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Regional Impact StudyFinal report to the University of Warwick
April 2013
Contents
Executive Summary
1. Introduction................................................................................................................
The regional and local impacts of universities.............................................10The University of Warwick..............................................................................11Economic profile of the region and the local economies............................12The current study............................................................................................13Format of the report........................................................................................15
2. Direct and indirect expenditure impacts..................................................................
The University as a major economic entity in the region.............................16Steps in estimating impacts...........................................................................17Impact estimates..............................................................................................18Concluding comments....................................................................................23
3. Research, innovation and engagement with businesses and other organisations in the region...........................................................................................
Research at the University of Warwick: An overview...................................24Collaboration with business and public sector organisations....................26High level skills................................................................................................33Creating and supporting new businesses.....................................................37Concluding comments....................................................................................40
4. Civic role and public engagement............................................................................
Overview...........................................................................................................41Community and civic engagement.................................................................41Widening participation: raising aspirations and achievement....................44Providing services to the community............................................................48Cultural and sporting facilities.......................................................................51Concluding comments....................................................................................53
5. Global presence and connections............................................................................
Overview...........................................................................................................55Warwick – a globally connected university...................................................56International student survey...........................................................................58From international to local impact?...............................................................60Concluding comments....................................................................................61
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Annex A: Estimating expenditure impacts A-1Annex B: Student data.................................................................................................B-1
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Executive Summary
“We value them [Universities] for their intrinsic, as well as their economic, worth: as seats of learning and research dedicated to increasing the sum of human knowledge and understanding, and as centres of innovation and invention, the driving force behind our increasingly high-tech, knowledge-based economy”1 HM Government, The Coalition: Mid-Term Review, 2013.
Warwick is one of the leading UK universities. It already has a global reputation for its research and teaching programmes and aspires to soon be one of the top 50 universities globally. This study has explored the impacts of the University on its region and sub-region. These impacts are substantial, exciting and dynamic and demonstrate how a research intensive university can contribute to its region without compromising academic excellence.
Universities are multidimensional and complex organisations, engaged in a range of different activities and responsibilities to address different objectives in different spatial geographies. Further, they typically have a long-standing presence in their regional and local area - acting as ‘anchoring’ organisations – and playing a key role in contributing to regional and local impacts.
This report considers Warwick’s impacts in the West Midlands and sub-regions, from a number of perspectives. The most obvious, and tangible, is the direct employment it creates and further economic activity generated through expenditure of staff and students. But, the University’s reach, and we would argue its importance to the Region, is much greater than through employment and expenditure alone. These other impacts arise in a number of ways:
working with businesses, and other organisations, increases their efficiency and innovative capacity
staff and students work in and with the local communities
through its global connections, it generates a wide range of benefits within the Region.
Each of these themes is discussed below and examined in more detail in the main report.
Direct and indirect expenditure impactsThe University directly spends around £306m in the West Midlands each year and its staff and students make additional expenditures. These give rise to further expenditure as a result of multiplier effects and we estimate the 2011/12 total expenditure generated to be £520m in the West Midlands. Of which, almost
1 HM Government, The Coalition: together in the national interest – Mid-Term Review, 2013. http://assets.cabinetoffice.gov.uk.s3-external-3.amazonaws.com/midtermreview/HMG_MidTermReview.pdf
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£351m is in the Coventry and Warwickshire sub-region, £222m in Coventry, £84m in Leamington Spa and £20m in Kenilworth2.
We estimate that this expenditure, combined with direct employment by the University3, supports around 15,500 jobs (FTEs) in the West Midlands, of which around 10,900 are in Coventry and Warwickshire. The distribution of employment is as presented below.
The direct employment impacts (University and Students’ Union):
• 4,009 FTE jobs to residents of Coventry & Warwickshire
• 4,425 FTE jobs to residents of the West Midlands.
The extra jobs created through expenditure associated with the University (incl. Students’ Union):
• 6,910 FTE jobs to residents in Coventry & Warwickshire
• 11,069 FTE jobs to residents in the West Midlands.
Direct jobs at the University (incl. Students' Union) to residents of Coventry, Leamington Spa and Kenilworth combined are 3,177 FTE jobs. The extra jobs created through expenditure associated with the University give the following impacts:
4,739 FTE jobs to residents in Coventry
1,852 FTE jobs to residents in Leamington Spa
214 FTE jobs to residents in Kenilworth.
Research, innovation and engagement with businesses and other organisations in the region This section focuses on the contribution the University is making to the effectiveness and efficiency of local organisations in both the private and public sectors. Many of these contributions are based on the research strengths of the University, but impacts also arise through the provision of high level skills, training, business support and new enterprise development. These are also discussed below.
Collaboration with business and public sector organisations
High quality research has been a strategic driver for Warwick almost since its establishment and it has quickly established pre-eminence amongst those universities established in the 1960s. It was ranked 7th for quality in the UK and 1st in the West Midlands in the last Research Assessment Exercise and generated grants of £86m in 2010/11; £5m from business and £34m from public sector organisations4
and health authorities demonstrating the relevance of its research to users. Over £9m of these research projects were undertaken for organisations in the West
2 Coventry, Leamington Spa and Kenilworth are within Coventry & Warwickshire sub-region.3 Including Students’ Union.4 Excluding the Research Councils
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Midlands and a further £3m was received from Regionally-based organisations for consultancy, use of technical facilities and continuing professional development (CPD).
This is a substantial sum and represents the minimum value placed on these relationships by organisations in the Region. We have examined some of these activities in more detail and this evidences the major impacts that are arising. These include:
WMG (formally the Warwick Manufacturing Group) has developed a close relationship with JLR a major employer in the Region. There are many dimensions to the links between the organisations, but we would highlight two. JLR has located 180 of its R&D staff on campus as part of a programme which will generate £100m of collaborative research over 10 years. JLR, and its parent Tata, are also supporting the National Automotive Innovation Campus at Warwick; a £92m investment announced at the end of 2012. WMG also led the Premium Automotive Research and Development Programme (PARD) designed to assist the automotive supply base in the Region. An independent evaluation concluded that it has assisted 605 businesses, generated £55.5m in value added and safeguarded 5,496 jobs
The Warwick Medical School was established in 2000 and achieved independent degree awarding powers in 2007. Today the School employs over 400 academic staff and is ranked 10th in the UK for the quality of Health Services Research. Over the next 2-3 years, the recruitment of 80-100 additional research staff is projected. Its research excellence has attracted a range of private sector partners, leading to substantial inward investment and improved public health outcomes. It has also established a Clinical Trials Unit which is credited with improving the standard of healthcare in the Region
Warwick Business School is one of the top business schools for teaching and research quality. Its research covers a diverse range of areas and includes: the Behavioural Science Group, the largest of its type in Europe which has worked with local NHS Trusts to explore how design can influence violence experienced by staff; a new externally funded Enterprise Research Centre; and the active dissemination of its research to businesses through a number of channel
Science City Research Alliance, in collaboration with the University of Birmingham, has brought over £70m funding in the Region and has been evaluated as creating or created or safeguarded over 270 jobs so far.
High level skills
Many would argue that the principal economic (and social) impact of a university arises through its role as an educator and trainer. The quality of Warwick graduates and postgraduates is widely recognised and a recent survey of the UK's one hundred
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leading graduate employers5 identified Warwick as the leading target for recruitment of all UK universities. Data on Warwick alumni shows that 23,226 graduates and postgraduates of the University are still resident in the West Midlands. This is 3% of the West Midlands population with NVQ Level 4 qualifications and above; a significant proportion of the highly skilled labour force. Over the period 2008/09 to 2010/11, 19% of graduates were still resident in the Region6. Over time, this will add significantly to skills availability in the Region.
The University is also providing CPD for businesses and other organisations and in 2010/11 this was valued at almost £2m in total. In particular, the Business School has a wide range of offers from short sessions through to accredited MBA programmes. These include a one year Diploma in Applied Management and 50% of the most recent cohort were from organisations in the West Midlands. A number of long-term partnerships have developed with West Midlands employers, including: Warwickshire Fire and Rescue; Network Rail; Coventry City Council; and Coventry and Warwickshire NHS Trust.
Creating and supporting new businesses
The University works closely with established businesses within and outside the Region, but it is also helping to create new businesses for the future:
Warwick Ventures provides support to staff spin-outs. There are 33 spin-outsstill active of which 17 are located in the West Midlands. We have employment data for 13 of these which employed 99 in total
The Science Park is distinctive in that it provides a full range of business support services, and these are available to businesses elsewhere in the West Midlands. These services have safeguarded or created 291 jobs. In addition, there are almost 140 tenants on four sites, over 75% employing fewer than 10
The University has itself established businesses, the most important are: Warwick Conferences and Unitemps (an online recruitment service).
Civic role and public engagementPublic engagement is becoming more important to the University sector as a whole and, in many ways, supports and complements the more direct economic contribution. Warwick is actively engaged with its communities. Activities are more diffuse than, for example, research relationships and there is much less information on scale. They are, nevertheless, an important local impact channel. They provide direct benefits to the local community and can also be a valuable component of student educational programmes. The report considers four types of engagement: formal, and some informal, examples of civic engagement; specific activities to raise aspirations and achievement in the local community focused on the widening participation agenda; the ways in which the University’s core academic activities are
5 High Flier Research January 2013 http://www.highfliers.co.uk/6 Six months after graduation.
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leading to enhanced services in the local area; and access to cultural and sporting activities at the University.
Community and civic engagement
University staff meet regularly with Local Authorities and there are two members on the Coventry and Warwickshire Local Enterprise Partnership (LEP) Board. The University was active in the successful bid to the Regional Growth Fund and is involved in developing a City Deal for Coventry and Warwickshire.
A high profile and successful example of civic engagement is Warwick Volunteers. Over 2,000 students and staff each year sign up as a Warwick Volunteer. Many of these go on to undertake a volunteer placement in community groups, charities and schools in Warwick district or Coventry area. With support focussed on schools in disadvantaged areas, the volunteers support a range of activity aimed at improving performance outcomes of programme beneficiaries. One study7 has estimated the Volunteers programme makes a contribution to the local community of almost £1m.
Widening participation: raising aspirations and achievement
In 2010/11 the University committed to investing over £500,000 in outreach activities. This will rise to £1.9m by 2016. The University plans to spend in excess of £1m of its own funds on fee waiver support during the 2013/14.
There is a wide range of programmes and activities involving students and staff. Some notable examples include:
5,000 school pupils within the West Midlands receive support from the Chemistry Department
each year 50-80 local school pupils from years 10-12 are invited to stay at the University in order to challenge perceived barriers to attending University
70 schools in the Districts of Warwick or Coventry attended a session run by Warwick Arts Council, designed to promote artistic and cultural engagement
over 60 Warwick students have been involved delivering sessions to over 300 school students through the Warwick Inspire programme
22 Local Authorities, including Birmingham and Coventry, participate in a programme for gifted and disadvantaged children
Pathways to Law supports 50 school students each year through a three year programme Realising Opportunities, involving 11 other universities – this was awarded the times Higher Education, Widening Participation Initiative of the year in 2012.
7 Degrees of value, nef http://www.neweconomics.org/publications/degrees-of-value
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Warwick Arts Centre employs a dedicated Education team to support outreach activity across the West Midlands. In 2010/11, the team delivered over 900 sessions, reaching over 15,400 participants.
