fostering new technology applications to identified gaps in research, innovation and support our drive to lower energy consumption knowledge infrastructure and reduce our greenhouse gas emissions. • Supporting an increase in higher level skills Given the constraints that are now emerging on to underpin economic growth linked to Cornwall’s grid infrastructure, the requirement for identified Future Economy priorities smart energy solutions that build on the concept

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businesses we aim to invest in activities that will through a Growth Hub model across all LEP areas. Strategic Priority 2 enhance the productivity and competitiveness The C&IoS Growth Hub and business support of existing SMEs, encourage new enterprise and Objectives provision will be co-designed with local companies support business growth through innovation, Growth for and support providers to ensure a business-centric exporting opportunities and investment into Growth for business 1 approach to delivery. The local offer will build on Business C&IoS. Simplified, single point of access to business existing partnerships and will also ensure strategic support: channelling demand to appropriate This activity will be complemented by the collaboration with national schemes, where ‘To increase productivity and solutions provision of capital infrastructure including high appropriate. competitiveness in existing businesses and quality workspace for business growth (where the Growth for business 2 Business support: the local approach evidence demonstrates a need for investment) to encourage and support new enterprise Investments to increase levels of R&D and C&IoS’s business base is predominantly made up and research, skills development, training and in Cornwall and the Isles of Scilly’ innovation across Cornwall and the Isles of Scilly’s of micro, small and medium enterprises many apprenticeship opportunities that are closely business base of whom do not meet the strict high-growth This priority sets out how C&IoS aims to target aligned to the current labour market and C&IoS’s Growth for business 3 criteria set nationally for intensive business investment that will accelerate productivity and emerging growth sectors. 1 Provision of capital infrastructure including high acceleration support . However, a significant competitiveness in the region’s businesses. The quality workspace for business growth proportion of businesses demonstrate the strategy has been developed in close collaboration potential to become high-growth and/or make with C&IoS businesses and its primary focus is to Growth for business 4 Growth for Business Objective significant improvements in their productivity. ensure that local companies have the appropriate Increase workforce productivity through skills and 1: Provision of simplified, Therefore, through ESI fund intervention, C&IoS support to grow. career development programmes aims to focus investment on accelerating the single point access to business productivity of both ‘high-growth’ and ‘growth- support: channelling demand to potential’ businesses. This activity will include appropriate solutions support to increase the growth of those sectors and businesses characterised by high value added products and services. Context and key challenges Export figures from HM Revenue and Customs shows that the Southwest had the smallest total In order to implement an effective local business The aim of the C&IoS Growth Hub is to encourage C&IoS’s business base is composed primarily of value of exports for the year ending March 2013 support infrastructure, we aim to deliver related a competitive, enterprise focused culture. However, micro, small and medium sized enterprises. There (£12.7bn). This is 5.7% of England’s total. UKTI activities under a single, coordinated, strategic support will not be provided where displacement are approximately 21,105 VAT registered businesses estimate that approximately 1,000 (5%) of the total framework and have identified the development of other businesses and jobs is likely to take place across the LEP area. However, when incorporating number of registered businesses in C&IoS export of a bespoke local Growth Hub as a central pillar of as a result. all registered enterprises, including those that goods and services. the business support offer. fall beneath the VAT registration level, there are Supporting high-growth businesses: A research approximately 65,000 businesses in C&IoS. These National data sources also demonstrate that there Rationale for intervention: Feedback from project commissioned by NESTA in 2009 provides a SMEs and micro businesses are key drivers for local is a strong correlation between the quality of the C&IoS’s businesses during the ESI Strategy and comprehensive study into UK business growth over economic growth as they make up approximately workforce and how well an economy performs. Strategic Economic Plan consultation shows the past decade. The report concludes that high- 99.8% of the total number of enterprises across the However, Cornwall and the Isles of Scilly is lagging that the current business support landscape is growth firms are responsible for the majority of LEP area. behind its counterparts in skills attainment levels. confused. There are too many different schemes job creation in the UK and that focusing attention In order to achieve national levels, 13,000 people available, each with their own targets, marketing on growing businesses and promoting excellence Cornwall and the Isles of Scilly has the lowest levels of working age will need to achieve qualifications and promotion. will give rise to widespread economic growth. of productivity of any of the areas in the country at NVQ level 4. In addition, approximately 75,000 The current situation in C&IoS reflects the Consequently, interventions that target firms with (ONS). GDP is £16,200 per annum per capita, 2011 people of working age are not qualified to NVQ high growth potential are likely to be more efficient figures showed 64% of the EU average and 61% of national business support picture. A consultation level 2 (the national skills benchmark level). conducted in 2013 by the Department of Business, than generic business support activities for all the UK average. GVA is £13,848 compared to the SMEs who may lack the ambition to grow. UK average of £20,873. Peripherality and physical distance from markets is Innovation and Skills entitled ‘Small Business: Great also considered a barrier to local economic growth. Ambition’ has resulted in a nationwide drive to According to the OECD definition (which utilises The local business base also has low levels of simplify, rationalise and integrate Government employment growth data) C&IoS had only 65 high- A comprehensive evidence base, that identifies innovation. For example, in 2009 R&D spend was initiatives and local business support programmes growth businesses in 2011. Alternatively, Oxford 0.19% of GDP compared to a national figure of key drivers of productivity in order to assess where 1.85%. Business closures have exceeded start-ups further investment is required, was used to support in each of the last three years. development of this Strategy. 1 High growth businesses are defined by the OECD as those with at least 10 employees and who have experienced growth In order to address the issues facing C&IoS’s (jobs or turnover) at an annual average of 20% over a three year period.

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Innovation (a national business support provider Targeted: We anticipate that this level of support international markets. In order to maximise growth that delivers services locally) estimates, using The Growth Hub in Cornwall and Isles will be available to businesses that show the and employment potential, businesses must seize turnover data, that there are approximately 400 potential to grow. This area will test business opportunities to trade and export products and high-growth businesses in C&IoS. of Scilly ability and commitment to grow through sessions services to new and emerging markets. with smaller groups as well as short one-to-one This evidence demonstrates that C&IoS have a low We will allocate the majority of the funding to A recent study into the contribution of exporting support. proportion of high-growth firms within its business businesses that are high-growth or have the to UK productivity concludes that firms that base when compared to other areas across potential to make the greatest contribution to Enhanced: The enhanced offer will focus on export products and services experience faster England. It is for this reason the strategy seeks to raising productivity in the area as set out below. those businesses that are high-growth (or can productivity than non- exporting firms2 and, support businesses with ‘growth potential’. Top 25% of be with enhanced support). It will offer tailored therefore, contribute more to national economic performance support to those businesses on areas such as growth. This report also confirms that, on average, Supporting ‘growth potential’ businesses: strategy, finance, international trading and the key businesses that trade online have double the It is important to note that the state of growth is Enhanced changes needed in order for the business to reach turnover of businesses which do not. not constant. An analysis of the market position, its growth potential including through business innovation pipeline and ability of the management Targeted Research carried out by Oxford Economics notes support vouchers. to embrace these opportunities is simply a starting that approximately 68% of SMEs in the UK are now point. On-going monitoring of internal and focusing on penetrating new geographic markets. external factors is a crucial factor in harnessing and Standard The development of a bespoke This research also confirms that 40% of UK SMEs

exploiting growth opportunities as they arise. Increase value in C&IoS Growth Hub say that within three years they will generate between 21% and 40% of their revenue globally. Data collated in January 2014 from business Activities for investment include interventions support services currently operating across C&IoS that will support businesses to: Export figures from HM Revenue and Customs estimate that there are potentially 3,293 businesses Bottom % of Increase in competitiveness / productivity • Develop growth strategies shows that the Southwest had the smallest total that do not meet the national criteria but are performance value of exports for the year ending March 2013 considered to have the potential to become high- • Implement productivity and resource at £12.7bn. This is 5.7% of England’s total. In growth. 1,138 of these are start-up enterprises. improvements C&IoS, UKTI estimate that only c5% of registered This approach will be coordinated to ensure a businesses export goods and services. There is also Therefore, in order to best support C&IoS’s strategic approach to business support. • Navigate the regulatory environment a lack of Foreign Direct Investment across C&IoS. businesses to become more productive, we intend and access public sector procurement This model identifies three levels of ONS data (2009) shows that 9% of employees and to focus business support activities on both opportunities intervention: standard, targeted and enhanced 2% of companies operating in Cornwall are in ERDF eligible high-growth and growth-potential • Access professional advice (i.e. human (there will be flexibility between the levels so that foreign ownership compared to a figure of 18% businesses. Broadening the C&IoS business support resources, technical and legal) those that are high growth can go straight to the nationally. offer to include growth potential companies will enhanced support). • Access appropriate finance programmes at benefit a wider section of the business community Strengthening local supply-chains also has a each stage of their lifecycle whilst still focussing the most intensive support Standard: In order to streamline support, improve number of benefits to a local economy: including on the relatively small cohort of businesses that productivity levels across the business base and • Adopt flexible working practices to address potential for growth, future resilience, potential will deliver the highest ratio of outputs. This dual reach those who have not yet been able to access workforce health issues, disabilities in the reduction in transport costs (and therefore approach to business support will be offered on EU structural funds, there will be a standard workplace and an ageing workforce emission) and driving out waste. The development a sliding scale. As businesses demonstrate the offer to all businesses. At this stage there will be of long-term, outcome based relationships across willingness and the skills to grow and become a diagnostic service to identify the appropriate the supply chain will facilitate a culture where: more productive, they will be able to access interventions, as well as an ERDF eligibility check. In addition to the activities listed above, we • Design and manufacture is brought closer additional support. This will allow for ineligible businesses to be together signposted to other services. This level of support have identified the importance of supporting The commissioning process for the Growth will include one-to-many services such as those businesses to expand their market reach: • Productivity rises Hub will identify criteria for types and levels offered by national government, private sector increasing access to local, national and of intervention that will be applied throughout • Best practice is shared across the supply chain provision or any projects separately funded international markets as a key area of focus. delivery. However, the diagram below begins through other resources. Rationale for intervention: Global • Constraints are identified, removed and delivery to identify how businesses with the potential competitiveness and changing markets have accelerated to contribute towards productivity will receive This stage is designed to support all businesses increased the need for businesses to maximise support to strengthen their core activities: to come through the same route but move those Therefore, the development and further businesses with growth potential to the more trade opportunities in both domestic and integration of businesses across supply chains has targeted and enhanced elements of the business been identified as a key element of the C&IoS ITI Strategy’s business focused initiatives. support provision. 2 BMG Research, SME Business Barometer, March 2014

