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The North East LEP is looking for a research partner to explore international learnings on inclusive productivity

The North East Local Enterprise Partnership (LEP) is looking for an organisation to undertake some research into North East productivity and inclusive economic growth and learn from similar regions internationally.

Emma Ward, Evidence and Evaluation Programme Manager, explains why this is an interesting project to inform our regional evidence base and be presented as an output at our annual state of the region event, Our Economy.

Improving productivity is a regional priority. Closing the gap in GVA per hour worked between the North East and England excluding London is a target within the North East Strategic Economic Plan. Productivity was also the primary focus of the government’s Industrial Strategy in 2018, and as a region, we conducted extensive research to support the development of the North East Industrial Strategy and understand regional productivity and the barriers to its improvement.

Five years later, the operating and economic context in the North East has changed. In December 2022, following extensive negotiations, the Government announced that it had reached a devolution deal with the local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside, and Sunderland. This deal has a strong focus on driving inclusive economic growth across the North East by investing in people and places.

At the North East LEP’s flagship state of the region event, Our Economy, we choose a topic each year to explore in depth. This year, it makes sense for us to delve into inclusive productivity. We want to enhance our understanding of productivity in the North East, as we recognise its critical importance for our businesses and increasing wages for our residents. Moreover, we want to explore how we can make productivity gains more inclusive and learn from similar regions worldwide that have focused on inclusive growth.

To achieve this, we are seeking to collaborate with a research partner who has substantial expertise in economic research.  

We envisage the project will consist of two stages, but we are open to shaping the approach with the successful bidder. The first stage involves helping us understand productivity in the North East, assessing how the region performs on its key drivers, and identifying links with inclusivity. While we have already examined productivity data for the region in detail, we are open to working with the provider to fill any gaps or incorporate innovative research techniques we have not yet covered.

The second stage focuses on drawing lessons from other regions worldwide. We would anticipate the appointed contractor to use globally comparable datasets, such as OECD data, to identify regions comparable to the North East and analyse their economic trajectories post-2008. From this analysis, to recommend a few case studies from which to draw policy lessons for our region.

The research outputs will be shared on the North East Evidence Hub, our one-stop shop for evidence about the North East economy. They will also be presented during the Our Economy event in November. We will collaborate with the successful provider to validate the outputs and ensure they are delivered in a format suitable for the Evidence Hub. We have a budget of up to £20,000 for this commission.

This is an excellent opportunity for a provider to contribute to the regional evidence base in the North East while expanding their knowledge of regional and international productivity trends.

The opportunity to apply for this project closes on Friday 18 August at noon.

Further details of this procurement opportunity and expressions of interest can be submitted here.

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A once in a generation opportunity to modernise business support

Colin Bell, Business and Sector Growth Director at the North East Local Enterprise Partnership, explains why evolution is key to simplifying the business support landscape to be meaningful for businesses  

It won’t surprise anyone when I say that the business support landscape is too confusing and overly transactional. There are many reasons for this but perhaps the biggest contributor is the way funding is administered and governed.

If we truly want the UK to be the best place in the world to start and grow a business, then we need to grasp the once in a generation opportunity represented by the current LEP reform. This will allow us to break with the status quo while building on what works, creating regional ecosystems that deliver economic and business transformation while strengthening our global competitiveness.

However, there is a real and present danger – if we don’t act now then we risk merely evolving what’s gone before, and even worse, creating a post code lottery of locally focused small scale schemes that will result in limited impact and increased fragmentation; and inefficiencies that will exacerbate rather than address the weaknesses of the current funding and fragmented landscape.

Addressing the frailties of the system is relatively simple. We need to develop a way of working that effectively connects the essential pillars of regional economic development, which are Governance, Strategy, Funding and Delivery infrastructure.

Where these don’t work hand in hand, it leads to many of the existing issues that we are experiencing, such as inefficiency, confusion, duplication and unhealthy competition between stakeholders.

Modernising the landscape requires:

  • Creating systems that connect the essential pillars (Governance, Strategy, Funding, Delivery infrastructure) without dictating a one size fits all approach.
  • Developing regional strategy and frameworks that are built around businesses operational and competitive horizons.   
  • The creation of a long term regional economic development ‘system’, backed by long term strategy and long-term funding.
  • A system that is focused on delivering impact and transformation rather than box ticking and transactional approaches.
  • The modernisation of the business support landscape by a) rethinking how we segment the business base to identify those with real underlying potential, and b) structuring support that directly tackles business pains and helps business to deliver the gains they’re striving for.
  • Building on the existing and proven ability of LEPs and Growth Hubs to align collective energy and resources towards clear and common goals and strategy.

The evolution of LEPs and Growth Hubs should be welcomed as a much-needed chance to modernise business support. 