Providing services to the community
The core academic activities of the University are also generating impacts through the services for local communities which are associated with these activities. These include:
The Warwick Medical School, which is closely associated with healthcare provision in the region. Local benefits include: around 520 students will be undertaking clinical placements in the West Midlands at any one time; the Clinical Trials Unit, has provided patients from the West Midlands with access to cutting edge treatments; and the Warwick Healthcare Partnership is to develop solutions, to chronic diseases that affect resource-poor communities locally and overseas
The Centre for Lifelong learning provides learning programmes and qualifications for those who may not have had a real opportunity to enter HE when they left school, as well as non-accredited learning opportunities
a proposed ‘WMG Academy for Young Engineers at the University of Warwick’ has become a new University Technical College (UTC) project and will cater for 640 students from the Coventry, Warwickshire and Solihull areas
Warwick’s Institute of Education admits around 500 students each year. In 2010/11, 178 were working as teachers in the West Midlands. It also hosts the West Midlands Centre for Excellence in Teacher Training which provides information and guidance services to teachers and trainers and a range of specialist training programmes
The WBS, working with the Institute for Education, has launched the ‘Teaching Shakespeare’ initiative alongside the Royal Shakespeare Company.
Cultural and sporting facilities
The Warwick Arts Centre is the second largest in the UK. In 2010/11 combined audiences were 270,000 and 62% of visitors come from Coventry and Warwickshire. An independent study estimated the total value to the local community from the Arts Centre to be £27.7 million.
The University’s sporting facilities were classified as 5* by the Times Good University Guide in 2007. Most of these facilities are open to non-university residents and used extensively by local individuals and clubs. The facilities have also attracted national and international events, including: the International Children’s Games in 2005; the UK Schools Games in 2007; the British Transplant Games in 2009; and the Kelly Holmes Athletics Camp;
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Further, the University made a major contribution to bringing the International Olympic Committee to Coventry, resulting in Coventry hosting the London Olympics 2012 volunteer and training events.
Global presence and connections Research for the European Commission (2011) indicates that a globally connected university can act as a ‘window’ on the local region to the rest of the world, contributing to improved image and reputation of the region. Further, the study reports that this can benefit the development of the region in various ways: connecting people from all over the world into the region, acting as a vehicle for future cooperation; attracting researchers who may contribute to the development of new technologies, resulting in new and innovative activity; and acting as a lever for international investment to the region. In addition, evidence published by the OECD (2008) states that investment in universities is more effective in generating research intensive foreign direct investment (FDI) than financial incentives to foreign investors.
There is no doubt that Warwick is globally connected. It is rising through the international rankings and:
34% of academics are international, from 72 countries
over 8,350 international students are studying at the University
The International Student Barometer8 reported that 83% of Warwick’s international student respondents would recommend the University compared with 80% for the UK as a whole (90% reported overall satisfaction compared with 88% for the UK)
500 Warwick undergraduates are expected to participate in an international exchange during 2012/13
over 200 exchange partners in 40 countries
over 45,000 alumni are resident in 193 countries
Tata Motors European Technical Centre is based at the University
It has established two academic alliances with Monash in Australia and the Centre for Urban Science and Progress (CUSP)9 – partnership led by New York University and NYU-Poly alongside a consortium of universities and businesses.
To the extent that the international links strengthen the University as whole, there will be local benefits arising through the channels described elsewhere in this report,
8 http://www.i-graduate.org/services/international-student-barometer-and-student-barometer/9 http://www2.warwick.ac.uk/fac/cross_fac/gpp/sustainablecities/cusp/
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including international student fees and visits by family and friends to the region10; and language and cultural skills acquired by students.
The international reach of the University raises the international profile of the region which may help in facilitating international business contacts for local firms and it increases the attractions of the region to inward investors. A further point is that international alumni often take up influential positions in business or government in their home countries or elsewhere. The contacts established while at the University can be long lasting and valuable. We have not been able to identify tangible evidence of such impacts, but would note that, in particular, both WMG and WBS have substantial numbers of international alumni. The literature identifies longer-term intangible benefits on local economies (often referred to as ‘catalytic effects’)11 as a result of international students having a favourable attitude towards a university’s region, including after the students have progressed to influential positions in their careers.
10 For example, a study for the University of Sheffield reports that international students make a net contribution to Sheffield’s economy of £120.3 million, rising to £136.8 million for the region (Yorkshire & Humber). Oxford Economics (2013) Economic Costs and Benefits of International Students. A Report for the University of Sheffield. 11 See for example: Oxford Economics, The economic impact of London’s international students, 2007. http://www.londonhigher.ac.uk/fileadmin/documents/OxfordEconomicsReport.pdf
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1. Introduction
The regional and local impacts of universities“Just as castles provided the source of strength for medieval towns, and factories provided prosperity in the industrial age, universities are the source of strength in the knowledge based economy of the ‐twenty first century”‐ 12 Lord Dearing, 2002.
“We value them [Universities] for their intrinsic, as well as their economic, worth: as seats of learning and research dedicated to increasing the sum of human knowledge and understanding, and as centres of innovation and invention, the driving force behind our increasingly high-tech, knowledge-based economy”13 HM Government, The Coalition: Mid-Term Review, 2013.
Universities are multidimensional and complex organisations, engaged in a range of different activities and responsibilities (teaching, research, and what is often referred to as the ‘third mission’14) to address different objectives in different spatial geographies. Further, universities have a long-standing presence in their regional and local area - acting as ‘anchoring’ organisations – and playing a key role in contributing to regional and local impacts (economic, social and cultural).
They provide high level training, collaborate with businesses, support start-ups/spin-outs and commercialise research in other ways, thereby contributing to knowledge exchange, technology transfer and innovation. Universities connect the regional/local economy to the global economy – attracting international students, researchers and other staff as well as acting as the ‘gateway’ for international firms to access regional markets15. The cultural and community engagement aspects of universities are growing with, for example, organised voluntary activities, social events, and promoting widening participation in higher education. Further, universities are major employers in the local economy and the expenditure of their staff and students contributes a ‘multiplier’ effect throughout the economy, generating additional demand for regional and local suppliers of goods and services.
Within this context, the European Commission16 categorises the various roles of universities into four main areas (also adopted by the OECD in its research on universities and regions): business innovation, human capital development,
12 Professor Sir Tim Wilson, A Review of Business–University Collaboration, 2012. http://www.bis.gov.uk/assets/biscore/further-education-skills/docs/w/12-610-wilson-review-business-university-collaboration13 HM Government, The Coalition: together in the national interest, Mid-Term Review, 2013. http://assets.cabinetoffice.gov.uk.s3-external-3.amazonaws.com/midtermreview/HMG_MidTermReview.pdf14 Third mission refers to activities in universities which stimulate and direct the application and exploitation of knowledge to the benefit of the social, cultural and economic development of society.15 OECD evidence suggests that investment in universities is of greater effect in generating research intensive foreign direct investment than financial incentives to foreign investors. Guimon, Government Strategies to attract R&D Intensive FDI. OECD, Global Forum on International Investment. 2008.16 These broadly relate to the four areas covered in the OECD reviews of the universities and regions: OECD Higher Education and Regions, Globally Competitive, Locally Engaged, 2007. http://www.oecd.org/dataoecd/51/27/39378517.pdf. See also, European Commission, DG Regional Policy, Connecting Universities to Regional Growth: A Practical Guide, 2011. http://ec.europa.eu/regional_policy/sources/docgener/presenta/universities2011/universities2011_en.pdf
Universities are major economic entities and contribute to the local and regional community and economy in many and diverse ways
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community development, and institutional capacity of the region through engagement in local civil society.
Figure 1-1: OECD framework for role of universities in regional development
Source: European Commission, DG Regional Policy, Connecting Universities to Regional Growth: A Practical Guide, 2011
It has become more important in the current challenging economic environment for universities to be innovative and pro-active in contributing to local development, and also to act as ‘drivers’ of change. In the new regional economic development landscape, there is more emphasis on collaborative approaches between the public and private sector. With the introduction of the Local Enterprise Partnerships (LEPs) and the £2.4 billion Regional growth Fund (RGF) to support economic development there is an opportunity for universities to increase their influence at a sub-regional level. In addition, changes to university funding and the key government objective to ‘rebalance the economy’ sectorally and spatially are likely to influence universities’ roles and how they actively engage in their local areas. The ‘Triple Helix’ of university-industry-government interactions has become more prominent.
The University of WarwickApproval for the establishment of the University of Warwick was given in 1961 and followed by the Royal Charter of Incorporation in 1965. After the first intake of graduate students in 1964, it admitted its first 450 undergraduates in October 1965. The University is situated on a large 700 acre campus which straddles the boundary between the City of Coventry and the County of Warwickshire.
In 2007 the University’s Strategy - Vision 2015 was launched and updated in March 201117 . It articulates the following goals:
17 The University of Warwick, University Strategy, March 2011. http://www2.warwick.ac.uk/about/vision2015
HEIs
Regional capacity building
Regional innovation
Human capital and
skills development
Social and cultural
development
Universities’ local economic development role is becoming increasingly important
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To make Warwick an undisputed world leader in research and scholarship
To ensure a high-quality and distinctive Warwick student experience
To make Warwick an international beacon by embedding internationalism into every area of the University's mission
To further strengthen our sense of community and increase engagement with our stakeholders in order to enhance the University's reputation in the UK and overseas
To ensure the ongoing sustainability of the University
The University’s strategy is to continue to improve its global position, but it is already highly rated by external assessors. It is ranked:
5th out of 120 UK universities: Guardian’s University League Table 2013
6th out of 116 UK universities: The Complete University Guide 2013
124th out of 400 global institutions: Times Higher Education World University Rankings 2012-2013 (and 12th of those under 50 years old)
58th of 872 global institutions in the QS World University Rankings 2012-13.
Economic profile of the region and the local economies
The West Midlands
The West Midlands generated almost £91 billion Gross Value Added (GVA)18 in 2009 which accounts for 7.4% of the total UK GVA:
manufacturing accounted for 15% of the total GVA, greater than the average for the UK as a whole. The second largest contributor to GVA in 2009 was Wholesale and Retail Trade.
historically, the West Midlands is associated with lower productivity compared to the UK as a whole and the gap has widened since 2001. Labour productivity was the third lowest of the 12 UK regions and Devolved Administrations.
The West Midlands is home to just under 209,000 businesses employing just over 2.3 million people (2011)19.:
the West Midlands has undergone economic restructuring over two decades with relative shares of employment and wealth generation shifting from manufacturing to service sectors
18 GVA is a measure of economic output of a region. It measures the contribution to the economy of each individual producer, industry or sector in the United Kingdom. 19 ONS, 2012. http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-254601
Its aim is to achieve excellence and to serve the region
The region has above average employment in manufacturing and below average productivity
R&D spend by businesses is also average
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the West Midlands spends less on R&D compared to most other regions (£1.2 billion in 2008), with higher education institutions accounting for 27% of the total
the West Midlands Observatory20 reports that the region has a weaker private sector than other parts of the country. There is also a ‘Poorer representation of higher value added activities and high growth firms with the potential to create new, skilled jobs.
a more positive picture is found in terms of inward investment with 79 inward investment projects recorded in 2011/12. These have created a total of 5,780 new jobs and safeguarded a further 5,391 jobs21. The United States, Germany and India were the top investing countries in terms of projects but India created most jobs (2,290).