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The Cornwall brand: Exploiting local branding national figure of 1.85%. This is also evidenced by 150ha is needed to meet demand by the end opportunities can also open up access to new low take up of R&D tax credits and the levels of Activities for investment within Growth for of the Plan period, reflecting a need to address markets and allow business competitors to use competitiveness. Business 2 include: mutually beneficial marketing opportunities (i.e. longstanding stock and market challenges. Since the use of Brand Cornwall). Businesses moving into There is a weak innovation and R&D culture within • Increasing levels of R&D and developing an the Employment Land Review, market capacity an area can bring a large amount of high-quality the business base of C&IoS, the lowest of all 39 LEP innovation culture from early ideas through and delivery has remained depressed. 7.6ha of jobs in a short period of time. areas in England in terms of employment in export to commercialisation and implementation, workspace was delivered in the period 2009-12. intensive industries. including technical skills development This is only a third of what the review forecast was Supporting businesses to This evidence is further supported by the lack • Using existing Research and Innovation required in this period. expand market reach of local businesses securing national funding Centres to drive jobs and growth Investment through the Convergence programme schemes to support innovation. Therefore, it is in workspace, land remediation and site Activities for investment include: • Ensuring the appropriate availability of critical that local companies are supported to equipment and specialist advice to meet the infrastructure to create ‘oven ready’ development • Providing businesses with expertise and improve their innovation strengths so that they are needs of the innovation business base and opportunities has helped to address this issue. support to start and/ or increase trading in able to compete for national funding streams and stimulate new business growth However, the provision of market led, high quality, new markets: helping them to overcome become more competitive. Support will include a modern, well located workspace must remain an barriers (legal, regulatory, cultural and range of activities from equipment and advice to • Enabling businesses with growth potential important objective if Cornwall is to attract, retain financial) collaboration. to overcome barriers preventing them from and grow ambitious high value businesses. benefiting from research and innovation • Connecting local companies, clusters, Evidence also suggests that new job growth can and stimulating new business creation by Evidence from the Convergence programme shows networks or other multi- business be most successful in new company start-ups. A supporting graduates (and others) to drive that the vast majority of workspace investments partnerships to local, national and recent report from the Enterprise Research Centre job creation and growth had an investment gap (where the market value international partners confirms that new firms (2007-2010) accounted for of the development is lower than the costs of • Using social innovation to provide • Promoting the internationalisation agenda 61% of all job creating companies and 36% of all delivering the project) in excess of 50%. This is collaborative solutions to key challenges (i.e. at a local level job creation in the UK. Although there are issues the maximum that could be provided to an SME with the overall survival rate of new companies, the energy, health and housing) under the state aid rules in force at the time. It is • Supporting businesses to make the best use need to support a culture of innovative business • Stimulating collaborative opportunities also important to note that the values and costs for of the ‘Cornwall Brand’ start- ups is a key ambition in terms of job creation. to drive knowledge transfer, research and each project supported through the Convergence • Encouraging Foreign Direct Investment into Despite poor evidence in terms of research and development and innovation to drive jobs programme were verified independently by an Cornwall and the Isles of Scilly innovation, strides have already been taken to and growth (business: business, HE: business appropriately qualified professional. • Developing local supply chains address some of the fundamental weaknesses in etc.) A positive change in the macro-economic climate Cornwall’s innovation culture. This is demonstrated may improve commercial values and reduce by previous European investment in facilities the funding gap, although equally a rise in such as the Academy of Innovation and Research, Growth for Business Objective 3: construction costs (which fell sharply following the Growth for Business Objective 2: Environment and Sustainability Institute, and Provision of infrastructure including recession) could easily cancel out any increase in the three Innovation Centres, offering both new values. However, it is reasonable to assume that Investments to increase levels of R&D high quality workspace for business and innovation across Cornwall and and existing businesses exceptional facilities and closing the investment gap so that the market can support. These investments are already delivering growth function without public intervention is a medium the Isles of Scilly’s business base results in both business productivity and job to long term goal and the provision of quality growth and it is important that we continue to industrial and office accommodation, which meets Rationale for intervention: Low commercial build on these successes and further extend the the highest standards of environmental and social Rationale for intervention: The BIS Innovation and property values and high development costs (often 3 reach into the business community. sustainability, will continue to require public Research Strategy for Growth demonstrates that as a result of contamination from Cornwall’s historic intervention during the life of the new programme. investment in innovation is an important driver for mining industry) have for many years rendered economic growth and productivity. This report also commercial property development unviable in confirms that businesses that innovate are more all but a few prime locations. As a result, many productive than those that do not. businesses have located in cheap but outdated As previously defined, C&IoS’s business base accommodation, not suited to their requirements generally has low levels of innovation. In 2009 or their aspirations. R&D spend was 0.19% of GDP compared to a The Cornwall Local Plan Employment Land Review (2009/10) estimated that a supply of around 3 BIS, Innovation and Research Strategy for Growth, December 2011

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Issues facing the Isles of Scilly: There are apprenticeships. particular challenges for the Isles of Scilly. Incomes address issues relating to workforce ill-health, In order to ensure a sustainable economic future Activities for investment within Growth for are significantly lower than national and regional caring commitments and those with disabilities we will work with partners to implement new Business 3 include: averages due to the preponderance of low paid, (who are able to work) will add value to national and innovative ways of tackling low academic part time and low skilled jobs. There are high levels • The provision of demand responsive high initiatives designed to support people into work. performance, economic inactivity and the lack of of employment on the Islands, however, this is due quality well located workspace including Another significant challenge for C&IoS is to young people engaging in higher-education across to the levels of self- employment and many people grow-on space. establish ways of transferring skills from those the area. This activity will include research, skills have multiple jobs. The majority of employers • Investment in workspace for business working in declining industries to growing, development and training and apprenticeship are micro SMEs and there is no 16+ education clusters that support Cornwall and the Isles dynamic, knowledge intensive sectors which opportunities that are closely aligned to the provision, restricting participation in mainstream of Scilly’s cultural distinctiveness or sectors are likely to be more productive in the future. current labour market and C&IoS’ emerging growth skills and training activities, including HE, FE or where we can demonstrate a competitive We are committed to ensuring that employers sectors. Work Based Learning, by both individuals and advantage. are at the heart of the design and delivery of businesses. Higher level skills (including post-graduate skills development, apprenticeship and training qualifications) will be supported where specifically The additional costs for delivery on the islands can opportunities. linked to local business growth ambitions, key local also be prohibitive. Due to the small population Growth for Business Objective This approach will be developed to enable societal issues or where funded intervention could size there is little opportunity to reduce costs 4: Increase workforce productivity businesses to adjust to changes in technology encourage additional participation from specific through delivery to large cohort groups. and markets and to prepare for the skills needs groups and where existing mechanisms cannot though skills (including higher level Additional costs for traditional skills and training of the future. Consequently, through ESI fund achieve. skills) and career development on the islands are in the region of £100-£200 and national and local interventions, industry for one day courses, upwards of £1,500 for a full programmes engagement programmes will be broadened level 2 NVQ and between £3,000 and £6,000 for to enable business to influence the curriculum, Rationale for intervention: There is a strong identify education- industry links, and influence correlation between the quality of the workforce research institution activities. and how well an economy performs. Therefore Furthermore, young people in C&IoS are not Activities for investment within Growth for • Self-employment programmes for those employment, training and skills are key areas of attaining the skills levels or qualifications that Business 4 include: with significant ill-health or disabilities focus within the C&IoS strategy for economic they need to progress through the labour market. A comprehensive programme of high-level skills Employer designed career and skills pathways growth. The C&IoS Employment and Skills Evidence Base development activity for the future economy of Cornwall and the identifies trends of long term unemployment Isles of Scilly The evidence demonstrates that in Cornwall • Graduate placement schemes and internship we are lagging behind our counterparts in skills starting in early adulthood as well as geographic variations in skills attainment levels among young programmes • The development of a full support offer to attainment. The Isles of Scilly have a higher level of employers, employees and those entering people in Cornwall. • Specialist skills development programmes, skills but, due to the lack of employment options, the labour market to support skills and including the delivery of PHDs and MRes in the main issue is the underutilisation of those skills. The gender attainment gap in Cornwall is also career development Tackling skills attainment levels is, therefore, likely significantly greater than the national average with local businesses • Employer consortia and industry to be a focus of investment. 72% of boys achieving level 4+ in reading, writing • Development of Higher Apprenticeship delivery engagement programmes to enable Job Seekers Allowance (JSA) claimant rates in and maths compared to 78.4% of girls. This pattern and take up alongside Academic High Skills continues into Higher Education and the Job businesses to influence the curriculum, Cornwall are at 2.9% (DWP, June 2012) compared Programmes to overcome economic inactivity Seekers Allowance claims for the under 25 cohort is identify industry- education links and to 3.8% nationally. However, economic inactivity attributed to those with ill-health, disabilities and also heavily weighted towards males. influence research institution activities attributed to those with ill-health, disabilities and caring commitments caring commitments is a significant issue within ESI fund investment will be used to encourage • Apprenticeships as part of delivery at both • Projects to support those with ill- health to the C&IoS area. For example, 28.4% of people aged and enable young people to access relevant high-level and at a lower level to support stay in work i.e. one to one support, minor 16-64 are economically inactive, which equates to vocational and academic skills development small businesses. equipment needs: business support (HE, legal 94,300 people. This is higher than the UK figure of routes. This intervention will increase the number • An enhanced National Career Service offer technical training advice for employers) 23.4%. of young people undertaking skills training and for all working age population provide a greater breadth of advanced and higher • Projects to enable people to work effectively In addition, approximately £100m per year is spent • Specific learner support for the Isles of Scilly level apprenticeships as well as aligning to future from home in C&IoS on support and care for adults with a (particularly for expenses i.e. living and national and local initiatives to support young learning disability and unemployment rates for travel costs) people with learning disabilities are over 90%. people into employment. Therefore, finding new and innovative ways to

44 Integrated Territorial Investment Strategy 45 Strategic Priorities Strategic Priorities

Objectives C&IoS has for a long time been at the forefront of the capacity of the network and ensure value in Strategic Priority 3 the transition to a low carbon economy. We will previous investment. Road, rail and air need to Conditions for growth 1 invest in energy infrastructure to unlock the high complement one another and the markets that use To invest in digital infrastructure and digital skills growth potential of the low-carbon economy, them. for growth support resource and energy efficiency and Conditions Where single carriageway roads are closed because promote better carbon management. for Growth Conditions for growth 2 of accidents or flooding, or subject to maintenance, To implement support programmes to optimise Alongside this is the need for investment in there are often no viable alternative routes. This is carbon management and to improve resource and physical infrastructure to tackle the issues of particularly true of the single carriageway section ‘Investment in infrastructure, digital energy efficiency peripherality and low productivity and underpin of Carland Cross to Chiverton Cross: one of the last connectivity, employment, skills and Conditions for growth 3 the delivery of this strategy. sections of the A30 not to be dualled. community resilience: setting the To remove physical barriers to business growth and Significant investment through the 2007-13 Transport infrastructure is an important employer foundation for economic growth’ improve the economic viability of areas through Convergence programme has delivered world- in its own right and in the case of Newquay infrastructure investments leading fibre broadband coverage across C&IoS, Cornwall Airport directly supports over 500 jobs. This priority sets out how C&IoS aims to invest Conditions for growth 4 with 89% of premises able to access superfast In addition, it is important in unlocking both in both people and infrastructure to create the broadband speeds of 24+Mbps by June 2015. connectivity potential and development land To develop communities that are economically, economic conditions for growth. Independent research has demonstrated that through the Enterprise Zone facilitating greater job environmentally and socially resilient, sustainable access to this infrastructure is providing significant and economic growth potential. and inclusive economic impacts, with jobs being both created In terms of rail, between 2000 and 2013, there Conditions for growth 5 and safeguarded amongst connected businesses. has been a 7.9% (per annum) average growth in To improve progression into the labour market To maintain our position at the forefront of rural rail patronage in Cornwall, with over 5 million rail digital connectivity, we now face the challenge journeys each year. The network currently provides of providing access to the ‘hard to reach’ areas 9 services per day to London, with 16 mainline across C&IoS. Alongside investment in digital services in Cornwall per day. Around 70% of all of 23.4%. There is a clear need to address this and infrastructure, we will provide advice and support Context and key challenges: long distance journeys are made for economically to support people to move towards and into the to ensure that businesses are able to recognise and The Conditions for Growth theme identifies the productive purposes with 69% of business labour market. grasp the competitive advantages that connecting underpinning challenges C&IoS faces and sets out travellers undertaking valuable work on journeys. to superfast speeds can bring. how we will invest in creating the right conditions There are particular issues facing the Isles of Scilly. Consequently, investment in the rail network to support this strategy and wider economic The geographic isolation of the islands directly Transport connectivity is a key driver for a remains a priority to support economic growth. growth. affects the economic, social and environmental successful C&IoS and provides the basis for The rail network currently suffers from capacity and needs of communities and businesses. Whilst the facilitating private sector investment, job creation line speed limitations due to signalling and gauge Low earnings are a key issue and in 2012 median islands enjoy high levels of employment (with high and GVA. It enables the dispersal of development restrictions, which impact on both passenger gross annual earnings for all employees in C&IoS levels of self-employment), individuals frequently in areas with growth potential; for example in services and freight movements. Furthermore, equalled £17,389, 81% of the UK average (£21,473). have multiple jobs. Incomes are significantly lower agri-food, renewable energy and the digital sector. integration with the rest of the public transport This is both a reflection of our traditional industrial than the national and regional averages due to Transport connectivity can allow the dispersal of network is limited. base and the low skills levels of our workforce. the preponderance of low paid, part time and low skilled jobs in a rural region. The average household in C&IoS has higher costs skilled jobs. Delay can impact on both productivity and compared to the national average, including for The importance of internal movements to support perception. For business, this means the need to water and sewerage, energy, fuel, transport and local supply chains requires a reliable mix of reduce the cost of congestion and delay. housing. When combined with the low average transport infrastructure. This is also a prerequisite The UK National Infrastructure Plan highlights earnings this leads to issues of debt and financial for labour mobility in a region without major some of these issues as themes: instability, with high levels of deprivation in some agglomerations. For example most food and drink areas. and agricultural businesses operate in the rural and • The need to increase output per hour (to drive coastal periphery of C&IoS. Food and drink alone up wages and salaries) Improving peoples’ chances of gaining employs 6,700 with 21,000 employed across the employment is a key condition for growth. • Reducing delay and increasing effective wider supply chain. Inactivity levels are very high with 28.4% of people working hours aged 16-64 economically inactive, this equates to Product value and labour productivity must be • Unlocking additional investment and attracting 94,300 people. This is higher than the UK figure supported by addressing the bottlenecks and national and international investment. gaps in our transport infrastructure to maximise

