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
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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:
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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. This project will have specific wider qualitative benefits for the sub-region and wider region. These include: contribution to regional innovation and competitiveness, contribution to image enhancement & inward investment prospects.
3. Case study analysis: this forms a core element of the study, considering best practice case studies and models of similar university focused development and ‘technopoles’ elsewhere in the UK / Europe. The case study analysis helps to identify potential benefits and impacts and also understand the key development and planning issues impacting on the facilities, in addition to how the schemes are aligned to complementary economic development activity.
4. THV proposition– outlining a proposed ‘technopole’ concept for THV, including key activities / components, critical success factors and potential benefits and impacts, in particular an assessment of the likely impact on the Brighton & Hove economy.
5. Testing the proposition - stakeholder consultations- in order to test, further develop and agree the ‘project concept’ consultations have been held with key stakeholders including both universities, but especially the University of Sussex to establish potential levels of support. A workshop was held on 9th March 2010 with key individuals from the University of Sussex, SEEDA and Brighton & Hove Economic Partnership.
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1.5 Report structure The report is structured as follows:
Section 2: outlines the strategic case for investment in a specialised university linked business / R&D facility – the Brighton Technopole – by setting out how an initiative of this nature is aligned to national, regional and local economic development policy; Section 3: defines the technopole and science park concepts, outlining their key components, critical success factors and their role in supporting the economic growth agenda; Section 4: considers best practice case studies and models of similar university led development and ‘technopoles’ elsewhere in the UK / Europe Section 5: summarises the key messages emerging from the case study analysis and the implications the Brighton Technopole concept; Section 6: outlines the proposed components and key features of the Brighton Technopole, identifying the impacts and benefits to the Brighton and Hove economic that could be delivered by a project of this nature; Section 7: sets out some concluding remarks
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2 Strategic case for the Brighton Technopole
2.1 Introduction This section presents the key national, regional and local policy and strategy drivers for the development of a specialised university linked business facility – the Brighton Technopole. The section concludes by outlining why
2.2 National policy drivers The creation and development of new knowledge intensive high tech, high growth potential industries is integral to the creation of a highly competitive UK economy. This is recognised by the UK Government through its commitment to stimulating the growth of the UK’s knowledge economy through a number of key policy interventions and funding programmes. Indeed, in April 2009, the Government set out is new industrial policy2 to prepare the British economy for a post-recession future by placing science and technology ‘at the heart of the revolutions that will define the 21st century’. The policy sets out plans for the UK to become a low carbon economy, stresses the importance of investment in new technologies, such as life sciences, in driving economic prosperity and sets out the skills challenges that will need to be overcome to ensure the nation achieves competitive advantage.
The innovation, enterprise and competitiveness agenda is also supported by a raft of other policies including Innovation Nation (2008), the UK Innovation Report ‘Competing in the Global Economy: The Innovation Challenge and the Science & Innovation Investment Framework 2004-2014 (HMT, DTI and DfES – July 2004). These policy documents set out the importance of overcoming a number of ‘innovation’ and enterprise challenges, as highlighted below:
Increased business investment In R&D – building on the substantial work of the DTI Innovation Report & Lambert Review of Business-University collaboration;
Investment in innovation ‘support’ infrastructure – significantly enhance the development of regional research and development infrastructure and capacity with a focus on key economic sectors (i.e. research capacity, activity and institutional links; translational research facilities; business accommodation including incubators, grow on space and commercial space);
2 New Industry, New Jobs, Department for Business Innovation & Skills, April 2009 6
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Knowledge transfer & innovation – increased business engagement in drawing on the UK science base for ideas & talent. A key role for the RDAs in continuing to build their capacity to promote science & innovation as a key driver of economic growth;
More responsive supply of science, engineering and technology (SET) skills – improving the flow of people into the economy who are educated in SET subjects is crucial to support the UK’s move to a higher level of R&D intensity;
Smoothing out the path between Britain’s strong science base and the business community; by encouraging new forms of formal and informal networks between business people and academics;
Put in place a framework ensuring that UK businesses harness the world-class creative talents that the UK possesses; and
Improve the effectiveness of Government support & incentives in relation to innovation, creativity & design: through substantial investment in programmes such as collaborative R&D and knowledge transfer networks.
The table below summarises some of the key components of the UK policy framework for achieving a step change in the UK’s innovation performance, all of which are relevant to the South East and Brighton & Hove economy and support the rationale for investment in regional innovation infrastructure.
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Going for Growth: Our Future Prosperity, Department for Innovation & Skills, January 2010 – emphasises the needs for a balanced approach to growth that is environmentally sustainable, focusing on the development of entrepreneurial skills & university training, the creation of a new UK Innovation Investment Fund, strengthening the capacity of the HE sector to transfer knowledge to the wider economy, a fresh approach to innovation support and major strategic investment in developing low carbon industries; Innovation Nation (2008) – sets out how the Government aims to make Britain the best country in the world to run an innovative business or public service. The strategy highlights the importance of innovation to the UK’s future economic prosperity and quality of life. Creating Knowledge Creating Wealth: Realising the economic potential of public sector research establishments (HMT - August 1999) (“The Baker Report”). Knowledge transfer and IP exploitation from the publicly funded knowledge base; SET for Success – The supply of people with science, engineering and technology skills (April 2002) (“The Roberts Review”). A detailed analysis of the supply of, and emerging shortages in, SET and mathematics skills. The challenge is to improve the flow of people into the economy who are educated in SET subjects is crucial to support the UK’s move to a higher level of R&D intensity; Investing in Innovation: a strategy for science, engineering and technology (DTI, HMT and DfES – July 2002). Following the Roberts Review, this report focuses on the role of, and government support for, a sustainable and world class science engineering and technology (SET) knowledge base; Competing in the global economy: the innovation challenge (DTI Economics Paper 7 – December 2003) (The “Innovation Report”). This business-oriented strategy addresses the challenge to the wider ‘national innovation system’ to drive up national innovation performance across the full business spectrum; The Lambert Review of Business-University Collaboration, Final Report (HMT, December 2003). An influential review of the opportunities for stimulating business R&D and increasing business engagement with the knowledge base; Science & Innovation Investment Framework 2004-2014 (HMT, DTI and DfES – July 2004). A 10-year framework, pulling together science and innovation policies into a national plan to catalyse structural change in the economy. Signifies Government commitment and provides a sound platform for planning and investment.
2.3 Regional policy drivers
SEEDA’s aim is to create a prosperous and dynamic region by: supporting programmes that assist businesses to compete more effectively, training a highly skilled workforce, support innovation to drive up productivity levels and to create high quality jobs and new business start-ups. To deliver this ambition, initiatives targeting innovation, knowledge transfer, R&D and creativity have been mainstreamed in all three of SEEDA’s regional economic strategies and identified as important components for raising productivity, competitiveness and the growth potential of companies to enable the South East to complete more effectively in the global economy.
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SEEDA has identified six priority sectors3 which form the focus for investment. As part of their sector-based approach, SEEDA has established eight innovation and growth teams4, whose job is to engage with businesses that have high innovation and growth potential and to provide the support that is needed to accelerate their growth.
2.3.1 Regional Economic Strategy & Action Plan
The vision for the Regional Economic Strategy 2006-2016 is that by 2016 the South East will be a world class region achieving sustainable prosperity, by achieving an average annual increase in GVA per capita of at least 3% and increasing productivity per worker by an average 2.4% annually, from £39,000 in 2005 to at least £50,000 by 2016. SEEDA is therefore promoting the provision of specialised business space and innovation infrastructure in areas of economic need and market failure, and where appropriate in support of key programmes such as the Enterprise Hub Network and South East Business Innovation & Growth Programme. The rationale for investment is based in part on how the objectives of such intervention will address the strategic themes in the RES under Competitive Business, Enterprise and Growth and Innovation.
Investment in regionally significant R&D and innovation support infrastructure will address a number of SEEDA’s RES headline targets, as outlined below:
. Knowledge Transfer and Business Expenditure on Research and Development - increase the proportion of businesses in the South East reporting R&D links with universities from 11% in 2005 to 15% by 2016, and increase business expenditure on research and development in the South East from 3.2% of Gross Value Added in 2003 to 4% by 2016; . Enterprise - increase the business stock by 35% from 35 businesses per 1,000 inhabitants in 2005 to 44 per 1,000 inhabitants by 2016, including 10,000 new businesses run by women by 2010; . Innovation and Creativity - increase the percentage of total South East business turnover attributable to new products from 12% in 2004 to 20% by 2016, and the percentage attributable to significantly improved products from 18% in 2004 to 25% by 2016; . Global Businesses and Foreign Direct Investment - increase the percentage of businesses located in the South East operating internationally from an estimated 10% in 2003 to 15% by 2016, maximising the South East’s share of global Foreign Direct Investment; . Infrastructure – secure investment in infrastructure priorities to maintain economic competitiveness (e.g. managed workspace portfolio); . Employment - improve the productivity of the workforce and increase economic activity from 82% to 85% by bringing 110,000 net additional South East residents of working age into the labour market by 2016 (as a step towards bringing up to 250,000 residents into the labour market by 2026)
3 The Six Sectors are: Advanced Engineering (including marine); ICT and Digital Media; Life Sciences and Health; Financial Services; Environmental Technologies; and Aerospace and Defence 4 ICT partners include universities, research institutes, local authorities, private sector providers and Business Link 9
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SEEDA’s Regional Economic Strategy identifies a key role for the higher education sector in delivering several of its strategic objectives, priorities and headline targets, specifically related to developing competitive businesses, building skills for prosperity and supporting knowledge and technology transfer. The capability of the knowledge base to generate new businesses using new technologies and innovation through the generation and commercialisation of ideas is identified as critical to achieving regional economic growth targets. As well as providing the skills to support the growth of key clusters and sectors, the HE sector also has an essential role in the provision of comprehensive programmes of high value business support being delivered by the Agency – with specific reference made to strategic linkages with Science & Innovation Campuses, the Enterprise Hub Network / Business Innovation & Growth Programme and the South East Manufacturing Advisory Service. The RES 2006-2016 Implementation Plan sets out the following transformational interventions that identify a key role for investment in R&D and the region’s HE sector in delivering improved innovation:
RES 2006-2016 transformational interventions highlighting, R&D, innovation and HE sector interventions
Actions Context / aims
Science and Innovation Campuses To establish new, world class research facilities in the South East. These campuses will provide space and access to specialist scientific instrumentation and facilities where business and academics can research and develop new products and services to address market need.
Increasing collaboration between To develop links with universities and research institutions to assist businesses and the region’s businesses with accessing innovative capabilities across the world. knowledge base and increase business expenditure on R&D
Ensure a skills perspective to the 10 A key role for the region’s HE sector is identified in terms of delivering year framework for science and an increased supply of science, engineering and technology skilled innovation researchers, advanced technicians and entrepreneurs.
Regional Infrastructure Fund – To harness new sources of funding for infrastructure development to Diamonds for Investment & Growth facilitate Growth Areas and Growth Points including the Diamonds for Investment and Growth. There are two Diamonds located in Sussex (Brighton & Hove and Gatwick), which have been given priority given their concentrations of people, employment, knowledge, transport, creativty and culture and diversity. These are sub-regional functional areas with the potential for acting as a catalyst to stimulate prosperity across the region.
Global Leadership in Environmental To exploit the business opportunities created by reducing carbon Technologies emissions and waste generation.
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2.3.2 South East Regional Innovation Strategy & Framework
Investment in innovation is a central component of SEEDA’s policy to driving the region’s future prosperity. An Innovation Framework has been developed to highlight the key elements which need to be in place in order to create, maintain and grow and the most competitive business environment for all businesses in the South East. This includes initiatives to increase the number of businesses reporting R&D links with universities (i.e. Collaborative R&D initiatives); encouraging businesses to invest in new products and services and prioritising support for innovations that improve the environmental sustainability of the region.
The Framework is closely aligned to national innovation policy, including the 10 year Science & Innovation Framework and the Government’s approach to innovation and competitiveness outlined in New Industry, New Jobs (2009), which outline the importance raising investment in science and research; encouraging collaboration between the HE sector, industry and private investors and improving access to university research and technological expertise for high technology, knowledge intensive SMEs. To support this agenda SEEDA places great importance on the input of partners from Higher Education, local authorities, private/public partnerships, and other key business support organisations.
2.3.3 SEEDA’s Strategy for Technology 2008-2011 (S4T)
This Strategy emphasises that technology interventions within the region will be primarily focused on four main pillars of advanced materials, communications technologies, healthcare technologies and sustainable technologies.
2.3.4 ‘Meeting the Challenge, Making the Change: An Employability and Skills Strategy for the South East Diamonds for Growth and Investment’ (2010)
This Strategy sets out the employability and skills challenges for all the Diamonds in the South East region, and identifies the Brighton & Hove Diamond as being the only Diamond that under-utilises its skills base with its high level skills, low employment rate and moderate productivity levels. The strategy itself identifies the development of leadership and management skills and STEM skills as a key priority and recommends activities that foster better links between learning providers and businesses at all levels.
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2.4 Sub-regional policy drivers
2.4.1 Brighton & Hove Economic Strategy – Raising our Game The Strategy sets out a direction and priorities for both the public sector agencies and employers who grow jobs and add value to the economy. The Strategy outlines the importance of:
harnessing the talent and innovation of the city’s universities;
increasing the value of jobs in the city at both ends of the salary scale; and
the encouragement of distinctive site development to provide jobs.
Alongside the Business Retention and Inward Investment Strategy, this Strategy recognises that Brighton and Hove needs to maximise the benefits associated with a strong entrepreneurial and business start-up culture that is evident across the city. In order to deliver against this agenda it is essential sufficient and appropriate floorspace for start-up and grow-on businesses is identified and developed, alongside the provision of appropriate business support.
2.4.2 Business Retention & Inward Investment Strategy & Implementation Plan This Strategy and Implementation Plan outlines the importance of taking a sector approach to business retention and inward investment focusing efforts and resources on growing and future emerging sectors. Indeed a focus on delivering targeted support and intervention in key business sectors is identified as a key medium to long term action. The Strategy identifies the healthcare and environmental technology sectors as offering opportunities for future economic growth whilst identifying the following as key strategic aims:
Retain existing businesses – this is the most important strategic aim of the Strategy and Implementation Plan, especially within the current economic climate. The Strategy recognises the key challenge the city is facing in terms of retaining existing businesses and that supporting businesses to overcome operational and other constraints is high priority for all key stakeholders in the city;
Facilitating indigenous business growth – converting a significant number of business start-ups to established and growing businesses is a key strategic aim. The Strategy outlines the importance of helping businesses to grow, thrive and invest in their existing location or an alternative site within in the city is the ‘easiest’ method of securing investment in the local economy;
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Attracting new inward investment – Brighton & Hove need to ensure a step change, reducing the gap with the South East regional economic performance. Attracting new inward investment will be key to achieving this ambition.
2.4.3 The Brighton & Hove Core Strategy Submission Document 2009
The Brighton & Hove Core Strategy (submission document) recognises the importance of the need for the city to move to a low carbon economy and outlines Brighton & Hove’s commitment to play ‘a full role in the economic growth and development of the South East region’. The core strategy identifies the knowledge economy, creative industries and environmental technologies as being the main focus for support and suggests that preference will be given firstly to alternative employment generating uses. Relevant policies to the Brighton Technopole concept include:
SO12: Develop Brighton & Hove as a major centre on the South Coast for sustainable business growth and innovation, creative industries, retail, tourism and transport; and
SO13: Support the continued improvement of the economic performance of the city by identifying and safeguarding an appropriate range of sites and premises to meet demands for high growth and key employment sectors and ensuring there is a well trained and suitably skilled local workforce.
2.5 Why Brighton & Hove?
2.5.1 A distinct lack of innovation support infrastructure As illustrated in the diagram below, despite being the home to two Universities there is a distinct lack of Science Park / specialist R&D facilities provision in the Brighton & Hove area. Indeed, it is the only Diamond for Growth & Investment area that does not house such a facility or has one located in close proximity. This has been highlighted by SEEDA.
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It could be argued that without the provision of similar R&D and innovation support infrastructure, the opportunity for the Brighton & Hove Diamond to fully exploit the commercial opportunities arising from the area’s research base is being restricted. Investment in a ‘technopole’ facility could provide the catalyst for stimulating future economic growth by improving levels of research commercialisation, encouraging the start-up and growth of high technology companies and supporting new product and process innovation.