Coventry & Warwickshire
The University campus straddles the Coventry City-Warwickshire boundary. The local economy exhibits:
in 2011 the business population in Coventry & Warwickshire was 35,840 employing a total of 399,500 individuals (2011)22.. Coventry, the urban centre, has the highest number of employees, 138,758. North Warwickshire has only 38,888 employees, reflecting its rural setting.
the largest business sector in Coventry and Warwickshire in 2011 was the Professional, Scientific and Technical sector, accounting for 5,570 businesses. Other notable sectors are Construction, Retail, Business Administration and Support Services.
business start-up rates for Coventry and Warwickshire are similar to England averages over the period 2004-2009. There is, however, a significant difference between Coventry and Warwickshire. Coventry had 35 new business start-ups per 10,000 people on average; Warwickshire was notably higher with 51.9.
The current studyThis purpose of this independent study is to report on the local and regional impacts of the University in the widest possible sense and to capture the economic, social and cultural value of the University’s activities and outputs. It is not within the scope of the study to provide a catalogue of external relationships and activities; rather it examines local and regional impacts under four headings:
direct and indirect expenditure and employment impacts
research, innovation and business engagement
20 http://wmro.wordpress.com/category/research/innovation/21 Regional Observatory, Marketing Birmingham, Inward Investment in West Midlands, 2012. http://www.marketingbirmingham.com/regional_observatory/business_economy/22 Ibid.
Activity in the local economy is concentrated in Coventry
The current study is wide ranging covering economic, social and cultural impacts of the University
The region has successfully attracted inward investment
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civic role and public engagement
global presence and connections.
These impact channels provide the framework in which the data and information23
has been gathered and analysed for this study. The nature of the data and the impacts themselves, mean that it is not possible to monetise or quantify all impacts. In view of this, our overall approach has been to:
monetise/value impact where possible
quantify where possible
catalogue and describe where neither valuation nor quantification is possible (or appropriate).
Definition of geographical areas
The geographical and spatial scope of the University’s impacts varies according to its activities, outputs and purposes. The data and information are analysed at specific geographic levels. The post code data for relevant geographies were sourced from the mapping software - Geographic Information System (GIS)24. The following areas are covered in the analysis25:
Coventry City
Warwick district
Leamington Spa
Kenilworth
Coventry & Warwickshire
Rest of the West Midlands
West Midlands
Rest of the UK
Other (Abroad).
Local authority district (LAD) boundaries as defined by the Office for National Statistics (ONS) were used to make-up the Coventry & Warwickshire sub-region and the rest of the West Midlands. These are identified in Table 1-1.
23 The study encompassed a desk review of data and literature and consultations with staff from the University of Warwick and some external organisations that have engaged with the University. 24 GIS uses post-code data from the Post Office. http://www.esri.com/what-is-gis.25 In some cases post-codes overlap local authority boundaries. Where this is the case, we have used our judgement to allocate a post-code to a specific area.
Data has been analysed at regional and a number of sub-regional levels
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Table 1-1: Local authority districts for Coventry & Warwickshire and rest of the West Midlands
Geographic area
Local authority districts
Coventry & Warwickshire
Coventry; North Warwickshire; Nuneaton & Bedworth; Rugby; Stratford-on-Avon; and Warwick
Rest of West Midlands
Birmingham; Bromsgrove; Cannock Chase; Dudley; east Staffordshire; Herefordshire County of; Lichfield; Malvern Hills; Newcastle-under-Lyme; Redditch; Sandwell; Shropshire; Solihull; South Staffordshire; Stafford; Staffordshire Moorlands; Stoke-on-Trent; Tamworth; Telford and Wrekin; Walsall; Wolverhampton; Worcester; Wychavon; Wyre Forest.
Source: Office for National Statistics: http://www.ons.gov.uk/ons/index.html
For the purposes of this study and specifically for calculating the expenditure and employment impacts, the Coventry and Warwickshire sub-region is considered as local impact and West Midlands as regional impact.
Format of the reportThe remainder of this report is structured as follows:
chapter 2: presents the key results from the direct and indirect expenditure and employment impacts associated with the University and its students.
chapter 3: discusses engagement with businesses and public sector organisations in the area. It focuses on research and innovation but other impact channels are also discussed.
chapter 4: presents the civic role and public engagement dimension of the University including civic engagement, raising aspirations and achievements through widening participation and outreach initiatives; providing services to the community; and cultural and sporting.
chapter 5: discusses the global presence and connections of the University in terms of its international role, in particular international students; research collaborations and international alliances.
a detailed explanation of the derivation of the expenditure and employment impacts is presented in annex A and student data in annex B.
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2. Direct and indirect expenditure impacts
£270 million local (Coventry and Warwickshire) expenditure by the University of Warwick and students, £306 million expenditure in the region
£351 million local impact after allowing for multiplier effects and £520 million regional impact
Direct employment at the University of 4,009 jobs (FTEs) for residents of the local area, and 4,425 jobs (FTEs) for residents of the region
Indirect and induced employment impacts are 6,910 jobs (FTEs) for residents in the local area, and 11,069 jobs (FTEs) for residents in the region.
The University as a major economic entity in the regionThe University, its staff and students contribute to the economic impact generated locally and regionally. Our approach to calculating these impacts involved analysing the University’s payroll and purchases; Students’ Union payroll and expenditure; and student expenditure. These are assessed at the level of the local economy (Coventry & Warwickshire sub-region) and regional economy (West Midlands)26. We also assess these impacts separately for the areas of Coventry, Leamington Spa and Kenilworth. Aside from the direct spending, there is also re-spending in the local and regional economy. For instance: staff will spend some of their wages in the economy, generating further employment and business; any purchases made will create employment in suppliers (indirect effects); and these employers will receive wages to spend in the local and regional economies (induced effects). These ‘knock-on effects’ are commonly estimated using ‘multipliers’.
26 The full geographic breakdown for the expenditure impact analysis can be found in Annex A and includes: Warwick LAD; Coventry LAD; Coventry & Warwickshire; Rest of West Midlands; West Midlands; Rest of UK; and where relevant abroad.
We adopted a conventional multiplier approach to estimating the impacts of expenditure by the University its staff and students.
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Figure 2-2: Impact of the University of Warwick arising from expenditure
Steps in estimating impactsWe developed a model to calculate the impact on the local and regional economies. This embodied a number of assumptions, evidenced from secondary sources and in some cases our own judgement on the data and information available. The stages in the impact calculations with all the data and assumptions we used are detailed in Annex A. Our calculations have assumed that students, and the associated expenditure, would not have gone to other HEIs in the region if they had not attended the University of Warwick.
A summary of the main steps in estimating impacts and key results are set out below27.
payroll expenditure - the University supplied (anonymised) payroll data for 2011-12. This data covered all staff (excluding Students’ Union staff) and included: number of full-time equivalent staff; gross and net pay; postcode of residence where available. Using these data we calculated pay of staff by place of residence
University purchases – the University supplied purchasing data for 2011-12. This included values and postcode location of suppliers as well as the number of vendors. We analysed the location of expenditure
Student’s expenditure – the University provided data on headcount of students for 2011-12 and their postcode locations. The figures for expenditure per student were based on the study by the (then) Department for Innovation Universities and Skills (2009) Student Income and Expenditure
27 There are some uncertainties on the data used in our calculations. This is attributable to practical reasons (e.g. the nature and availability of data supplied by the University) and methodological reasons (e.g. values for multiplier effects can vary). Therefore, the results reported here should be treated as ‘indicative’.
All expenditure associated with the University has been included
Student expenditure estimates are based on a DIUS survey
17
Survey 2007/0828. A number of assumptions were made in estimating student expenditure, all of which are detailed in Annex A. Details of students numbers by resjdence can be found in Annex B.
Students’ Union – the University provided data on Students’ Union expenditure and payroll for 2011/12 along with postcode data. We analysed these expenditure and payroll data and broke it down by geographic area.
indirect and induced impacts – to estimate the indirect and induced impacts, we took into account research evidence published by the Department for Business, Innovation and Skills (2009)29 on multipliers as well as evidence from Universities UK (2010)30. The BIS research was considered because multiplier values were available at a sub-regional and regional level, based on extensive evaluation data across a range of intervention types. The Universities UK research was considered because of its applicability to the university sector and availability of a multiplier value for West Midlands. These sources helped inform our own judgement on arriving at multiplier values (local and regional) which we consider to be reasonably conservative, but appropriate for calculating the knock-on effects from the direct impacts associated with the University and students. These multiplier values do not differ significantly from those used in other regional expenditure studies. See Annex A for further details on multiplier values.
employment impacts – to estimate further jobs created by the expenditure from the University, Students’ Union, and students, a Gross Value Added (GVA) per filled job31 for the West Midlands region was applied. This was sourced from the Office for National Statistics (ONS)32.
Impact estimates
Expenditure
The impact of expenditure are summarised in Figure 2-3. Full details about how these and other results reported in this section were calculated can be found in Annex A.
28 http://www.bis.gov.uk/assets/BISCore/corporate/MigratedD/publications/D/DIUS_RR_09_05.pdf . The survey estimates average expenditure of £13,452 per annum by full-time students and £18,042 by part-time students. These have been adjusted for: inflation; payments to the University (which are counted in University expenditure); and non-residence in the area outside term time.29 Department for Business, Innovation & Skills, (October 2009) BIS Occasional Paper No. 1, Research to improve the assessment of additionality. http://www.bis.gov.uk/files/file54063.pdf 30 U. Kelly, D. McLellan, Iain McNicoll, The University of Strathclyde for Universities UK (2010), Making an economic impact: Higher education and the English regions. http://www.nwua.ac.uk/Publications/Reports/Docs/Making%20an%20economic%20impact%20-%20Higher%20education%20and%20the%20English%20regions%20(June%202010).pdf31 According to the ONS, GVA per filled job is the most appropriate measure of regional/sub-regional productivity. This measure only counts the input of those who are directly employed in the production process (rather than the population as a whole) and additionally provides a workplace based labour input denominator to match the workplace based GVA numerator, thus fully accounting for the impacts of commuting. See for example: http://www.ons.gov.uk/ons/dcp171766_260413.pdf32 Office for National Statistics (2013), Regional Economic Indicators, GVA per filled job. http://www.ons.gov.uk/ons/search/index.html?newquery=gva+per+job
Multipliers are based on a review of the literature and are similar to those used in other regional impact studies
18
Figure 2-3: Impact of expenditure, 2011/12
Source: SQW calculations using University of Warwick data.
The impact from all the different types of expenditure are summarised in Table 2-2.
Table 2-2: Direct impact of expenditure, 2011/12
Local impact (Coventry and Warwickshire) in £millions
Regional impact (West Midlands) in £millions
University payroll £85.2m £95.2m
University purchases £47.5m £68.6m
Students’ Union payroll £2.0m £2.2m
Students’ Union purchases £1.2m £1.5m
Student expenditure £134.2m £138.5m
Total impact £270.1m £306.0mSource: SQW calculations using University of Warwick data.
Taking into account expenditure impacts on staff and purchases made by the University and Students’ Union, and the expenditure made by students, gives the following total direct impacts for 2011/12:
£270.1 million direct local impact
£306.0 million direct regional impact.
Applying local and regional multipliers to the direct impacts gives the results presented in Table 2-3.
