The Brighton Technopole at Toads Hole Valley Establishing the economic & strategic case Final report – March 2010 Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 The Brighton Technopole at Toads Hole Valley Establishing the economic & strategic case Final report – March 2010 Prepared by: David Tuck & Marc Eatough Reviewed and approved by: Signature(s): Name(s): David Tuck Job Title(s): Managing Partner Date: March 2010 GENECON This report contains 60 pages Ref: [ME/DT] Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 Contents 1 Introduction 1 1.1 Purpose of this report 1 1.2 Project context 1 1.3 Terms of reference 2 1.4 Methodology 3 1.5 Report structure 5 2 Strategic case for the Brighton Technopole 6 2.1 Introduction 6 2.2 National policy drivers 6 2.3 Regional policy drivers 8 2.4 Sub-regional policy drivers 12 2.5 Why Brighton & Hove? 13 3 Science parks and technopoles as regional economic drivers 16 3.1 Introduction 16 3.2 Innovation and economic competitiveness 16 3.3 Defining Science Parks, Research Parks, Technology Parks and Technopoles 17 3.4 Critical Success Factors 19 3.5 Contribution to regional economic development 21 4 Case studies 22 4.1 Introduction 22 4.2 Case studies 22 4.3 Case study 1 – Edinburgh Technopole 22 4.4 Case study 2 – NETPark Science & Technology Park, Sedgefield, County Durham 22 4.5 Case study 3 – Southampton Science Park, Hampshire 22 4.6 Case study 4 – Daresbury Science & Innovation Campus, Cheshire 22 4.7 Case study 5 – InfoLab21, Lancaster University, Lancashire 22 5 Key messages and lessons from elsewhere 22 5.1 Introduction 22 5.2 Key messages 22 5.3 Summary - critical success factors for ensuring the benefits of the proposed Brighton Technopole are maximised 22 6 The Brighton Technopole concept 22 6.1 Introduction 22 6.2 Why a technopole? 22 6.3 Aims and objectives 22 6.4 Potential facilities of the Technopole 22 6.5 Project beneficiaries 22 6.6 Linked developments and initiatives 22 6.7 Understanding the benefits 22 7 Conclusion 22 7.1 The concept 22 7.2 Rationale 22 7.3 Impact 22 Appendix I – Additional case studies Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 1 Introduction 1.1 Purpose of this report This report has been produced by Marc Eatough (Senior Consultant) and David Tuck (Managing Partner) of GENECON with the purpose of developing the ‘Brighton Technopole concept’ - a specialised university linked business facility for Toads Hole Valley (TVH), Brighton & Hove. The proposition seeks to contribute directly to the future economic prosperity of the Brighton & Hove economy. This concept has been developed in response to the recognised need to raise the competitiveness of the Brighton & Hove economy and exploit the critical mass of high skills in the city’s labour market. It offers a unique opportunity to further exploit the research expertise and intellectual property of the University of Sussex to support economic development. A key aim for the study is to illustrate how the Technopole proposition at THV could deliver against the aspirations set out in the Economic Strategy for the city and the role Brighton & Hove plays in the wider ‘Diamond for Growth and Investment’. The report therefore considers the range of economic benefits that could be delivered, including progress towards a knowledge economy and the creation of higher value added jobs for local residents and highlights the spatial / locational characteristics of successful similar developments. Critically through case study evidence the analysis seeks to demonstrate that THV offers the key spatial characteristics that could enable a successful technopole project to be developed in Brighton & Hove. 1.2 Project context The Toads Hole Valley (THV) site in Hove is a greenfield site bounded to the north by the A27 and the south and west by residential development. In terms of planning allocations, it is located in the urban fringe (UF) as described in the Brighton & Hove Core Strategy (CS). The site is within single family ownership. Until recently the site was covered by the designation of an Area of Outstanding Natural Beauty (AONB), however, the boundary for the South Downs National Park was changed and as a result the THV lost its AONB designation. The site is considered to have a potential role as an area of strategic importance to the Brighton & Hove economy, offering a long-term development opportunity of sub-regional / regional importance. Enplan is currently working with a team of consultants to seek a more flexible development policy of parts or all of the UF to include THV within the Council’s Local Development Framework. A significant level of consultation has been undertaken to help support the development of masterplan options for the site, with a key aim of ensuring that the ‘proposition’ will address city level and 1 Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 sub-regional economic needs. These consultations revealed several key issues, including: Brighton has a limited