46 Integrated Territorial Investment Strategy 47 Strategic Priorities Strategic Priorities

The importance of investment in sustainable for Europe 2020, to ensure that C&IoS builds on its Creating sustainable production and consumption Activities for investment within transport can be demonstrated by the example world class infrastructure to extract the maximum will secure future prosperity through: Conditions for Growth 2 include: of previous structural funding for the Truro/ socio- economic and environmental benefits from • Improving the sustainability of products and Falmouth branch line taking the pressure off the the investments made. • Improving environmental quality, energy services; A39 and ensuring business connectivity between and resource efficiency, including in waste Further exploitation of new and emerging the regional centre of Truro and the University at • Improving the sustainability performance of and water sectors to reduce economic technologies will be employed, with ICT enabled Falmouth. organisations; burdens society benefits including reduced energy In order to create the conditions necessary to consumption, additional support for ageing • Deploying sustainable and responsible public • Piloting new models of energy storage procurement. unlock the future economic potential of C&IoS, citizens, new and alternative employment models • Investment in green and blue infrastructure the activity we will invest in under this strategic and revolutionary approaches to the delivery of With the demand for energy and material resources to support businesses and communities priority is required to ensure that our human and health and care services. expected to rise to 170% of the planet’s generation • Ambitions and actions to increase economic physical resources are fit for purpose and prepared capacity by 2040, economic competiveness will be Activities for investment within potential linked to environmental growth to exploit future opportunities. improved through resource efficiency gains and Conditions for Growth 1 include: building an eco-effective economy. • Development of multi modal transport Conditions for Growth • Advice and support to ensure that points and alternative fuel infrastructure Developments in energy storage will enable the businesses are aware and able to make Objective 1: To invest in emergence of decentralised energy systems and, • Developing natural environment hubs as effective use of the opportunities of digital when linked to demand response and demand focal points for emerging environmental digital infrastructure and digital connectivity skills for growth reduction solutions, this will unlock productivity business clusters • Investment in digital infrastructure to and resilience gains. • Strengthening the economic & support delivery of strategic aims and Natural capital underpins all other types of capital environmental resilience of coastal and rural to develop and maintain competitive (man-made/manufactured, human, social and communities Context and key challenges: advantage financial), providing the foundation on which our Physical distance from national and international • Developing carbon management, • Development and delivery of a skills economy, society and prosperity is built and this markets is seen as a key issue prohibiting environmental management and resource programme to enable the exploitation of is often undervalued in conventional economic businesses from growing and accessing new efficiency skills digital technology analyses and decision making. markets. Previous investment in the award winning Superfast Cornwall programme has begun to • Supporting digital inclusion by helping A proactive approach to natural capital address this issue by delivering a world-leading excluded people to access, understand and management will ensure the wealth of natural fibre optic broadband network across C&IoS. By benefit from the internet assets are better harnessed to support economic the end of June 2015, fibre broadband coverage and environmental growth, rather than acting Conditions for Growth Objective had reached 95% of the region, with 89% of as a constraint to our economic development 3: Removing barriers to business premises able to access superfast broadband ambitions. Additionally, investment in green growth and improving the economic Conditions for Growth Objective speeds of 24+Mbps. Independent research shows infrastructure has been shown to demonstrate very viability of areas including through that 2,000 new jobs have so far been created and 2: To implement support strong leverage ratios. infrastructure investments a further 2,500 safeguarded in businesses that programmes to optimise carbon The ERDF Operational Programme identifies two have connected to the new network, contributing specific areas for investment in Cornwall and the management and to improve resource Rationale for intervention: The peripheral £186m to the local economy. Isles of Scilly that contribute to achieving this and energy efficiency location of C&IoS places added importance on the Despite Superfast Cornwall’s considerable success objective as follows: connectivity of the area to the rest of the UK and in delivering fibre broadband infrastructure, as Investment ERDF contribution beyond. many as 20% of adults in Cornwall are thought to Rationale for intervention: There are excellent have never been online and many businesses have opportunities to invest in promoting resource Alternative fuel €8,511,563 Whilst digital connectivity has much improved, been slow to recognise the competitive advantage efficiency to drive growth and deliver productivity infrastructure there are continuing issues surrounding the that use of Superfast could bring. In order to gains for the C&IoS economy. There is strong Multi modal transport €1,167,951 resilience of our physical (rail, air and road) maximise the benefits of the Superfast Broadband empirical evidence that resource efficiency makes points networks which are vulnerable to significant events provision, an integrated investment programme business and environmental sense. (man-made and/or weather). With a limited trunk will be developed, aligned to the Digital Agenda road network in and out of Cornwall, there are frequent and significant economic impacts from

48 Integrated Territorial Investment Strategy 49 Strategic Priorities Strategic Priorities

seasonal variations of high traffic flows and journey and ensure the economic viability of areas is communities. affected by the multiple welfare changes. Child time reliability. Road closures and congestion have maintained and preserved will form a key part of poverty levels remain static, with approximately The increasing role of the Civil Society in C&IoS significant economic impact: there are often no this objective. 18% of all children and young people aged 0 to 19 has been highlighted by recent research, appropriate diversions for high volumes of traffic in Cornwall considered to be in poverty, and the EU demonstrating the importance of the sector (including for HGVs), directly impacting upon Activities for investment within investment will meet the challenge this poses to to the economy (around £580m), offering new potential employment growth. Conditions for Growth 3 include: our society and economy. delivery methodologies in the health, social care, The ERDF Operational Programme identifies three • Removing physical infrastructure obstacles welfare and education sectors and reaching many Cornwall is reliant on the natural environment strategic infrastructure investments in Cornwall to business growth people from local disadvantaged and minority for stable communities and economic activities. that contribute to achieving this objective as • Investments to improve the economic groups. The announcement of the first rural Social However, in some areas the environment poses follows: viability of areas to enable growth and Enterprise Zone in Cornwall in 2013 shows the risks globally and locally. To mitigate and adapt mitigate against the effects of our changing commitment to using different partnership based to these challenges, investments to support Investment ERDF contribution climate business models to provide new service delivery the development of a circular economy and A30 Carland Cross to €26,359,028 methodologies for the development of new environmental growth are essential to ensure Chiverton Cross • Investment in river restoration, flood and markets and to address issues of market failure. community resilience and economic stability. A coastal risk management and upstream number of communities in Cornwall are already Mainline Rail Signalling €15,278,329 Despite common perceptions, there are high water management to fulfil our economic embracing community owned energy and local levels of poverty, including within households in St Erth Multi modal hub €6,608,676 potential food markets. There is considerable scope to employment. Work by Experian identified that extend this model. Despite our high quality Consequently, addressing key bottlenecks will • Invest in the decontamination of land and 26% (59,000) of households in Cornwall are ‘at risk environment there are opportunities to increase enhance economic opportunity. water to maximise re-use of brownfield sites of poverty’. This places Cornwall in the worst 5% of and economic potential based on a quality access to the natural environment to support The Isles of Scilly face particular difficulties, with the areas in the UK. environment healthy lifestyles. Equally in places there are flow of goods and services to the tip of Cornwall Cornwall has a severe debt problem and it is significant environmental risks, such as flooding, vital to support its sustainability. Issues also relate getting worse relative to the rest of the country. droughts, air quality, noise pollution etc, and to inter island connectivity and transport costs Around 40% of all CAB advice requests relate to there are opportunities to mitigate these through significantly impact on business viability. Conditions for Growth Objective debt: in 2013 29,000 people sought CAB support community-led initiatives. on this issue and personal insolvency rates in Supporting connectivity in to, out of and within 4: To develop communities that are C&IoS is fundamental to the area’s future economic Cornwall continue to be higher than the South Activities for investment within wellbeing. economically and socially resilient, West and national averages. Conditions for Growth 4 include: Cornwall has a strong mining and quarrying sustainable and inclusive Recent work has identified that parental • Spaces and skills for social innovation; heritage, however, this has left a legacy of employment is the single biggest determinant of building community capacity to solve their own problems contaminated land and water which can form a Rationale for intervention: Employment, family income and children in out of work families barrier to economic development. education and skills are major factors in economic are at a high risk of poverty. Work with families will • Developing the VCSE sectors to meet tackle the anticipated effects of welfare reform: Climate is fundamental to almost all aspects of our growth and to address issues of social inclusion community challenges studies have identified that large families (with 3 lives; it directly affects our economy, ecosystems, and to combat poverty. Inclusion Cornwall is children or more) will be among the most adversely • Tackling in-work poverty and reduce food, water, health, homes, infrastructure, trade revising the strategic approach to inclusion in average household indebtedness and leisure. Climate change could have a serious C&IoS and is leading the work to tackle the key negative impact on C&IoS’s growth potential, issues of our low wage, high living cost economy. • Tackling low aspiration and inactivity with the 2006 Stern Review estimating the long- Using our economy as the driver, we believe through families term economic cost of climate change to be people in C&IoS can look forward to a more • Support community-led initiatives to equivalent to losing between 5-20% of global GDP. inclusive society, with an innovative approach to develop a circular economy Our economy is already vulnerable to extreme problem solving providing individuals and families • Support community actions to deliver weather events and will become increasingly so with a better balance between income and cost. environmental growth in the future, as organisations and individuals will There are also particular issues of isolation for the be forced to absorb the growing costs of climate Isles of Scilly which directly affect the economic, change. The ability to respond to these risks by social and environmental needs of the islands’ building sustainable infrastructure, especially in relation to coastal protection and management,