Table 2-3: Direct, indirect and induced impacts of expenditure (i.e. including multipliers), 2011/12
Local impact (Coventry and Warwickshire) in £millions
Regional impact (West Midlands) in £millions
University payroll £110.7m £161.8m
University purchases £61.7m £116.6m
Direct impact of expenditure
Direct, indirect, induced impact of expenditure
(incl.multipliers)
Local (Coventry &
Warwickshire)
£270.1m
£351.1m
Regional(West Midlands)
£306.0m
£520.2m
Direct expenditure in the West Midlands was £306m in 2011/12
Allowing for indirect and induced effects as well as direct expenditure, the University generates £520m per year in expenditure impacts in the West Midlands
19
Local impact (Coventry and Warwickshire) in £millions
Regional impact (West Midlands) in £millions
Students’ Union payroll £2.6m £3.8m
Students’ Union purchases £1.6m £2.5m
Student expenditure £174.4m £235.5m
Total impact £351.1m £520.2mSource: SQW calculations using University of Warwick data.
Taking into account re-spending in the local and the regional economies, gives the following total impacts for 2011/12:
£351.1 million local impact (direct, indirect and induced)
£520.2 million regional impact (direct, indirect and induced).
Table 2-4 below provides a summary of both the direct and indirect and induced impact through multiplier effects which the University has at a local and regional scale. The sub-regional economy of Coventry and Warwickshire generated total GVA of £16.8bn in 2008 so the University of Warwick is an important contributor of expenditure and employment in Coventry and Warwickshire as well as the rest of the West Midlands.
Table 2-4: Summary of total impact of expenditure, 2011/12
Local impact (Coventry and Warwickshire) in £millions
Regional impact (West Midlands) in £millions
Direct impact £270.1m £306.0m
Indirect and induced impact
£81.0m £214.2m
Total impact £351.1m £520.2mSource: SQW calculations using University of Warwick data.
Employment
There is a direct impact from providing employment for people from the surrounding area, working at the University or the Students’ Union. However, due to the additional expenditure by the University, Students’ Union and the student themselves, further jobs are created within the local and regional economy to provide the goods and services to support the demand from the university. In order to estimate this impact, it is necessary to take the overall impact of the University’s expenditure and calculate how many jobs this equates to at a local and regional scale using GVA per filled job, sourced from the Office for National Statistics. The direct jobs and those created through further expenditure impacts are summarised below.
20
Figure 2-4: Summary of jobs impact, 2011/12
Source: SQW calculations using University of Warwick data, based on full time equivalents (FTEs).
The direct employment impacts (University and Students’ Union) in 2011/12 equate to:
4,009 FTE jobs to residents of the local area
4,425 FTE jobs to residents of the region.
The extra jobs created as a result of expenditure associated with the University and the Students’ Union in 2011/12 equate to:
6,910 FTE jobs to residents in the local area
11,069 FTE jobs to residents in the region.
Impacts for Coventry, Leamington Spa and Kenilworth
Based on the methodology described above we also assessed impacts relating to Coventry33, Leamington Spa34 and Kenilworth35. We summarise the results below.
Expenditure
The results indicate the following estimates of impacts for 2011/12:
33 Coventry covers local authority district area34 Leamington Spa covers wards: Clarendon, Crown, Manor, Milverton, Brunswick and Willes.35 Kenilworth covers wards: Abbey, Parkhill and St Johns.
Direct jobs at the University (incl.
Students' Union) to residents of the region4,425
Extra jobs created in the local area (Coventry &
Warwickshire)6,910
Extra jobs created in the region (West
Midlands)
11,069
The University (incl. Students’ Union) directly employed 4,425 people (FTEs) in 2011/12. Further FTE jobs generated through expenditure impacts: 6,190 in Coventry and Warwickshire and 11,069 in West Midlands
21
Figure 2-5: Impact of expenditure, 2011/12 – Coventry, Leamington Spa, Kenilworth
Source: SQW calculations using University of Warwick data. .
The breakdown of the different types of expenditure is presented Table 2-5.
Table 2-5: Direct impact of expenditure, 2011/12
Coventry Leamington Spa Kenilworth
University payroll £40.2m £12.4m £12.3m
University purchases £26.8m £1.8m £1.3m
Students’ Union payroll £1.3m £0.5m £7.5k
Students’ Union purchases £1.1m £10.8k £2.8k
Student expenditure £101.8m £49.7m £2.2m
Total impact £171.2m £64.3m £15.7mSource: SQW calculations using University of Warwick data. N.B. Total figures may not sum due to rounding.
Applying the same local multiplier as before to the direct impacts gives the results presented in Table 2-6 below.
Table 2-6: Direct, indirect and induced impacts of expenditure (i.e. including multipliers), 2011/12
Coventry Leamington Spa Kenilworth
University payroll £52.3m £16.1m £15.9m
University purchases £34.8m £2.3m £1.7m
Students’ Union payroll £1.6m £0.7m £9.8k
Students’ Union purchases £1.4m £14.0k £3.7k
Student expenditure £132.3 £64.6m £2.8m
Total impact £222.5m £83.6m £20.4mSource: SQW calculations using University of Warwick data. N.B. Total figures may not sum due to rounding.
Direct impact of expenditure
Direct, indirect, induced impact of expenditure
(incl.multiplier)
Coventry £171.2m
£222.5m
Leamington Spa
£64.3m
£83.6m
Kenilworth£15.7m
£20.4m
Direct, indirect and induced expenditure of: £223m in Coventry, £84m in Leamington, and £20m in Kenilworth.
22
Employment
The extra jobs created as a result of expenditure associated with the University and the Students’ Union in 2011/12 for Coventry, Leamington Spa and Kenilworth are summarised in Figure 2-6.
Figure 2-6: Summary of total impact on jobs, 2011/12 - Coventry, Leamington Spa and Kenilworth
Source: SQW calculations using University of Warwick data, based on full time equivalents (FTEs).
Concluding commentsExpenditure by the University and its staff and students gives rise to over £520m expenditure in the West Midlands after allowing for indirect and induced effects. This reflects the importance of the University as an economic entity. The majority of these impacts are in Coventry and Warwickshire, and in particular the former, but impacts in the rest of the West Midlands are also significant.
We estimate that this expenditure, combined with direct employment by the University, generates around 15,500 jobs (FTEs) in the West Midlands. The distribution of these jobs reflects expenditure impacts, but Coventry and Warwickshire also benefit from direct employment by the University.
Direct jobs at the University (incl.
Students' Union) to residents of
Coventry, Leamington Spa and
Kenilworth3,177
Extra jobs created in Coventry
4,739
Extra jobs created in Leaminton Spa
1,852
Extra jobs created in Kenilworth
214
3,177 direct jobs (FTEs) generated to residents of Coventry, Leamington Spa and Kenilworth
Further 6,805 jobs (FTEs) generated through expenditure impacts in the areas of Coventry, Leamington Spa and Kenilworth
23
3. Research, innovation and engagement with businesses and other organisations in the region
This chapter focuses on the contribution the University is making to the effectiveness and efficiency of local organisations in both the private and public sectors. Many of these contributions are based on the research strengths of the University, but impacts also arise through the provision of high level skills, training, business support and new enterprise development and these are also discussed.
Research at the University of Warwick: An overview
£86m research grants and contracts undertaken in 2010/11
£40m funded by the research councils and charities36
£5m research contracts with business
£34m research contracts for public sector organisations (including health authorities)
£6m from EU research programmes
£1m from other sources
Ranked 7th in the UK in the 2008 Research assessment Exercise
Local and Regional partners in 2010/11 accounted for
£9.1m research
£0.6m consultancy
£1.8m for the use of facilities and equipment
£1.9m for continuing professional development (CPD).
Producing high quality research has been a strategic driver for Warwick almost since its establishment and it has quickly established pre-eminence amongst those universities established in the 1960s. Research strengths continued to develop during the 1970’s and 80’s and Warwick is now one of the leading research universities in the UK with a global reputation. Research underpins much of the economic impacts which the University generates, through:
developing new knowledge which is transferred to businesses and other organisations
36 Charities which provide research funding on a competitive basis.
Warwick is a leading UK research intensive university with a global reputation
The University is intensively engaged with businesses in the UK and abroad
24
creating intellectual property which is commercialised through spin-outs and licensing
training post graduate students and post doctorates.
In 2010-11 the University secured just over £86m in research grants and contracts, the 17th highest research income of any UK university and larger than many with substantially more students. As well as volume, Warwick scores highly on quality. The Research Assessment Exercise (RAE) evaluates the quality of research in UK universities and was last conducted in 200837. Although the data is now over four years old, research strengths are unlikely to have changed significantly since then. Universities decide which staff to submit to the RAE and almost 90% of eligible staff were submitted by Warwick. The RAE does not provide a ranking of Universities, but a ranking can be constructed on certain assumptions. The University’s own calculations place it 7th in the UK and top in the Midlands38.
Table 3-7 shows the total value of funding from organisations in the West Midlands was £12.2m and 78% was with organisations based in Coventry and Warwickshire. These funders include health authorities and other public sector organisations rather than just businesses, but in all cases we can interpret the figure as a minimum39 value that the funder placed on the working with the University.
Table 3-7: External funding 2010-11 (£m)
Coventry and Warwickshire
Other West Midlands Total West Midlands
Research 7.3 1.841 9.14
Continuing professional development (CPD)
0.51 0.091 0.6
Consultancy 0.21 0.351 0.56
Facilities 1.551 0.3 1.85
Total 9.57 2.58 12.15Source: SQW based on University of Warwick data.
37 The RAE will be replaced by the Research Excellence Framework (REF) in 2014.38 Specialist institutions active in a few subjects or a narrow range of disciplines are excluded from this comparison.39 On the basis that the organisation might have been willing to pay more, but would not have entered into the contract unless it expected to derive benefits at least equivalent to the cost.
In 2010-11, contracts with organisations in the West Midlands were worth £12.2m
Almost 80% of partners are based in Coventry or Warwickshire
Total research grants and contracts amounted to £86m in 2010-11
25
Collaboration with business and public sector organisations
WMG
close partnership with Jaguar Land Rover includes: 180 JLR R&D staff on campus; The National Automotive Innovation Campus with £92m investment from JLR, the Government and Tata
led the Premium Automotive Research and Development Programme (PARD). Assisted 605 businesses and generated £55.5m in value added; safeguarded 5,496 jobs
Warwick Medical School
research excellence has attracted a range of private sector partners, leading to substantial inward investment and improved public health outcomes
Clinical Trials Unit established at a cost of £400m
recruitment of 80-100 additional research staff projected over 2-3 years
Warwick Business School
one of the world’s top business schools for teaching and research quality
Behavioural Science Group established in 2010, is the biggest institution of its type in Europe and works in partnership with the University Hospitals of Coventry and Warwickshire NHS Trust
new £2.9m Enterprise Research Centre to be hosted by Warwick Business School and Aston Business School
active dissemination of research to local firms
Science City Research Alliance
over £70m funding in the Region
created or safeguarded over 270 jobs.
The data presented in the previous section indicates the scale of the University’s involvement with local and regional organisations, and therefore the value that these organisations place on the University, but it tells us comparatively little about the nature of these interactions or the actual benefits. We discuss below some specific activities which illustrate how the research capabilities of the University are generating benefits within the Region. It focuses on a number of units and initiatives, including the Warwick Manufacturing Group (WMG), the Warwick Medical School (WMS), the Warwick Business School (WBS), and Science City Research Alliance SCRA).