2.5.2 Addressing the employment, skills and competitiveness challenges facing the Brighton & Hove economy
The objectives and components of the Brighton Technopole outlined above will play an important role in helping to address the employment and skills challenges facing the Brighton & Hove economy, which are set out in detail in the complementary piece of research undertaken by Step Ahead Research5. The report provides background evidence to support the assessment of Toads Hole Valley, which has the potential to provide significant high-grade, university-linked employment for a city that is rich on talent, but poor on quality jobs. The key challenges and issues are summarised below:
the city loses around 5,000 more higher skilled commuters than it brings in to the city to work;
it tends to attract commuters into the city to work in lower value added sectors, but export commuters to higher value added jobs;
5 The Employment & Economic Case for Developing Toads Hole Valley, Step Ahead Research (March 2009) 14
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the production sector contributes just 7% of the city’s wealth, compared with a 29% contribution by the public sector;
its residents earn significantly more than its workers and it has a modest employment rate; and
productivity (GVA per head) is fairly low at best.
The report also highlights that the city needs to increase the number of jobs and improve the quality of those jobs if it is to fulfil its role of being a catalyst for growth in the South East economy. This means that by 2020, it needs to
Create 9,800 new jobs, to give it an employment rate just above that of Southampton. The majority of these jobs should be aimed at drawing back 3,300 of the higher skilled out- commuters who are lost to the city, providing better job opportunities for under-employed graduates and ensuring that the job growth at least attempts to match some of the projected growth in the working age population;
Improve its productivity rate (as measured by GVA per head) by between £1,800 and £2,600 per head at current basic prices, so that Brighton & Hove be can considered as an economy that produces products and services of a similar value to Leeds and Derby;
Improve earnings of higher earners in the city by £40-£50 per week, at current rates, so that higher earning workers in Brighton & Hove can earn similar amounts to their equivalents in Coventry, Nottingham and Southampton;
Improve the median earnings of workers in the city by £30-£40 per week so that the average worker in the city is earning similar amounts their equivalents in Southampton, Bristol and Coventry; and
Increase the contribution that the manufacturing sector makes to the city’s wealth from 7% to 9%.
As will be outlined in Section 6, the Brighton Technopole concept offers the potential to facilitate the development of high level employment uses at Toads Hole Valley, which will help to address these problems and contribute to raising the economic performance of the area.
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3 Science parks and technopoles as regional economic drivers
3.1 Introduction The following section sets out the context for the Brighton Technopole by outlining the importance of specialist business initiatives that aim to stimulate sub-regional and regional economic development through improving the conditions for innovation, encouraging the start-up and expansion of high growth potential knowledge intensive businesses, and by putting in place mechanisms to improve collaboration between the knowledge base and industry.
This section will focus in particular on defining the role of science / technology parks and technopoles in supporting regional economic growth, outlining the key components and features of such initiatives, the critical factors that contribute to their success and the positive economic impacts that they can deliver.
3.2 Innovation and economic competitiveness Innovation plays a key role in enhancing national and regional economic growth through increased competitiveness. The critical role that the ‘knowledge-economy’ plays in supporting national economic success has been increasingly reflected in national and international policy arenas in recent years. In this context, universities and Research and Development (R&D) institutions are identified as key resources, whilst national and regional economic development policy has increasingly focused on enhancing the role universities play in the regional development process, reflecting wide recognition that the Higher Education sector can have a significant impact on regional economic development and competitiveness6.
Increasingly important is the vital role that the higher education sector plays in the delivery of regional innovation strategies and the formation of effective regional innovation systems, through the commercialisation of Intellectual Property, strategic research alliances between universities and industry, spin-out activity and the development of clusters and sectors of regional/national importance. Public policy has also confirmed the importance of strengthening the interaction and integration between ‘knowledge’ and ‘business practice’ in order to achieve economic and social benefits. It is therefore, of no surprise that the role of ‘Science Parks’ and ‘Technopoles’ in fostering regional economic
6 Drabenstott (2008) – Universities, Innovation & Regional Development Coenen (2007) – Role of Universities in Regional Innovation Systems in North West England & Scania, Sweden Benneworth & Charles (2005) – University Spin-off policies and Economic Development 16
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growth, including their role in forming R&D intensive clusters has been the subject of several studies, analysis and the focus of national / regional ‘innovation’ policy in recent years.
3.3 Defining Science Parks, Research Parks, Technology Parks and Technopoles
3.3.1 Context There are numerous examples of physical development projects, often located in attractive greenfield locations, which have established specialised, multi-functional facilities (i.e. R&D, technology / knowledge transfer, enterprise development, research showcase, exemplar in sustainable technologies) that have acted as a hub for the development and co-ordination of research, consultancy and business outreach strengths of universities in the drive towards delivering sub-regional and regional economic prosperity.
Examples from across the UK and internationally show that science and technology R&D and innovation facilities (typically university-linked) can offer the opportunity to deepen the collaboration between local and regional industry and the university sector. Such facilities enable occupying businesses to improve the innovation process and so increase their productivity, and therefore accelerate wealth creation. In doing so, such facilities also provide an opportunity to increase and commercialise research and knowledge transfer activity and bring added value benefits associated with business / university collaboration.
3.3.2 Key features and components There are a number of types of ‘facilities’ across the globe that support this agenda, including Science Parks (UK), Research Parks (USA), Technology Parks (Germany) and Technopoles (France). These terms are often used interchangeably with the lowest common denominator seeming to be that such ‘parks’ gather producers of high- technology products and services, provide the opportunity for a degree of co-operation between industry and universities, encourage a critical mass of R&D facilities which carry out research in one or more relevant areas; and which have established the appropriate infrastructure and the presence of leading edge companies in target sectors as a source of demand for R&D competence. The diagram below highlights some of the common features of such developments, highlighting their role in supporting the economic growth agenda through the creation of new knowledge intensive businesses and employment.
Breznitz et al (2008) University Commercialisation Strategies in the Development of Regional Bio-clusters 17
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Figure 2.1: Key features of the Science Park / Technopole Concept7
Unlike business parks (which tend to be real estate developments such as high-spec office parks or large scale manufacturing / light industrial units, which may attract technology companies), Science Parks and Technopoles initiatives are designed and managed to encourage collaborative research and development activities and technology transfer with local universities and other park tenants, including shared access to specialised research laboratories and equipment. Distinctive features and components of each concept are summarised below.
7 Adapted from Battelle / Association of University Research Parks (2007) - Characteristics & Trends in North American Research Parks 18
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. Technopoles - the concept of ‘technopoles / technopolis’ have been promoted widely in the UK and Europe. A Technopole is a specialised zone of economic activity which combines research, technological and business expertise specifically established to exploit R&D and business growth around key sectors and to promote business networking and collaboration. They combine large and small companies which seek synergetic relationships to support business growth opportunities through sharing know-how, supply chains and technological competence;
. Science Parks – are business support and technology transfer initiatives that encourage and support the start-up and incubation of innovation led, high growth knowledge based businesses. Such facilities also provide an environment where larger / international businesses can develop specific and close relationships with a particular centre of knowledge creation (university, research organisations) / R&D for their mutual benefit. The primary activity of the majority of stakeholders tends to be research and /or new product or process development; and
. Research Parks – differ from a Science Park in the sense that they prohibit all manufacture, except the production of prototypes. As with Science Parks, and other similar facilities, the Research Park also focuses on promoting R&D by a university in partnership with industry, supporting the growth of new ventures, promoting economic development and supporting the transfer of technology and business skills between the HE sector and industry (both tenants and the wider business community).
3.4 Critical Success Factors
Research (including Zhang 2004, Plaeksakul 2006) concerning science park operation and management has identified a number of attributes and key success factors for successful science parks / technopoles in terms of delivering economic benefits outlined above. The diagram below, produced by the European Commission summarises these key attributes.
Figure 2.2 – Attributes of Successful Science Parks - Regional Research Intensive Clusters & Science Parks (European Commission, 2007)
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These critical success factors can be categorised into the five sub-areas of: park location, park preparation / management, a supportive policy environment, a culture of science and enterprise, and integration and interaction with ‘cluster’ actors.
1. Park location – this group of factors is identified as important in terms of attracting knowledge-based firms and knowledge workers to a science / research park. Research indicates that favourable locations factors do play an important role in attracting firms and therefore are critical for the initial growth of the ‘park’. An attractive landscape setting and convenient and supportive living and working environment are important factors in attracting technological entrepreneurs to work and develop their business at the ‘park’. Based on research undertaken at the Cambridge Science Park, the table below outlines a number key location factors that have underpinned the development of the Science Park:
Science Park Location Factors – the Cambridge experience Large, flat Edge of city Working links with Close links to the greenfield site location other companies M11 and M25 & on the Park Stanstead Airport Room for further Attractive Highly skilled and Good leisure expansion landscaped site qualified workforce facilities on site creating a good available image and impresses clients Non-polluting Closely linked to Small power Small workforces industries, so can Cambridge requirement – usually locate close to University specialised residential areas research excellence
Research undertaken by the UK Science Park Association8 highlighted that location characteristics played an important role in attracting knowledge workers and businesses. For example, the research indicated that:
. science parks attract a statistically higher proportion of new technology based firms than off-park locations;
. 67% of companies surveyed highlighted that a science park location had added to their overall market image; and
. the most important factors in attracting clients to a science park location are the physical attributes of the park rather than the support service infrastructure.
8 Angle Technology (2003) Evaluation of the past and future economic contribution of the UK Science Park Movement
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2. Park preparation and management – the physical layout for both internal building structure and external landscape should allow maximum flexibility as the ‘spatial’ requirements of high technology firms tend to change more rapidly than those of traditional commercial users. For ‘parks’ intending to support the ‘economic development’ agenda through increasing the number of knowledge intensive businesses and related employment, a long-term strategy is required – especially in terms of receiving a return on investment (financial / technology transfer, job creation, etc). Expertise concerning enterprise formation and specific type of knowledge of the industry concerned appear to be important management skill requirements;
3. Supportive but controlled policy environment – this is key for supporting the development of such facilities, including a supportive planning policy environment and a local / regional economic policy agenda that identifies a key role for supporting innovation and the growth of key ‘high-growth’ potential sectors;
4. Culture for science, enterprise and innovation – including the existence of a strong science base, including universities and research institutes, a skilled workforce and a culture for enterprise; and
5. Integration and interaction of ‘cluster’ actors and support infrastructure – successful ‘parks’ tend to be characterised by having high levels of integration and interaction with key organisations and support organisation both inside and outside the boundaries of the park. This includes universities9, research institutes, government organisations and businesses. High levels of interaction and integration leads to easier knowledge transfer and improved levels of innovation which can enhance a firms’ long term competitiveness. High levels of interaction both inside and outside the boundaries of the science park or technopole can be extremely useful in attracting more businesses to, or close to the ‘park’, which in turn can support the development of business clusters and a more competitive local and regional economy.
3.5 Contribution to regional economic development The impact that science parks/technopoles can deliver for their regional economy is largely governed by factors outside their direct control, such as:
9 Seymour (2006) notes that successful science parks tend to have higher education institutions in their ownership structure, whether as joint partners, stand alone owners or as part of a consortia. 21
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the calibre of research in their local university;
the attractiveness of the wider region to talented, highly skilled individuals;
the availability of risk capital throughout the lifecycle of technology-based businesses and
the efficiency of local support networks connecting key stakeholders in the ‘triple- helix’ of academia, business and public sector.
The UK Science Park Association10 highlights that the presence of a science park does not necessarily guarantee a strengthened knowledge base and the creation of R&D focussed business cluster, however, it is extremely difficult to identify one that does not have a successful science park or a similar R&D / technology focused facility.
Economic impact
Studies have been undertaken to understand the economic contribution of the science park movement and similar infrastructure. Indeed, UK Science Park Association identifies the following key features:
Estimated annual turnover of tenants: £5.5bn
Floor space: 1.88 million sq m (c. 70 Science Parks)
Number of employees: 73,000
Number of tenant companies: 3,300
Research undertaken by the UK Science Park Association11 has also helped identify the nature of the additionality the science park movement brings to the performance of knowledge-based firms located on Science Parks in the UK. The research involved interviewing science park managers and surveying senior managers of 876 companies, 617 of whom were based on Science Parks.
The key findings of this study are summarised below:
impact on company performance – science park based companies have higher growth rates than similar companies at other locations. For example, a higher proportion of on-park companies reported having 10% more full time equivalent employees than off-park companies, whilst a significantly greater number of on-park companies reported to having higher turnovers than 3 years ago, in comparison to off-park companies;
10 http://www.innovationuk.org/news/innovation-uk-vol5-1/0069-uk-science-park-association.html 11 Angle Technology (2003) Evaluation of the past and future economic contribution of the UK Science Park Movement 22
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impact on innovation performance – ‘on park’ new technology based firms (NTBFs) have a significantly higher proportion of qualified scientists and engineers compared to their off-park counterparts, whilst on park NTBFs were more likely to launch new products and services. However, the research did show that there was no difference between the intensity of investment in R&D between the two groups of businesses;
access to business support services – on-park companies utilised venture capital, public sector and angel finance to establish their businesses to a significantly higher degree than off-park companies
Other findings included:
the most significant single factor affecting the performance of individual science parks is the state of the sub-regional knowledge economy within which they operate;
many science park managers were concerned by the apparent contradictions between local planning policy and the regions economic development objectives; and
central government recognises the important role that science parks can play in a successful knowledge based economy.
Qualitative, less tangible benefits
A less tangible but equally important contribution of science park / technopole concepts is often one of image and brand. Regions are increasingly competing to attract talented, highly skills individuals and innovative, high-growth potential companies. A successful science park / technopole can bestow a competitive advantage to a sub-region / region that is trying to develop its knowledge economy through the growth of indigenous companies (i.e. those spinning out of the knowledge base) and by attracting high value inward investment.
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4 Case studies
4.1 Introduction The preparation of best practice case studies and models of similar university linked developments and ‘technopoles’ elsewhere in the UK has formed a core element of this study. The case study analysis has examined a range of science & technology parks and technopoles based on size, scale of activities and facilities and sector focus and have helped identify potential benefits and impacts in terms of supporting the local and regional economic development agenda. The analysis has also informed the parameters of an exemplar facility in Brighton taking into account a range of critical success factors for such schemes, as outlined below.
Spatial conditions: such as transport infrastructure and other elements of accessibility and distinctive environments;
Role of the public sector: level and role of public sector intervention / policy environment;
Key planning and development issues: key challenges to the development process and issues addressed and how these were overcome;
The support infrastructure - Linked programmes and initiatives: such as planned transport infrastructure and housing investments and other public policy to support economic development. Key local and sub-regional assets such as existing R&D institutions, Universities, key business sectors, pre-existing science / technology parks, business incubator / enterprise centres;
Structure of the business sector and R&D potential: opportunities to diversify local / sub- regional business, key growth sectors and level of HE spin-out activity / entrepreneurial activity;
Intellectual and human capital: including the concentration of scientists, knowledge workers, R&D staff, PhD / other postgraduate students – including the level recruited from local area and schemes to encourage knowledge transfer, such as Knowledge Transfer Partnerships and Internships;
Additionality / impacts delivered: for example, what impacts have been delivered that probably would not have been achieved without the presence of the science park / technopole. This could include branding the ‘city’ as a high-technology, knowledge based economy.
4.2 Case studies The following ‘initiatives’ located on greenfield and/or urban fringe sites have formed the case studies for the Brighton Technopole proposition at Toads Hole Valley:
1. Edinburgh Technopole
The Edinburgh Technopole is the University of Edinburgh’s world class science and technology park blending cutting edge science and research facilities located in a greenfield environment. A joint venture between the University and Grosvenor, the international property company, the Technopole is based on the Bush Estate, a 126 acre site south of Edinburgh city, which has been the site of various research and development institutes since 1946.
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2. NETPark, County Durham
NETPark - the North East Technology Park at Sedgefield, County Durham - is one of the fastest growing Science Parks in the UK. Activities at the Park focus on supporting companies that are developing technology and products in the physical sciences, particularly printable electronics, microelectronics, photonics and nanotechnology, and their application in the fields of energy, defence, and medical-related technologies. The initial phase of NETPark totals 13 hectares (33 acres) and consists of facilities, including a business incubator, the PETEC facility and a Research Centre. There is potential for large scale expansion to the north of the site of up to 70 hectares.
3. Southampton Science Park, Chilworth, Hampshire
University of Southampton Science Park is a 45-acre development on the edge of Southampton - just a mile from the M3 motorway. The Science Park provides high quality office and lab space in attractive landscaped surroundings. It is home to science and technology based companies of all sizes, from fast growing start-ups to international household names. It is home to an incubation facility / enterprise hub that supports early stage high-growth science and technology companies, including those emerging from university research discoveries.