50 Integrated Territorial Investment Strategy 51 Strategic Priorities 5 Integration of Funds

occupations to move into the growing markets. Fund integration integrated actions through simplified financing. The Commission recognise that ITIs lead to a Conditions for Growth Although similar to the national average (4.9%), Co-ordination between ERDF and ESF and better aggregate outcome for the same amount Objective 5: To improve youth unemployment is still a concern, with other funds of public investment; the securing of structural a larger percentage long-term unemployed progression into the labour and investment funds at inception ensures greater compared with the overall claimant rate. There As detailed within the European Commission market certainty and confidence over investments and as is also clear evidence of the seasonal nature of Guidance Fiche on Integrated Territorial a place-based approach can assist in unlocking the youth employment, with young men more likely Investments, the C&IoS ITI sets out the challenges under-utilised potential and resource contained at to be unemployed than young women. There is and development needs specific to the C&IoS Rationale for intervention: We have high levels geographical area and aims to address the local levels. of economic inactivity. On average over the past a support gap at the age of 19+ when those who have been NEET can become invisible through the challenges in an integrated way. It sets out financial The ITI will include components that are financed three years, approximately a quarter of those aged allocations, investment plans, outputs and delivery 16-64 were economically inactive (this excludes existing support mechanisms. from national and local budgets and not solely by elements for ESI fund as well as other local and the EU. This will include Single Local Growth Fund, those who are unemployed and seeking work) and As our evidence identifies, we have further work to national funding. The ITI Strategy covers the Regional Growth Fund, Cornwall Council match this figure has remained relatively consistent for do to identify specific groups to target as the mix Less Developed region’s allocation of ERDF and funding and other economic development funds. some time. There are an estimated 32,100 workless of issues are complex. Very specific interventions ESF from the England Operational Programmes. households in Cornwall, 19% of total households. in specific geographies will be required to reach Additionally, Defra as the Managing Authority for The C&IoS ITI will include the use of non-repayable Of these, the majority (27,300) relate to adults those who have, as yet, not benefitted from EAFRD will align an allocation of EAFRD funding grants, as well as financial instruments and who were inactive rather than unemployed which support. to the ITI for the Less Developed region and detail Community-Led Local Development (CLLD). The shows our real issue is with inactivity rather than Managing Authorities will facilitate joint capacity This will require a local focus and new approaches, of the strategic alignment of the C&IoS EAFRD substantial unemployment. building, selection and financing of CLLD strategies including a recognition that ‘engagement’ activity allocation is also set out in the C&IoS ITI Strategy. from the relevant ESI funds. The majority of this inactivity is health and is long-term and costly. As integrated territorial strategies are vital for the disability related, identifying the need for specific, The lead Managing Authority will also ensure co- There are synergies between this objective and achievement of the aims of European funding, targeted interventions. In addition, specific support ordination of appraisal of any separate but aligned increasing workforce productivity through skills the Common Provisions Regulation introduces to find new work and employment opportunities projects from ERDF and ESF to align decision and career development as identified in the the Integrated Territorial Investment (ITI) as a key for these individuals is required. Often the most making and streamline processes for applicants. Growth for Business activities. instrument to implement such strategies. We difficult to place with employers, there are intend to respond to the European Commission’s Demarcation increasing opportunities (often through digital Activities for investment within Conditions aim and use an ITI to draw on funding from technologies) to engage and encourage alternative for Growth 5 include: several priority axes of Operational Programmes Due to the integrated nature of the C&IoS work methods. to enable the efficient implementation of ITI Strategy, it is important that there is clear • Enabling individuals to design, start and demarcation between the activities or investments Current unemployment rates are on a par with the develop their careers ERDF, ESF and EAFRD funds can be used for. national average, but there is a small entrenched The Managing Authorities of each fund will long term unemployed ‘group’ which has remained • Building on and developing new solutions be responsible for ensuring the demarcation at over 20% of JSA claimants for the last year. to tackling long term unemployment through individual approaches for those of funding and this will be detailed within the The unemployed are far less skilled (43% are below with particular needs relevant Operational Programmes. Examples where NVQ2, double the rate for the employed). Adults this is relevant include rural skills investments and with disabilities (of any kind) have a much higher • Using social innovation to develop business support for agricultural businesses. unemployment rate (for example: adults with alternative employment opportunities in LLDD (Learners with Learning Difficulties and/ or targeted geographical areas European Agricultural Fund for Rural Disabilities) have an unemployment rate of over 90%). • Tackling individual barriers for young people Development (EAFRD) activities There is a clear seasonal link to the unemployment within the labour market The EAFRD Growth Programme allocation to figures. In the 6 months plus category, there is a the C&IoS LEP area has now been confirmed at very clear pattern of people falling in and out of £9,396,623 and we will align this to our wider ESI employment, reflecting seasonal variations. The fund delivery as part of our ITI. We will use our need is therefore to develop more sustainable, EAFRD allocation to deliver investments in the agri- rather than seasonal, jobs. Re-training and food sector and support wider rural development re- skilling programmes will enable those with activity which adds value to ERDF and ESF occupational experience in ‘harder to place’ provision. As set out in our intervention logic, this

52 Integrated Territorial Investment Strategy 53 Integration of funds Integration of funds

will lever in over £8m of private sector investment, Group (Ginsters/Kensey Foods/Tamar Foods), increased added value with the need for new long as the support required does not relate to the creating over 200 jobs and providing training for Tulip Foods, Sharps, Cornish Orchards, WC Rowe, science, research, innovation and knowledge “production” elements of the business. over 3,000 people. WT Warren and Son, etc) to small and medium transfer. We intend to make use of the full range of Rural businesses (Lynher Dairies, Proper Cornish, Foods, Given the modest scale of EAFRD available to the Delivering an integrated supply chain approach Development Regulations measures available Crantock Bakery, Cornish Cheese Company, Camel area and the importance of the agri-food sector in the agri-food sector will not be possible unless and access EAFRD from the range of Thematic Valley Vineyard, Cornish Charcuterie, North Coast to C&IoS, we will focus the majority of EAFRD on EAFRD Growth Programme funded activity and Objectives from both the ESI fund and any future Cider, Primrose Herd, Troy Town Farm, Holy Vale driving productivity improvements in agri-food any National Rural Development Programme Rural Development Programme. This will enable us Vineyards, etc). businesses, adding value to agricultural and activity is developed and delivered in parallel to achieve joined up delivery at the local level. forestry products and increasing supply chain In addition to underpinning the employment and this approach is at the core of our preferred integration. We will do this by investing in agri- base of C&IoS, the agri-food sector also represents delivery model. European Maritime and Fisheries tech knowledge transfer, developing an energy over 6.5% of GVA (the equivalent UK figure is We have secured an additional £7.3 million of Fund (EMFF) activities storage/ renewables programme, business grants 3%). However, despite considerable growth in EAFRD via our four LEADER Local Action Groups for adding value, a supply chain development the sector, average productivity levels remain In 2009 it was estimated that fishing contributed and they are likely to support improvements and productivity programme, encouraging rural low compared to national averages especially in £10 million to GVA, but including related sectors in farm productivity, support for micro and tourism and broadband provision for those rural the primary production sector and addressing the figure is estimated to be closer to £20 million. small enterprises, farm diversification, rural business that may fall outside the wider broadband this issue across the supply chain must be a key tourism, rural services, culture and heritage Whilst the fisheries industry makes a relatively provision. element of activity in the 2014 to 2020 period. and improvements in forestry productivity. small direct contribution to GVA, it contributes The agri-food sector is important to the economy Much of the current delivery in this area is “issue” Whilst LEADER and national Rural Development to other industries. For example, the catching of C&IoS, as set out in our evidence base. 11.3% based, rather than taking a holistic approach to Programme activity falls outside the scope of our sector supports boatbuilding and repair, marine of Cornwall’s employment is in core agri-food business/supply chain performance, resulting in ITI we will ensure that overlap with other EAFRD, equipment suppliers and port and harbour activities, with a further 12.6% in supermarkets, a lack of joined up investment and this approach ESF and ERDF activity is avoided. facilities. In some areas, the contribution made by bars and restaurants and 5% in accommodation, does not maximise productivity gains or minimise commercial fishing supports other commercial The wider ESI programme (ESF and ERDF) will giving a figure of 29.1% (compared to 15% in GB) in delivery costs. Due to the scale of the agri- food and recreational activities (including tourism), cater for many of the needs of businesses in all food and drink related sectors. sector in C&IoS, any additional improvement at often with wider beneficial social impacts, C&IoS, whether they are located in a rural or sector level will deliver significant productivity especially in more remote areas, where a significant Dairy and animal production and horticulture are an urban setting. Defra have stated in their benefits to this bedrock sector and improve its contribution is often made to maintaining local our key sectors. We have 19% of all the cattle in the guidance for the use of EAFRD that generic growth trajectory. services. South West of England and dairy production is by business support and training for farming, far our biggest output. Horticultural production is In the 2014 to 2020 period, Defra will deliver a forestry and food businesses will be eligible We anticipate that c.£1.5m of EMFF will form increasing and, despite only 29.6km2 of Cornwall’s national Countryside Productivity Scheme and for support from ERDF and ESF and we intend part of our approach and will fund projects that horticultural land area being farmed for fruit and support improvements in agricultural and forestry to include the provision of business support will contribute to one or more of the following vegetables, this contributes 29.5% of the South productivity via their LEADER initiative. Both of to these sectors in our Growth Hub and other key themes: West’s fruit and vegetable production — more these will aim to address many issues affecting business support and training proposals. • Developing sustainable supply chains than any other region. In addition, we have 16% productivity at business/farm level and any activity However, where this business support or and 11% of the sheep and pigs in the South West, we undertake with our EAFRD Growth Programme training changes to activity relating to primary • Market development respectively. Arable is also very important to funds at the C&IoS level will not duplicate or production (as opposed to the primary producer • Providing infrastructure and communal facilities Cornwall, at 13% of the farmed area. replace this activity. However, it may be possible as a business) we will use EAFRD to cater for their for fishing communities and cooperatives to deploy some of our EAFRD allocation into support needs. Food processing has grown significantly over • Capacity building, cooperative development activity that adds value to the national offer by the past 10 years with significant local, regional, Dovetailing EAFRD funds into wider ESI fund and networking working with businesses to maximise access to national and international businesses involved. delivery activity in this way will help to reduce national schemes (i.e. by encouraging more, higher • Training, retention and recruitment including Annual turnover is now in excess of £1.5 billion per any gaps in provision. For example, many ERDF quality applications that address the needs of the diversification annum. Products range from our more traditional funded projects can currently assist second businesses as a whole, filling any existing gaps and products (clotted cream and the Cornish pasty) stage food processors (e.g. bakeries or breweries) • Coastal communities, tourism and economic testing innovative delivery options). to new, novel and niche products (sparkling but they cannot support farmers or first stage development wine, cider, beer, preserves, cheese, gin, bakery In addition, we will also support activity that will be processors (e.g. pedigree beef breeders or • Advocacy and engagement for fishermen products, biscuits, charcuterie, etc), with many of bespoke to C&IoS as this will help us to implement cheese processors) due to eligibility issues. It is these businesses using local ingredients in their a more integrated approach to the delivery of our understanding that this distinction does not • Regional sustainable management engagement production processes. Scale ranges from the activity in the agri-food sector. We will combine apply in the 2014 to 2020 programme period as very large scale e.g. (Dairy Crest, Arla, Samworth the adoption of best practice, diversification and