26
Warwick Manufacturing Group
WMG, originally the Warwick Manufacturing Group, was established in 1980 and is one of the best known initiatives undertaken by the University. It currently employs around 450 staff, the majority funded by external grants and contracts with an annual budget of just over £120m. WMGs scale alone would lead to an international profile, but it quickly established an international reputation for the quality of its activities and for innovative ways of working with industry. The latter included:
a recognition that effective management of technology was essential to its successful exploitation and a determination to address management issues as well as the development of new technologies. In the 1980s this distinguished it from many engineering departments in the UK.
the co-location of university and company R&D staff. In the 1980s WMG established the Advanced Technology Centre on-campus which hosted researchers from Austin Rover, British Aerospace, and other companies, as well as WMG staff. This was one of the first UK examples of ‘embedded laboratories’ which have become more common in the last 10 years or so.
WMG leadership has been innovative and dynamic, but the University also played an important role in WMG’s development. It provided up-front support during WMGs establishment for what was, at the time, a new and relatively untested way of working with industry.
Working with Jaguar Land Rover
WMG has had close relationships with the automotive sector in the West Midlands since it was established and these have continued through restructuring and ownership changes in the sector. It currently works closely with Jaguar Land Rover (JLR), (and also with JLR’s parent, Tata). The relationship with JLR encompasses the location of 180 R&D staff from the company on-campus and this is part of the company’s strategy to triple vehicle production in the UK. JLR has committed to £100m of collaborative research over the next ten years; which will be equally funded by JLR, the University and public sources (such as the Engineering and Physical Sciences Research Council and the Technology Strategy Board). JLR R&D staff was located close to the University before the new arrangement, and there were constraints on expansion at the previous R&D Centres, but the company expects there to be real benefits from co-location with WMG.
"One of the reasons we are at WMG is that we have a saying at Jaguar Land Rover – not all the clever people work for us," - Tony Harper, head of research and advanced system engineering at JLR.
Research collaboration is key to the future relationship and will focus on aluminium alloys, controls for hybrid cars, battery technology and advanced entertainment systems. But there are other local impacts arising from the relationship:
JLR is funding a new Chair at WMG as a key element in its strategic relationship with Warwick. The Chair will lead a new team working to
WMG is dynamic and innovative organisation which has established a global reputation for working with industry
WMG has received financial and other support from the University since its establishment
WMG has especially close relationships with the automotive sector; JLR is a major partner
Other relationships have followed from research collaborations
27
achieve international research leadership in key hybrid/battery electric vehicle digital product innovation.
JLR has secured £70m funding from the Regional Growth Fund (RGF) which will support company R&D projects. Some of these funds will, directly or indirectly, support research at WMG. But, WMG also worked with JLR on preparing the bid. WMG has an excellent understanding of government requirements in such bidding processes and, we understand, materially enhanced the bid.
A major new initiative, the National Automotive Innovation Campus (NAIC), was announced in October 2012. This will be a £92m investment by the Government, JLR and Tata Motors European Technical Centre. NAIC will be jointly managed by WMG, Tata and JLR. The investment will support additional R&D but the aim is to bring to integrate and build on the various activities described, including under and post graduate education and the University Technical College40.
The Premium Automotive Research & Development (PARD)
The JLR association is the most recent high profile collaboration but there have been other interesting initiatives in addition to the very earliest collaborations with the automotive sector. The Premium Automotive Research & Development (PARD) was a £72m programme launched in 2003 with the purpose of improving the design and manufacturing capability of the West Midlands automotive supply base. AWM, the now defunct RDA, provided £38m funding and at one time 120 professional engineers and academics worked on nineteen separate projects within WMG with 200 active partner companies contributing personnel and resources. PARD assisted 605 businesses, mainly in the region, and is estimated to have generated £55.5m in value added41. Almost 5,500 jobs were safeguarded. JLR was also involved in PARD and succinctly summarised the benefits of the programme:
"It is important in today's highly competitive automotive market that we are able to offer a significantly differentiated product. To meet that demand we need to be able to draw on a wide range of specialist suppliers who understand the challenge. Before PARD it might have been difficult to guarantee that those suppliers would be available to us within the UK. Now we can say with confidence that the skills and capabilities we need are right here and accessible. Al Kammerer, director of product development JLR.
These examples have focused on the automotive sector, but WMG has also been successful recently in establishing centres in related areas which will benefit the region:
WMG centre High Value Manufacturing Catapult. This is the first Catapult established and WMG is one of six research partners. The Catapults are funded by the Technology Strategy Board and involve collaborative research with businesses. WMG's focus within the Catapult is on the international challenge of Low Carbon Mobility.
40 See Chapter 4 41 AWM evaluation of PARD.
Plans to establish National Automotive Innovation Campus on the University campus announced in late 2012. £92m investment from public and private sources
WMG led PARD which aimed to improve the design and manufacturing capability of the West Midlands automotive supply base
WMG’s contribution to the region extends beyond the automotive sector
28
Institute of Digital Healthcare (IDH). A £4m centre set up in partnership with NHS West Midlands, WMG and Warwick Medical School (WMS). The IDH aims to improve people's health and wellbeing through the use of innovative digital technologies.
The International Digital Laboratory. A multi-disciplinary research centre, originally supported by AWM, combining WMG’s expertise with that in underpinning sciences including psychology, medicine, computer science and mathematics. Businesses wishing to engage in hi-tech R&D are encouraged to come and discover the potential for cost-effective research at the Laboratory. Small and medium sized businesses (SMEs) in the West Midlands can access expertise and leading-edge technology free of charge.
WMG is, by any standards, an impressive organisation and we believe it illustrates a number of more general issues concerning the University of Warwick:
the University supported WMG’s establishment at a time when it represented a radical departure from traditional HEI-industry relationships in the UK, and was relatively high risk.
WMG is concerned with internationally leading edge research, albeit with the expectation of short to medium term impacts. This is essential for it to work with global corporations, but these relationships generate benefits and opportunities for less technically sophisticated (and smaller) businesses via supply chain linkages.
we believe that research relationships are key to WMG, but these have proved to be a platform for other initiatives which bring local benefits, for example the University Technical College42 (UTC) and the Advanced Skills Accreditation Scheme43 (ASAS).
WMG has demonstrated the potential benefits of cross-departmental collaboration, where required, for example, the Institute of Digital Health Care and the Digital Lab.
Warwick Medical School
Warwick Medical School was established in 2000, in partnership with the University of Leicester. In 2007 the School was granted independent degree awarding powers, marking the end of this partnership. Today the School employs over 400 academic staff and is ranked 10th in the UK for the quality of Health Services Research.
The School has a strong culture of cross-departmental working, and actively pursues the application of research in a real world context. Its research excellence has attracted a range of private sector partners, leading to substantial inward investment and improved public health outcomes. The Warwickshire Institute for Diabetes, Endocrinology and Metabolism (WISDEM) is a unique collaboration between the Medical School, the University Hospitals Coventry and Warwickshire NHS Trust and
42 See Chapter 443 Described later in this chapter
WMG’s success demonstrates and reflects: support and commitment from the University; how research of international standards can generate local benefits; how research relationships can be a platform for other interactions
Over 400 academic staff and ranked 10th in the UK for the quality of Health Services Research
Focus on leading edge research with real world applications
29
Danish pharmaceutical company Novo Nordisk. Funding from Novo Nordisk has been used to provide a hub for healthcare professionals to benefit from access to cutting edge research on the treatment of obesity and diabetes, and the opportunity to actively participate in the development of new treatments and approaches.
Since 2000, the School has developed a close working relationship with the University Hospitals Coventry and Warwickshire NHS Trust and others including the South Warwickshire Foundation Trust, George Eliot, Coventry and Warwickshire Partnership Trust, Birmingham and Solihull Mental Health Trust and the Heart of England Foundation Trust. As well as supplying a flow of high quality medical graduates, 178 students each year, the School has developed strong research/commercial relationships. In 2009 the Clinical Trials Unit building was completed at Gibbet Hill at a cost of £400m. The Unit now boasts 24 separate trials across its four major work streams of musculoskeletal conditions including injury prevention and management, cancer, clinical trials methodology and systematic reviews. This resource is also credited with raising the quality of clinical practice in the local area.
This steady rate of growth is set to continue over the next five years or so as the University seeks to develop its research credentials through collaboration with Universities across the West Midlands, and indeed the UK as a whole. Over the next two or three years, the recruitment of 80-100 additional research staff is projected as a result of investment in biomedicine, Health Sciences and Mental Health and Wellbeing and a new partnership between WMS and the Liverpool School of Tropical Medicine44.
Warwick Business School
Over the last 40 years, Warwick Business School has developed into one of the world’s top business schools for teaching and research quality. The school is now consistently in the top ten business schools in the UK, and in 2012, the Financial Times placed the schools MBA programme in the top 4 nationwide. Forbes ranks the School’s MBA programme the 8th best programme offered outside of the US. WBS works closely with other schools and departments. Collaboration with the Medical School, for example, was important in securing investment from Advantage West Midlands to establish Science City (discussed below).
In recent years, this commitment to world-class research has been showcased through the Behavioural Science Group. Established in 2010, this Group focusses on the interaction between the natural and social science approaches to understanding behaviours such as decision-making and rationality. The biggest institution of its type in Europe, the Group was recently successful in winning support from the Design Council to explore how hospital design can influence the levels of violence experienced by staff. Working in partnership with the University Hospitals of Coventry and Warwickshire NHS Trust, the initiative stands to benefit not only staff and patients across Coventry and Warwickshire, but the UK as a whole. The strength
44 Liverpool School of Tropical Medicine: http://www.lstmliverpool.ac.uk/
New Clinical Trials Unit established and credited with raising standard of patient care in the Region
Plans for continued growth
A leading UK business school with global recognition
An example of cross disciplinary working for the public sector
30
of the partnership is demonstrated by the decision to permanently locate a member of staff in the Council’s London offices.
The School also has a strong history of working with national, regional and local partners to develop the evidence base around enterprise and entrepreneurship, to ensure that business leaders are better able to meet the challenges of an ever changing marketplace. This is demonstrated by the recent decision by the Department for Business, Innovation and Skills45, the British Bankers Association46, the Economic and Social Research Council47 and the Technology Strategy Board (TSB)48 to invest in a new £2.9 million Enterprise Research Centre to be hosted by Warwick Business School and Aston Business School.
WBS undertakes commissioned research for individuals and groups of businesses but also actively disseminates research findings to regional organisations through a number of channels including:
The Warwick Breakfast Series in Birmingham. Meetings are addressed by WBS senior staff and external authorities. These are fee events open to senior managers in medium and large businesses or local government.
The Warwick Business Growth Network provides a forum for (SME) business owners to share ideas, experience and best practice and to access leading edge research. It developed from the Business Innovation and Growth Alumni Group comprised of owners who had attended an educational programme at WBS. It is based in the Enterprise Hub. There are two levels of membership: full, for those who have paid for a programme at WBS and costing £300 per year; and associate for those nominated by a member and costing £150.
Science City Research Alliance (SCRA)
SCRA is a partnership between the Universities of Warwick and Birmingham. It was catalysed through an initial grant of £10m from Advantage West Midlands, and £1m from the Wolfson Foundation, for staff and set-up costs. A further £57m investment in the regional research infrastructure has also been provided. The work of the Alliance is focussed on three high-growth technology sectors: Energy, Advanced Materials and Translational Medicine.
