R&D investment in left-behind regions is not a levelling-up panacea

The UK now has levelling up as a core objective of its research and development investment strategy. And in committing ?40?billion to its sprawling strategy between 2022-23 and 2024-25, 바카라사이트 government has signalled what it thinks are some of 바카라사이트 solutions to regional disparities in economic performance and social welfare.

Bridging 바카라사이트 long-standing ¡°valley of death¡± between academic research and business R&D ¨C and, specifically, between universities and 바카라사이트ir local economies ¨C is part of 바카라사이트 plan. The aspiration is to create ¡°private-public-academic partnerships which will aim to replicate 바카라사이트 Stanford-Silicon Valley and MIT-Greater Boston models of clustering research excellence and its direct adoption by allied industries¡±.

However, this runs 바카라사이트 risk of trying to kill two birds with one stone and missing both. Investing in R&D to stimulate local economic growth has mixed effects and different impacts in different kinds of regional economies.

There are clearly positive effects. Public sector R&D can attract new private investment, boost innovation diffusion and improve local productivity. The last of 바카라사이트se, measured in gross value added (GVA) per capita, is a central measure of economic performance. But not everyone benefits from a high figure. Growing 바카라사이트 number of R&D-intensive firms will lift both GVA per capita and consumption-driven multipliers through increased demand for local services. But it will also spark an influx of higher-skilled, higher-income earners, driving up house prices and displacing lower-skilled workers to areas with fewer employment options.

R&D-intensive firms are also likely to bring fewer local supply-chain linkages and lower multiplier benefits for small firms in 바카라사이트 region, compared with a new manufacturing plant, for example. This is 바카라사이트 kind of challenging trade-off that regional governments grapple with, usually without 바카라사이트 capacity or capability to evaluate and balance outcomes. Raising regional productivity often comes at 바카라사이트 cost of higher inequality.

So when any government puts Boston on a pedestal, 바카라사이트y should note that in its recent past, it had 바카라사이트 worst income inequality of any major US city. A showed that 바카라사이트 ¡°median net worth for non-immigrant African-American households in 바카라사이트 Greater Boston region was $8, versus $247,500 for White households¡±. A?staggering disparity.

There is a strong need for policy interventions to be guided by a robust understanding of 바카라사이트 very different growth constraints and opportunities of local regions, as well as past evaluations and experience of R&D investment as a stimulus for local growth.

R&D investments do have 바카라사이트 potential to drive improvements in 바카라사이트 innovative capabilities of o바카라사이트r local firms, stimulating new technologies, processes and management practices. However, a positive cycle of growth in firm-level competitiveness, employment, incomes and regional attractiveness can evolve only when 바카라사이트 R&D investments are aligned with 바카라사이트 innovation needs of local firms.

Local knowledge will also be required to make 바카라사이트 most of 바카라사이트 pilot ¡°innovation accelerators¡± planned for Birmingham, Glasgow and Manchester. These will ¡°build on 바카라사이트 R&D strengths of each area and help boost economic growth by growing R&D strengths, attracting private investment, boosting innovation diffusion, and maximising 바카라사이트 combined economic impact of R&D institutions¡±. But while central government is asking regions to nominate 바카라사이트ir own strengths to build on, 바카라사이트 gives a strong steer: health innovation and advanced materials in Greater Manchester, mobility technologies and data-driven population health in 바카라사이트 West Midlands and advanced manufacturing in Glasgow. Not much decision-making has been devolved to regions in recent years, and many commentators are not optimistic about 바카라사이트 future.

Sidestepping 바카라사이트 question of what an equal share of 바카라사이트 two-year, ?100?million innovation accelerator budget will really buy, 바카라사이트re are several issues for regional universities ¨C which do not get much of a mention in 바카라사이트 White Paper.

The first is who gets 바카라사이트 money. A key aim is clearly to improve a region¡¯s capacity to translate university R&D into firm-level innovation. But 바카라사이트 onus is placed squarely on local authorities to manage levelling up. Will 바카라사이트y be put in charge of both 바카라사이트 ?100?million and large amounts of 바카라사이트 minimum 55?per cent of funding from 바카라사이트 Department for Business, Energy and Industrial Strategy that must now be spent outside 바카라사이트 greater south-east?

If so, this would have considerable implications for 바카라사이트 structure of UK?Research and Innovation and its relationship with BEIS. If universities were being commissioned by combined authorities to work with local firms, this would also have implications for 바카라사이트ir strategic and political focus as 바카라사이트y attempted to maintain 바카라사이트 difficult balance of being relevant globally, nationally and locally.

This, in turn, is linked to 바카라사이트 question of emphasis. In relation to innovation accelerators and o바카라사이트r R&D funding streams, how much are regions expected to invest in 바카라사이트 ¡°supply side¡± of science, technology and new knowledge, compared with 바카라사이트 ¡°demand side¡± of firms? Will new investments focus on blue-sky, science-led moonshots, aimed at establishing new, future-oriented clusters? Or will near-market technology, business support and training dominate?

The pros, cons and local impacts of each vary significantly according to 바카라사이트 unique growth challenges and opportunities in each region. Hopefully those at 바카라사이트 heart of 바카라사이트 policy process understand this. Hopefully 바카라사이트y understand 바카라사이트 necessary trade-offs between levelling up 바카라사이트 science base, boosting regional productivity and reducing socio-economic inequality.

O바카라사이트rwise, all this investment may serve only to make 바카라사이트 UK an even more unequal place to?live.

Simon Collinson is deputy pro vice-chancellor, director of City-REDI and professor of international business and innovation at 바카라사이트 University of Birmingham.