54 Integrated Territorial Investment Strategy 55 Integration of funds Integration of funds

as a whole and improving infrastructure. The all other European funds delivering the priorities Territorial Cooperation Programmes largest portion of the Growth Deal is focused on set out in this Strategy. improving the transport infrastructure in Cornwall Although Territorial Cooperation is not seen as a and the Isles of Scilly to improve Cornwall and the Horizon 2020 major priority for the LEP or Councils, applications to the 2014-2020 cross-border, transnational Isles of Scilly’s connectivity to the rest of the UK. Closer integration of Horizon 2020 with the main and inter-regional cooperation programmes SIF Programmes is a key intention of the European put forward by partners from C&IoS should Commission in the next programming period. Regional Growth Fund demonstrate how they support the ITI Strategy The £13m Regional Growth Fund investment As a minimum, it is expected that Horizon 2020 and how their outcomes will complement specific programme in C&IoS consists of 3 elements, all of applications emanating from C&IoS would investments in the main programme. which have a principal focus on job creation. show how they align with the ITI Strategy and demonstrate what actions will be taken to deliver This is delivering a significant number of new their outcomes, whilst adding value to the main high value jobs and has already been used ERDF and EAFRD activities. To ensure maximum to complement ERDF investments in order to strategic fit, we would endeavour to have all maximise the economic impact. Although most applications seen by the ITI Board. funds are committed, those jobs are profiled to be created up to and including the financial year 2018/19. The funds are delivered in a partnership approach – Cornwall Council is the Accountable Body with LEP oversight and day to day management and administrative functions are carried out by Cornwall Development Company. Any future RGF programmes will be strategically linked to the ITI delivery. Projects will need to have an on-the-ground support mechanism available to them to aid Growing Places Fund development and help them through the application process. The Growing Places Programme is an investment scheme totalling £6.3m. The investment sits In 2003, it was estimated that for every £1 of output alongside the Regional Growth Fund to the extent in the sector, another £2 was generated through that the management and governance are closely downstream activities, such as processing, trading linked. This ensures that the investment funds and ultimately retail. Therefore, we propose to are properly complementary and are having the allocate £3.5m to commissioning infrastructure in maximum impact. this area of the sector in order to achieve maximum impact and value for money. The Growing Places Fund enables the delivery of otherwise stalled local infrastructure schemes Local Growth Fund in Cornwall and the Isles of Scilly. In addition, it provides the up-front investment needed to get In 2014, C&IoS LEP secured a total of £60m from development underway, with the flexibility to the Government’s Local Growth Fund to support recycle funding for other projects as developments economic growth in the area. When combined are completed. with the matched funding secured, the Growth Deal has a total value of £210m. It aims to work Alignment with other European alongside the EU Structural and Investment Funds and a number of the investments include both funds funds. Investments are focussed on high growth, The C&IoS ITI Strategy also recognises the added high value specialist business sectors, raising growth potential of ensuring strong linkages productivity and employment in the economy between the Structural and Investment Funds and

56 Integrated Territorial Investment Strategy 57 6 Match funding and opt-in model Match funding and opt-in model

Local match funding sources ESF Opt-In Match Funding As an opt-in organisation, DWP can match fund and Calls manage specific elements of the ESF Programme. In line with the EU regulations for ERDF and ESF A Call is an invitation for applicants to submit There are three ESF Opt-ins available DWP is a member of the ESB and is fully apprised of C&IoS ITI can access a maximum 80% intervention local requirements and expectations. proposals against a published specification. The rate across the programme for the Less Developed to Cornwall and the Isles of Scilly and calls will be approved by the ITI Board before they Region. We wish to manage the intervention rate are published. Applicants will need to have their the ITI Board has opted in to all three. A Big Lottery on investments at an ITI level, allowing us to take minimum of 70% of the ESF Programme own match funding in place to respond to a direct a flexible approach, selecting intervention rates The Big Lottery Fund (BLF) are responsible for call. Opt-in calls already have match in place. on an investment by investment basis allowing for will be delivered via Opt-in providers: distributing over £650 million each year (40%) In relation to Opt-ins, we would anticipate 100% EU funded investments where necessary and of all the money raised for good causes by the seeing a more bespoke and tailored approach to where headroom exists in priority axes. Skills Funding Agency National Lottery. As an opt-in organisation the BLF programme and investment design in the Less will match fund and manage specific inclusion Our EAFRD Growth programme allocation The Skills Funding Agency (SFA) funds skills training Developed Region and in many cases, we would elements of the ESF Programme. is matched at source by Defra and again we for Further Education in England. They support expect to see proposals including the creation of would wish to manage the intervention rate on colleges, private training organisations and The BLF offer differs from the other options in the locally based teams. investments at a project level, allowing us to take employers. following ways: In line with the C&IoS Growth Deal, we plan to a flexible approach, selecting intervention rates As an Opt-in organisation the SFA can match fund • Projects will be developed and offered through have a wider conversation with government on an investment by investment and needs based and manage the skills and training elements of a competitive grant making process departments to discuss the potential to basis allowing for 100% EU funded investments the ESF Programme. They fulfilled this role in the develop other ESF opt-in type projects which where necessary. 2007-14 European Convergence Programme and • Projects will work on ‘actual’ costs (not based on ‘output’ costs) fit our strategic priorities, potentially involving We have established a C&IoS Growth Programme have substantial experience of managing delivery partnerships with Higher Education Institutions, ITI Team, to work closely with Managing Authorities through local partners. • The match funding is ‘cash’ match not DECC, Defra, Arts Council England and Creative to manage the strategic procurement of both the The Skills Funding Agency (SFA) is a member of ‘programme’ match England. ESI funds and related economic development the C&IoS Employment and Skills Board (ESB) match funding. This will ensure a joined up and is fully appraised of local requirements and Direct Delivery approach to the provision of match funding and expectations Where an Opt-in mechanism is not appropriate create a more efficient approach to delivery. (usually due to match funding and activity issues), Department for Work and Pensions In recognition of the importance of ESI funds for there is scope for ESF to deliver projects through delivering local growth, Cornwall Council has The Department for Work and Pensions (DWP) direct (also known as open) calls. earmarked a substantial proportion of match is responsible for welfare, pensions and child funding for the 2014–2020 funding period from its maintenance. It administers a range of working capital programme and revenue budget. age, disability and ill health benefits and is also responsible for supporting workless individuals We are working with other partners to identify back to work. DWP will also have a major role in synergies with their programmes and therefore, administering Universal Credit as it is introduced possible other sources of match funding. from 2015.

58 Integrated Territorial Investment Strategy 59 7 Outputs and results Outputs and results

Outputs and results are essential to demonstrate the achievements of Output targets and the Performance Framework individual investments, to monitor the progress of the programme and to The following table reflects the key C&IoS Operational Programme output targets that need to be met by measure impact over the longer term. 2018 to ensure that the full C&IoS ERDF and ESF financial allocations are available in the second half of the Programme. In addition there are a range of other programme output targets that projects will have to As a Less Developed Region the setting of targets needs to be commensurate with the economic deliver within the Programme period. circumstances of the region and the achievements of previous programmes. This has been addressed in the following ways during the local Strategy development process and England Operational Programme Key Output Targets for the Performance Framework development stage: ERDF

Outputs and results Priority Output Milestone Final target 2023 Axis target 2018

Outputs Results 1 Number of enterprises receiving support 109 558

2 Additional businesses capable of ERDF and ESF Development of a detailed evidence ERDF: results and targets for the accessing broadband of at least 370 1,449 base and compilation of previous Operational Programme have been 30 Mbps programme data to determine set at a Programme (England) level what was achievable and realistic using national data sets. There are no 3 Number of Enterprises receiving for C&IoS. Followed by detailed specified C&IoS result targets. support 499 2,121 discussion with local partners about this information. ESF: nationally determined results 4 Estimated GHG reductions (CO indicators with specific targets for 2 equivalent) C&IoS contribution to the national C&IoS based upon local evidence 74 tonnes 17,700 tonnes target setting methodology. C&IoS base. contribution included analysis of 5 Number of businesses and 100% of schemes local unit costs (where applicable) in place properties with reduced 163 from the 2007-13 Convergence flood risk Programme. 6 Surface area of habitats supported in order to attain a 18ha 82ha better conservation status EAFRD Growth Output targets were discussed with Programme the Managing Authority during 7 Length of reconstructed road of 100% completion of strategy and Local Implementation Results – there are no specific result which TEN-T planning processes and 12.5km targets that have been set for C&IoS. Plan development. These were necessary clearances, based upon the local evidence including SEA for road base and 2007-13 Programme achievement where applicable. Length of railway with new or 50% where signalling 43km enhanced signalling installation improved (subject to final end of project safety sign-off)

8 Number of enterprises 4 local strategies 200 receiving support agreed

60 Integrated Territorial Investment Strategy 61 Outputs and results

ESF Cornwall and the Isles of Scilly ESF Financial Targets (€)

Output Priority Milestone Milestone Milestone Final target Final target Final Priority Axis Milestone for 2018 Final target (2023) Axis target 2018 for men for women for men for women target 2018 2018 2023 2023 2023 1 Inclusive Labour Markets 28,000,000 145,618,479 1 Number of 7,300 3,700 3,600 19,700 19.200 38,920 participants 2 Skills for Growth 11,000,000 62,174,183 2 Number of 2,500 1,200 1,300 6,300 7,200 13,500 participants

EAFRD The following tables show the Performance Framework financial targets for the Less Developed Region (2018; which triggers a Priority Axis performance reserve and 2023; end of programme). These spend targets are inclusive of match funding for contracted investments. There are no specific Performance Framework the overall programme – but whilst also being very measures associated with the EAFRD Growth realistic about what they can achieve (and not over- Programme allocation. However, as part of a committing). Cornwall and the Isles of Scilly ERDF Financial Targets (€) national Programme the Managing Authority is It is a local view that not all investment activities able to move money between underperforming will demonstrate short term value for money and over performing Local Enterprise Partnership Milestone for Final target or provide immediate output returns. It is the Priority Axis 2018 (2023) areas (as they have financial allocations not ring intention that the investment portfolio in its fenced budgets) if there has not been satisfactory entirety will balance high risk, slow return projects progress at the point of the mid-term review. 1 Promoting research and innovation 29,083,926 113,875,263 with those that deliver value for money and It is the intention of the ITI Board to support all outputs within the lifetime of the programme. It is 2 Enhancing access to, and the use and quality of ICT 6,077,794 23,797,010 projects in giving careful and considered thought important to note that the risk referred to does not to their output targets to maximise the impact of refer to compliance risk. 3 Enhancing the competitiveness of SMEs 54,957,867 215,182,137

4 Supporting the shift towards a low carbon economy in all sectors 18,484,326 72,373,569

Promoting climate change adaptation, risk prevention and Total Growth catalyst/ Leading edge/could Incremental/ 5 management 3,728,708 14,599,393 transformational - deliver transformation proven delivery high risk – medium risk models – low risk Preserving and protecting the environment and promoting resource 6 efficiency 4,101,579 16,059,333 Percentage of ESI fund 100 30-45 40-50 15-25 Budget 7 Sustainable transport in Cornwall and the Isles of Scilly 18,492,848 72,406,934 Future Economy 30-35 Promoting social inclusion and combating poverty and any Growth for Business 35-40 8 discrimination 4,210,671 16,486,473 Conditions for Growth 30-35

62 Integrated Territorial Investment Strategy 63 8 Delivery arrangements Delivery arrangements

The Growth Programme delivery delivery models in the current programme which • Continue embedding equal opportunities arrangements are established in a series have not been bespoke, accessible or flexible, and access into the labour market through of ERDF and ESF ‘business processes’ resulting in sub optimal delivery. the procurement process to ensure maximum inclusion. Additionally, websites and any public prepared by the Managing Authorities. Our ITI will seek to extend beyond the ESI funds facing documentation should be fully accessible These are documented in England to include coordination of, and influence over, with alternative formats statements. Programme guidance notes. the funds available to the Less Developed Region through the EAFRD and EMFF Operational • Monitoring and reporting mechanisms to The C&IoS delivery model is an Integrated Territorial Programmes. be put in place to ensure that equality and diversity opportunities are maximised and issues Investment (ITI). C&IoS are clear in their view Additional C&IoS guiding principles and support identified. The monitoring procedures should that an ITI will enable the region to build on past mechanisms are outlined below. and current successes in delivering economic also include specific equality related complaints benefits from the investment of European Funds. procedures at strategic and project level. Cross Cutting Theme It will enable the region to address its specific As a result of this additional emphasis, the C&IoS economic circumstances (as encapsulated by its Sustainable development is a core element of the ITI Board will request that all applicants ‘exceed Less Developed Region status). Previous experience C&IoS ITI Strategy. the cross cutting theme requirements outlined in suggests that national programmes can often © Countyside Agency, Simon Cook the Operational Programmes by referencing the have little impact in C&IoS, particularly in terms of We recognise that the Environmental Growth Strategy and the Inclusion Cornwall Strategy for Inclusion and Environmental Growth strategies of supporting businesses to improve productivity due Cross Cutting Theme Cornwall and the Isles of Scilly’. to the specific make up of businesses in the area. Cornwall are essential to helping deliver exemplar C&IoS partners recognise the central role This has been compounded by nationally driven projects and striving to be the most sustainable the ESI funds play in promoting equal commissioning and by the use of procurement and programme to date. opportunities and empowering people to overcome barriers that they face to economic and social inclusion. C&IoS recognises that, in addition to the 9 protected characteristics there are also other groups in society who face significant barriers to economic and social inclusion and consideration needs to be taken to highlight these to ensure maximum access to opportunities and funds. In order to support and develop the continual commitment to delivering equal opportunities throughout the programme and at project level an independent Equality Impact Assessment has been conducted with the following actions: • An experienced Equality and Diversity champion to be identified within the governance structure to ensure full consideration is given to social sustainability throughout project development and Weller © Toby delivery, including accessibility in capital builds and equality of opportunity. Strategy for Inclusion in Cornwall Cornwall’s Environmental Growth Strategy 2016- 2065