4. Daresbury Innovation Centre & Daresbury Science & Innovation Campus, Warrington, Cheshire
The Daresbury Innovation Centre is located at the Daresbury Science & Innovation Campus which is a leading location for hi-tech business and leading edge science. It provides a unique environment for innovation and business growth, with knowledge sharing, collaboration and networking. The Innovation Centre nearly 100 hi-tech companies, whilst the wider Campus is the location of the Daresbury Laboratory and the Cockcroft Institute. Key stakeholders include the NWDA and the Universities of Liverpool, Lancaster and
Manchester.
5. InfoLab21, Lancaster University, Lancashire
InfoLab21 is part of the Lancaster University campus, located approximately 3 miles south of the city centre. It is an award winning international centre of excellence for research in ICT. The facility aims to encourage the commercial exploitation of research and technology / knowledge transfer by attracting high technology businesses to co-locate alongside leading academics.
Smaller scale case studies have also been prepared and are attached in Appendix I for:
York Science Park / York Science City;
Oxford Science Park;
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Cambridge Science Park; and
the E.S.T.E.R Technopole, Limoges.
4.3 Case study 1 – Edinburgh Technopole
4.3.1 Background
Edinburgh Technopole is the University of Edinburgh’s world class science and technology park blending cutting edge science and research facilities located in a greenfield environment. A joint venture between the University and Grosvenor, the international property company, the Technopole is based on the Bush Estate, a 126 acre site south of Edinburgh city, which has been the site of various research and development institutes since 1946. It is located alongside leading international research organisations, such as the Roslin (Dolly the Sheep) and Moredun Institutes, the Scottish Agricultural College, the Scottish Veterinary Field Station and the Natural Environment Research Council. The University of Edinburgh Research Centre will join these established organisations when it opens in 2010.
The objective of the Technopole is to deliver not just a Science and Technology Park “but a genuine scientific community where shared resources encourage shared ideas, engendering cross-fertilisation …..”. The Technopole aims to create an optimised environment and infrastructure designed to stimulate the growth of organisations using technology, particularly those with the potential for interaction with the University of Edinburgh.
4.3.2 Spatial characteristics
The Technopole is located 8 miles south of Edinburgh city centre, 4 miles from the University's Science and Engineering campus and within half a mile of the School of Veterinary Medicine. The site benefits from good road (A701, A702 and A1), air (Edinburgh Airport) and rail (Edinburgh Waverley & Haymarket) access.
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As shown in the aerial view, the Technopole is a low-density development of half a million square feet, characterised by a parkland feel that creates a unique working environment. At the centre of the Park lies the former stately home, Bush House, which provides offices for many of the occupiers, as well as the Park Manager. In addition to being a major centre for research through its three Universities and numerous research establishments, its location offers a high quality of life, which is seen as important for attracting a highly educated work force.
4.3.3 Key sectors and research specialisms
There are currently over 20 companies with more than 300 staff based at the Park, however, the Technopole is part of a wider cluster of more than 100 companies and employs over 1,500 highly skilled knowledge workers. The Technopole has specialisms across several sectors of life sciences, medicine, electronics and informatics and offers state of the art laboratory and office buildings. Given the close location of Edinburgh Technopole to the University of Edinburgh's internationally-recognised research capabilities, all research and technology-based occupiers are able to benefit from convenient access to the University's resources, including Life sciences: (Biotechnology, proteomics, genomics and bioinformatics) and Healthcare: (all areas of medicine and veterinary medicine including cardiovascular and neurosciences).
4.3.4 Core facilities
The Technopole offers 500,000 sq ft of high quality buildings designed to meet flexible needs of R&D based companies and aims to create a community of thriving technology organisations, encouraging collaboration and engendering cross-fertilization between different disciplines and synergy between different projects in an infrastructure designed to stimulate growth. In terms of inherent intellectual capital, it offers significant opportunities to companies of any size and discipline. The Edinburgh Technopole sits at the heart of a
Bush House
dynamic science and technology community, providing research expertise, incubation, Scotland's first bio-manufacturing facility, business support and networking and access to the University's state-of-the-art equipment and research.
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Prominent premises located at the Technopole include:
The Fleming Building - the newest building at the Technopole which offers a flexible approach to the provision of space. It is capable of being formatted both as high quality offices and high- grade laboratory space, in combinations to suit specific occupier requirements. There is up to 1,998 square metres (21,507 square feet) available space left, with 40% of the building is occupied by Kendle, a leading clinical research organisation;
Charles Darwin House - provides high quality office space; there is one suite available of 572.97 square metres (6,167square feet) within this 2,999 square metre (32,280 square foot) building, which is available on a leasehold basis. It comprises open plan offices developed over three storeys and set in a self-contained site with private parking. The building is designed to blend in with the spectacular parkland environment and to make use of materials and technologies suitable for low cost occupancy;
The Technopole Centre 10,000 sq. ft. building with a focus on smaller, growing companies. It is a high quality, modern renovated to a high standard in 2004 and positioned at the entrance to Edinburgh Technopole; and
Bush House - completely refurbished former country house to provide high quality offices in a mature parkland setting. The offices, which range from 14-56 square metres (150-600 square feet), are available either individually or in suites on simplified leases (with a minimum lease length of one year).
In terms of future development proposals for the Technopole, following the recent completion of a link road to Pentlands Science Park, plans include the construction of a new laboratory building. Planning permission has been granted for the £6.5m development which will provide additional provide space for up to 400 staff.
4.3.5 Support infrastructure
Through the Edinburgh Technopole and the partnership with the University of Edinburgh, companies located at the Technopole gain access to a range of specialist support services, facilities and equipment, including:
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research excellence, facilities and staff at the University of Edinburgh;
specialist equipment and facilities, such as HECToR one of the most powerful computers in the world, giving researchers the means to undertake complex computational simulations across a range of scientific disciplines;
the technical expertise of University researchers for consultancy advice and collaborative research and development;
undergraduate and postgraduate students for business or technology research;
a highly qualified and skilled workforce from the three Universities and other research institutions in the area
introductions to the science, business and financial communities and networking opportunities with organisations from around the area’
access to top quality legal, financial and commercial advice, in addition to other business support including business and investor readiness workshops.
4.3.6 Linked facilities, programmes and initiatives
The Edinburgh Technopole is one of 7 research driven science parks that forms part of the Edinburgh Science Triangle (EST). Created in 2004, the EST is a partnership initiative between Roslin Biocentre, Heriot Watt Research Park, Edinburgh Technopole, Pentlands Science Park, Alba Campus, Centre for Biomedical Research, Biocampus, Midlothian Council, West Lothian Council and City of Edinburgh Council. The EST is a hub of over 10,000 academic and commercial researchers and over 100 market leading companies employing in the region of 4,100 employees on 252k m2 of build, putting it in the top 20 largest science parks in the world. Outlined below is a summary of a number of the key ‘infrastructure’ components of the Edinburgh Science Triangle:
. Pentlands Science Park – located adjacent to the Edinburgh Technopole, the Pentlands Science Park extends to 22 acres and provides 160,000 sq ft of high quality office and laboratory space. Property offered to let is in modern, high quality buildings which are all less than ten years old and range in size from 700 sq ft to 2,500 sq ft. The Park also offers world-class animal clinical facilities centred on veterinary science. It is home to 23 organisations including the Moredun Foundation which is respected internationally for its work on small ruminant diseases, animal disease research and veterinary science. The Park benefits from strong links with the University of Edinburgh (Moredun and the University have a joint laboratory on site), the Royal Dick Veterinary School and the Scottish Agricultural College. The
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close proximity of these organisations and the other research parks provides a critical mass of scientists and opportunities for collaborative working. Pentlands Science Park is set in a rural location, minutes from the Edinburgh City by-pass and other main transport links.
. Edinburgh BioQuarter - a unique environment for innovation in healthcare by supporting intensive interactions between world-class clinicians, internationally renowned researchers and the global biomedical industry. It is located at Little France on the outskirts of Edinburgh and is the home to the University of Edinburgh’s Medical School, the Queens Medical Research Institute and the Royal Infirmary of Edinburgh. Unique to the UK, Edinburgh BioQuarter is the only location to offer a large state-of-the-art teaching hospital, the University of Edinburgh’s world-renowned medical school and bespoke biomedical research and development facilities all on one site. The BioQuarter site is home to a community of over 1,200 dedicated researchers, Research Institutes including the new Scottish Centre for Regenerative Medicine, and a 140,000m2 science park accommodating academic research space and commercial research-based companies. It is a major collaboration between Scottish Enterprise, the University of Edinburgh, NHS Lothian, the City of Edinburgh Council and Alexandria Real Estate Equities, Inc, working with Lothian University Hospitals NHS Trust. Alexandria Real Estate Equities Inc, a leading life sciences property specialist, has a reputation for life science cluster development – including Mission Bay in San Francisco and MIT Technology Square in Cambridge, Massachusetts.
4.3.7 Strategic context
Both national and local planning and economic development sets out the importance of supporting key growth sectors through the provision of a range of sites and premises and by promoting sustainable development opportunities. A summary of key policy statements that support the case for investment in the Edinburgh Technopole and related knowledge- based and innovation infrastructure include:
A Smart, Success Scotland – Ambitions for an Enterprise Network: sets out a vision for the Scottish economy, whereby an increasing focus would be placed on R&D activities and skills with the aim of moving towards a knowledge-based economy. This document was replaced in 2007 by the Scottish Government’s Economic
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Strategy and its Scottish Life Sciences Strategy – Achieving Critical Mass which outline the importance of investment in key sectors to achieve scale and critical mass for both the research base and related businesses in order to ensure key sectors, such as life sciences can compete effectively on the global scale;
Economic Strategy for Midlothian – the strategy emphasizes that land releases will be essential to service employment. Development of the biotechnology cluster around the Bush Estate (Edinburgh Technopole) and Roslin Institute is identified as a key opportunity, given the impact to date these ‘schemes’ have had on reversing the long-term drift of jobs out of the area;
4.3.8 Planning context and key issues
Two key planning policy documents set out the strategic importance of the Edinburgh Technopole and the growth of key economic sectors such as biotechnology to the national economy:
1. Edinburgh & Lothian Structure Plan – places emphasis on the importance of supporting the growth of key economic sectors and the need to provide suitable facilities to faciliate future development. It recognises that the success of the Edinburgh City Region is based on a number of key sectors, including technology- based enterprise and skills linked to its universities and research institutes. Policy ECON3 identifies the Bush Estate / Roslin Institute area as an economic cluster of national importance requiring up to 25 hectares of additional land along for A701 Corridor for biotechnology and other knowledge based industries. The Structure Plan states that where sites outwith the Green Belt, sites within the Green Belt can be identified provided that the impact on Green Belt objectives is minimised.
2. The Midlothian Local Plan - recognises the national economic importance of the cluster of biotechnology and knowledge-based uses in the A701 Corridor and seeks to support their competitiveness in the global economy by providing for their future expansion. The Plan makes reference to 4 allocations equating to 25 hectares that have been made for knowledge based industry and related manufacturing activity specific to the requirements of sector in the Bush Estate / Edinburgh Technopole Area. The four sites have been selected due to: their close proximity to existing academic institutions / research facilities; to support the expansion plans of these institutions, to minimise the impact on the Green Belt; and, to allow satisfactory landscaping requirements to be achieved.
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Set out in the table below are the key features of Policy ECON2 – Biotechnology & other knowledge-based industries (proposal), as set out in the Local Plan.
ECON2 BIOTECHNOLOGY AND OTHER KNOWLEDGE-BASED INDUSTRIES (PROPOSAL) The development of biotechnology and other knowledge-based industries, and related manufacturing, to meet the Structure Plan strategic land requirements for these uses will be permitted on the sites identified in the table below and on the Local Plan Proposals Map, provided it accords with other relevant Local Plan policies and proposals, including in particular policy RP3. Proposals for other employment, or non- employment, uses will not be permitted.
Site Location Use Site Size Ref B1 Easter Bush Knowledge-based industry and related manufacturing 7.5 hectares Gowkley Moss B2 Knowledge-based industry and related manufacturing 7.5 hectares North B3 Gowkley Moss Knowledge-based industry and related manufacturing 2.5 hectares South B4 New Milton Knowledge-based industry and related manufacturing 7.5 hectares TOTAL 25 hectares Note: All site sizes are approximate; the total site area of these sites is greater than that shown to provide allowance for these developments to be accommodated within a parkland setting, as appropriate to the type of development and the location, and to provide significant shelter belts adequate to screen the sites. The developable area of each site shall not exceed the approximate site size as indicated above.
4.3.9 Impacts delivered
This study has been unable to access any specific research which has evaluated the economic impact of the Edinburgh Technopole. However, Scottish Enterprise undertook a recent review of the EST which states that the wider EST scheme is on track to create 15,000 jobs in the next 10 to 12 years and the partnership approach has so far added £42m gross value to the city and national economy. Summarised below are some of the key achievements and impacts that have been delivered by the Edinburgh Science Triangle since its introduction in 2004.
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These include:
the EST is now one of the top 10 research and development locations in Europe, Europe’s leading centre for Informatics, and a top five region in the world for life sciences research
Scotland is the UK’s second largest life sciences cluster, with over 590 organisations employing more than 30,000 people. In 2007, biotech industry monitor Fierce Biotech ranked Scotland as one of the world’s top five regions for biotech research, commenting: “Scotland has wisely concentrated much of its efforts on building its biotech centre around its reputation for leading edge research into stem cells. The Roslin Institute in Edinburgh along with the University of Edinburgh and the Division of Pathway Medicine has contributed a considerable amount of scientific talent to the region.”
in 2007 the EST was named the most enterprising area in Scotland in the UK government’s Enterprising Britain 2007 awards. “Edinburgh won due to the sheer scale and continuity of collaboration between stakeholders, and the potential impact on the economy,”
University of Edinburgh has spun out about 80 companies in the last five years, about half of them in life sciences, with roughly 80% surviving more than five years;
supporting innovation through collaboration between university departments and business is a key component of EST activity. This has resulted in the achievement of significant scientific breakthroughs and competitive advantages – that neither would achieve on their own. This approach has resulted in a number of breakthroughs, including the world’s first “camera on a chip”, the world’s first Division of Pathway Medicine and the world’s first bionic arm;
Edinburgh accounts for a high proportion of higher education’s contribution to economic growth in Scotland: 40% of university intake, plus 43% of research grant funding, 38% of knowledge transfer income and 36% of spin-out companies. It is also home to more FSTE-100 companies than any other area outside London; and
on site at BioQuarter there are currently over 70 companies engaged in collaborations with Edinburgh scientists, including 17 of the world’s top 20 global pharmaceutical companies.
4.4 Case study 2 – NETPark Science & Technology Park, Sedgefield, County Durham
4.4.1 Background
Established in 2005, the NETPark Science & Technology Park is one of ONE NorthEast’s Innovation Connectors that aims to improve the competitive and GVA position of the North East economy in terms of investment in R&D, the growth of high value sectors, the creation of highly skilled jobs and levels of enterprise – in particular through university spin-out activity. As one of the fastest-growing science parks in the UK, NETpark has already established a thriving community of science and technology companies and research groups. NETPark’s focus is on the commercialisation of the physical sciences particularly electronics and electronic engineering and their application in the fields of energy, defence, and medical-related technologies.
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Located in a Sedgefield, County Durham, the majority of the c. 90 hectare site is owned by Durham Council and managed and marketed by County Durham Development Company (the development arm of Durham County Council). Development of NETPark is led by the County Council in partnership with One North East and Durham University, whilst Helios Properties is the preferred developer.
The ambition is to establish NETPark as the hub for knowledge based businesses and activity in County Durham with the aim of attracting, nurturing and supporting technology driven research, development and manufacturing companies. Leading edge research is commercialised in a total support environment of buildings and services to create jobs, opportunities and prosperity for its locality. A 20 year Development Framework has been established for NETPark which sets out the framework for meeting the Park’s ambition to become a regional centre for science and technology businesses and incorporates a fully integrated programme of community engagement to ensure that the surrounding local communities can benefit fully from these opportunities.
In summary, NETPark Innovation Connector provides a range of facilities and activities which aim to:
provide leading edge facilities for business and university R&D and commercialisation;
engage in community awareness and engagement actions related to science, energy, technology and innovation;
create and promote employment opportunities, in particular high skilled, value added occupations;
use innovation-focused and tailored support geared towards the needs of SMEs with high growth potential and their supply chains; and
facilitate networks to enhance co-operation between SMEs in key sectors.