Work within the Energy Efficiency stream has focussed on research on new technologies for use in buildings and vehicles. Since 2007 this work stream has generated nearly £11m of research funding into the region, supporting the creation of 33 new jobs, and leading to the publication of over 90 peer-reviewed papers. Access to high quality facilities and expertise has led to the development of a number of ground-breaking regional (West Midlands), national and international partnerships with private sector partners. At Warwick, this has been showcased through the Alliance’s work with Cubewano, a Birmingham based high-tech
45Department for Business and Skills: www.bis.gov.uk 46 British Bankers Association: www.bba.org.uk 47 Economic and Social Research Council: www.esrc.ac.uk 48Technology Strategy Board: http://www.innovateuk.org/
A partnership with the University of Birmingham supported by the Regional Development Agency and others
Direct impacts on employment in the Region
Establishment of an Enterprise research centre with external funding
Active dissemination of research to local businesses
31
manufacturing firm, on optimising combustion in a new rotary engine.49 The output was subsequently awarded the Birmingham Post Business Award for Manufacturing Science & Technology in September 2010. On the back of this work an additional contract has been signed with BMW.
Research around the next generation of solar panels has led to a collaborative R&D project with West Midlands based, automotive painting company - Paintbox50. Subsequent to this initiative the company secured a contract with BMW. The Managing Director of Paintbox spoke of the competitive advantage, he felt Paintbox had derived from working with the Alliance:
“Paintbox has won a contract from BMW for the company’s prestigious Rolls Royce operation. The contract is worth 100million euros and will safeguard 100 jobs and create another 50. We won the contract in competition with companies in Germany and we believe that a significant factor that tipped the balance in our favour was the relationship with the University of Warwick and our access to the laboratory facilities of the Science City project.” James Sharp, Managing Director, Paintbox
The Advanced Materials work stream has focussed on the creation, categorisation and use of advanced materials such as nanoparticles and has led to nearly £12.5m of additional research funding, supporting the creation of 28 new jobs and the publication of 179 peer-reviewed papers. Access to high-tech equipment and facilities was crucial to attracting US software firm 3C Software51 to Science City, as they sought to understand the growth processes behind the development of superconducting structures. The company hope that this collaboration will continue as this market develops.
The third work stream is centred on Translational Medicine. The key objective in this area has been to develop the clinical trials infrastructure to the extent to which scientific advances can be effectively transferred into improved patient care. In close collaboration with the Medical School, the Alliance was responsible for a £5m investment in facilities resulting in the establishment of a new Clinical Trials Unit at Gibbet Hill. The work stream has been responsible for attracting nearly £28m of research funding into the region, nearly £11m of which can be attributed to projects led by academics at the University of Warwick. Over 94 new jobs have been created (49 attributable to Warwick) and academics have been responsible for producing over 200 peer-reviewed papers (51 attributable to Warwick).
The total impacts of SCRA, identified by independent evaluators are:
Jobs created: 258
Jobs safeguarded: 18
Business assists: 140
Knowledge base collaborations:138
49 Cubewano: http://www.cubewano.com/ 50Paintbox: http://www.paintboxuk.com/?utm_campaign=applegate.co.uk&utm_medium=referral&utm_source=applegate.co.uk 513C Software: http://www.3c.co.uk/
The programme has led to further business-university relationships
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Skills development: 1,141
Research funding leveraged: £13m
Businesses created or attracted: 9.
Investment in these high-tech facilities has been crucial, not only to research aimed at improving public health in the region, but securing additional private sector investment. For example, international digital and optical equipment manufacturer, Olympus has recently paid for the installation of a cutting edge microscope in the Centre for Mechanochemical Cell Biology. While Olympus52 has gained an opportunity to rigorously test their product, clinicians have gained access to new technology to assist them in making complex diagnoses. Through this project, Academics at Warwick have been placed at the forefront of international research in this area. It is hoped that as a result of this collaboration, Olympus will continue to increase its presence in the West Midlands.
High level skills
23,226 alumni are resident in the West Midlands. They make up 3% of the West Midlands population qualifies to NVQ level 4 and above
In the last 3 years. 19% of graduates were resident in the Region six months after graduation
WBS provides
a one year Diploma in Applied Management attracted 50% of the students from the West Midlands
It has developed long-term training partnerships with local employees including: Warwickshire Fire and Rescue; Network Rail; Coventry City Council; and Coventry and Warwickshire NHS Trust
WMG
launched the Advanced Skills Accreditation Scheme (ASAS) offering engineers the chance to develop green and future engineering skills /…
entered an agreement with Jaguar Land Rover to teach up to 600 Jaguar Land Rover employees to degree level
In 2010/11, the University delivered £1.9m in Continuing Professional Education to organisations in the Region
Many would argue that the principal economic (and social) impact of a university arises through its role as an educator and trainer. There is a never ending debate on the relationship between academic research and undergraduate teaching quality, but it is certainly the case that Warwick’s research strengths are one factor explaining 52Olympus: http://www.olympus.co.uk/
Leveraging of additional investment into the Region
Warwick graduates are high quality and recognised as such
33
the very high level of applications the University receives and, as a result, the quality of its students and graduates. There is little doubt that research and post graduate education are closely linked. The quality of Warwick graduates and postgraduates is widely recognised and a recent survey of the UK's one hundred leading graduate employers53 identified Warwick as the leading target for recruitment of all UK universities.
Graduate retention
Provided there are suitable job opportunities, many graduates will stay in the area of the university they attended as the social links they have established while studying endure after graduation. Data on Warwick alumni shows that 23,226 graduates and post graduates of the University are still resident in the West Midlands, almost 13,000 of these in Coventry and Warwickshire. In fact Warwick graduates account for 3% of the West Midlands population with NVQ Level 4 qualifications and above, asignifcant proportion of the highly skilled labour force.
The above figures reflect many years’ graduates and the University has expanded rapidly in recent years. The trend has, however, continued. We analysed records of just over 23,000 students who graduated from the University between 2008/09 and 2010/11. Alumni data enabled us to identify the current postcode residence of graduates and this is presented in Figure 3-7.
Figure 3-7: Residence of Warwick graduates
Coventry & Warwickshire
Rest of West Midlands
Rest of UK Overseas Unclassified0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2008/09
2009/10
2010/11
Nu
mb
er o
f stu
den
ts
Source: SQW analysis based on University of Warwick data.
Over the last three years, 4,476 (19%) of graduates were living in the Region54. And the proportion was approximately the same for each year’s cohort. This means that the three year graduate output from the University, staying in the region, is approximately 0.5% of all residents qualified to Level 4 and above. Although small in
53 High Flier Research January 2013 http://www.highfliers.co.uk/54 At least six months after graduation.
Warwick graduates are likely, over time, to add significantly to skills availability in the Region
34
relation to the stock, over time Warwick graduates are adding significantly to skills availability in the Region.
Training for local companies
Warwick Business School, working in collaboration with Departments across the University, offers a menu of education and training options for organisations across the public, private and voluntary sectors. At the heart of the University’s offer is the desire to share cutting-edge thinking and research with external partners. The School is responsible for running a range of half-day sessions on critical business issues. Run on a monthly basis, seminars alternate between the campus and the Institute of Directors in London55. Recent events have included: ‘Developing your Brand for Personal Success’ and ‘Exploiting Emotional Finance in Practice’. These events have been well attended, and the School hopes to run the next series in a ‘business breakfast’ format. This offer is supplemented with a range of formal and ad hoc. For example, recent work with the Bank of England has placed the school in a position to offer quarterly briefings to coincide with the Banks quarterly inflation report56. With growing interest from local firms in this type of intelligence, it is hoped that these sessions can become part of the School’s staple offer.
A demand by West Midlands employers to access research expertise of the University has led to the creation of an Executive Network57. Members are able to work with staff at the School to create an annual programme of lectures, master classes and seminars, designed to meet their needs. Recent master classes have included ‘Creating Competitive Advantage through Collaborative Working’, and ‘Complex Decision-Making in a Changing Environment’. Membership is varied including a range of private sector employers across the region including Coventry Building Society58, and Birmingham City Airport59.
In addition to the Warwick MBA, the school offers a range of accredited courses, designed to meet the needs of employers. Now in its third year, the School offers a one year Diploma in Applied Management. Within the most recent cohort, 50% of the delegates were from the West Midlands. Recent participants have included those from a range of local and regional employers including Eon, the Agricultural and Horticultural Development Board, and Warwickshire Fire and Rescue.
Through this type of work a number of long-term partnerships have developed with West Midlands employers, including:
Warwickshire Fire and Rescue: Over the last five years, the School has worked with the Warwickshire Fire and Rescue service to deliver an accredited course for Brigade Managers. To date around 30 delegates a year have graduated from this scheme.
55Institute of Directors: http://www.iod.com/ 56 Bank of England: http://www.bankofengland.co.uk/Pages/home.aspx 57 Warwick Executive Network: http://www.wbs.ac.uk/courses/professional/ 58 Coventry Building Society: www.coventrybuildingsociety.co.uk/ 59 Birmingham City Airport: http://www.birminghamairport.co.uk/
Warwick Business School provides a wide range of programmes, both with and without credit
Creation of a network for Regional employers
Accredited courses for employees with a strong Regional demand
Close partnerships with major employers in the Region
35
Network Rail: Over the last six years, the School has worked with Network Rail to develop a suite of qualifications for staff at all levels within the organisation from middle-management to senior executives. Over two-hundred staff receive training each year. Working with colleagues in the Warwick Manufacturing Group, and the Department of Engineering, the School has been able to offer a bespoke programme covering sessions on procurement in the transport sector to effective leadership practices.
Coventry City Council: From 2009-2011, the School worked with Coventry City Council to deliver an in-house version of the Diploma in Applied Management. Tailored to the needs of managers in a public sector organisation, the programme was delivered to over 300 public sector managers.
Coventry and Warwickshire NHS Trust: Working with the Medical School, the Business School has assisted in the development of courses for healthcare professionals on a diverse range of topics from Clinical Leadership, to the dangers of drug misuse. A large number of these programmes are accessed by professionals from Coventry and Warwickshire.
WMG launched the Advanced Skills Accreditation Scheme (ASAS) in June 2012. This offers engineers the chance to develop green and future engineering skills. It is led by Semta (the sector skills council for Science, Engineering and Manufacturing Technologies) and supported through the Government’s Growth and Innovation Fund with additional finance from the UK Commission for Employment and Skills. WMG will manage the coordination of relationships with educational establishments while an Employer Board, featuring representatives of leading technology companies and chaired by JLR, will oversee the quality and delivery of the overall project.
JLR has already begun the largest advanced engineering skills programme in the UK, to help us to deliver our low carbon vehicles of the future. We are planning for more than half of our 6,000 engineers to take part in the programme. If UK companies are going to be able to compete successfully in the future, we need to raise the skill levels throughout the supply chain and UK manufacturing as a whole. Mike Wright, JLR Executive Director.
WMG has also recently entered an agreement with Jaguar Land Rover to teach up to 600 Jaguar Land Rover employees to degree level in product engineering and manufacturing engineering. Up to 100 Jaguar Land Rover staff will take up their places as sponsored degree students in October 2013- January 2014.
Creating and supporting new businesses
17 spin-outs from the University are located in the West Midlands and employ 99 people
There are 138 businesses located on the Warwick Science Park campuses
Up skilling for engineers in green technologies
A degree level programme for employees
36
Since 2006/07 the Warwick Science Park has
assisted 1,800 businesses (most not located on the Science Park)
attracted 24 companies to the Region
created 66 businesses
safeguarded or created 291 jobs.
The University has itself established businesses, the most important are: Warwick Conferences and Unitemps (an online recruitment service).
The University works closely with established businesses within and outside the Region, but it also helping to create new businesses for the future. The relative importance of universities in creating new businesses is sometimes overstated, but it is nonetheless important and we conclude this section with a discussion of spin-outs, technology sale and licensing and the Science Park (and associated developments).