© ERDF Convergence Communications Team

64 Integrated Territorial Investment Strategy 65 Delivery arrangements Delivery arrangements

Technical Assistance 4. Communications and Publicity grants to a culture of investment. In order to make reinvested in the future. This could support that step change, whilst supporting our business the creation of additional future benefits and Technical Assistance (TA) exists to support the Programme Communications and Publicity community, we will deliver approximately €46.8m contribute to the creation of further jobs. The effective delivery of EU Structural Funds. A TA team for Cornwall and the Isles of Scilly. A small (plus match) of the ITI allocation using FEIs. FEI programme will align with appropriate has been established in both Cornwall (C&IoS ITI team will lead this work, which will operate business support products to ensure that our SME The C&IoS approach, driven by the CIoS Local Support Team) and the Isles of Scilly (Technical within the framework provided by the national community are best able to make the transition Enterprise Partnership, has been developed over Assistance Team) to support local Programme communications plan and give compliant from reliance on publicly funded grants to this a number of years and seeks to provide access to delivery. recognition to the contribution of individual funds. market-led, non-grant investment approach. The work will include advice on communications finance support to drive SME business creation, The ITI Support Team is funded by both ERDF and requirements, the promotion of calls with development and growth. In particular, the aim is ESF. Elements of this project cover the Isles of Scilly, the Managing Authority, publications and to create an integrated, co-ordinated, compelling and where the Isles of Scilly TA project has its own Community Led Local Development e-promotion, dissemination events and case and comprehensive business support and access to resource, this project seeks to complement this. studies. finance infrastructure for small and medium sized (CLLD) growth enterprises in the area. This ambition links Delivery arrangements Numerous evaluations of the LEADER approach, to the Future Economy and Growth for Business undertaken at UK and EU level over the past 20 Support to the Voluntary, Community and Social strategic priorities outlined in the ITI strategy. 1. ITI Development : Pre-Call years, demonstrate that the multi-sector, multi- Enterprise (VCSE) sector: each of the project’s A series of independent commissions have been goal nature of the LEADER process delivers an The project will work on behalf of the ITI Board activity areas detailed above will include an undertaken to establish an evidence base and emphasis on integration, getting people together to ensure that ESI funds allocated to the Less element of support for the VCSE and a focus on the assess market demand. This work has resulted in and developing links that would not normally Developed Region (LDR) in the Operational sector’s potential to make a major contribution to the development of an FEI Investment Strategy happen under most mainstream economic Programme are effectively delivered. This includes the ESF programme’s delivery. which outlines the preferred FEI delivery model and development activity. review of the ITI delivery plan; expert input to fund focus. Managing Authorities as they develop calls pre-call As a result of adopting the LEADER approach studies, Financial Instrument development and The FEI Investment Strategy will continue to be to delivery project proposals tend to have a start up and identification of programme gaps and Financial Instruments promoted by local partners and will form the basis different perspective and greater relevance to local opportunities. Under the lead of the C&IoS Local Enterprise of establishing a workable delivery model in line communities/localities than they would if they Partnership, it was agreed by local partners that with the requirements of the Managing Authority were simply projects built around specific schemes 2. ITI Development: Local Intelligence and Fund a step change is needed in the way we make and the European Commission. or issues and delivered from the top down. The sense of place and geographic targeting created Integration economic development investments. Interventions The strategy seeks to promote a ‘fund of funds’ should be market led and move us from a reliance as part of the process acts as the stimulus that The project will develop and use up to date style financial instrument programme and will on grants to a culture of investment. In order unlocks new forms of enterprise that deliver local local intelligence to support call and project provide a range of instruments including debt, to make a step change, whilst supporting our economic and social benefits that might not be development. In addition, there will be resource to mezzanine and equity finance for early stage and business community, we will deliver approximately captured otherwise. underpin the cross cutting themes and ensure the more established SMEs. euros 47m (plus match) of the ESI fund allocation The LEADER process has been adopted for the integration of funds within the ITI. using Financial Instruments (FIs). We are aware that the EU has launched an delivery of EAFRD funds in Cornwall and in order opportunity relating to the use of financial This is developed from an evidence base and to create the opportunity to use the LEADER 3. Access to the Programme engineering instruments within the delivery of approach for the delivery of ERDF and ESF we demand assessment undertaken to inform the EAFRD. C&IoS have experience of this from the This element of the project will provide support also plan to adopt CLLD as a delivery mechanism development of this strategy and since then to Objective One Programme (2000-2006) where and guidance to any potential applicants at both for those funds. As the focus for CLLD will be refine the proposals. EAGGF funds were used to support loans to tenant outline and full application stages to ensure high on different funds and different activities than farmers and new entrants into the agricultural quality compliant applications are developed that LEADER delivery, this will help to improve synergies Access to Finance: Financial Engineering sector. We continue to be keen to explore options meet Programme objectives and address issues between the activities and reduce delivery costs. Instruments (FEIs) for EAFRD loans with DEFRA as either a stand-alone and barriers to the Programme. It has been agreed that CLLD will only be used We need to make a step change in the way we farm based business development loan or as an in those areas of Cornwall that are in the bottom structure economic development investments. EAFRD allocation within the wider ESI funds. 30% of the national Indices of Multiple Deprivation Interventions should be market-led, commercially The FEI investment model has the potential to (IMD) ranking and their “functional economic focused and move us away from a reliance on deliver significant ‘legacy funds’ which will be

66 Integrated Territorial Investment Strategy 67 Delivery arrangements 9 Governance

hinterlands”. These “hinterlands” must be adjacent The CLLD and LEADER approach is a proven Partnership working: governance partners. It will complement the functions of the to the bottom 30% IMD areas or their incorporation method of increasing local engagement with and roles of ESI Funds Growth Managing Authority but not substitute for them. must provide a link between need and opportunity EU programmes, encouraging both social The C&IoS ITI Board is chaired by a local partner and/or presents a more coherent functional inclusion and social innovation. It enables local Programme Board, its national and who, along with other members is drawn from economic geography for CLLD delivery. The exact economic actors (businesses, social enterprises local sub-committees, Managing business, public, environmental, voluntary coverage will therefore be developed as part of the and the voluntary and community sectors) to Authorities and local partners and civil society sectors and is an advocate for preparatory support phase for CLLD. actively develop and regenerate their areas by the opportunities and impact of the ESI funds. implementing and testing their own innovative A national ESI Funds Programme Monitoring However, in order to ensure that the majority of the Membership is inclusive and in line with EU solutions. Committee (PMC) has been established in England. funds are targeted at the areas of greatest need it It is the PMC for the Operational Programmes for regulations and the wide scope of ESI funds has been agreed that 70% of the CLLD funds will It will not duplicate delivery being funded by the the ERDF and the ESF in England and is known as priorities and the Managing Authority is the be allocated to the bottom 30% IMD areas with the other 95% of the programme. This can be assured the ESI Funds Growth Programme Board (GPB). Deputy Chair remaining 30% of CLLD funds being allocated to during the design of the delivery frameworks and The role and purpose of the ITI Board is clearly their “functional economic hinterlands”. during delivery through regular communication The EAFRD PMC will be the PMC for EAFRD funds defined in Terms of Reference. It is not responsible between CLLD staff and other delivery bodies. within the European Growth Programme. In the 2014 to 2020 EU Programmes, that the for any tasks set out in EU regulations for which LEADER approach will manifest itself in three forms: We are very clear that CLLD should be seen as an The GPB is chaired by a representative of the Managing Authorities are responsible in relation to integral part of the delivery framework of the ITI Managing Authorities, who also provide the management of the ESI funds. • Community Led Local Development – via and not a separate activity that operates in total Secretariat. The membership of the GPB is drawn the delivery of ERDF and ESF through the ESI The ITI Board will: isolation. from representatives of a wide range of partners fund. The allocation for CLLD activity has been across the public, private, business, social, • Provide advice to the Managing Authorities on established in the ERDF and ESF Operational voluntary and environmental sectors. local development needs and opportunities Programmes The GPB is supported by a number of sub- to inform Operational Programmes and the ITI • LEADER – via Defra for the delivery of committees advising it on relevant policy and Strategy; the European Agricultural Fund for Rural operational matters. These sub-committees, which • Work with sectors and organisations it Development (EAFRD) will provide supporting advice in specific policy represents so that it engages with and • Fisheries Local Action – via the Marine areas such as innovation, skills and aspects of understands the opportunities provided by Management Organisation (MMO) for the implementation, will bring in leading experts from the ITI to support Operational Programme European Marine and Fisheries Fund (EMFF) their fields and provide an important resource for objectives and local economic growth; the GPB and ESI funds Growth Programme. • Promote active participation amongst local All sub-committees will report to the GPB, to economic, environmental and social partners to ensure transparency of proceedings. The GPB will help bring forward activities which meets local not delegate decisions to these national sub- needs in line with the Operational Programmes committees though their advice will be important and local ITI strategy and Implementation plan; in informing the GPB’s perspective, advice and decisions. • Provide practical advice and information to the Managing Authorities to assist in the The Managing Authorities will work in partnership preparation of local plans that contribute with economic, environmental, equality, social and towards Operational Programme priorities and civil society partners at national, regional and local targets. Similarly, provide local intelligence to levels throughout the programme cycle, consisting the Managing Authorities in the development of preparation, implementation, monitoring and of project calls decided by the Managing evaluation. Authorities that reflect Operational Programme At the local level, ESI funds sub-committees have and local development needs as well as match been set up. In Cornwall and the Isles of Scilly, this funding opportunities; is the ITI Board which operates as a sub-committee of the GPB, to whom it will report. Local promotion of ESI funds projects and their impact will be a priority, as will local leadership of this amongst