4.4.2 Spatial characteristics NETPark is located within a rich rural setting that includes, the three villages of Sedgefield, Fishburn and Bishop Middlehaven, the valley of the River Skerne, Knotty Hill golf course, Hardwick Hall Hotel and Park, Sedgefield Racecourse and a network of footpaths and bridleways. NETPark enjoys a strategic location which is well equipped to serve the UK market and is ideally placed for links with mainland Europe via nearby airports at Durham Tees Valley and Newcastle, and extensive North Sea port facilities. In addition to its locational attributes, the site also benefits from competitive land prices and property rentals which provide prospective occupiers with the basic requirements for growth. As a result, NETPark has played an important role in attracting many of the biggest names in industry, as well as a host of smaller businesses to the region. 34
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4.4.3 Key sectors and research specialisms
NETPark’s focus is on the commercialisation of R&D from the physical sciences particularly electronics and electronic engineering and their application in the fields of energy, defence, and medical-related technologies. Building on the technology and research strengths of the region’s HE sector, One of the key initiatives being delivered at the facility is the Printable Electronics Technology Centre (PETeC), which is a £10m project for ‘flexible functional’ materials.
The NETPark Incubator is home to companies such as ROAR Particles, a company revolutionising the global forensic market; Kromek, a company specialising in optoelectronic materials which have significant applications in medical imaging, security screening, space exploration and non-destructive testing; and Ithaka Life Sciences, a consultancy and interim management company that provides a range of services to the biotechnology and life sciences community.
4.4.4 Core facilities and support infrastructures
The NETPark Science and Technology Park has a range of infrastructure that helps bring together world class research from the region’s University base (in particular Durham and Newcastle), a mix of incubator, move-on and laboratory space to support the start-up and growth of high technology science based companies, and world-leading research and technology transfer facilities to support the commercialisation of intellectual property.
The first phase of NETPark totals 13 hectares (33 acres) with potential for large scale expansion to the north of the site up to 70 hectares and incorporates the following facilities:
NETPark Innovation Village - the NETPark Innovation village is a community of five R&D pods offering quality office and laboratory space, in self-contained units which are ideal for established companies or research groups. The units have been designed with many ‘green & sustainable’ credentials which includes waste water
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recycling and angling the buildings in the Innovation Village away from the sun to cut down on solar gain and thus reduce the need for air conditioning;
NETPark Research Institute - was the first building opened at NETPark - commissioned by Durham University, it houses two world-class research groups from the University (the Centre for Advanced Instrumentation and the Semiconductor Crystal Growth and Ceramics Group);
PETEC (Printable Electronics Technology Centre) - national flagship centre at NETPark for the development of printable electronics technologies. These are revolutionary technologies that independent forecasts predict will be a £16 billion industry by 2015, and a field in which the UK is one of the internationally pre- eminent innovators. The Centre provides 3,000 m² of cleanroom and laboratory space and commercial infrastructure required to take new ideas and concepts for products;
NETPark Incubator (Phases 1 & 2) – facility providing 4,000m² of space offering a combination of office, laboratory and workspace specifically designed to support the start-up and growth science and technology based companies, in particular those spinning-out from the region’s knowledge base. Phase 2 of the NETPark Incubator adjoins the first incubator building and doubles the space for companies, offering additional flexible laboratory and office space for the commercialisation of research and new technologies; and
NETPark.net – a resource to link NETPark to businesses in County Durham and elsewhere in the region through events and on-line support.
In addition a 2,000 sq m facility for a company global HQ is currently under construction at NETPark. The funding for these buildings came in the main from Durham County Council and One North East, with a substantial contribution towards the Incubator from the European Regional Development Fund.
4.4.5 Linked programmes and business support
ONE NorthEast Innovation Connectors
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Based on successful innovation locations elsewhere in the UK and internationally, ONE NorthEast (O-NE) has identified several core characteristics commonly associated with a fully functional innovation model, including research capacity, activity and institutional links; business accommodation including incubators, grow on space and commercial space and strong linkages to a wider or emerging business sector and strongly embedded in their community. As illustrated in the diagram12 above, the NETPark Science & Technology Park is embedded within an extensive science, engineering, technology and innovation support infrastrcuture, which includes a Science & Industry Council, Centres of Excellence, Universities, Innovation Connectors and key support agencies, (i.e. O-NE)
The O-NE £200M ‘Strategy for Success’ programme has invested significantly in the development of region’s R&D and innovation infrastructure and capacity through a range of interventions to support effective innovation in the region. This investment has focused both on the three pillars of energy, healthcare and process innovation and in strategic locations (in what ONE NorthEast refers to as ‘innovation connectors’), with examples including, NETPark, Newcastle Science City, Sunderland Software City, Teesside Digital City and the Design Centre for the North.
Newcastle Science City: Newcastle is one of six English cities designated as ‘Science Cities’ by Central Government, which have the ambition of becoming internationally recognised as vibrant knowledge based centres of excellence. Newcastle Science City (NSC) aims to develop substantial new capabilities and activities in respect of the development and commercialisation of science. The programme is based on the development of existing research strengths evident in the region’s university sector such as ageing, stem cells and regenerative medicine, energy and molecular engineering.
Wilton Centre, Tees Valley: is identified as one of the most significant new materials related research, development and innovation cluster in Europe. In the last five years, the decline of R&D previously associated with the chemicals industry on Teesside has been reversed and Wilton is now the largest private research concentration in the UK. Major investments currently being implemented include the National Industrial Technology Facility and the National Nano- Particulates Network.
Sunderland Software City (SSC): SSC is being developed with private sector leadership building upon the strengths of the region’s Universities, in particular Sunderland in respect of
12 North East Innovation Infrastructure. Source: www.northeasttechnologypark.com
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software development for business applications. Key partners identified to deliver the project will be the University of Sunderland, Codeworks, Sunderland arc13 and the private sector.
Teesside Digital City (TDC): TDC operates as a partnership between the University of Teesside’s Institute for Digital Innovation and individual businesses with the aim of developing research, facilities and business in respect of new media, particularly games and animated film. The Institute provides office facilities for digital companies seeking to develop or strengthen links with research and expertise in the University.
The Regional Energy Centres: is a network of research and innovation facilities throughout the region concerned with new and renewable energy, including the NaREC centre at Blyth, the GREAT Institute at Easington, the Fuel Cell Application Centre in Tees Valley, Biomass and Biodiesel in Tees Valley and Subsea Engineering. Led by NaREC, each Centre will focus on particular areas of technology and will facilitate development and application by regional businesses.
Northern Design Centre : the development of new capacity and strengths in existing and new businesses in respect of design is a further area of major activity for O-NE The NDC will focus on developing highly innovative companies with clustering potential through business incubator space and intensive tailored design and innovation support. The NDC is a further example of a key initiative focusing on the expertise of the region’s university sector, notably the University of Northumbria Design School. Despite varying in scope, scale and ambition each ‘connector’ typically encompasses university research, technology based businesses, research facilities and supporting activities, such as business support. Each ‘connector’ supports the Agency’s ambition to develop the region’s knowledge infrastructure through the development of strong and reciprocal relationships between the university sector, industry and government agencies – an example of the triple-helix approach to economic development.
Business support
As an assisted area, science, engineering and technology companies locating at NETPark have access to several sources of funding, including Investment Grants from ONE NorthEast, R&D Tax Credits, Grants for R&D, Knowledge Transfer Networks and Partnerships, and Grants for Collaborative R&D. Start-up companies and SMEs are also eligible for awards and grants through Business Link around particular activities such as ICT implementation and marketing. NETPark also has links with the European Business Angels Network and other Venture Capital networks.
4.4.6 Strategic context
The strategic importance of NETPark is recognised in a number of key policy documents:
Regional Economic Strategy - NETPark is highlighted in the Regional Economic Strategy as a major Innovation Connector, the hub for advance electronics applications and incubation in the region and potentially in the UK;
13 The Urban Regeneration Company for Sunderland 38
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ONE NorthEast Corporate Plan and Business Plan within Activity 2 – Process Pillar and Connectors; NETPark is referred to as a centre for R&D at Sedgefield in County Durham, which will in particular build on strengths in the area of novel electronics. The Corporate Plan stipulates that these technologies represent major opportunities for the development of existing and new businesses in the region, linked with the Universities of Durham and Newcastle; and
Regional Spatial Strategy - Policy 20 promotes NETPark as a Prestige Employment Site and recognises the potential of NETPark to be utilised through the development as a hub for research, innovation and technology transfer. The Tees Valley City Region Development Programme (May 2005) paragraph 4.5 b demonstrates the County Durham vision to create “NETPark as the hub of countrywide provision from knowledge industries and higher value added manufacturing”.
4.4.7 Planning context The NETPark Science & Technology Park is located in the district of Sedgefield and up until 1st April 2009 fell within the Sedgefield Borough Council Planning Authority. However, as of 1st April 2009, County Durham became a Unitary Authority with all planning powers transferring to Durham County Council. The Core Strategy of the County Durham Local Development Framework is currently being prepared.
Set out below is an extract from the Durham County Council Planning Services Committee Report for a single storey extension to the PETEC facility at NETPark. This provides useful context to the planning history of the site and the restrictions imposed on developments. The key issues outlined in the report are summarised below:
th On 7 December 1999 outline planning permission was granted for the development of a Class B1 Business Park at the site, subject to a Section 106 agreement which required a Master Plan and Design Code to be approved by the Council. The purpose of the agreement was to ensure that that a high standard of building design and landscaping was achieved in recognition of the strategic importance of the site with the potential of being developed as a science and technology park of regional, national and international importance;
Policy D1 of the Sedgefield Borough Local Plan requires the following principles to be applied to the layout and design of all new developments:
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. A comprehensive and co-ordinated approach which takes into account of the site’s natural and built features and its relationship to adjacent land uses and activities;
. Attention to the design of buildings and their spatial relationships to open spaces, landscaping and boundary treatment to help create a sense of place;
. Satisfactory landscaping to be incorporated in the design and layout of the site;
. Satisfactory and safe provision of for pedestrians, cyclists, public transport, cars and other vehicles.
4.4.8 Impacts delivered
The success to date of NETPark is demonstrated in a number of ways – increased levels of R&D investment, jobs on site (approximately 150 jobs by February 2009), investment leveraged (PETEC alone has attracted in the region of £25m), and the value of businesses created. For example, the ‘pre-NETPark’ support for spin-outs at Durham University has enabled one company to develop from a two man operation to a 40-strong company (soon to be 100) valued at £46m. On completion of Phase 2 of the NETPark Incubator 8 companies were in negotiations for occupancy which will take up approximately 60% of the lettable space.
The physical infrastructure at NETPark, the County Durham Developments Company’s links to the business community and the world-leading research at Durham University ensured that 600 jobs and a new R&D group were retained in the sub-region.
4.5 Case study 3 – Southampton Science Park, Hampshire
4.5.1 Background
The University of Southampton originally purchased the Science Park site in 1963, with construction of the science park commencing in 1983/84. The University of Southampton Science Park Limited operates commercially on behalf of the University of Southampton. The Southampton Science Park is identified as a key strategic location for high-tech companies that seek a University of Southampton connection, and also University of Southampton spin-outs and Industrial Advisory Units. It is a 45-acre (18 hectare) development in a prime Hampshire location - just a 1 hour drive from London. The Science Park provides high quality office and 40
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laboratory space in attractive landscaped surroundings. The Park has a strong emphasis on liaising with present tenant companies to provide the facilities that they need to continue expansion.
The objectives of the Science Park include:
providing accommodation for University spin-out companies;
acting as an inward investment magnet for companies wishing to work with the University;
creating an R&D environment for co-operation between knowledge-based companies and the University;
creation of high value jobs in the local economy;
and retention of graduates in the area.
4.5.2 Spatial characteristics: Southampton Science Park is located in 45 acres of landscaped grounds. It is part of the Chilworth estate, a quiet area of parkland on the northern edge of Southampton characterised by mature trees and green space. Also adjacent is the Chilworth Conservation Area, a 40 acre open-access area incorporating ancient woodland, an ecology meadow, an arboretum and lake. The Science Park benefits from easy access to the Solent, the New Forest, Test Valley, Hamble River and North Hampshire Downs. Transport connections to Southampton Science Park are very good, being just one mile from the M3 Junction 14, and close to the M27, making it a very convenient location to access the whole of southern England. In addition to motorway access, the development is close to Southampton Parkway Station and Southampton International Airport with direct flights to over 50 destinations throughout the UK and Europe. All the buildings are designed to be low-impact and are in-keeping with their surroundings. The Science Park's commitment to green transport led to them paying for improvements to cycle lanes in the vicinity.
4.5.3 Key business sectors and research specialisms
More than 50 companies are based on the Park - from fledgling enterprises through to multi-national businesses that lead the
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world in the fields of pharmaceuticals, software design, satellite broadcasting and mobile telecommunications. All companies are engaged in research, development, ‘high tech’ manufacturing or services which directly support businesses on the park. Based on the strong links with University of Southampton, the Science Park has also developed strong R&D links with leading academics and departments of the University, in disciplines including electronics, computing, optoelectronics, marine science and technology and chemistry. At the Science Park, household names like BSkyB and Merck rub shoulders with young, fast-growing technology companies, including aap314, resulting in a thriving business community with excellent networking opportunities. All are attracted by the Park's strategic location, the quality of the environment, and access to some of the United Kingdom's leading scientific expertise at the University of Southampton.
4.5.4 Key facilities and support infrastructure: Property
The Science Park provides facilities for businesses of various sizes with space ranging from 200 sq ft to 16,000 sq ft, including:
incubator facilities for knowledge based start-up and University spin-out companies (Southampton Enterprise Hub / Chilworth Business Incubator). The Incubator offers small companies the opportunity to benefit from flexible leasing arrangements (including ‘easy-in/easy-out' facilities) and access to shared facilities (for example meeting rooms and photocopiers);
larger flexible office / laboratory space – providing move-on accommodation for companies graduating from the incubator facilities at the Park. Buildings include the recently completed Benham Campus which offers over 102, 000 square feet of new office space and Kenneth Dibben House which offers a range of suites from 540 square feet to 5,000 square feet, which are designed to encourage young, hi-tech companies; and
virtual tenancy service – the Science Park also offers a virtual tenancy service so that companies can benefit from the Science Park address and access to the facilities on site (i.e. business support / meeting and conference facilities.
14 Founded in 1998 by a team of technology service and IT industry specialists. The founders devised a specific managed IT service solution and were quickly working with large corporate clients such as Cisco and IBM. The company grew at an exceptional rate and in 2003 was ranked as Britain’s 29th fastest growing company in the Sunday Times Virgin Fast Track 100 listing; 42
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Accommodation can be fitted out to tenants’ specifications and there are some opportunities for companies to acquire Science Park land on long-lease terms, allowing them to construct their own custom-designed buildings. If a company outgrows its accommodation, the Science Park offers considerable flexibility to existing tenants wishing to expand their accommodation footprint. For example, aap3 have been on the Science Park since the company was founded in 1998. The company has progressed from the Incubator Unit to their own state of the art building on the newly completed Benham Campus.
Support infrastructure
University of Southampton expertise - Southampton Science Park has been developed in conjunction with the University and has developed strong links between the worlds of business, research and learning. Resident companies benefit from joint projects with leading technologies and from the first class facilities and equipment offered by the University of Southampton. Access to students, graduates (i.e. Knowledge Transfer Partnerships / Internships), and expertise of the University are readily available to tenants of the Science Park;
Southampton Enterprise Hub - the Enterprise Hub is based at the Science Park and provides support for small and growing technology businesses in the Hampshire area. The Hub provides a networking forum for local entrepreneurs and improves access to technology, research, innovation and business support. It also helps companies to access flexible workspace and early stage finance;
High-tech infrastructure - with a dual routed power supply, an independent Internet Protocol phone system, real broadband and a data centre on site, technological requirements are well looked after at the Science Park;
Chilworth Manor – Eighteenth Century building located adjacent to the Science Park that offers a residential accommodation, a 130 seat conference suite, including interactive presentation facilities, with 10 additional meeting rooms available for events ranging from training seminars to product launches.
4.5.5 Linked programmes and initiatives: The consultations with key stakeholders involved with the Science Park revealed that the Science Park and University is embedded within a wider framework of complementary initiatives and schemes. Linked developments and support initiatives include: 43
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SETSquared Business Accelerator Centre - SETsquared is a collaboration between the universities of Bath, Bristol, Southampton and Surrey which partners in enterprise activities and collectively supports the growth and success of new business opportunities through spin-outs, licensing and incubation. The Partnership also works with industry through research collaboration and consultancy. As part of the initiative the University of Southampton hosts a Business Acceleration Centre which supports early-stage, high-technology, high growth potential ventures both within and outside the university (businesses of up to 3 people). The centre also provides tenant companies with access to entrepreneurs, industry specialists and investors, along with business mentoring through a network of mentors and guidance from centre-based experts and panels. The Science Park has strong links with the Accelerator providing move-on accommodation and other support;
Millbrook Technology Campus – is a Southampton city based development on the 16 acre NXP Semiconductors site. The Technology Campus was officially opened in June 2007 by Sir Digby Jones and has been created through a partnership between Southampton City Council, NXP, and Southampton University. The Campus aims to harness the academic and technological capabilities of the region, by: creating an environment contributing to prolonged growth of technology based companies; offering affordable incubation space to start-ups and academic spin-off companies; and providing engineering expertise and resources to support research with the potential of having a positive impact on the region’s economy. The functions of businesses on the campus are as varied as they are dynamic, and cover a wide range of technical areas, including but not exclusive to Micro Electronics, Electronic Systems, Multimedia Technology, Information Technology, Biochemistry; and
Solent Innovation & Growth Team - has been set up to support high growth and innovative businesses in the Solent Region. The team provides a very strong, integrated and focused set of support, in addition to providing access to an extensive network of high growth business coaches, mentors, University research teams and other experienced business professionals.