I know I’m joined by many in the belief that this is an opportunity to develop a landscape that enables genuine business and economic transformation. Through meaningful change, we can deliver powerful and integrated customer journeys and focused resource and energy on the businesses, programmes, and initiatives that make a real difference to the business community.

Get this right and it could be a powerful and effective way to support the government’s agenda to level up our regional economies.

Colin Bell is Business and Sector Growth Director at the North East Local Enterprise Partnership.

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North East Coalition files world-class Freeport bid

North East England Freeport to create 60,000 jobs, over £3.4bn GVA and £2.7bn private sector investment.

A dynamic business and public sector partnership based in the UK’s leading export region has lodged an exciting and innovative bid for the North East England Freeport, which economic experts have predicted would generate a £2.1 billion boost to UK exports, plus many other significant benefits.

Government support for the proposal would see the North East England Freeport provide a uniquely ambitious and collaborative opportunity for the whole region to thrive, boosting the local economy by over £2.4 billion over 10 years and providing a gateway to long term global competitiveness. Through the North East England Freeport, over 30,000 new jobs are expected to be created for the region, of which 13,000 are highly paid ‘better jobs. A further 31,000 jobs will be generated in the construction industries.

The regional consortium formed to operate the North East England Freeport as a virtual free trade zone includes Nissan, the Ports of Tyne, Blyth and Sunderland, Newcastle Airport, seven local and two combined authorities, the North East Local Enterprise Partnership (LEP), plus leading north east universities and innovative organisations. The sites involved will be inter-connected and secured using a state of the art, cybersecure perimeter.

Economic analysis completed by consortium members and validated by an independent economic adviser demonstrates that the North East England Freeport would deliver outstanding economic benefits to the region. These include:

  • 61,458 new jobs across the construction, manufacturing, logistics, energy, innovation and business sectors
  • £3.4 billion GVA across the local region
  • Expected GVA of £110,000 per freeport worker, with median earnings of freeport workers 40-62% higher than current regional levels across all sectors
  • Total GVA uplift of £3,000 per capita within the North East LEP area
  • £2.7 billion in new regional private sector investment
  • £2.1 billion additional UK exports over 10 years

By generating tens of thousands more and better jobs, the North East England Freeport will become a national hub for global trade and investment, a hotbed for innovation, a catalyst for sustainable economic regeneration, while minimising barriers to trade. Each site and partner in the freeport bid consortium will contribute to realising a best-in-class offering that will drive investment and deliver a high impact, economic boost that fully exploits the North East’s unique abilities in advanced manufacturing, life sciences, digital, clean energy and business services.

Crucially, the North East England Freeport will provide a bold blueprint for growth, compromising of a multi-site, digitally connected and enabled cybersecure boundary area, with robust customs zones. This will enable the North East region’s clusters to manufacture goods cost efficiently and trade internationally, benefiting from tax advantaged policy to stimulate economic development. It will contribute to levelling up in one of the areas of the country where it is needed the most.

The North East England Freeport will include three significant tax sites totalling approximately 600 hectares on which businesses will be able to receive a range of special incentives to invest and grow. They are located in some of the most deprived communities in the region and will create new jobs and supporting skills and employability programmes to ensure jobs are accessible to local people. The activity from these businesses will generate benefits across the region.

The Freeport will be led by a collaborative Governance Board which will bring together leaders from business, local government, higher education and the ports to drive forward the North East England Freeport at pace. This demonstrates the regions determination to deliver long term transformation and commitment to level up the UK economy.

Matt Beeton, CEO at the Port of Tyne and Interim Chair of the North East England Freeport, said: “Our model offers an unrivalled, ‘best of all worlds’ approach, uniting the private and public sectors to provide the region with an exceptional opportunity to benefit from the levelling up potential of digitally enabled economic zones. Developing over 60,000 new jobs in the region and £3.4bn regional GVA is incredibly important and demonstrates that ports are a catalyst for future economic growth.”

Martin Lawlor, CEO at the Port of Blyth said: “This bid consortium offers unrivalled clean growth and manufacturing expertise, and we have the vision, ambition and experience to make this a flagship freeport the UK can truly be proud of. We are excited by both the innovation within our bid and the transformative impact our freeport will have on the region if we are successful.”

Nick Jones, Chief Executive Officer of Newcastle International Airport, said: “Fast and frequent connections to growth markets are key to the success of the freeport and the advancement of the North East’s key business sectors. Air connectivity will strengthen the North East England Freeport proposition and will help to drive productivity improvements through logistics supply chains, with the ultimate aim of supporting the growth sectors in the region – from pharmaceuticals and life sciences to technology and advanced manufacturing. The Airport is delighted to play a role in the across-region partnership that will deliver this project.”