Spin-outs
Warwick, in common with other UK universities, permits academic staff to establish spin-out companies. It recognises, however, that this will only be appropriate for a small proportion of staff; few will have the commercial knowledge, or interest, to start new businesses and there may well be more effective means of transferring University knowledge and expertise and generating economic impact. Nevertheless, the University, through Warwick Ventures, does provide support to staff, in a variety of ways, where there is a commitment to this means of commercialisation and a sound business case. This includes investment funds, incubator space and general business advice.
Figure 3-8 shows the cumulative number of spin-outs established since 1999, the first year for which data is available. In total, the University invested £470,000 in these companies and they have raised additional external investment of £49m. Around one half were licensing technology owned by the University. Just over 23 of the spin-outs were located in the Coventry and Warwickshire sub-region (11 in University owned premises) and one third in the West Midlands as a whole60.
60 As defined elsewhere in this report
75 spin-outs established of which 33 are still trading
External investment of £49m secured
17 in the West Midlands employing 99
37
Figure 3-8: University of Warwick spin outs (cumulative including those which have ceased trading)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
10
20
30
40
50
60
70
80
Source: University of Warwick data.
The 75 spin-outs shown in Figure 3-8 include those which have subsequently gone out of business, or are dormant, as well as those still trading. The attrition rate for what are mainly technology-based start-ups is high, and of the 75 companies established 3361 are still trading. Seventeen are located in the West Midlands and we have employment data for 13 of these. There are 99 staff in total.
Technology sale and licensing
The University currently has 29 active licensing deals. They are managed by Warwick Ventures and have, in total, generated almost £640,000 revenue for the University. Only one licensee is based in the West Midlands.
The Science Park
The Science Park was established in 1982 as a joint venture between the University and Coventry City Council, Warwickshire County Council, and the West Midlands Enterprise Board, but since February 2012 has been fully owned and controlled by the University. The University of Warwick Science Park comprises four developments at three locations: the Warwick Science Park and Warwick Innovation Centre (both on Campus); and Innovation Centres at Binley and Blythe Valley.
The science park is distinctive in that it provides a full range of business support services, and these are available to businesses elsewhere in the West Midlands. The focus, to date, has been very much on small firms, but the strategy has been development and growth rather than incubation of start-ups. The main services at present are:
mentorship for start-ups
61 This includes 8 companies in which the University has disposed of its financial interest which are no longer tracked.
138 tenants
Over 1,800 businesses assisted since 2006, safeguarding or creating almost 300 jobs
38
access to finance – the Science Park team manages the Minerva business angel network and offers more general support for firms seeking investment funds
technical marketing advice including market appraisal and product review
strategic consultancy and business plan development.
Table 3-8 shows the current occupants at all sites. Over 75% of these tenants employ fewer than 10, but in aggregate the Science Park is supporting a substantial number of jobs.
Table 3-8: UWSP Tenants 2012
Location Tenants
Warwick Science park 47
Warwick Innovation Centre 44
Blythe Valley innovation Centre 20
Binley Innovation Centre 27
Total 138Source: UWSP
University Businesses
The University has itself established businesses which have developed from a need to provide services connected to academic activities but distinct from them. The most important are62:
Warwick Conferences. The University can accommodate up to 1,800 delegates in four venues around the campus and up to 1.700 on a residential basis. This year, Warwick Conferences was awarded gold medals for best value for money conference centre and best academic venue and silver for best management training centre in the Meetings and Incentives Travel Awards. It has won gold in the best academic category 18 times in the awards 25 year history.
Unitemps. An online recruitment service which, supplies temporary staffing to leading universities and commercial businesses across the UK and globally. The University is seeking franchise partners and branches have so far been established at eight other UK universities.
Concluding commentsThis section has presented data on the University’s research and links with local organisations, and descriptions of specific initiatives. We consider that it illustrates a number of key features concerning the University and its Region:
62 List of commercial services provided by the University can be found at: http://www2.warwick.ac.uk/business/services
39
many of these local impacts did not arise because they were consciously sought by the University. Rather they reflect research excellence and the attraction of organisations wishing to work with the University because of this. Proximity has, nevertheless, facilitated relationships in at least some cases
interdisciplinary has been important, and essential in some cases, and University staff have demonstrated a willingness and capability to embrace this where necessary
the nature of impacts is far wider than the commercialisation of new ideas emerging from the University and local benefits have arisen in many ways
some of the research and other partners are global organisations and it seems reasonable to assume that these relationships have raised the profile of the West Midlands nationally and internationally although we have no tangible evidence of this leading to inward investment so far. This issue is discussed further in the last section of the report.
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4. Civic role and public engagement
OverviewThe previous section discussed ways in which the University contributed to the region through working with local businesses and other organisations. The University, and its staff and students, also contribute to the local area and the region in other ways described in this chapter. These activities are more diffuse than, for example, research relationships and there is much less information on scale. They are, nevertheless, an important local impact channel. They provide direct benefits to the local community and can also be a valuable component of student educational programmes. In addition, these activities help to build relationships, and understanding, between the University and its community and thereby facilitate more traditional interactions between the University and external organisations.
This chapter is divided into four sections. The first describes formal, and some informal, examples of civic engagement. The second is concerned with specific activities to raise aspirations and achievement in the local community and is focused on the widening participation agenda. This is followed by a discussion of the ways in which the University’s core academic activities are leading to enhanced services in the local area. It concludes with a discussion of access to cultural and sporting activities at the University.
Community and civic engagementMembers of staff on the Coventry and Warwickshire LEP board
Senior University staff meet regularly with closest Local Authorities
Stakeholder Relations Team engages with many different community and local stakeholders
Local residents and officials attend University social and ceremonial occasions
Over 2,000 students and staff each year participate as Warwick Volunteers, many undertake a volunteer placement in a school in the Warwick or Coventry area.
The Local Enterprise Partnership
The University currently has two members of staff on the Coventry and Warwickshire LEP board, a high-level of university representation in comparison to other LEP Boards. It plays an active part in helping the LEP develop economic strategy and successfully bid for funding from the UK’s Regional Growth Fund. The University is currently involved in working with the LEP to develop a City Deal for Coventry and Warwickshire focussed on skills in advanced manufacturing and automotive engineering.
Partnership for economic development
41
Warwick District Council and Coventry City Council
Senior staff from the University and its closest Local Authorities meet on a regular basis to share information, explore mutual opportunities and work closely on issues related to economic, social and cultural development in the region. This liaison is a valuable and effective way of enabling the University to support regional partners at a strategic level.
The University is currently supporting Coventry City Council’s presence at the major international development/inward investment fair MIPIM, in March 2013. It is represented on the Coventry Partnership board, as well as working with our public sector partners on several thematic groups.
Supporting the local community
The University's Stakeholder Relations Team engages with many different community and local stakeholders - helping keep in touch with local people, listening to their concerns and updating them about what goes on at the University. Its magazine, Community, is distributed twice a year to over 5,000 local residents and other stakeholders in the sub-region.
Every year for the past decade, the University and the Vice-Chancellor invites local residents, elected officials and officers onto campus for a Christmas Festive Reception. This annual event is always well-attended and has helped contribute to excellent relationships and understanding between the University and the local community. Civic dignitaries are, likewise, a formal part of the University’s bi-annual degree congregation ceremonies.
University and Students’ Union staff attend a range of different local and community groups and forums in areas where students live. University and Students’ Union staff are also represented on the Kenilworth and Leamington Town Centre Partnerships.
Warwick Volunteers
Over 2,000 students and staff each year sign up as a Warwick Volunteer. Many of these go on to undertake a volunteer placement in community groups, charities and schools in Warwick district or Coventry area. With support focussed on schools in disadvantaged areas, the volunteers support a range of activity aimed at improving performance outcomes of programme beneficiaries63. The volunteers support a wide range of projects including:
The Right to Read, volunteers offer an hour a week as a reading volunteer in a local primary or secondary school. Often targeted at under-performing young people, this programme assists in improving the literacy, confidence and self-esteem of young people.
Fun with Numbers: an hour a week to helping local primary and secondary school pupils develop numeracy skills. Delivered in an informal way –
63Warwick Volunteers: http://www2.warwick.ac.uk/about/community/volunteers/
Students and staff working in the local community
Strategic partnerships with Local Authorities
Central management of stakeholder relations
42
principally through maths based board games, this programme assists in raising children's mental arithmetic and confidence with using numbers.
mentoring designed to encourage pupils from local secondary schools to consider going to university. Mentors are responsible for planning and delivering weekly activity sessions based on a different aspect of university life or careers, or any other relevant topic to help the pupils realise their full potential in education.
One study64 has estimated the Volunteers programme makes a contribution to the local community of almost £1m. This estimate is based on the potential alternative costs of: raising aspirations, developing reading, language and numeracy skills among school children as well as increasing cultural understanding and tolerance through mixing with the local population.
The view of Warwick Students’ Union is that while a student may only be a resident of the West Midlands for a short time, this should not prevent them from being a constructive member of their local community. This commitment to engagement in the local community is evidenced by the increased participation of University of Warwick students in community organisations, increased volunteering, and ultimately the large number of students that choose to remain within the region following their studies. Over recent years an increasing number of students have taken on roles in local community organisations, be that as a school governor, a member of their community safety team or as a member of their local residents association.
Volunteering can contribute to improved job prospects for students as employers value the skills and learning gained from volunteering. Warwick Volunteers can manage their own project and gain relevant experience for different careers (e.g. teaching, finance, law). The ‘soft’ skills (team work, communication, leadership, organisational etc.) gained from volunteering are also attractive to employers.
Further, Warwick student volunteers can work towards gaining formal recognition/accreditation for volunteering, for example through certification and ‘Warwick Advantage’65. The latter assists in presenting the skills gained through volunteering more attractive to graduate employers. There is also external recognition of the University’s volunteering activities, for example, through the Warwick Volunteers ‘create a project’ competition funded by Santander Universities for the development of project for the benefit of the local community.
Overall, we consider the University’s extensive range of volunteering activities and organised approach to volunteering assists not only the volunteers themselves but also the local communities which they serve.
Widening participation: raising aspirations and achievement
64 Degrees of value, nef http://www.neweconomics.org/publications/degrees-of-value65 https://go.warwick.ac.uk/advantage
43
In 2010/11 the University committed to investing over £500,000 in outreach activities. This will rise to £1.9m by 2016. The University plans to spend in excess of £1m of its own funds on fee waiver support during the 2013/14
5,000 school pupils receive support from the Chemistry Department. Schools from within the West Midlands access a range of support from the Access for All initiative; designed to build confidence in those least likely to go to University
Each year 50-80 local school pupils from years 10-12 are invited to stay at the University in order to challenge perceived barriers to attending University
70 schools in the Districts of Warwick or Coventry attended a session run by Warwick Arts Council, designed to promote artistic and cultural engagement
Over 60 Warwick students have been involved delivering sessions to over 300 school students through the Warwick Inspire programme
22 Local Authorities, including Birmingham and Coventry, participate in a programme for gifted and disadvantaged children
Pathways to Law supports 50 school students each year through a three year programme Realising Opportunities, involving 11 other universities – this was awarded the times Higher Education, Widening Participation Initiative of the year in 2012.