The business community at the Science Park also benefits from access to a wide range of city and regional business support infrastructure, including Business Link Solutions for 44
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Business Products (including innovation support and access to finance), SEEDA’s Innovation Advisory Service, Solent Synergy15 activities, Finance South East, SION – the Solent investment opportunity network and the UKTI.
4.5.6 Strategic and planning context:
Economic
The activities of the Science Park link clearly with the target objectives and priorities of key regional, sub-regional and local economic development strategies, including the Regional Economic Strategy, the Regional Innovation Framework, Southampton City Council’s Plan for Prosperity and Enterprise Action Plan and the Partnership for Urban South Hampshire Economic Strategy. This is particularly relevant in terms of improving business productivity through better knowledge transfer, promoting innovation and enterprise, and growth in knowledge-based and higher value sectors of the economy through investment in business and innovation support infrastructure.
Planning
The Southampton Science Park is located in the district of Test Valley. The Test Valley Core Strategy is currently being prepared and is expected to go out to consultation in 2010. The current Local Plan for the Borough (2006) recognises: that the University of Southampton Science Park is one of the premier science parks in the UK; the important economic development role of the site; and, that further proposals may come forward during the plan period for new buildings and the redevelopment or extension of existing buildings. The Plan states that such proposals will generally be supported provided that:
the type of use and occupancy are appropriate to a science park;
the development respects its sensitive rural location; and
the attractive campus character of the site itself is maintained.
Planning policy currently permits the following tenant activities: scientific research and product development, high tech, low impact production and the provision of technological services. It states that the primary use will be research and development but firms which require a greater degree of flexibility and some ancillary manufacturing, which is in accordance with the planning agreements relating to the site, may be permitted. Firms
15 Solent Synergy Limited (SSL) is a not-for-profit, limited company which supports local innovative companies, provides access to information and strengthens links between businesses, investors and the academic community across the Solent region. 45
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Test Valley Council recognises that, in order to develop products, it may be necessary to produce prototypes or to have limited production runs. Products should be made to order to meet the requirements of a specific customer, rather than for sale on the open market. In order to preserve the R&D focus of the science park large scale production or high tonnage production will not be permitted. Businesses must also demonstrate that any manufacturing would be closely related to R&D activity or that there will be specific and close research interactions with local universities or other research organisations in the South Hampshire sub-region.
A summary of the planning guidelines outlined in the Local Plan are set out in the table below.
STV 01.1: UNIVERSITY OF SOUTHAMPTON SCIENCE PARK POLICY AREA
Employment development falling within Class B1 of the Town and Country Planning (Use Classes Order) 2005 (or as subsequently amended) will be permitted within the University of Southampton Science Park, provided that: a. the use comprises scientific research and development, including ancillary industrial production and, exceptionally, support facilities; b. it is not visually intrusive in views from the M27 Motorway, the A27, Chilworth Old Village, or Chilworth and does not detract from the setting of Chilworth Manor and garden; c. any development does not result in the loss of important trees within or adjoining the science park and is landscaped to maintain its attractive 'campus' character; d. any new building, redeveloped building or extension to an existing building, is designed to a high standard. Any new or redeveloped building is designed to make a positive contribution to the overall appearance of the science park; and
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e. the transport impacts are addressed through the provision of, or contribution towards, the improvement of the transport infrastructure serving the site.
4.5.7 Impacts delivered: The Science Park currently hosts approximately 50 businesses which employ in the region of 1,000 people, most of which are highly qualified. Discussions held with key stakeholders associated with the Science Park found that no specific evaluation of the impact of the Science Park has been undertaken. This was explained by the complexity associated with measuring the true impact of the activities undertaken at the Science Park and the national and international scope of business and research activities. Regular communication is undertaken with tenants to ensure their property and business support needs are met. The Science Park is a core element of the University of Southampton’s offer and has made a significant contribution to the University’s record for success in terms of spinning out its research excellence into business ventures which has made it one of the leading entrepreneurial universities in the UK.
The University has recently undertaken a programme to measure its economic impact, with key findings including
research has created twelve successful spin-out companies since 2000, three of which have been floated on London’s Alternative Investment Market (AIM) with a combined market capitalisation value of £160 million;
the University has seven highly respected professional consultancy units, which are much in demand by both commercial and public sector organisations. Combined they employ 125 staff and generate £7.5m revenue per annum;
it is one of the most successful universities in the country in winning grants from the DTI, now (BIS) Technology Programme / Technology Strategy Board. A total of almost £20 million has been awarded over the last two years, including £6 million in collaboration with university spin out companies; and
Southampton also boasts a Knowledge Transfer Partnership (KTP) portfolio worth over £1.7 million.
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4.6 Case study 4 – Daresbury Science & Innovation Campus, Cheshire
4.6.1 Background
Daresbury Science & Innovation Campus (DSIC) is recognised as a world class location for hi-tech business and leading edge science. It provides a unique environment for innovation and business growth, with knowledge sharing, collaboration and networking.
Figure 1: DSIC. Source: NWDA
The scientific facilities at Daresbury began with the establishment of Daresbury Laboratory, which started operations in 1962 as ‘Daresbury Nuclear Physics Laboratory’. It is one of Europe’s largest multidisciplinary scientific research facilities and is now part of the Science and Technology Facilities Council (STFC).
In 2001, NWDA purchased the land adjacent to the Laboratory and has subsequently directly developed Buildings 1 and 2 as the Daresbury Innovation Centre (DIC) and the Cockcroft Institute (described below), to catalyse a ‘world class’ science and technology cluster in the North West. The Campus was formerly established in September 2006, and Daresbury Science and Innovation Campus Ltd (DSIC) has been established as a company to drive forward the campus vision as a collaborative project, with the STFC, the NWDA, Halton Borough Council, and the Universities of Manchester, Liverpool, and Lancaster on its board.
4.6.2 Spatial characteristics
The DSIC is set in 25 hectares of gently sloping rural landscape flanked by coniferous woodland and with the Bridgewater Canal running alongside it. As shown in the picture opposite the Campus is a low-density development which provides an attractive, spacious ‘rural’ location which businesses locating at the site identify as an important factor behind locating and staying at the campus. The DSIC is located approximately 6 miles south east of Warrington; 25 48
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miles south west of Manchester; and 21 miles south east of Liverpool, and is easily accessible from these conurbations due to its proximity of Junction 11 of the M56. It is no more than half an hour’s drive from either Manchester or Liverpool John Lennon airports and is also well served by train infrastructure (Warrington and Runcorn).
4.6.3 Structure of the business sector
The Campus is home to nearly 100 hi-tech businesses, ranging from small start-ups to strategic units of large multi-national corporations, and offers high quality office space alongside its multidisciplinary laboratory facilities.
Key sectors of activity at the Campus include:
Bio-medical - the Northwest of England has a strong and rapidly growing healthcare industry, with around 230 companies established in the region. This is further supported by the strong academic research capabilities of the Universities of Liverpool and Manchester, partner hospitals and locally-based national support facilities such as the National Bio-manufacturing Centre. Daresbury, in particular the laboratory facility has provided a crucial platform analytical technology to support the healthcare industry and as a result Daresbury SIC has become home to a cluster of over 10 leading healthcare businesses in a number of areas, including pharmaceuticals, diagnostics and medical devices;
Advanced engineering & instrumentation – spanning aerospace, automotive, chemicals and materials sectors. The Daresbury Laboratory is at the forefront of detector and instrumentation technology, designing and operating some of the most advanced scientific instruments in the world. Dedicated detector and instrumentation scientists and engineers support this agenda, whilst the facility has built up over 50 years of know-how and experience in accelerator science, and therefore plays an important role in supporting the development of advanced engineering solutions across numerous technology sectors;
Digital & ICT - the Computational Science & Engineering Department (CSED) at Daresbury SIC provides world-class expertise and support for the UK theoretical and computational science communities in both academia and industry, and is one of the world's leading players in the modelling and design of micro-fluidic devices. The Campus is home to over 60 computational scientists who are developing high- performance applications in core areas of quantum chemistry, molecular simulation, solid-state physics, materials simulation, engineering and environmental simulations; and
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Energy & low carbon economy – a new and emerging sector at the DSIC, including nuclear energy and marine ecosystem modelling. The DSIC partners recognise that the STFC facilities have an important role to play in the characterisation of materials associated with energy related systems – including the improvement of materials for existing energy technologies and in supporting the development of those for the next generation of energy sources.
4.6.4 The support infrastructure - Campus facilities
Overview
The Daresbury Science and Innovation Campus (DSIC) comprises:
Existing facilities
The Daresbury Laboratory
The Daresbury Laboratory is part of the STFC, and is one of Europe’s largest multidisciplinary research organisations. It first began operations in 1962 as the ‘Daresbury Nuclear Physics Laboratory’, and is now one of Europe’s largest multidisciplinary scientific research facilities.
Figure 2: Daresbury Laboratory Source: www.geograph.org.uk
The Laboratory now has 550 staff who support the work of over 5,000 scientists and engineers who have undertaken groundbreaking research to ensure that the laboratory has worldwide recognition, and is one of the UK’s major research facilities.
The Laboratory is home to a number of resources and services which are of significant importance to the wider DSIC community:
Chemical Database Service – free access to chemical database for the UK academic community;
e-Science – high technology e-science facilities;
A library and information services centre;
Medium Energy Ion Scattering Facility (MEIS) – investigating the surface structure and properties of crystalline materials;
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A National Centre for Electron Spectroscopy and Surface Analysis (NCESS) – solving problems in materials science, surface science and engineering;
The Nuclear Physics Group; and,
The Synchrotron Radiation Source (SRS) – development of the synchrotron radiation source to produce X-rays. The SRS was closed in August 2008 following 28 years of operation.
Source: STFC
The Knowledge Centre for Materials Chemistry (KCMC) is a recently opened virtual centre on the Campus, which received £30m of funding from the NWDA, HEIs, STFC, Unilever, AZ and SAFC. The Centre, opened in March 2009, will house world-class facilities for companies to use, so that they can test their new ideas / products at a reduced cost. The aim of the centre is to stimulate innovation and to encourage knowledge transfer, most notably in photovoltaics for solar power, biomaterial for drug delivery, and catalyst technology for next generation fuel cells. It will also improve access for companies to senior academics from the Universities of Bolton, Liverpool, and Manchester, and the Chemistry Innovation Network.
The Innovation Centre Description of facilities The Daresbury Innovation Centre (DIC) opened in 2005, providing state of the art business accommodation for science and technology based start-up and small companies. The aim of the centre is to accelerate business growth through the provision of high quality floorspace on flexible Figure 3: The Innovation Centre. leasing terms and comprehensive business support Source: www.investinmerseyside.com services. The Centre is located at the heart of the campus and is approximately 90% occupied, housing c. 90-100 high-tech science and innovation companies including: biomedical, digital / ICT, and engineering sectors. Occupiers have access to tailored business support, scientific expertise and facilities (at the Laboratory and Cockcroft Institute), dedicated training sessions, seminars and workshops, connections to potential funding streams, and direct access to the Daresbury SIC network and events programme.
The Cockcroft Institute The Cockcroft Institute is an international centre for Accelerator technology, which opened on the Daresbury Campus in 2006. The institute is a purpose- built facility adjacent to the Laboratory and the
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Figure 4: The Cockcroft Institute Source: www.cern.ch
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Innovation Centre, as a centre to provide intellectual focus, educational material, and scientific and technological facilities, required to carry out accelerator science and technology research. The research and development at the centre incorporates 4 key themes for accelerator science and technology, including:
Electron-positron colliders;
Proton and ion accelerators – including neutrino beams;
Photon sources; and,
Neutron sources.
The work of the Institute is directed by 4 leading academics from the Universities of Liverpool, Lancaster and Manchester, along with the support of c. 100 research staff from the neighbouring Daresbury Laboratory. The facility is also supported through collaborations, including the secondment of industrial staff to the Institute, and the progression of trained staff from the Institute into industry. To date, the Institute has attracted in excess of £20m in research grants with an application success rate of more than 90%.
Proposed facilities
Gateway Centres - two world class specialist research facilities proposed by STFC, clearly demonstrating the Government's ongoing commitment to Daresbury as a priority national centre for scientific research; and,
Building 3 – 40,000 sq ft (gross area) building comprising varying sizes of office and technical office space for science based businesses. NWDA is targeting a BREEAM ‘Excellent’ rating for the facility, demonstrating the Agency's commitment to championing sustainable design and construction techniques and in accordance with its Sustainable Building Policy (2007). A pre-construction BREEAM assessment has been undertaken and confirmed an ‘Excellent’ rating and highlights the following key sustainability features:
4.6.5 Linked programmes and initiatives
Daresbury and Harwell Science and Innovation Campuses form the Science and Innovation dipole, formally designated by Government in March 2006. The Dipole model creates a platform for public and private sector collaboration in science and technology fields, and will actively contribute towards developing the knowledge economy across the
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UK. The vision for the campuses is that they each become internationally leading centres for science and innovation, providing opportunities for businesses, universities and public sector bodies to:
STFC Campus Vision
Work in an amenity-rich, collaborative environment that promotes exciting new open innovation techniques;
Access the STFC’s advanced facilities and scientific and technical expertise;
Access a unique training ground with a highly qualified mix of professionals; and,
Collaborate with the STFC and other Campus partners in an exciting and innovative environment
Figure 5 below illustrates the Dipole model which extends from Cheshire in the North West, to Hampshire in the South.
Figure 5: Map of Dipole and Dipole Model
Source: STFC
Consultations with the General Manager of the Science & Innovation Campus revealed that businesses at the Campus gain access to a wide range of business support and academic expertise. This was identified as a key factor for attracting and retaining businesses at the Campus. Through the partnership with the Universities of Manchester, Lancaster and Liverpool, NWDA, Business Link Northwest and other key ‘business support’ partners, companies located at DSIC gain access to a range of specialist support services, and equipment, including:
STFC Innovations Technology Access Centre (ITAC) offers flexible and affordable access to a wide range of cutting-edge scientific equipment in 16 fully-equipped biological, imaging, materials and physical science laboratories, providing businesses and researchers with the ideal environment to carry out high-tech R&D work;
IDEAS (Innovation, Design, Entrepreneurship & Science) at Daresbury – a programme delivered in partnership between the Universities of Liverpool, Lancaster
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and Manchester, which aims to promote effective knowledge exchange at the interface of SMEs, large corporations, Universities and strategic government science. Examples of support offered include a workshop series focusing on the critical issues facing high-growth, high-tech SMEs, including networking, innovation and internal capabilities and processes;
IXC UK – InnovationXchange - IXC UK was established to help companies share expertise and collaborate on research through its ground-breaking intermediary service. IXC UK is working with the Daresbury Science & Innovation Campus to deliver open innovation services in the North West, principally between smaller businesses and blue chip organisations and Higher education, to enable new applications for technologies and expansion of market horizons;
Regional R&D and innovation business support provision – the Campus also links in to a range of regional business support and finance provision, delivered by agencies such as Business Link Northwest and UKTI, that is tailored to the needs of high growth potential companies:
. Innovation Vouchers - Support to enable businesses to fund R&D from universities, colleges or private sector research establishments in the region.
. Grants for R&D - Available to assist businesses to introduce innovative products and processes (i.e. the testing & demonstration of low carbon technologies)
. Knowledge to Innovate – Specialist advice to support introduction of new or improved products, processes or services.
. Knowledge Transfer Business placement of graduate for up to 3 years to help Partnerships deliver a new product, process or service using expertise from a university.
4.6.6 Strategic rationale The strategic rationale for investment in the Science & Innovation Campus is highlighted in national and regional economic development and science policy. The DSIC is recognised as a strategic priority at both the regional and national levels, by strategies such as the Regional Economic Strategy and North West Science Strategy. Indeed the DSIC embodies Government's drive to promote collaboration across research establishment, universities and business, reflected in its Dipole status. Dipole status positions DSIC as a research centre of national and potentially international significance and is therefore a focus of public sector investment in scientific research. It provides the opportunity to promote knowledge transfer and innovation, creating employment opportunities in the high value add science sector which will enhance the competitiveness 54
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position of the regional and national economy. The North West RES identifies DSIC as one of its 25 strategic regional sites representing a key opportunity for the regional economy to develop a high value science cluster by: developing higher value activity and improving productivity in priority sectors; developing and exploiting the science/HEI base; delivering a designated employment sites; and, delivering the skills required to maximise the economic potential of these growth assets.
