The Growth of the Knowledge Economy
Birmingham Post Economic Review Supplement - July 2006
Once the country’s key economic engine, the West Midlands suffered a great blow from the demise of its key manufacturing industries over recent times, but from this crisis potential for growth in new industries has emerged and is now being explored and developed to position the region as an economic leader once again.
The area has a wealth of scientific and technological expertise and is rich in universities, research centres and science and technology parks, which generate great commercial success and are developing a strong knowledge economy for the West Midlands.
This evolution from manufacturing to intellectual property has been accelerated through the collapse of key industries, such as car making at MG Rover in Longbridge and Peugeot at Ryton. The progression to a knowledge economy has also been greatly enhanced following the designation of Birmingham as a ‘Science City’ by Chancellor Gordon Brown in 2005.
The Government defined science cities as “those with strong science-based assets – such as a major university or centre of research excellence – which have particular potential to use these assets [to] attract a critical mass of innovative businesses and become drivers of regional growth”.
Birmingham’s Science City status gives the potential to change the image of the region, to help unite partners through a common set of objectives and to facilitate economic transformation.
Many initiatives are in place to turn the concept into a reality. Advantage West Midlands along with its partners have recently outlined how Birmingham will develop and use science and technology to improve the prosperity and quality of life of the city, the West Midlands and the UK, using the existing financial, business and industrial community to translate knowledge into new technology, products and services.
The Central Technology Belt also plays a key role in the economic strategy of the region. Running from Birmingham to Malvern, the Central Technology Belt was created to encourage and foster hi-tech and high-growth companies in the 'corridor' running between the two towns.
Their role involves encouraging and increasing the knowledge base, promoting technology and knowledge transfer, building science and technology parks, improving transport infrastructure and raising skill levels to make the Central Technology Belt the place to succeed in the knowledge economy.
Both Advantage West Midlands and the Central Technology Belt are involved in the connected alliance of organisations who are working in partnership to develop the flagship University Science Park, Pebble Mill in Edgbaston, Birmingham, which will help to stimulate opportunities to attract new investment to the region and to retain and develop the city’s wealth of intellectual property.
This unique partnership between the developer Calthorpe Estates, in conjunction with Advantage West Midlands, the University of Birmingham, the Central Technology Belt and Birmingham City Council aims to deliver a world class centre by 2012 that reinforces Birmingham as a world class city in which to invest, work and live.
The scheme will be pivotal to the region’s economic development and wealth creation strategies and will help to drive the progression of the city’s globally competitive knowledge economy. It will provide key specialist infrastructure for the knowledge-economy and will create an estimated 2,600 high-value specialist jobs on site and 2,000 supporting jobs in the local economy.
The unprecedented investment in life sciences within the city’s central core means the University Science Park, Pebble Mill will offer an established platform to ambitious medical, healthcare and research companies and will be enriched by the close proximity of a cluster of research institutes including the planned University Hospital Birmingham’s £559 million ‘Super Hospital’; the University of Birmingham School of Medicine; The Henry Wellcome Building for Biomolecular Nuclear Magnetic Resonance; Aston Academy of Life Sciences and the proposed Institute of Translational Medicine.
In addition, the University of Birmingham and Aston University are both situated near to the scheme. The proximity of world-class graduates and researchers will provide science park businesses with a catchment of experienced talent and enable them to interact with the scientific expertise within the universities to bring about real technology transfer and value creation.
It is envisaged that University Science Park, Pebble Mill will facilitate the commercialisation of research from the universities through the incubation of spin-outs requiring grow-on space before they develop to commercial organisations, which can be provided in bespoke buildings on the development.
Calthorpe Estates Commercial Director, David Povall explained: “There is a great opportunity to capitalise on the knowledge and resources already in the region and support the creation of real business potential and success.
“University Science Park, Pebble Mill will create a new sustainable skills base and will generate many jobs which will be invaluable to the region. In doing so, we will secure important economic benefits for people living and working in the region, now and in the future."
Alan Folwell, Central Technology Belt Chief Executive, said “Birmingham's universities offer world class research, development and technology transfer to start ups, existing companies and inward investors.
“The facilities and excellent location of University Science Park, Pebble Mill will enhance their ability to interact with industry and so bring about sustainable knowledge-based economic regeneration.”