Lucy Winskell, Chair of the North East LEP said: “The North East is a perfect candidate for a freeport given its trading pedigree, its capabilities in green industries and the challenges it faces.  Our model is deeply collaborative and highly innovative. Our seaports, airport, businesses, universities and political leaders are working together to deliver a cutting edge, digitally enabled freeport which brings new growth across our region and regenerates many of the communities that need it most.”

Jamie Driscoll, Mayor of North of Tyne said: “The North East has always been a strong manufacturing and exporting region.  We want to secure the future for our workers, our kids and our grandkids.  This means developing our low carbon industries and building a green future.”

Councillor Graeme Miller, Chair of North East Combined Authority said: “This is a highly collaborative and compelling bid with the ability to transform the whole of the North East. Crucially, it provides significant opportunities for Nissan and the International Advanced Manufacturing Park (IAMP).”

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In conversation with Dr. Phil Budden, senior lecturer at MIT’s School of Management, about the MIT REAP program

The North East LEP and key partners are currently participating in the prestigious Regional Entrepreneurship Acceleration Program (REAP) led by MIT. Here Dr. Phil Budden, senior lecturer at MIT’s School of Management, tells us more and explains why it’s important for the region.

Please can you explain what the MIT Regional Entrepreneurship Acceleration Program (REAP) is and how it came about?

The professors who founded the MIT REAP program were interested in helping regions understand how to harness their innovation, create jobs locally, and make a real difference. This was in response to the recession of 2009/10 when lots of regional leaders around the world were thinking about how to build back their economies.

MIT REAP was launched as a two-year program in 2012 to answer these sorts of questions and we were pleased to welcome teams from Scotland and London in the early cohorts. When the MIT REAP program created significant amounts of international interest – from Israel, Saudi Arabia, Japan and China to West Africa and Latin America – I became involved in a faculty and diplomat’s role.

Almost ten years later, the MIT REAP program is going from strength to strength with teams from around the world and we believe we are going to face similar needs in the 2020s to those we saw in 2010. We already have regions and organisations asking how to rebuild and encourage innovation and entrepreneurship: this time we are focusing on inclusivity too.

As a Brit on the team, I’m delighted that we have now created a ‘lite’ version of the global MIT REAP to focus on the UK. This pilot runs for just a year and is focused solely on the role that LEPs in England can play to convene stakeholders and collaborate to create regional economies that can bounce back and flourish.

The program aims to help regions foster an evidence-based, practical approach to strengthening innovation-driven entrepreneurial ecosystems around the world. What do you mean by the word ‘ecosystem’ and why is cross-sector/multi-stakeholder collaboration so important in making economic conditions better?

One of the words that MIT uses is ‘ecosystems’ in order to convey the ways in which we see innovation happening in the world.

In an ecosystem, which is a very organic concept, there are a variety of actors leading to a multi-stakeholder model, with roles for the government, local enterprise partnerships, large corporations, universities and entrepreneurs. These aren’t always the roles they think they should play but we help them understand their ecosystem roles.

Critically, we ask the entrepreneurs – as this is where our main focus lies – what they need to be successful with their enterprises. To thrive, regions need a spectrum of entrepreneurs, from those who form micro to small SMEs, often the backbone of a regional economy, through to the high-growth, high-tech innovation-driven enterprises, such as those which might spin out from universities.

All of these voices need to be heard, and part of the magic of MIT REAP is this cross-stakeholder discussion. Ultimately, no single organisation is in charge of the ecosystem, and no one individual has all the answers.

The North East LEP is one of six sub-regions in England chosen for the MIT REAP ‘lite’ pilot. How does this differ to the usual two-year learning engagement with MIT?

As a Brit, I was very keen to bring the insights of the MIT REAP Global Program back to the motherland in a way that we could convey the key frameworks and focus on entrepreneurial action, but in a shorter timeframe. This is how the MIT REAP-UK ‘lite’ pilot, supported by the Department for Business, Energy and Industrial Strategy (BEIS), was born.

The partners of choice are ten LEPS across England which form the six teams taking part, with the North East LEP a leading player of one of these teams. We are looking to see how much we can achieve in one year rather than two, given the challenges everyone has been facing in 2020, and the need to start re-building in 2021.

What’s the vision for the program once the pilot ends in England and what outcomes will the program achieve?

The key outcomes of the UK pilot will be the innovation and entrepreneurship impacts that will result from the action plans that the regional teams devise and implement. MIT is all about real world impact and so we judge our efforts on how useful the LEP teams have found the frameworks and our advice.

Early signs are teams like the North East LEP’s have found the multi-stakeholder evidence-based approach useful to find a strategy that plays to the region’s strengths and will deliver results in the near term, which is what we all hope for in 2021. We’ve been really impressed by their work and approach so far.

For more information visit https://reap.mit.edu/reap-uk/.