4.6.7 Planning context and future proposals
Planning context
DSIC is allocated within Halton Borough Council’s UDP as a Regional Investment Site (Policies S20), stating that the development of such sites must be to a high standard of design and landscaping, to create a good environmental setting. Policy E6 – Daresbury Laboratories states:
Development will be permitted on this Primarily Employment Area if it falls within Use Class B1(a) & (b) and there is a clear case for it being situated here. The design and height of new buildings should be in harmony with its sensitive rural location.
JUSTIFICATION
The national and international importance of the Daresbury Laboratories for scientific research is a valuable asset of the Borough. There are clear benefits in locating related activities on the same site. Regional Investment Sites (listed in policy S20) 246, 225, 247 & 250 have been allocated on the fringes of the laboratories site to cater for its future expansion requirements and to facilitate the development of a business cluster.
Daresbury SIC Masterplan summarised below has formed a vital part of the evidence base for development of the Halton Borough Council LDF Core Strategy. Informing the LDF Core Strategy – the Daresbury Masterplan
The development of Daresbury Science & Innovation Campus sits within the broader Daresbury Framework area, totalling circa 600 acres, in a number of ownerships. The 30 year ‘vision’ for the Daresbury Campus is for a further circa 47 acres of land to be acquired and developed, effectively doubling the current science and innovation footprint, as well as ensuring an appropriate utilisation of the existing estate (land and buildings) as occupier requirements evolve. Taylor Young led the development of a strategic 30 year vision and masterplan for the site which comprises 7 components outlined below:
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Daresbury Science and Innovation Campus – improved connectivity of existing campus with surrounding areas;
A new transport hub – a new bus interchange, a park and ride facility, and potentially a new railway station;
‘The Heart’ – catalytic driver engaging with adjacent areas and forming a recognised destination where formal and informal meetings can take place;
Residential Development Areas – housing provision in order to create people activity outside of the core business hours;
Daresbury Business Park – new expanded business park to increase interaction with surrounding developments;
A new Schools Academy – inclusion of education facilities in the overall Masterplan in order to include industry collaboration with schools and the wider community; and,
Open space – to link Daresbury to its surrounding rural areas, and ensure that residents and businesses are exposed to amenity space.
This has translated into the following draft policy option for East Runcorn / Daresbury in the Halton Core Strategy, which is the lead document within the LDF:
PREFERRED AREA OF CHANGE CS9 – EAST RUNCORN
There is considerable impetus for expansion at Daresbury, which represents the largest comprehensive development site in the Borough, and as such, a Strategic Site being promoted through the Core Strategy. The principles that should inform the development of the Daresbury area over the lifetime of the Core Strategy: i. Delivering an Area of Excellence for Science, Innovation and Business a) The role of the area as a Regionally Significant Economic Development site should be enhanced through the expansion of the science, research and knowledge based economy and accompanying employment opportunities through: the delivery of 9.3 ha of B1 development at Daresbury Science and Innovation Campus and increasing the profile of the office and knowledge based facilities at Daresbury Business Park through the delivery of approximately 16.5ha of B1(a) development.
b) Support should be given to the development of transport connections and shared support facilities which will bring Daresbury SIC and Business Park together to create a network of businesses and research establishments.
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ii. Creating a New Living Environment
a) Phased delivery of approximately 1,750 dwellings across the Strategic Site at Daresbury, to provide a broad range of housing by size, type and tenure, including affordable housing. Desired phasing of the residential element will be set out in the associated Daresbury SPD.
b) The incorporation of a mixed use development area of no greater than 3.25ha at the heart of the site, including an appropriate level of retail, leisure, community and health facilities to that found in a neighbourhood centre. Any such provision should predominantly meet the needs of the new development with a specific focus on providing ancillary services for the business and research community. Any unacceptable impact on the vitality and viability of existing and proposed centres should be avoided.
c) Ensuring that new communities are integrated with surrounding areas through the delivery of both social and physical infrastructure which serves the new development, in accordance with both the phasing of the area and Preferred Policy Option CS33: Infrastructure Provision.
d) A network of open spaces for nature conservation and recreation should be provided, including the retention of Daresbury Firs, the creation of a linear country park along the Bridgewater Canal corridor, formal green space within the heart of the site.
iii. A Highly Accessible Destination
a) Access improvements from the strategic road network through the provision of connected new access routes off the A56 and A558, together with junction improvements, access roads and a park and ride facility, which will link the various parts of the urban extension to each other.
b) Promoting accessibility through attractive, convenient, safe and sustainable means of travel to Daresbury, including: a new public transport interchange at the intersection of the two railway lines; and integrating walking and cycling routes to provide clear and safe links to surrounding communities, including new pedestrian and vehicular links to Sandymoor and improvements to the canal corridor.
iv. High Quality, Innovative Design Respecting its Location
a) Incorporating a strong urban design framework which will integrate the development with features of natural, environmental or manmade value including surrounding areas of Green Belt, the Bridgewater Canal, Keckwick Hill and Daresbury Firs.
b) Aspiring to exemplar design that demonstrates a strong recognition of the rural identity of this part of the Borough, creating a location with a strong sense of place, and meeting the highest design standards in line with Preferred Policy Option CS23: High Quality Design.
c) Delivering sustainable design solutions with a particular focus on residential development achieving a minimum of the required levels of the Code for Sustainable Homes and BREEAM equivalent status for commercial development, in accordance with Preferred Policy Option CS24.
Sandymoor - Development of the Strategic Site at Daresbury should integrate with the adjacent community at Sandymoor, including the delivery of approximately 1,400 additional units including a new neighbourhood centre and connecting infrastructure.
4.6.8 Public sector intervention
As a ‘Regional Investment Site’, The NWDA has invested significantly in establishing existing facilities on site and has previously secured Government approval, in March 2003 and April 2005, for funding of up to £35m. This investment has delivered two core facilities on campus (the Daresbury Innovation Centre and the Cockcroft Institute), and key infrastructure and servicing works for the wider campus. The Agency is also proposing to invest up to c. £12m in the Building 3 scheme outlined above. The NWDA’s investment has been made alongside research investment from the STFC. The STFC has recently announced £65m new investment at Daresbury to deliver two new world
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class research facilities as part of the Government’s Gateway Centres programme. This proposed investment reinforces DSIC’s Dipole status, positioning it at the forefront of scientific research and innovation in the UK.
4.6.9 Impacts delivered To illustrate the range of benefits and impacts delivered at Daresbury survey work was undertaken in 2009 with occupants at the Daresbury Innovation Centre (DIC). The survey revealed that the occupants had achieved high levels of success in nurturing and growing science focused start up / small businesses since it opened in 2005. The key findings from the survey results are summarised below:
Daresbury companies have achieved very high levels of sales and investment growth:
Sales - £14.9m per year being a 67% increase; & Investment - secured £20.5m being a 55% annual increase);
77% of the companies have developed new products and services, of which two-thirds of them had been taken to market. About half of these companies also filed patents;
In total the survey reported 245 FTE jobs in Daresbury companies of which 71% are at level 4 qualifications or above (first degree or above) which has increased from 59%. In 2007, the companies located in the DIC created 64 new FTEs
73% of Daresbury companies actively collaborate with each other particularly in the form of buyer-seller relationships, joint-ventures and collaborative partnerships. This has increased from 52% at the end of 2007;
Nearly 50% of Daresbury companies are utilising services &/or expertise from the STFC, and nearly 50% similarly from Stakeholder universities; and
The number of “Super networkers” at Daresbury (those who have collaborations with other Daresbury companies, STFC and universities) has increased from 12 to 17. The survey results show that these companies realise significantly higher sales growth than average (106% in 2008 and 185% in 2007).
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4.7 Case study 5 – InfoLab21, Lancaster University, Lancashire
4.7.1 Background
InfoLab21 at Lancaster University is an award-winning strategic ‘regional’ project aimed at establishing an international centre of excellence for research in information and communication technologies. The project was developed with the intention of creating a flagship for ICT in region. Operating in line with its stated mission to ‘promote and enhance the University’s and the Northwest region’s capability for world class research and innovation in ICT’, a key aim of InfoLab21 is for tenant companies to work in close collaboration with each other and the knowledge base within the University, in order to support technology and knowledge transfer and the growth of new businesses.
Core objectives and goals of the facility include:
enhance the region’s reputation for world-class research and development in ICT; employ innovative mechanisms in delivering HE sector interaction with business / industry; utilise the University’s research skills in a regional economic cluster (ICT); accelerate cultural change amongst staff and students within the University; and develop new high growth companies, in particular by supporting businesses in the Cumbria and Lancashire sub-regions.
InfoLab was established as part of wider efforts within Lancaster University to maximise the commercial opportunities of its status as a leading research institution. Building on established world-class research in the academic departments of Communication Systems and Computing at the University, the facility houses a Knowledge Business Centre (KBC) which hosts industry-sponsored R&D and innovative start-up companies. The facility is co-located with the two academic departments identified above and an ICT training facility. The knowledge transfer activities of InfoLab21 aim to support the growth of the regions ICT cluster through exploitation of Intellectual Property Rights (IPR), 59
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Knowledge Transfer Partnerships (KTPs), consultancy and applied research, graduate retention programmes, postgraduate teaching and professional training programmes.
4.7.2 Spatial characteristics:
InfoLab21 is part of the Lancaster University campus, located approximately 3 miles south of the city centre of Lancaster. The campus is set in 250 acres of parkland and is easily accessible to key transport infrastructure, including Manchester's International Airport. There are direct rail links between Lancaster and London, Birmingham, Leeds, Manchester, Oxford and major cities in Scotland.
4.7.3 Key sectors and research areas:
The focus of InfoLab builds on the University’s core strength in ICT. Indeed the University has a long history of working with international ICT companies, including major telecommunications network operators, equipment manufacturers and software providers, including Microsoft, BT Labs, Orange, Nokia, Ford and Cicso. Other key economic sectors in the Lancaster district include, Energy & Environmental Technology, Creative industries, Healthcare and Tourism.
Research at Infolab21 is organised around 8 complementary themes set out in the table below.
InfoLab21 – Research specialisms
Networked and distributed systems Data protection & secure communications Mobile and ubiquitous computing Wireless & mobile communications Software systems engineering Digital signal processing Cooperative & interactive systems Space plasma environnent & radio science
There is a particular focus on advanced communications and networking technologies and their role in next generation internet and associated web technologies, mobile and ubiquitous computing and multimedia systems. To complement this, research staff at the University and Infolab21 also work on advanced software systems engineering tools and
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techniques to support the construction of complex systems with particular emphasis on understanding the social and human dimensions.
4.7.4 Core components and linked programmes and iniatives:
Three core functions are delivered within the facility, set within its stated remit of becoming an international centre of excellence for ICT.
1. Knowledge transfer – an entire wing of the facility houses the Knowledge Business Centre (KBC), which hosts the Business Development Department, 20 business suites with facilities to support incubation. The KBC aims to create and innovation hub, enabling the University to strengthen its links with business and enterprise through an umbrella of industry training and technology transfer activities. The KBC focuses on transferring expertise between InfoLab’s academics, regional businesses and community partnerships. The facility won the national British Council for Offices Best Corporate Workplace prize and has been designated as 'Excellent' in an Environmental Assessment from the Building Research Establishment.
2. Research – the research wing is linked to the KBC and accommodates the Departments of Communication Systems and Computing, which were brought together to stimulate joint working and develop commercial applications with external organisations and businesses incubating within the KBC. As identified above, research is organised in a series of 8 complementary and overlapping themes.
3. Training and education – ICT Focus, InfoLab’s ICT Training Department offers advanced technical training courses in applications development and in systems and network administration, and works with IT professionals to provide training to ICT support staff in colleges and schools, local councils, SMEs and/or IT teams from larger organisations. The two departments provide seminars, workshops, short-courses and a part-time ‘fast-tract PhD’ scheme for professional researchers.
The activities at InfoLab21 are embedded within a range of support infrastructure to encourage the development of key regional sectors and skills development. This includes:
ICT Cluster Groups – a network of local businesses that is supported by Business Link North West, local Councils, local Chambers of Commerce, Lancashire Economic Partnership, the Northwest Regional Development Agency and InfoLab21;
Knowledge Transfer Partnerships – a programme helping businesses to improve their competitiveness and productivity through the better use of knowledge, technology and skills that reside within the UK knowledge base;
Graduate Academy – providing ICT assistance for ICT & Digital small to medium sized enterprises (SMEs) in the North West. Through an internship programme / workplace placements, the Graduate Academy aims to raise the capability of digital industries in the region and enhance the competitive advantage of the ICT/Digital
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sector by providing access to IT graduates’ skills and academic research & development.
Lancaster Environment Centre (Lancaster University) provides business incubation space and access to world class research facilities, while the University’s 6-star Management School is home to the Northern Leadership Academy;
City Lab – city centre based managed offices to support the development of new businesses. Funded through the European Regional Development Fund, the building provides 16,000 sq.ft of high quality office space over four floors. Units range from 120 sq.ft to 1,000 sq.ft;
Storey Creative Industries Centre - a purpose-designed centre to provide specialist accommodation for the creative industries, which is set in the heart of Lancaster's conservation area;
Lancaster Science Park – currently at the concept / project development stage, there are plans to establish a Science Park at a site adjacent to the Lancaster University campus. The Science Park has been designated as a Regional Strategic site by the NWDA and is included as a key project in the Northwest Regional Economic Strategy. The ambition is to develop close links to InfoLab21.
4.7.5 Strategic context:
At the time of investment, the development of InfoLab21 was informed by two key regional policy documents – the Regional Economic Strategy and North West Regional Innovation Strategy. Both strategies recognise the importance of ICT to the region, with the Northwest Development Agency identifying the sector as a key growth area. Specifically InfoLab21 was developed with a clear strategic fit to a number of the key objectives of the Regional Innovation Strategy, in particular:
Objective 1 – to increase business growth by encouraging investment through appropriate use of ICT within businesses and helping support Universities and businesses to increase their investment in R&D;
Objective 2 – improving business performance by realising the potential of the region’s workforce; and
Objective 3 – stimulating the environment to increase enterprise and new business formations through the creation of technology incubators modelled on available best practice.
Nationally, InfoLab21 supports the strategic objectives of several key policy documents, namely the Government’s 10 year Science and Innovation Framework, which sets out 62
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the framework to position the UK at the forefront of science, research and innovation, and the Lambert Review of Business-University Collaboration (2003), which outlines the importance of universities adopting a more outward looking approach to support the regional and national economic development through increased research commercialisation and knowledge / technology transfer activity.
4.7.6 Planning context and issues: Policy ER1 of the Core Strategy16 of Lancaster City Council’s Local Development Framework (LDF) recognises the importance of maximising the benefits of the city’s higher education sector, identifying Lancaster University as the District’s most important economic asset. The Core Strategy outlines the importance of the continued growth of the University to both Lancaster and the North West region. InfoLab21 is identified as a key facility for developing stronger business links and ICT infrastructure and for reinforcing the development of a nucleus of knowledge based businesses. Importantly, the Strategy also recognises that the demands for University expansion must however be tempered by the need to manage the demands for travel and the need to accommodate development within a prominent, high profile landscaped site in a sensitive location.
4.7.7 Public sector intervention and key partners: The total capital cost of establishing the InfoLab21 project as a stand alone complex within Lancaster University was c. £14m, of which approximately £10m was provided by the Northwest Development Agency (NWDA) with further investment received from the European Regional Development Fund (ERDF) and the Higher Education Funding Council for England (HEFCE). The project is split over two distinct phases with a total investment in the region of £30m over a 10 to 15 year period: 1. Phase 1: construction of InfoLab which was completed in June 2004; and 2. Phase 2: 10 years of revenue investment to support delivery of the core functions of the facility outlined above.
Key project partners and associated stakeholders, include Lancaster University, the NWDA, Lancaster City Council, Business Link Northwest and the business community, including international companies such as Microsoft and incubator tenants.
4.7.8 Impact and additionality delivered: The Infolab21 project was evaluated as part of the national impact evaluation of Regional Development Agency activity undertaken by PricewaterhouseCoopers in the summer of
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2008. The key findings of this evaluation in terms of the impacts, outcomes and strategic added value delivered by InfoLab are summarised below, outlining the contribution of such projects to the regional economic development, innovation and competitiveness agenda.
