1. The importance of knowledge based industries to the regional economy and the role of One NorthEast RUnUP conference Gateshead 9 th February 2009

2. Outline of this presentation Challenges facing the economy of North East England Moving from an industrial economy to a knowledge economy Innovation Strategy Stage 1 : 2002 Stage 2: 2005 Innovation Connectors Next steps - Building on strengths

3. Challenges facing the economy of North East England In 2006 the regions GVA was 81% of national average The economy is reliant on manufacturing, business services and public sector High levels of deprivation and economic inactivity, concentrated in parts of the region In 2007, 59.7% of North East young people achieved five GCSE at grades A* to C, the national averages was 61.5% At end of 2005, 69% of 16 year olds continued into full time education, compared with 76% nationally In 2007, the number of VAT registered businesses per 100,000 head of population was 41% below the national average In 2007 the level of employment was just over 71% Rates of entrepreneurship and investment in research & development are low

6. Strengths, Assets, People Industrial critical mass and skills base in chemical engineering, power engineering and offshore engineering Europe's largest concentration of Engineering Design companies Large scale port, quayside and power assets There is a flourishing cultural sector and increasing visitor numbers Can do and entrepreneurial culture re- emerging RDA – strategic partner of national government and business on innovation

7. Regional Economic Strategy : targets for 2016 increase GVA per capita in the North East to 90% of the national average create between 18,500 and 22,000 net additional new businesses; and provide employment for between 61,000 and 73,000 more people than current levels.

8. 3 Models of Economic Regeneration 1.Regeneration of an industrial sector that has existed in the region but which had gone into decline 2.Establishment of a new industry based on excellence within the universities 3.Development of an existing industrial sector in which the region already has proven strengths and track record

9. Moving from an industrial economy to a knowledge economy Exploiting the regions research and technology base to transform economic prospects, through: Entrepreneurship Technology transfer Maximise investment Investment priorities: Energy and low carbon technologies Healthcare and life sciences Process industries and chemicals Underpinned by finance, digital, design and software

10. Science and Industry Strategy Stage 1: 2002 Centres of Excellence in Key Sectors NSTAR (early stage finance) Science & Industry Council Research based on Excellence Industry Clusters Research Council Funding Research funded from other sources

11. Vision in 2002 – what will success look like in 2012? 10 years of transition has turned research and technology into sustainable business success The North East is seen by scientists, entrepreneurs and investors as one of the preferred locations for building technology based businesses and developing careers Barriers between science and industry are as low as anywhere in Europe The Region has internationally leading Centres of Excellence The Region has a level of technology spin-offs as high as anywhere in Europe The Region has growing internationally competitive clusters, based on its knowledge base and Centres of Excellence, with high levels of innovation, productivity and skills

12. Review of progress in 2004 Strategy has potential, in overall terms, to deliver a growing, sustainable Regional economy – up to £6bn additional value Wide support for overall objectives and model from: Business Government Regional Assembly Universities Some considerable achievements National Centres – Bioprocessing, Nano Particulates, Micro-fluidics, PV Major Science Developments – Stem Cells, Nano- electronics, Ageing Step change in collaboration between universities and business £40m new venture funds Major increase in high tech start-ups Substantial investment leverage (£100m+)

13. Science and Industry Strategy for North East Stage 2: 2005 Focus investment even further on actual regional opportunities Further strengthening of research base and opening access to business Need to integrate other policy areas and activities Particularly integrate with physical regeneration Create internationally competitive facilities and capabilities Develop greater capacity for product and service innovation through design Greater private sector investment

14. Moving forward Innovation Connectors as integrating concept Spatially focussed New approaches to research/application World class facilities and people Explicit links to regeneration, employment, education and access Together with enterprise support, sectoral and technological prioritisation, people and place agendas Retain long term strategy and increase focus on key strengths Regional collaboration eg Northern Way Integrated element of National and International framework, working with TSB, Research Councils, HEFCE, EU, Japan and others.

15. Innovation connectors Newcastle Science City Design in NewcastleGateshead NETPark and Co Durham Sunderland Software City NaREC Energy Centre Wilton and Tees Valley Digital City

16. Newcastle Science City Developing internationally leading science-based research, business and education In a new environment, including large scale facilities integrating research, business and social interaction Internationally competitive location Benefiting region as a whole Key driver for City Regional Regeneration

17. Digital City Digital Media (including games and animation) Focussed on Middlesbrough University as a generator of businesses Twin track of research and development, and business support Substantial number of new businesses being created

18. Design Centre for the North Iconic state of the art building Baltic Quays in Gateshead Base for design collaboration Industrial Design Product Design Graphical Design Digital Design Service Design National and international hub for design and innovation

19. Next steps – building on these strengths Build further the strategic partnership to encourage and foster Innovation between: Government Universities Private Sector Develop better alignment of local, regional and international agendas and investment Focus regeneration based on: traditional industrial strengths such as energy and process industries new industrial specialisations such as bioscience and software A strategy and implementation policy to produce dramatic change in the region within a generation.

20. Contact details Mark Pearson Innovation Strategy Manager One NorthEast Stella House Goldcrest Way Newburn Riverside Newcastle-upon-Tyne NE15 8NY Tel: 0191 229 6422 Email: mark.pearson@onenortheast.co.ukmark.pearson@onenortheast.co.uk Website: www.onenortheast.co.uk, www.strategyforsucess.infowww.onenortheast.co.ukwww.strategyforsucess.info