supply of new employment floorspace and there is a need to provide a high quality business location for growing local companies and for inward investment; there is a lack of space in Brighton to support the spin-out of university R&D intensive opportunities – activity which is a priority for SEEDA, the Regional Development Agency for the South East of England; the Universities of Sussex and Brighton consider the site may offer potential opportunity to meet their long-term expansion and business development plans, for example, in terms of commercial business space, high-technology manufacturing space and university R&D facilities and associated accommodation; links with the Gatwick Diamond, inward investment opportunities and other schemes to support the growth of key SEEDA growth sectors could be promoted as part of a university-focused development concept; the development of the site could be strongly aligned with the local / sub-regional economy, providing employment opportunities for local residents as well as adding value to sub-regional economic objectives; and the site could offer opportunities to deliver a unique, leading edge exemplar of sustainable development, with distinctive low carbon aspects. This study has built on these stakeholder discussions and sets out a concept for the THV site that aims to address the key issues outlined above. 1.3 Terms of reference The purpose of this study is to establish the ‘economic and strategic’ rationale for the Brighton Technopole in order to support the planning case for development of such a facility in a key urban fringe site in Brighton & Hove. Specifically, the terms of reference for the study have sought an assessment of the potential of the Brighton Technopole to: 2 Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 support the economic/physical regeneration of Brighton & Hove and the region in order to improve its competitiveness position; contribute to key regional and sub-regional growth priorities; add value to the sub-regional economy and underpin other strategic economic investments in the Brighton and Hove Diamond programme area; become a regional asset, improving the economic competitiveness of the Brighton sub-region and the South East in line with the objectives and priorities of the Regional Economic Strategy and sub-regional / local economic development priorities. 1.4 Methodology The key study activities undertaken are set out below: 1. literature review – understanding the strategic & policy context - including a review of background regional and sub-regional strategy/policy documents to understand the economic context for the project. This includes an overview of the Brighton & Hove / Diamond area sub regional economy in order to establish the types of new development and activities needed to support economic objectives. This exercise also considers complementary schemes being delivered in the sub-region, such as the Sussex Innovation Centre based at the University of Sussex. 2. establishing the strategic and economic case for Brighton & Hove - Identifying potential benefits – a key element of the study is to set out a clear rationale for promoting this form of development at THV. This task considers how the proposed scheme could address specific economic issues and needs facing the Brighton & Hove economy, including the provision of higher value employment opportunities for local residents1. In particular this element of the study has considered: 1 As outlined in the brief, this element of the study will consider the predicted increase in working age population and the proportion of higher qualified residents of the city that may at the moment commute out to work in other areas 3 Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 . Strategic case – assessment of the extent to which a ‘technopole’ concept at THV could support local and regional economic development objectives (for example, employment and regeneration impacts), including commentary on the contribution of the project to established policies such as the Regional Economic Strategy, Regional Innovation Strategy and other regional / sub-regional policy objectives; . Socio-economic case – in developing the Brighton Technopole concept this paper has reflected on the key findings and issues identified in a separate paper that has been prepared by Bruce Nairne of Step Ahead Research which provides evidence about the state of the Brighton & Hove economy. The paper outlines the key employment and skills challenges facing the economy drawing on fresh areas of analysis of a range of labour and economic datasets. It considers the scale and nature of employment deficit in the city, particularly if the city is to fulfil its role as a catalyst for sub-regional economic growth; and . Wider benefits and strategic added value - in considering the merits of a project such as this, it is important not to judge the impact of the project solely on the achievement of quantitative outputs and outcomes alone.