Job creation – by 2007 approximately 270 gross jobs had been created at the University with a further 430 gross jobs in the North West region. The evaluation concluded that this had generated an income-based GVA figure of £7.2m;
Businesses created – approximately 20 spin-out businesses had been created at the time of the evaluation, with a total of 40 anticipated over the 10 year lifespan of the project;
Business performance and competitiveness – interviews held with SMEs indicated the extent to which the project has supported their business performance and sustainability targets. 60% of companies highlighted an increase in turnover as a result of support from the InfoLab21 project;
Improving graduate skills – through the Academy, ICT graduates are given the opportunity to complete one-year internships and work on a range of project based initiatives with SMEs. Infolab business tenants identified this scheme as a ‘unique selling point’, whilst the scheme had played a key role in providing practical experience for graduates and therefore enhancing their skills portfolio;
University / business collaboration – despite in some cases being sporadic in nature, InfoLab21 has played an important role in improving levels of connectivity between research expertise at Lancaster University and business needs; and
Improved linkages – the InfoLab project team has taken a proactive role in developing new partnerships and as a result has helped strengthen the linkages to wider ICT developments within the North West region (for example, working with Lancaster City Council on the development of proposals for Lancaster Science park and supporting the Lancaster ICT Cluster and other similar networks across the region).
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5 Key messages and lessons from elsewhere
5.1 Introduction The following section summarises the key messages and lessons from elsewhere emerging from the case study analysis that have fed directly into the development of the Brighton Technopole concept. The key messages have been structured as follows:
Spatial characteristics;
Range of companies by ‘high-growth sector’ and size;
Core facilities and support infrastructure;
Links to complementary initiatives;
Alignment to economic development and spatial policy;
Planning issues and development constraints; and
Impacts delivered – contribution to economic growth agenda
5.2 Key messages
Spatial characteristics The case study analysis highlights the important role that the provision of ‘low-density, specialised, high specification facilities located in attractive, spacious ‘park’ locations plays in attracting and retaining target businesses. Further important locational features highlighted in the case studies include:
. the need for the ‘Technopole' to be well served by excellent transport connections;
. ease of access to university research and technology expertise and business support infrastructure;
. access to a skilled workforce, in particular qualified graduates, scientists and technicians; and
. prestige and image of being located on a high profile ‘business site’ – some facilities even have wider virtual networks, so that businesses not located on the ‘Technopole’ can benefit from being closely associated with the facility.
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A full range of companies by ‘high-growth sector’ and company size
It is evident from the case study analysis that successful Technopoles:
. tend to focus on specialist business sectors that fall under the definition of ‘knowledge-intensive’ – providing the opportunity for collaboration and supply chain development;
. support the start-up and growth of high-technology, knowledge-intensive companies, ranging from small start-ups to strategic units of large multi-national corporations, and offers high quality office space alongside multidisciplinary laboratory and/or research facilities. Supporting a mix of businesses by sector and size is considered to contribute effectively to the creation of a thriving ‘Technopole community’ and entrepreneurial culture
Core facilities – premises and support infrastructure Critical facilities for successful Technopoles include:
. Business space - the case study analysis found that successful initiatives provide a range of premises and facilities catering for a mix of business and R&D needs. It is important that a mix of space is provided to help support the growth and retention of the company base at the Technopole. This tends to include incubation areas for pre- start and fledging businesses and move-on accommodation offering flexibility for expansion.
. R&D facilities and specialist ‘testing’ equipment - the provision of high specification R&D facilities, (including research centres and clean room facilities) are also important in terms of attracting science and technology based companies to the Technopole. Shared access to specialist equipment is also identified as a key attractor for businesses, in particular SMEs as the cost of developing or buying such equipment can be extremely expensive for an individual business.
. Support infrastructure – the analysis found that Technopoles are embedded into local and regional business and innovation support infrastrcuture. This is key in terms of facilitating business start-up, growth and survivability. Key features of the case studies include:
- strong science and technology base – i.e. characterised a critical mass of R&D expertise and by strong, institutionalised links to technology transfer organisations, laboratories, research centres, skilled R&D personnel;
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- strong affiliation with the HE sector, with objectives including providing students, graduates, alumni and academics with start-up opportunities and the commercialisation of research;
- provision of tailored business support and access to business networks – i.e. access to venture capital, innovation support products, business management and commercial skills.
Links to complementary initiatives Technopoles are characterised by having high levels of integration with linked enterprise and innovation support programmes (i.e. city based enterprise centres and business incubators), and key support organisations (including universities, research institutes, government agencies and private sector organisations, such as Venture Capitalists) both inside and outside the boundaries of the park. A dynamic and enterprising on-site environment (i.e. a vibrant and growing company base, high levels of interaction between businesses and between businesses and the support infrastructure, such as the university sector), embedded within a wider city and regional innovation support programme can be extremely useful in attracting more businesses to the city and Technopole which in turn can support the development of R&D intensive business clusters and a more competitive local and regional economy.
Successful technopoles also tend to be developed in tandem with other more general business locations to create a diverse range of business sites and therefore play a complementary role as part of a wider employment sites portfolio, including urban sites. This offers the potential to raise overall profile of a city/sub-region as a business location and thus improve development prospects for challenging urban sites. This in turn can help attract/establish economic activity that would not otherwise be create or grow in the city/sub-region – i.e. a specialist facility, adding value to more traditional forms of business infrastructure.
Strategy alignment The strategic rationale for establishing Technopole facilities is highlighted in national and regional economic development and science policy. Their aims and objectives are typically closely aligned to the priorities of strategies such as the Regional Economic Strategy and Regional and sub-regional Economic Development, Science & Innovation & High Level Skills Strategies. All the case study schemes described provide the scope to promote knowledge transfer and innovation, creating employment opportunities in the high value add science and technology sectors which will enhance the competitiveness position of the regional and national economy.
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Planning issues and development constraints A supportive but controlled policy environment is an important factor in supporting the development of such initiatives. This includes a supportive planning policy environment and a local / regional economic policy agenda that identifies a key role for supporting innovation and the growth of key ‘high-growth’ potential sectors. Unsurprisingly, planning policy for all of the case studies is extremely supportive, with local plan / LDF Core Strategies recognising the important economic development contribution of the sites. However, policy tends to be restrictive to ensure that further proposals for new buildings and the redevelopment or extension of existing buildings are:
- appropriate to a science park / technopole;
- designed to minimise environmental impacts; and
- laid out to ensure the attractive ‘campus’ character of the site itself is maintained.
In most cases planning policy for Technopole developments tends to permit activities such as scientific R&D, high tech, low impact production and the provision of technological services. The primary use is usually R&D focused but some planning authorities do operate some flexibility where firms require some ancillary manufacturing. In the case of the Southampton Local Plan, businesses must also demonstrate that any manufacturing would be closely related to R&D activity or that there will be specific and close research interactions with local universities or other research organisations.
Impacts delivered – contribution to economic growth agenda Understanding the full economic impact of Science Parks and technopoles is difficult to ascertain, based on the longevity of the schemes (i.e. some of the case study examples have been operating for over 30 years) and the range of activities that they undertake (i.e. supporting business start-ups, collaborative R&D, attracting third party funding into ‘university’ spin-out businesses, delivering Knowledge Transfer Partnerships, etc). However, the case study analysis has shown that such projects do play an important role in terms of the supporting the regional economic growth agenda in a number of key areas, notably:
Job creation – in particular high skilled employment;
Businesses created – value added businesses in target growth sectors;
Business performance and competitiveness – tailored business support helps improve business performance and productivity levels;
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Improving graduate skills – through student placements, internships and initiatives such as Knowledge Transfer Partnerships;
University / business collaboration – through collaborative R&D; and
Image and profile – contribution of research to innovation and scientific breakthroughs – i.e. developing the image of the ‘city’ as a leading centre for science and innovation.
5.3 Summary - critical success factors for ensuring the benefits of the proposed Brighton Technopole are maximised Based on the key messages and findings of the case study analysis, the diagram below outlines the critical success factors that are likely to underpin the successful delivery of the Brighton Technopole. In summary, these are as follows:
KeyKey stakeholderstakeholder buy-in buy-in
UniversityUniversity linked linked RespectedRespected R&D R&D capacity capacity
Exploit synergies with HighHigh quality quality ‘park’ ‘park’ location location Critical Success Exploit synergies with city based facilities && highhigh specspec facilitiesfacilities Factors underpinning city based facilities the delivery the Brighton Technopole
AlignmentAlignment toto RESRES outcomes outcomes && themesthemes HighHigh quality quality building building designdesign
TransportTransport Infrastructure Infrastructure (links(links toto UoSUoS campus) campus)
In summary the critical success factors that underpin the delivery of the benefits of the Brighton Technopole are:
it must be a prestigious development located in a high quality environment incorporating a range of high quality facilities with a focus on R&D excellence in target growth sectors (i.e. medical and healthcare technologies). The facility could have an ambition to become the region’s / UK’s leading facility of this nature;
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supported directly by Universities of Sussex (research) and wider business support / innovation support community that exploits synergies with wider schemes (e.g. Sussex Innovation Centre, University Research Institutes, – e.g. to create a critical mass of interconnected activities sufficient to establish Brighton as a key location for supporting the growth of target knowledge-intensive sectors and clusters;
attract regional level stakeholders – SEEDA, Research Councils, Sector Consortia, market leading businesses;
alignment to RES outcomes and themes – in particular competitiveness GVA innovation and enterprise targets (e.g. SEEDA Regional Innovation Framework);
improved connectivity to University Campus in order to maximise University involvement on the Technopole (an additional research campus?) – e.g. improve connectivity between the University campuses and the Toads Hole Valley site.
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6 The Brighton Technopole concept
6.1 Introduction Sustained competitiveness of regional and national economies depends upon technological and innovation based strengths and assets. Increasingly important is the vital role that the higher education sector plays in the delivery of RDA economic competitiveness and growth strategies through improving skills levels across the labour market, developing links with the business community, facilitating the development and growth of new businesses and innovation through the commercialisation of research and intellectual property.
Set within this context and based on the key messages emerging from the case study analysis the following section outlines:
The anticipated aims and objectives of a Brighton Technopole facility;
the potential scope and range facilities and activities;
the range of partners and stakeholders and beneficiaries you would expect to be involved in a ‘technopole’;
a summary of the key economic and wider qualitative benefits that could be delivered by a scheme of this nature; and
an outline of a number of critical success factors to be considered in terms of delivering a scheme of this nature.
6.2 Why a technopole? It is proposed that the Brighton Technopole will follow a similar principle to the Edinburgh Technopole in that its objective will be to provide a range of highly specialised facilities in order to create an optimised environment and support infrastructure to further embed a genuine exemplar scientific community in the Brighton & Hove economy. The Technopole and associated support infrastructure will be designed to stimulate the growth of organisations using technology and research expertise – in particular those with the potential for interaction with the University of Sussex. A key element of the Technopole will be to foster a culture of enterprise and innovation that can be embraced by the wider Brighton & Hove economy.
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6.3 Aims and objectives The ambition of the Brighton Technopole concept should be to deliver a flagship facility that will operate at the interface between science, technology and design innovation, forming a ‘hub’ dedicated to addressing recognised barriers to the commercialisation of intellectual property, university to business collaboration, the development of high growth potential SMEs, and their impact on local and regional productivity and competitiveness. Locating such a facility in Brighton & Hove would address the particular requirement for the city to improve its capacity to facilitate the transfer of advances made in scientific and technological research into competitive products, processes and services, thus increasing the economic impact of key strategies such as the South East Regional Innovation Framework, Brighton Economic Strategy and related programmes.
In terms of potential sector focus, discussions with the University of Sussex highlighted that there is scope for the Technopole to target two principal sectors and research disciplines, building on the extensive research and technological expertise of the University:
Medical and healthcare technologies; and
Environmental and low carbon technologies.
The discussions with the University also indicated that the Technopole could play a key role in improving the portfolio of business space provision to meet the needs of high growth, technology focused companies, in particular those businesses whose growth aspirations can not be met by the existing Sussex Innovation Centre (see Section 5.6) The Technopole could therefore play a key role in retaining high value added businesses in the Brighton & Hove economy. A further important element of the Technopole and the wider Toads Hole Valley Masterplan will be its intention to embrace the low carbon agenda through showcasing best practice, linking effectively to university research in this field, through the design and sustainability principles adopted in the development of the Technopole facility and its links into the wider Brighton & Hove economy.
6.3.1 A city and regional R&D asset – stimulating high value businesses and jobs As outlined in the diagram17 below a key element of the Brighton Technopole will be to develop strong and effective links between the University of Sussex and local and regional businesses, through access to specialist university research and technological expertise the facility will act as a focal point for businesses developing a community interested in how science and technology interfaces with innovation in particular
17 Adapted from Battelle / Association of University Research Parks (2007) – Characteristics and Trends in North American Research Parks 72
Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 knowledge based sectors (i.e. medical and healthcare technologies). Ultimately this approach, as in the case study examples, will support the creation of high growth potential companies and high level employment opportunities in Brighton & Hove.
Public/private research partners University of Sussex University Research Flow of talent (i.e. graduates) Brighton & Hove & regional Centres (i.e. Medical based high-tech Healthcare / Environmental Exchange of knowledge & companies Technologies) technology (i.e. low carbon)
Access to labs and specialised equipment
Technology / knowledge Access to Business transfer Brighton Technopole Support Infrastructure (KTPs / Internships / Supporting enterprise, creativity & (Business Link, SEEDA Collaborative R&D) Business Innovation & generating innovation & encouraging Growth) technology & knowledge transfer
Growth of existing hi- tech companies – links Creation of new high Commercialisation of to Sussex Innovation tech companies / jobs intellectual property Centre
Generation of Jobs and Income In line with national, regional and sub-regional policy drivers, the Technopole offers the opportunity to:
provide a unique interface between the university sector and business community to bring together new developments in science and technology to faciliate the commercialisation process and innovation;
address a recognised barrier to SMEs (and clusters) utilising technological developments to improve their competitiveness and productivity;
develop a network of specialist facilities to communicate advances in R&D to SMEs and provide support to them to advance this;
embrace the low carbon agenda through the adoption of sustainable development principles and developing strong links with both industry and the university sector to showcase ‘low-carbon best practice’;
complement city based enterprise and innovation support infrastructure, including the Sussex Innovation Centre located at the University of Sussex; and
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enable the development of new products, services and processes that incorporate advances in science and technology, particularly those emanating from Brighton’s knowledge base.
The Technopole provides the opportunity to host a range of ‘facilities’ that are required by SMEs, researchers, R&D specialists, scientists and technologists to help drive forward local and regional businesses enabling them to improve their competitive position.
6.4 Potential facilities of the Technopole It is proposed that up to 8ha (3ha of built area) of the THV site will be allocated to the activities of the Brighton Technopole. Based on the range of facilities described in the case study analysis outlined below is a description of the mix of uses that could be delivered at the Brighton Technopole. It is important to note that a key feature of the Brighton Technopole is the opportunity it provides to deliver a wide and potentially unique mix of specialised uses, covering R&D, technology & knowledge transfer / university spin-out, incubation and business space, and space for showcasing research and university expertise, with the aim of complementing city based facilities and support infrastructure.
Facilities hosted at the Technopole could include:
Incubator and commercial move-on space – complementing ‘city / urban based’ facilities including the Sussex Innovation Centre, the Brighton Technopole will offer a range of business space to support the start-up and growth of small businesses seeking to develop creative and innovative products and services which could benefit from intensive incubation and business support to maximise growth potential. This will be complemented by access to a wide range of specialist business support services to assist company development, including access to sources of knowledge, expertise and finance related to innovation and design. Tenants within the incubation facility will also benefit from having access to a range of professionals / academics from the wider regional innovation support infrastructure (e.g. SEEDA Innovation Advisory Service);
High technology testing and development facility / clean room facilities – dependent on the focus (i.e. sector / University research specialism) the exact specification of this element of the facility could be determined in collaboration with the University of Sussex – the purpose will be to ensure the Technopole facilities are at the leading edge of the relevant technology;
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Flagship research centre – the Brighton Technopole could become the home for a prominent University research group(s) or as with the case of NETPark, a flagship centre which provides help to bring new product innovations to market quickly by offering facilities and expertise that are rarely available in-house. Bespoke facilities such as this can be a key reason for attracting businesses to locate at the ‘Park’ - so that they can access specialist technology, facilities or know-how;
Collaborative R&D project space – in the form of lettable workspace to ‘project teams’ that require access to short term facilities and the wide range of specialist resources within the Technopole and the University of Sussex. Projects will typically be collaborative ventures for which bespoke project teams have been established from a consortium of stakeholders;
Training and information – the Technopole could also act as a facility for hosting training courses in specific specialist areas, including courses on materials, adopting new technologies (i.e. low carbon technologies) and software. This could become an important component part of the facility allowing academics / researchers, scientists and technologists to access and distribute information;
Exhibition & Conferencing – in order to showcase the activities of the Technopole and the importance of collaborative R&D, technology / knowledge transfer and science and technological expertise of the University of Sussex, the Technopole could provide space for dissemination conferences and exhibitions including product launches of tenant companies, etc.
