Universities will be 'critical' to the health of economies in the UK's regions

Universities will be 'critical' to the health of economies in the UK's regions

Universities will be 'critical' to the health of economies in the UK's regions as the country moves through the economic downturn, according to the largest study of the impact of universities.
The findings of the three year, £3 million study, which is being co-ordinated by Ursula Kelly and Peter McGregor of the University of Strathclyde, was discussed by leading figures in education at a two-day conference in Edinburgh which took place on Tuesday 16 November.



The research findings include:


• Student spending power supports local economies, particularly small businesses, and a lively population of students makes for safer streets


• Companies with university collaborations are more likely to innovate new products and benefit from increased productivity


• Universities can help integrate excluded communities into the new knowledge economy


• To retain graduates in local employment, employers need to broaden their 'offers' to potential graduate employees beyond the traditional package of benefits based on monetary returns.


Researchers from 17 institutions have been working for three years on The Impact of Higher Education on Regional Economies initiative to build a national picture of how universities affect life across the UK.

Areas of investigation include the impact of students on city housing and labour markets, an assessment of how university and business collaborations effect innovation, and the impact of academics' work with communities.


Ursula Kelly, joint co-ordinator of the initiative, said:

 "Our research shows that universities in the UK now generate £59 billion for the UK economy, putting the higher education sector ahead of the agricultural, advertising, pharmaceutical and postal industries.


"But until now, the impact of universities on life, individuals and businesses in our towns and cities has been unknown."

The findings of the initiative show that the UK's universities are playing an incredibly important role both economically and socially. They are often among our regions' biggest employers, they attract thousands of international students and visitors, and academics are working with every sector of society from public, private and third sectors.

"Moreover, at a time of global economic crisis, universities can help build a more solid future, enhancing skills and know-how, and encouraging innovation."


Paul Boyle, Chief Executive of the Economic and Social Research Council, said:

"The Impact of Higher Education on Regional Economies initiative reflects ESRC's commitment to collaborative working. It is an excellent example of how working in partnership with others in the regions can be highly effective in widening the scope for outreach in the community. Collaboration is essential in studying and resolving complex challenges."






John McClelland, Chair of the Scottish Funding Council (SFC) added:

 "Universities have a presence in many locations in Scotland and are key to their local and regional economies. Many businesses, small and large, rely on their teaching to create a highly qualified workforce, and their research and innovation to help develop products and services that benefit people locally and nationally."

"Going forward we will continue to do all we can through our funding and policies to help maximise our universities' potential to contribute to the economy."






Fergus Devitt, Director of Higher Education, Department for Employment and Learning, Northern Ireland, said:

 "The quality of research coming out of the project is very welcome and will help us in the development of a Higher Education Strategy for Northern Ireland."






Professor Phillip Gummett, Chief Executive of the Higher Education Funding Council for Wales, added:

 "This initiative has given us the first, UK-wide picture of how universities affect life and communities in the UK. The findings show that investment in higher education is an investment in our communities, regional economies, businesses and people. I'm extremely pleased to be here today to discuss the findings in more detail and look at their implications for Wales."






The Impact of initiative is supported by the Economic and Social Research Council (ESRC) in partnership with the Scottish, Welsh and English Higher Education Funding Councils and the Department for Employment and Learning in Northern Ireland.

Here's an interesting topic for discussion/debate with your sixth form students considering the different options post 18

How do universities affect life and communities in the UK?