68 Integrated Territorial Investment Strategy 69 Governance 10 Monitoring and Evaluation

• Provide advice on local economic growth Cornwall Council will have responsibility for: Evaluation Monitoring conditions and opportunities within the context • Call design: The IB will decide on the local of Operational Programmes and the local An ex ante evaluation for the C&IoS ESI fund was Monitoring of project outputs is the responsibility strategic fit content for project calls based on 1 ITI Strategy to aid the Managing Authority’s carried out in 2014 to provide clear guidance to of the Managing Authorities and the national the ITI Strategy and will seek the advice of the assessment at outline and full application stage; local partners with regard to the strategic approach Growth Programme Board. Monitoring will ITI Board. and investment priorities identified for the enable a review of progress towards achieving • Contribute advice, local knowledge and • Outline application: The IB will assess each Region. A subsequent C&IoS ERDF Convergence Programme objectives. The C&IoS ITI Board will understanding to the Managing Authority to Outline Application for local strategic fit based Programme Evaluation (May 2015) and C&IoS ESF review progress against output targets on a regular aid good delivery against spend, milestones, on the ITI Strategy and will decide which to Convergence Programme Evaluation (July 2015) basis using monitoring data provided by the MA. cross-cutting themes, outputs and results set approve in relation to the relevant Project are being used to inform call development and Monitoring data will relate to each of the priority out in the Operational Programme and local ITI 2 Selection Criteria. The Managing Authority support C&IoS ITI Board decision making . axes (aggregated) and will relate specifically to strategy; outputs identified in the Performance Framework will undertake the assessment against the The 2014-2020 Programmes (ERDF, ESF and EAFRD) but also include all other outputs. The ITI Board will • Utilise the support provided by the C&IoS ITI remaining criterion. Cornwall Council will will be evaluated according to national evaluation request ‘exceptions reporting’ at intervals in order Support Team and the Isles of Scilly Technical present the assessments of the Outline plans. The ERDF and ESF Plans will be agreed by to appraise project under-performance. Assistance Team where appropriate. Applications at ITI Board meetings and will seek the National Growth Programme Board (Article the advice of the ITI Board to inform its decision In this way local partners will play the important 54 and 56 of Common Provision Regulations). The role foreseen in the Common Provisions Regulation • Full application: Where there is a material plans will cover all categories of region and will and the main principles and good practices set out change affecting local strategic fit or a condition seek to establish the key evaluation questions in the European Code of Conduct on Partnership. relating to strategic fit to discharge, Cornwall and the identified methodology early in the Managing Authorities will ensure that partner roles Council will appraise the Full Application based Programme cycle. and responsibilities are clearly set out at all levels on the relevant ITI Strategy and will decide Local partners will seek to support development and that conflicts of interest are avoided. which to approve. of these national evaluation plans through local The Managing Authority has designated Cornwall involvement, as agreed in the Growth Deal, in Council as an Intermediary Body which will seek particular with regard to identifying ‘added value’ Discussions are at an early stage within Defra advice from the ITI Board in the same way as the for C&IoS in relation to evaluation lessons and the regarding Intermediary Body for EAFRD Managing Authority would. The ITI Board will impact of the investments in C&IoS. funding. We are keen to understand further the therefore provide advice to the Intermediate Body opportunities this may present and will look to Provision for project evaluations will be built and/or the Managing Authorities as appropriate engage with Managing Authorities on this. into individual project applications (summative and as set out in the written agreement with the assessments) and CLLD strategies will cover Intermediate Body (IB). requirements for evaluation (Article 33 of Common Cornwall Council will undertake the following Provision Regulations). delegated tasks on behalf of the Managing Authorities in relation to the selection criteria for ERDF and ESF 2014-2020 programme, to assess that: 1. The proposed operation contributes the needs/opportunities identified in the Call for Proposals to which it is responding; 2. The proposed operation is aligned to the local growth needs set out in the ITI Strategy and contributes to the specific objectives, outputs and results of the relevant priority axes set out in the Operational Programme.

1 Ash Futures (2014) Cornwall and Isles of Scilly EU SIF Ex Ante Evaluation

2 Amion Consulting and ICF International (2015) C&IoS

70 Integrated Territorial Investment Strategy 71 Annex 1 – ERDF Investment Priority targets

Cornwall and the Isles of Scilly

Investment priority ID Indicator Measurement Target value 1b - Promoting business investment CO02 Productive investment: Enterprises 390 unit (2023) in R&I, developing links and Number of enterprises Less synergies between enterprises, receiving grants Developed research and development centres and the higher education 1a - Enhancing research and CO25 Research, Innovation: Full time 0 sector, in particular promoting innovation (R&I) infrastructure Number of researchers equivalents investment in product and service and capacities to develop R&I working in improved development, technology transfer, excellence, and promoting centres research infrastructure social innovation, eco-innovation, of competence, in particular those of facilities public service applications, demand European interest stimulation, networking, clusters 1a - Enhancing research and P1 Number of researchers Full-time 0 and open innovation through smart innovation (R&I) infrastructure working in improved equivalents specialisation, and supporting and capacities to develop R&I research or innovation technological and applied research, excellence, and promoting centres facilities pilot lines, early product validation of competence, in particular those of actions, advanced manufacturing European interest capabilities and first production, 1a - Enhancing research and P2 Public or commercial Square metres 0 in particular in key enabling innovation (R&I) infrastructure buildings built or technologies and diffusion of general and capacities to develop R&I renovated purpose technologies excellence, and promoting centres 1b - Promoting business investment CO03 Productive investment: Enterprises 98 of competence, in particular those of in R&I, developing links and Number of enterprises European interest synergies between enterprises, receiving financial 1b - Promoting business investment CO01 Productive investment: Enterprises 558 research and development support other than in R&I, developing links and Number of enterprises centres and the higher education grants synergies between enterprises, receiving support Final sector, in particular promoting research and development investment in product and service centres and the higher education development, technology transfer, sector, in particular promoting social innovation, eco-innovation, investment in product and service public service applications, demand development, technology transfer, stimulation, networking, clusters social innovation, eco-innovation, and open innovation through smart public service applications, demand specialisation, and supporting stimulation, networking, clusters technological and applied research, and open innovation through smart pilot lines, early product validation specialisation, and supporting actions, advanced manufacturing technological and applied research, capabilities and first production, pilot lines, early product validation in particular in key enabling actions, advanced manufacturing technologies and diffusion of general capabilities and first production, purpose technologies in particular in key enabling technologies and diffusion of general purpose technologies

72 Integrated Territorial Investment Strategy 73 1b - Promoting business investment CO04 Productive investment: Enterprises 136 1b - Promoting business investment CO06 Productive investment: EUR 471,369 in R&I, developing links and Number of enterprises in R&I, developing links and Private investment synergies between enterprises, receiving non- synergies between enterprises, matching public research and development financial support research and development support to enterprises centres and the higher education centres and the higher education (grants) sector, in particular promoting sector, in particular promoting investment in product and service investment in product and service development, technology transfer, development, technology transfer, social innovation, eco-innovation, social innovation, eco-innovation, public service applications, demand public service applications, demand stimulation, networking, clusters stimulation, networking, clusters and open innovation through smart and open innovation through smart specialisation, and supporting specialisation, and supporting technological and applied research, technological and applied research, pilot lines, early product validation pilot lines, early product validation actions, advanced manufacturing actions, advanced manufacturing capabilities and first production, capabilities and first production, in particular in key enabling in particular in key enabling technologies and diffusion of general technologies and diffusion of general purpose technologies purpose technologies 1b - Promoting business investment CO05 Productive investment: Enterprises 48 1b - Promoting business investment CO07 Productive investment: EUR 772,256 in R&I, developing links and Number of new in R&I, developing links and Private investment synergies between enterprises, enterprises supported synergies between enterprises, matching public research and development Final research and development support to enterprises centres and the higher education centres and the higher education (non- grants) sector, in particular promoting sector, in particular promoting investment in product and service investment in product and service development, technology transfer, development, technology transfer, social innovation, eco-innovation, social innovation, eco-innovation, public service applications, demand public service applications, demand stimulation, networking, clusters stimulation, networking, clusters and open innovation through smart and open innovation through smart specialisation, and supporting specialisation, and supporting technological and applied research, technological and applied research, pilot lines, early product validation pilot lines, early product validation actions, advanced manufacturing actions, advanced manufacturing capabilities and first production, capabilities and first production, in particular in key enabling in particular in key enabling technologies and diffusion of general technologies and diffusion of general purpose technologies purpose technologies

74 Integrated Territorial Investment Strategy 75 1b - Promoting business investment CO08 Productive investment: Full time 45 1b - Promoting business investment CO28 Research, Innovation: Enterprises 45 in R&I, developing links and Employment increase equivalents in R&I, developing links and Number of enterprises synergies between enterprises, in supported synergies between enterprises, supported to research and development enterprises Final research and development introduce new to the centres and the higher education centres and the higher education market products Final sector, in particular promoting sector, in particular promoting investment in product and service investment in product and service development, technology transfer, development, technology transfer, social innovation, eco-innovation, social innovation, eco-innovation, public service applications, demand public service applications, demand stimulation, networking, clusters stimulation, networking, clusters and open innovation through smart and open innovation through smart specialisation, and supporting specialisation, and supporting technological and applied research, technological and applied research, pilot lines, early product validation pilot lines, early product validation actions, advanced manufacturing actions, advanced manufacturing capabilities and first production, capabilities and first production, in particular in key enabling in particular in key enabling technologies and diffusion of general technologies and diffusion of general purpose technologies purpose technologies 1b - Promoting business investment CO26 Research, Innovation: Enterprises 303 1b - Promoting business investment CO29 Research, Innovation: Enterprises 89 in R&I, developing links and Number of enterprises in R&I, developing links and Number of enterprises synergies between enterprises, cooperating with synergies between enterprises, supported to research and development research institutions research and development introduce new to the centres and the higher education Final centres and the higher education firm products Final sector, in particular promoting sector, in particular promoting investment in product and service investment in product and service development, technology transfer, development, technology transfer, social innovation, eco-innovation, social innovation, eco-innovation, public service applications, demand public service applications, demand stimulation, networking, clusters stimulation, networking, clusters and open innovation through smart and open innovation through smart specialisation, and supporting specialisation, and supporting technological and applied research, technological and applied research, pilot lines, early product validation pilot lines, early product validation actions, advanced manufacturing actions, advanced manufacturing capabilities and first production, capabilities and first production, in particular in key enabling in particular in key enabling technologies and diffusion of general technologies and diffusion of general purpose technologies purpose technologies

76 Integrated Territorial Investment Strategy 77 1b - Promoting business investment P2 Public or commercial Square metres 240 2b - Developing ICT products and P4 Additional businesses enterprises 724 in R&I, developing links and buildings built or services, e-commerce and enhancing taking up broadband synergies between enterprises, renovated demand for ICT with speeds of at least research and development 30Mbps centres and the higher education 3a - Promoting entrepreneurship, CO01 Productive investment: Enterprises 431 sector, in particular promoting in particular by facilitating the Number of enterprises investment in product and service economic exploitation of new ideas receiving support Final development, technology transfer, and fostering the creation of new social innovation, eco-innovation, firms, including through business public service applications, demand incubators stimulation, networking, clusters 3a - Promoting entrepreneurship, CO02 Productive investment: Enterprises 283 and open innovation through smart in particular by facilitating the Number of enterprises specialisation, and supporting economic exploitation of new ideas receiving grants technological and applied research, and fostering the creation of new pilot lines, early product validation firms, including through business actions, advanced manufacturing incubators capabilities and first production, in particular in key enabling 3a - Promoting entrepreneurship, CO03 Productive investment: Enterprises 56 technologies and diffusion of general in particular by facilitating the Number of enterprises purpose technologies economic exploitation of new ideas receiving financial and fostering the creation of new support other than 2a - Extending broadband CO01 Productive investment: Enterprises 143 firms, including through business grants deployment and the roll-out of high- Number of enterprises incubators speed networks and supporting the receiving support adoption of emerging technologies 3a - Promoting entrepreneurship, CO04 Productive investment: Enterprises 110 and networks for the digital economy in particular by facilitating the Number of enterprises economic exploitation of new ideas receiving non- 2a - Extending broadband CO05 Productive investment: Enterprises 31 and fostering the creation of new financial support deployment and the roll-out of high- Number of new firms, including through business speed networks and supporting the enterprises supported incubators adoption of emerging technologies and networks for the digital economy 3a - Promoting entrepreneurship, CO05 Productive investment: Enterprises 340 in particular by facilitating the Number of new 2a - Extending broadband P3 Additional businesses Enterprises 1,449 economic exploitation of new ideas enterprises supported deployment and the roll-out of high- with broadband access and fostering the creation of new Final speed networks and supporting the of at least firms, including through business adoption of emerging technologies 30mbps incubators and networks for the digital economy 3a - Promoting entrepreneurship, CO06 Productive investment: EUR 1,493,120 2b - Developing ICT products and CO01 Productive investment: Enterprises 189 in particular by facilitating the Private investment services, e-commerce and enhancing Number of enterprises economic exploitation of new ideas matching public demand for ICT receiving support and fostering the creation of new support to enterprises 2b - Developing ICT products and CO05 Productive investment: Enterprises 133 firms, including through business (grants) services, e-commerce and enhancing Number of new incubators demand for ICT enterprises supported 3a - Promoting entrepreneurship, CO07 Productive investment: EUR 50,036 2b - Developing ICT products and CO29 Research, Innovation: Enterprises 30 in particular by facilitating the Private investment services, e-commerce and enhancing Number of enterprises economic exploitation of new ideas matching public demand for ICT supported to and fostering the creation of new support to enterprises introduce new to the firms, including through business (non- grants) firm products incubators