Central management support, communal meeting space & virtual offer – this will be the main infrastructure to support the facilities activities, consisting of the central management team, catering facilities and community meeting space. The aim of the communal meeting space is to promote networking amongst businesses, university researchers and the providers of business support services. As with other similar facilities, the Technopole could also provide a ‘virtual network’ that could cover the sub-region or even region, allowing the opportunity to develop communities of interest and a mechanism to disseminate research and technology advancements in target knowledge-intensive sectors.
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6.5 Project beneficiaries Primary beneficiaries of the project are expected to be:
SMEs - in particular businesses that would benefit from increased R&D investment, innovative activity and the exploitation of new technologies, and also locally based businesses that are likely to form part of the supply chain of companies located at the Technopole (i.e. financial and business services). Businesses will also benefit from specialised training and executive courses delivered at the facility;
Universities and research bodies - seeking to commercialise intellectual property. The facility also provides the opportunity for academics and students to undertake collaborative research, whilst the exhibition and networking aspect of the Technopole will also provide a further channel for academics / industry / students to showcase their research;
Students / graduates – seeking higher value employment opportunities in Brighton & Hove. A key feature of the case study examples is the effective links developed with the student and graduate community through internships, Knowledge Transfer Partnerships and student work placements. Such initiatives have been identified as extremely effective in terms of improving graduate employability and retaining highly skilled graduates in the local economy; and
Entrepreneurs - the Technopole will provide an environment within which entrepreneurs can successfully develop their business ideas and proposals, with access to high quality focussed business and innovation support (i.e. incubator facilities / Business Link / SEEDA innovation Advisory Service, etc).
6.6 Linked developments and initiatives The Brighton Technopole offers the opportunity to form part of a wider economic development and enterprise strategy for the city and wider sub-region / region:
City wide / sub-regional initiatives The most relevant complementary facility is the Sussex Innovation Centre. Established in 1996, the Innovation Centre provides support for the creation and growth of technology and knowledge based companies in Sussex. Building on the experience of successful university-based incubators in the USA and Oxford and Cambridge Universities, the principle of the Centre is that new technology companies, especially those linked to academic research, have the potential for high growth. The Innovation Centre offers
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Establishing the economic & strategic case for Brighton Technopole Final Report, March 2010 management and investment support, in addition to a range of office suites, conference and meeting rooms and central administration support. Based at the University of Sussex, the Centre works closely with the University providing access to academic expertise and specialist facilities, including laboratories. The University has particular research expertise in biotechnology, biomedical engineering, advanced computing, artificial intelligence and advanced engineering.
The Brighton Technopole could provide specialist move-on accommodation to cater for the needs of businesses which may have ‘out-grown’ the Innovation Centre, but would like to remain in Brighton whilst also maintaining a strong link with the University of Sussex. In doing so the Technopole will play a key role in providing the required office / laboratory accommodation to retain value added businesses by ensuring that they do not need to re-locate to another location outside of Brighton & Hove in order to expand.
Regional initiatives: Key complementary initiatives of include:
. SEEDA Science & Innovation Campuses – the Agency is working with businesses, universities, public sector research establishments and central government departments to encourage and stimulate the establishment of new Science & Innovation Campuses in the region, including the Harwell Science & Innovation Campus which is being developed in parallel with the Campus at Daresbury. Providing a focal point for business clusters and knowledge transfer networks, the Campuses aim to maximise the economic and social benefits of the region’s science, technology and engineering base and business strengths by encouraging greater business to business collaboration and university to business collaboration, especially at the pre-competitive R&D stage of new product development. The Campuses will provide specialist scientific instrumentation and facilities, where businesses and academics can research and develop new products and services to address current and emerging market needs;
18 . South East Innovation & Growth – replacing SEEDA’s Enterprise Hub Network , this programme is designed to support innovative and high growth businesses at every stage of their growth path and across the region. The aim of South East Business Innovation and Growth is to build on best practice and to provide even more comprehensive and tailored business support to innovative and high growth
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companies at every stage of their growth path (i.e. provision of IP advice, investment preparation and access to finance); and
. SEEDA Incubator and Enterprise Centre facilities – complementing the South East Business Innovation and Growth, SEEDA has also invested significantly in a range of enterprise centre facilities across the region. This includes investment in Enterprise Hub and Gateway facilities, including the Southampton Enterprise Hub at the Southampton Science Park
6.7 Understanding the benefits
The case study analysis undertaken as part of this study identified that a facility of this nature is likely to deliver a range of positive quantitative economic outputs and impacts, including:
Quantifiable benefits
Job creation – the case study analysis found that the business accommodation provided on site (i.e. Incubator facilities / Innovation Centres) housed anything from between 30 to 100 businesses, ranging from micro-businesses (1-9 employees) to larger subsidiaries of international / multi-national companies. Overall, the 3ha Technopole could generate capacity for approximately 1,000 – 1,500 on-site jobs (based on 30,000 sq.m of employment floorspace), with the vast majority high-skilled. For example, the Daresbury Science & Innovation Campus case study outlined that over 70% of jobs created were at Level 4 or above. Further indirect employment could arise through local supply chains and multiplier effects;
Business creation and sustainability – the provision of incubator space linked into specialised business support provision (i.e. innovation advisory services and venture / seed capital) provides an important mechanism for stimulating the start-up and growth of sometimes high risk science and technology businesses. The case studies also highlighted that the support infrastructure provided on site and the links to wider off-site support mechanisms, such as university business schools and public / private sector business support providers, plays an important role in helping the businesses survive and grow;
Third party investment - the case studies highlighted that such facilities can be successful in terms of attracting investment into university spin-outs and other
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innovative start-ups. For example, the Cambridge Technopole (Appendix i) attracted 18% of all venture investment in the UK in 2007;
Wider ‘qualitative’ benefits
When 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. For example, it is widely considered that investment in highly specialised innovation infrastructure can be critical for underpinning a strong labour market and for building an enterprise culture. Investments in such activities and services will tend to also drive activity in other economic sectors. This project will have specific, wider non-quantifiable benefits for the sub-region and wider region. The core components and mix of uses proposed for the Brighton Technopole are unique in that they do not just bring direct economic improvement by providing employment and generating revenue, but they can have a wider economic impact on the general prospects of the city, by making it a more desirable place to live, and, subsequently, for businesses to invest. This will support wider urban regeneration programmes in the city. These facilities promote the economic development and competitiveness of regions and cities by:
improving the prospects for economic growth – both local and regional by: creating new business opportunities and adding value to mature companies; fostering entrepreneurship and incubating new innovative companies; generating knowledge- based employment; building attractive spaces for emerging knowledge workers; enhancing synergy between universities and companies; creating regional innovation infrastructure that supports regional economic development; promoting the start-up and growth of science and technology oriented companies; building a high level skills base and associated innovation capacity;
maximising the potential of Toads Hole Valley as a distinctive and unique city and regional ‘innovation’ asset - the opportunity to promote the image and profile of the sub-region/ region as a vibrant location for scientific and technological endeavour and as a hub for ‘internationally’ regarded research excellence in high value technologies that that will support key growth sectors in the city and region;
a catalyst to stimulating innovation – through supporting collaborative R&D, knowledge transfer partnerships, business and skills development, university led innovation / R&D facilities offer a clear opportunity to positively demonstrate the ability of an area to stimulate effective technology and knowledge transfer and the development of high growth potential companies in key ‘regional’ growth sectors;
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leverage – including the opportunity to deliver significant private sector leverage through increased technology transfer activity from the partner universities. This can come through third party investment into spin-outs, strategic ‘research’ alliances with industry and licensing agreements;
generating cross-regional partnerships and alignment of partners – depending on the range of activities to be undertaken, there is an opportunity to bring together specialist businesses and researchers to work together to deliver innovative research, which can be applied in the market place / by industry. There is also the opportunity to engage more effectively with funding bodies / government agencies.
Policy contribution, such as addressing the regional competitiveness agenda – as illustrated in Section 6 the target activities and components of the Brighton Technopole will be strongly linked to national, regional and sub-regional policy, addressing key policy themes, including: the Regional Economic Strategy – by contributing to region’s ability to participate in the worldwide knowledge-based economy; SEEDA Innovation Framework by providing an effective knowledge / technology transfer mechanism for exploiting the high quality research and IP emerging from the University, which in turn will support the growth of key sectors; and Science & Innovation Investment Framework 2004-2014 (HMT, DTI and DfES – July 2004) – that aims to increase business investment in R&D and increase business engagement in drawing on the UK science base for ideas and talent.
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7 Conclusion
7.1 The concept The ‘Brighton Technopole concept’ - is a university-lined innovation proposition for Toads Hole Valley, Brighton, creating a specialised employment site which seeks to contribute directly to the future economic prosperity of the Brighton and Hove economy. This concept has evolved by drawing extensively on case study analysis of similar developments from across the UK which examined a range of science & technology parks and technopoles in terms of size, scale of activities and facilities and sector focus. This case study analysis helped identify potential benefits and impacts that the Brighton Technopole could deliver in terms of supporting the local and regional economic development agenda.
7.2 Rationale
Critically, the proposal could meet a recognised regional gap in this part of the South East in the provision of technology driven, specialised business infrastructure, in support of regional innovation and economic growth objectives. The Brighton Technopole proposition seeks to address this gap and respond directly to national and regional economic policy imperatives focused on driving more innovative, high value and sustainable business growth, exploiting the knowledge-base and technological expertise of UK universities. Specifically, the Technopole aligns with the ambitions in the city’s economic strategy and will also contribute directly to a wide range of national and policy objectives, particularly those focused on:
accelerating economic growth and regional competitiveness by implementing proactive measures to improving the provision of R&D and innovation support infrastructure in Brighton & Hove and increase business start-up rates in high growth sectors (i.e. supporting the creation of University spin-outs through the commercialisation of research);
enhancing the economic role and profile of a key regional city – i.e. building on the strengths of the University of Sussex, Brighton & Hove to be further recognised as a vibrant location for scientific endeavour, enterprise and innovation ; and improving access to high quality university R&D and other expertise to improve business competitiveness
7.3 Impact
The Brighton Technopole concept offers the potential to deliver significant quantifiable and non-quantifiable benefits to the city and sub-regional economy. The potential for 1,000 to 1,500 direct jobs will make a major contribution to meeting the city’s employment targets, but also supporting the delivery of higher value employment opportunities aligned
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APPENDIX I
ADDITIONAL CASE STUDIES
Science City York & York Science Park
Background A partnership between the City of York Council, York University, private sector, YF funding Its mission is to create business and employment opportunities in the York area through creative, science and technology exploitation. Aims to create 15,000 new science and technology jobs by 2021 in York. Created approx 100 new technology companies and c. 2,800 new jobs to date Target activities / sectors Bioscience – approx 130 businesses Creative / digital – circa 100 businesses IT – circa 150 businesses Linked initiatives £1.3m specialist service for business growth & innovation & c. £19.5m ERDF investment in SCY strategic infrastructure and assets Community Science – York Festival of Science & Technology Connect Yorkshire - nurture new knowledge-based enterprises by linking them with the resources they need to succeed: investment, markets, management, partners, Population Circa 193,400 Yorkshire Science & Technology Network to foster links and develop partnerships with regional businesses and the regional academic community Number of high-tech Circa 350 (Science City Links to the White Rose University Consortium, Universities of Leeds, Sheffield and York firms database – c. 100 at - 86% of regional research spend York Science Park)
Key property developments Employment in high- 9,000 tech firms York Science Park – 21 acre business park supporting technology transfer & business development – Recent expansion of Science Park facilities at Park Central No. of universities 2 Incorporates the Biocentre, Innovation Centre & IT centre – 100,000 sq ft of incubation space Key technology sectors Bioscience IT & digital First UK Science Park to offer dedicated IT, bioscience and knowledge based incubation on one site Food & drink Oxford Science Park
Background
The Science Park was founded jointly by Magdalen College, Oxford and Prudential in 1990. The park maintains strong links with the nearby University of Oxford and currently contains just over 60 companies.
It is situated in Littlemore which is approximately 5 km to the south of Oxford city centre, south of the Oxford Ring Road and is operated by MWB Business Exchange
Target sectors and facilities
Companies on the Park operating in a variety of industry sectors including the bioscience, computer, telecommunications and environmental science industries (Computer hardware/software 31% / BioScience 43% / Other 26%)
More than 530,000 sq ft of office and laboratory space has been completed to date and there are plans for further developments
The Oxford Science Park offers a variety of office and laboratory property solutions for companies from 150 sq ft to 55,000 sq ft and above. Lease terms vary from 1 month licence agreements to 15 year lease agreements dependent on the building.
The Park offers a range of facilities including conference facilities, sports and leisure and a nursery
Linked initiatives
The Park links into a range of support infrastructure including:
Science Oxford – operated for over 20 years and has played a pioneering role in the development of both innovation centres for the incubation of high-tech companies and in the creation of venture angel networks Population c. 155,000 such as the Oxfordshire Investment Opportunity Network; Number of high-tech c. 60 – c.1.500 in wider Oxford Bio-science network - a not-for-profit business network which provides comprehensive support for firms at the Park Oxford economy (2001)
biotech and medtech companies in the Oxford and South-East England biocluster and beyond, providing Employment in high- c. 40,000 networking, partnering, and group purchasing tech firms- Oxford
The OxIT Cluster - encourages collaboration between business, public sector and research establishments No. of universities 2
to increase the competitiveness of the ITC sector in Oxfordshire. Key technology sectors Biotechnology / Bioscience / Healthcare Access to University research & expertise - companies on the Science Park may benefit from technologies / Advanced collaborative links with the University of Oxford, internationally renowned for its world class scientific engineering research and a source of many spin-out companies Cambridge Science Park & Technopole
Background: Established by Trinity College in 1972 the Science Park is located on the urban fringe of Cambridge and is home to over 100 companies, 5,000 employees and 1.65m sq ft of buildings catering for a range of businesses (start-ups / university spin-outs / subsidiaries of large multinationals) Core components & linked facilities: Innovation Centre – 35 suites of between 61 to 481 sq ft. Clean room facilities, biology and chemistry laboratories Conference and leisure facilities The Cambridge Technopole & linked facilities: The SP forms a key part of the CT, a geographic area of intense high-technology innovation. Marketed as the UK’s leading high technology business cluster. 25 mile radius around Cambridge 5 other science / research parks including St. John’s Innovation Centre, which offers a physical incubator for approx 60 high-tech businesses and Cambridge Research Park, office & R&D space in 45 hectare low density setting Wide range (>15) of networking / ‘forum’ organisations, targeting different interest groups within the Technopole, including Cambridge Enterprise, Cambridge University Technology & Population 454,000 Enterprise Club Geographic area 25 mile radius centred on Impacts achieved: Cambridge
1978 – 20 high-tech companies in the area. Currently – c. 1,500. University of Cambridge Number of high-tech firms Approx. 1,500 has been at the heart of over 300 new high-tech ventures over the past 10 years Employment in high-tech Approx. 45,000 Vibrant international technology consultancy cluster that brokers the application of leading firms scientific and technological know-how to commercial needs No. of universities 3 University of Cambridge awarded £65m by the Government in 2000 to establish the Cambridge-MIT Institute Key technology sectors Information technology Venture capital funding – home to the greatest concentration of seed and venture capital Mobile telecommunications funding outside London Biotechnology, electronics, instrumentation, The Technopole is one of the top 4 regions in Europe in terms of total institutional investment nanotechnology into innovative start-ups, attracting nearly 20% of all UK venture investment in 2007 E.S.T.E.R Technopole Limoges, France
ESTER Limoges Science Park is located inside a zone of 210 ha, set up the City of Limoges, and supported by local, State and Department Council & the University of Limoges Space, Science, Technology, Exchanges, Research Set up 10 years ago, now 80 companies employing over 1000 people “Both an industrial area and university campus” Why - innovations in technology lead to shorter & shorter product life cycles Offers: 1. Business incubators – nursery for young entrepreneurs 2. Technology incubator – to help develop innovating projects in association with research laboratories 3. Organisational help: consultancy: Limousin Technologie; venture capital: Limousin Participation; incubators: Incubateur Technologie The ESTER Business Club ESTER main building, with Corporate Restaurant, The Forum, Meeting Rooms 4 ‘Poles’: 1. Industrial Ceramics 2. Electromagnetism 3. Genetics for the agro & bio industries 4. Water & Environment