78 Integrated Territorial Investment Strategy 79 3a - Promoting entrepreneurship, CO08 Productive investment: Full time 178 3c - Supporting the creation and the CO06 Productive investment: EUR 4,479,359 in particular by facilitating the Employment increase equivalents extension of advanced capacities for Private investment economic exploitation of new ideas in supported product and service development matching public and fostering the creation of new enterprises Final support to enterprises firms, including through business (grants) incubators 3c - Supporting the creation and the CO07 Productive investment: EUR 1,501,094 3a - Promoting entrepreneurship, CO28 Research, Innovation: Enterprises 34 extension of advanced capacities for Private investment in particular by facilitating the Number of enterprises product and service development matching public economic exploitation of new ideas supported to support to enterprises and fostering the creation of new introduce new to the (non- grants) firms, including through business market products Final 3c - Supporting the creation and the CO08 Productive investment: Full time 444 incubators extension of advanced capacities for Employment increase equivalents 3a - Promoting entrepreneurship, P11 Number of potential Persons 1,358 product and service development in supported in particular by facilitating the entrepreneurs assisted enterprises Final economic exploitation of new ideas to be enterprise ready 3c - Supporting the creation and the CO29 Research, Innovation: Enterprises 170 and fostering the creation of new extension of advanced capacities for Number of enterprises firms, including through business product and service development supported to incubators introduce new to the 3a - Promoting entrepreneurship, P2 Public or commercial Square metres 53 firm products Final in particular by facilitating the buildings built or 3c - Supporting the creation and the P13 Number of enterprises Enterprises 106 economic exploitation of new ideas renovated extension of advanced capacities for receiving information, and fostering the creation of new product and service development diagnostic and firms, including through business brokerage incubators 3c - Supporting the creation and the P2 Public or commercial Square metres 132 3c - Supporting the creation and the CO01 Productive investment: Enterprises 1,061 extension of advanced capacities for buildings built or extension of advanced capacities for Number of enterprises product and service development renovated product and service development receiving support Final 3d - Supporting the capacity of SMEs CO01 Productive investment: Enterprises 637 3c - Supporting the creation and the CO02 Productive investment: Enterprises 708 to grow in regional, national and Number of enterprises extension of advanced capacities for Number of enterprises international markets, and to engage receiving support Final product and service development receiving grants in innovation processes 3c - Supporting the creation and the CO03 Productive investment: Enterprises 140 3d - Supporting the capacity of SMEs CO02 Productive investment: Enterprises 425 extension of advanced capacities for Number of enterprises to grow in regional, national and Number of enterprises product and service development receiving financial international markets, and to engage receiving grants support other than in innovation processes grants 3d - Supporting the capacity of SMEs CO03 Productive investment: Enterprises 83 3c - Supporting the creation and the CO04 Productive investment: Enterprises 275 to grow in regional, national and Number of enterprises extension of advanced capacities for Number of enterprises international markets, and to engage receiving financial product and service development receiving non- in innovation processes support other than financial support grants 3c - Supporting the creation and the CO05 Productive investment: Enterprises 340 3d - Supporting the capacity of SMEs CO04 Productive investment: Enterprises 165 extension of advanced capacities for Number of new to grow in regional, national and Number of enterprises product and service development enterprises supported international markets, and to engage receiving non- Final in innovation processes financial support

80 Integrated Territorial Investment Strategy 81 3d - Supporting the capacity of SMEs CO05 Productive investment: Enterprises 204 4b - Promoting energy efficiency and CO01 Productive investment: Enterprises 0 to grow in regional, national and Number of new renewable energy use in enterprises Number of enterprises international markets, and to engage enterprises supported receiving support Final in innovation processes Final 4b - Promoting energy efficiency and CO34 GHG reduction: Tonnes of 0 3d - Supporting the capacity of SMEs CO06 Productive investment: EUR 2,954,344 renewable energy use in enterprises Estimated annual CO2eq to grow in regional, national and Private investment decrease of GHG Final international markets, and to engage matching public 4c - Supporting energy efficiency, CO31 Energy efficiency: Households 277 in innovation processes support to enterprises smart energy management and Number of households (grants) renewable energy use in public with improved 3d - Supporting the capacity of SMEs CO07 Productive investment: EUR 1,000,729 infrastructure, including in public energy consumption to grow in regional, national and Private investment buildings, and in the housing sector classification international markets, and to engage matching public 4c - Supporting energy efficiency, CO32 Energy efficiency: kWh/year 267,474 in innovation processes support to enterprises smart energy management and Decrease of annual (non- grants) renewable energy use in public primary energy 3d - Supporting the capacity of SMEs CO08 Productive investment: Full time 266 infrastructure, including in public consumption of public to grow in regional, national and Employment increase equivalents buildings, and in the housing sector buildings international markets, and to engage in supported 4c - Supporting energy efficiency, CO34 GHG reduction: Tonnes of 4,425 in innovation processes enterprises Final smart energy management and Estimated annual CO2eq 3d - Supporting the capacity of SMEs CO29 Research, Innovation: Enterprises 102 renewable energy use in public decrease of GHG Final to grow in regional, national and Number of enterprises infrastructure, including in public international markets, and to engage supported to buildings, and in the housing sector in innovation processes introduce new to the 4e - Promoting low-carbon strategies CO01 Productive investment: Enterprises 478 firm products Final for all types of territories, in particular Number of enterprises 3d - Supporting the capacity of SMEs P13 Number of enterprises Enterprises 64 for urban areas, including the receiving support Final to grow in regional, national and receiving information, promotion of sustainable multimodal international markets, and to engage diagnostic and urban mobility and mitigation- in innovation processes brokerage relevant adaptation measures 3d - Supporting the capacity of SMEs P2 Public or commercial Square metres 79 4e - Promoting low-carbon strategies CO34 GHG reduction: Tonnes of 4,425 to grow in regional, national and buildings built or for all types of territories, in particular Estimated annual CO2eq international markets, and to engage renovated for urban areas, including the decrease of GHG Final in innovation processes promotion of sustainable multimodal 4a - Promoting the production and CO01 Productive investment: Enterprises 49 urban mobility and mitigation- distribution of energy derived from Number of enterprises relevant adaptation measures renewable sources receiving support Final 4f - Promoting research and CO01 Productive investment: Enterprises 117 4a - Promoting the production and CO05 Productive investment: Enterprises 11 innovation in, and adoption of, low- Number of enterprises distribution of energy derived from Number of new carbon technologies receiving support Final renewable sources enterprises supported 4f - Promoting research and CO05 Productive investment: Enterprises 23 Final innovation in, and adoption of, low- Number of new 4a - Promoting the production and CO30 Renewables: MW 6 carbon technologies enterprises supported distribution of energy derived from Additional capacity Final renewable sources of renewable energy 4f - Promoting research and CO26 Research, Innovation: Enterprises 11 production Final innovation in, and adoption of, low- Number of enterprises 4a - Promoting the production and CO34 GHG reduction: Tonnes of 3,894 carbon technologies cooperating with distribution of energy derived from Estimated annual CO2eq research institutions renewable sources decrease of GHG Final Final

82 Integrated Territorial Investment Strategy 83 4f - Promoting research and CO29 Research, Innovation: Enterprises 19 7a - Supporting a multimodal Single CO14a Roads: Total length km 13 innovation in, and adoption of, low- Number of enterprises European Transport Area by investing of reconstructed or carbon technologies supported to in the TEN-T upgraded roads, of introduce new to the which: TEN-T firm products Final 7a - Supporting a multimodal Single P7 Length of railway with kilometre 43 4f - Promoting research and CO34 GHG reduction: Tonnes of 1,770 European Transport Area by investing new or enhanced innovation in, and adoption of, low- Estimated annual CO2eq in the TEN-T signalling installation carbon technologies decrease of GHG Final 7c - Developing and improving P10 Number of multi- number 1 5b - Promoting investment to address CO23 Nature and Hectares 0 environmentally-friendly (including modal transport hubs specific risks, ensuring disaster biodiversity: Surface low noise) and low-carbon transport resilience and developing disaster area of habitats systems, including inland waterways management systems supported to attain a and maritime transport, ports, better conservation multimodal links and airport status infrastructure, in order to promote 5b - Promoting investment to address P6 Businesses and Number 163 sustainable regional and local specific risks, ensuring disaster properties with mobility resilience and developing disaster reduced flood risk 7c - Developing and improving P8 Alternative fuel number 66 management systems environmentally-friendly (including charging/re- fuelling 6d - Protecting and restoring CO22 Land rehabilitation: Hectares 1 low noise) and low-carbon transport points biodiversity and soil and promoting Total surface area of systems, including inland waterways ecosystem services, including through rehabilitated land and maritime transport, ports, Natura 2000, and green infrastructure multimodal links and airport infrastructure, in order to promote 6d - Protecting and restoring CO23 Nature and Hectares 85 sustainable regional and local biodiversity and soil and promoting biodiversity: Surface mobility ecosystem services, including through area of habitats Natura 2000, and green infrastructure supported to attain a 7c - Developing and improving P9 improved multi- modal number 2 better conservation environmentally-friendly (including connection points status low noise) and low-carbon transport systems, including inland waterways 6f - Promoting innovative CO01 Productive investment: Enterprises 148 and maritime transport, ports, technologies to improve Number of enterprises multimodal links and airport environmental protection and receiving support infrastructure, in order to promote resource efficiency in the waste sustainable regional and local sector, water sector and with regard mobility to soil, or to reduce air pollution 9d - Undertaking investment in the CO01 Productive investment: Enterprises 199 6f - Promoting innovative CO05 Productive investment: Enterprises 30 context of community-led local Number of enterprises technologies to improve Number of new development strategies receiving support environmental protection and enterprises supported resource efficiency in the waste 9d - Undertaking investment in the CO05 Productive investment: Enterprises 139 sector, water sector and with regard context of community-led local Number of new to soil, or to reduce air pollution development strategies enterprises supported 6f - Promoting innovative CO29 Research, Innovation: Enterprises 24 9d - Undertaking investment in the CO08 Productive investment: Full time 149 technologies to improve Number of enterprises context of community-led local Employment increase equivalents environmental protection and supported to development strategies in supported resource efficiency in the waste introduce new to the enterprises sector, water sector and with regard firm products to soil, or to reduce air pollution

84 Integrated Territorial Investment Strategy 85 9d - Undertaking investment in the P11 Number of potential Persons 557 context of community-led local entrepreneurs assisted development strategies to be enterprise ready 9d - Undertaking investment in the P12 Square metres public Square metres 476 context of community-led local or commercial building development strategies built or renovated in targeted areas

86 Integrated Territorial Investment Strategy 87 Revised April 2016 Jn 388950 8/15

88 Integrated Territorial Investment Strategy