In 2011, the Government set out its plan to reform Higher Education and a key objective is to improve the performance of HEIs as ‘engines of social mobility’66. The University’s Statement of Fair Access 2013-1467 sets out, in part, the steps to be taken by the University to encourage widening participation, and analyses its recent performance. The University’s commitment to raising aspiration and achievement is shown through its’ performance against key benchmarks. The University compared itself with the 10 UK universities requiring the highest entry qualifications from applicants:
Warwick has the highest number of state school educated students
it has the second highest proportion of students from the lowest socio-economic groups
it has the third highest proportion of students from low participation neighbourhoods.
In 2010/11 the University committed to investing over £500,000 in outreach activities. This will rise to £1.9m by 2016.68 The University plans to spend in excess of £1m of its own funds on fee waiver support to Home/EU undergraduate students
66Students at the Heart of the System, The Department for Business, Innovation and Skills, 201167 OFFA Access Agreement for academic year 2013/14 http://www.offa.org.uk/agreements/University%20of%20Warwick%200163%20access%20agreement%202013-14.pdf68Warwick Statement of Fair Access: http://www.offa.org.uk/access-agreements/searchresult/?inst=University of Warwick
Warwick scores highly on a number of indicators
The University is investing significant sums from its own resources
44
during the 2013/14 academic year and expects that more than 15% of Home/EU undergraduate entrants will receive an award. Targets include:
raise the number of full-time young entrants to the University from state schools from the 09/10 level of 1,880 to 2,040 by 2020
raise the number of full-time young entrants to the University from the lowest socio-economic groups from 400 in 2009 to 530 by 2020
raise the number of full-time young entrants to the University from low participation neighbourhoods from 140 in 2009 to 170 by 2020
in addition, the University is seeking to increase the proportion of mature UK learners registered on full-time and part-time programmes from 450 to 600 by 2020.
Some of the main initiatives undertaken by the University are set out below.
Access for All
Access for All is a new initiative targeted on lower socio economic groups who would have previously received support from Aimhigher69. Unlike AimHigher, support is targeted at Primary and Secondary school pupils, with additional support available to pupils with special needs. Activities are designed to not only encourage young people to consider university but think about the career path that most suits their aspirations; be that through University study or though taking up an apprenticeship. The University also runs a residential summer school programme. Each year 50-80 local school pupils from years 10-12 are invited to stay at the University. This programme is designed to challenge perceived barriers to attending University and living away from home. Academic taster sessions are complemented with skills development sessions, which aim to build the confidence of participants and with it the belief that University is a place where they could thrive.
Realising Opportunities
Realising Opportunities is a collaboration of 12 leading universities promoting fair access to higher education and encouraging social mobility, for able students from under-represented groups. The Partnership was awarded the times Higher Education, Widening Participation Initiative of the year in 2012. Following the end of the initial pilot each partner has agreed to support the initiative moving forward through a financial contribution of £35,000 per annum.70 The programme is targeted at the ‘most able but least likely’ to go to University, and aims to raise aspirations and encourage students to demonstrate their potential at a research intensive University. All participants are asked to attend the programme’s national conference and complete an assessed task. On the basis of this task, participating Universities have committed to making reduced UCAS offers. Thus far, over 60 students have chosen to take-up reduced offers at Warwick following participation in the scheme.
69 AimHigher was a centrally funded programme recently discontinued 70Realising Opportunities: www2.warwick.ac.uk/study/outreach/.../realisingopportunities/
A follow on to AimHigher
Collaboration with leading universities
45
Goal
In recognition of the particular needs of disadvantaged students designated gifted and talented, the Goal programme takes a cohort of 100-200 year 10 students through a four year programme of targeted support. Where possible, support is also provided to a participant’s parents and teachers, through access to a range of campus based events. The aim is to provide information on how best to support members on their journey too, and through HE. At the present time, 22 Local Authorities, including Birmingham and Coventry, have agreed to participate in the programme involving 50 schools nationwide.71
Gateway for the Gifted and Talented
The International Gateway for Gifted Youth (IGGY)72 was created by the University of Warwick as a way of supporting the brightest and most creative young people from around the world to realise their full potential. The aim is to the support the widening participation agenda on an international level and to train gifted young people. This takes the form of an international learning and social community, providing online courses and face-to-face programmes (e.g. international summer schools; providing contacts with leading academics; and various other programmes with an educational and social purpose). IGGY members pay an annual subscription, but free memberships are available for disadvantaged students and schools.
Pathways to Law
Pathways to Law is a national programme developed by the Sutton Trust and the College of Law, which aims to support school students, particularly from disadvantaged communities to embark on a career in the legal profession. At Warwick a cohort of 50 students, who must be attending a state school and live within 50 miles of the University, each year is supported through a three year programme of support. A mixture of academic seminars and focussed information, advice and guidance, aims to assist students make competitive application and access appropriate work placements, providing them with the stepping stones they need to reach their potential. The University is considering extending this approach to other degree subjects.
Warwick Inspire
Warwick Inspire, run in conjunction with the Students’ Union, aims to raise aspirations. Students, after training, are matched with a local school in a low participation area and design a project that involves sharing their experiences of university with school students, aged 12-16. Over 60 Warwick students have been involved delivering sessions to over 300 school students.
71Goal: http://www2.warwick.ac.uk/study/outreach/programmes/goal/ 72 https://www.iggy.net/
Programme for gifted students
Network for gifted children
Support for students in association with the Sutton Trust
Students working with schools in low participation areas
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Chemistry Schools programme
Most of the above initiatives are university-wide and some are undertaken in collaboration with other universities. We also reviewed a successful single department initiative operated by Chemistry. Over 5,000 school pupils (6-18 years) each year receive support from the Chemistry Department through their Chemistry Schools programme. Warwick district and Coventry schools (within a 10 mile radius of the University) are able to access from a menu of support. There is no cost to participating schools/students. Key activities include:
in university programmes - schools can bring groups of students to the Chemistry Department in order to participate in teaching laboratories, tours, tutorials and workshops
school visits - a visit from the team. Depending on the age of the audience academic staff can give lectures about research at the University, or teach some of the basics through a live scientific experiment
work experience placements - secondary school students can apply to take up a work experience placement at the University.
teacher training - work with teachers for training purposes, including overseas teacher training in Africa.
Feedback from participants in the programme was positive. One primary school teacher felt engagement had been crucial to raising the profile of science at their school, improving engagement, attainment and increasing the number of students that pursue science subjects following their transition to secondary school.
Warwick Arts Centre
As well as an artistic and cultural venue, Warwick Arts Centre employs a dedicated Education team to support outreach activity across the West Midlands. In 2010/11, the team delivered over 900 sessions, reaching over 15,400 participants. This programme reached over 70 schools from Warwick and Coventry. Activity is supported largely through institutional grants and donations. Key funders include Coventry Children’s Fund, the Arts Council and the Wellcome Trust. The Centre’s activities are structured around three work streams: Curriculum Enrichment, Children and Family Workshops and Arts Education Programmes. (See below for further discussion on the Warwick Arts Centre).
Providing services to the community
WMS
around 520 students will be undertaking clinical placements in the West Midlands at any one time
A major programme in Chemistry with schools
The Arts Centre working with schools
47
The Clinical Trials Unit, has provided patients from the West Midlands with access to cutting edge treatments
The Warwick Healthcare Partnership is to develop solutions, to chronic diseases that affect resource-poor communities locally and overseas
Centre for Lifelong learning provides learning programmes and qualifications for those who may not have had a real opportunity to enter HE when they left school
A proposed ‘WMG Academy for Young Engineers at the University of Warwick’ has become a new University Technical College (UTC) project and will cater for 640 students from the Coventry, Warwickshire and Solihull areas
Warwick’s Institute of Education
admits around 500 students each year. In 2010/11, 178 were working as teachers in the West Midlands
hosts the West Midlands Centre for Excellence in Teacher Training which provides information and guidance services to teachers and trainers and a range of specialist training programmes
The WBS, working with the Institute for Education, has launched the ‘Teaching Shakespeare’ initiative alongside the Royal Shakespeare Company.
The Warwick Medical School
While much of the research and commercial activity of the University operates at a national, and international level, this can still generate social benefits in the local community and the region. This is especially evident in relation to the Warwick Medical School. The Warwick Medical School is a key regional provider of medical graduates. Many of these will remain in the region after graduation, but there are direct benefits generated while training. The School admits 178 students each year and each will spend four years in total at the University. Around 520 students will be undertaking clinical placements, either at local hospitals or GP practices in the West Midlands at any one time.
The presence of medical students within healthcare settings brings a number of benefits for public health outcomes, including improved funding, the capacity to attract better quality staff (particularly at a senior level), and the adoption of more modern and innovative approaches. While the School works with Hospitals across the West Midlands, a particularly close relationship has developed between the University and the University Hospital of Coventry and Warwickshire (UHCW). This relationship has been instrumental in transforming the quality of clinical practice at the Hospital from one of the very worst, to one of the very best in the Country.
A particular development in recent times has been the gradual expansion of the Clinical Trials Unit, situated at Gibbet Hill; this has provided patients from throughout the West Midlands with access to cutting edge treatments. Present areas
Around 520 Warwick students will be active in health care providers across the West Midlands
Establishment of clinical trials unit generates benefits for local patients
Regional benefits of a Medical school
48
of focus are Emergency Care, Critical Care and Rehabilitation, and Cancer. Some patients from UHCW will have access to negative pressure wound therapy in the treatment of an open fracture of the lower limb. It is hoped that this treatment will lead to a reduced occurrence of post-fracture infection and improved recovery rates, leading to improved public health outcomes at a reduced cost to the public purse.
Access to cutting edge facilities, while essential for maintaining the Schools reputation for research excellence also provides for the improved diagnosis and treatment of patients. Funded through the Science City Research Alliance, The Human Metabolism Research Unit houses two of the world’s most advanced Whole Body Calorimeters, allowing clinicians to reach a much more accurate diagnosis, where patient’s energy profiles differ from the norm.
Warwick Healthcare Partnership
An innovative partnership has recently been established involving the University, GE Healthcare, University Hospitals Coventry and Warwickshire Trust (UHCW)73. The Partnership is also supported by Coventry Council. The aim is to develop solutions, to chronic diseases that affect resource-poor communities locally and overseas. It is very early days for the Partnership, but priorities for the Coventry area have been discussed and activities will begin in the first quarter of 2013.
"This Partnership is closely aligned with GE's healthymagination aims of providing better health for more people. In this case it's about analyzing the needs of resource poor communities, and establishing sustainable programmes that can be driven and developed locally with continued support from the consortium." Dr. Alan Davies of GE Healthcare.
More generally, WMS staff are members of NHS, and other Boards, inside and outside the region and are considered to influence research and clinical agendas more widely than the specific projects they are involved in.
Centre for Lifelong learning
The Centre for Lifelong Learning (CLL) has changed substantially over recent years. Previously, an important strand of activity was providing HE level courses to those whose main motivation was an interest in the subject area. The Government decision not to fund equivalent Level Qualifications meant that the University could no longer provide these courses on the same scale. Today, CLL is more focused on providing learning programmes and qualifications for those who may not have had a real opportunity to enter HE when they left school. Many of these programmes are delivered on a part-time basis, sometimes in the evenings, and the vast majority of learners are from the local areas. Current programmes include:
150 students on “2+2” where study is split between the University and a FE partners
200 part-time undergraduates
73 http://www2.warwick.ac.uk/newsandevents/pressreleases/warwick_healthcare_partnership/
Global partnership with Regional benefits
A major opportunity for those who missed out on HE when leaving school
49
200 students on Foundation degrees
a wide range of continuing professional development programmes.
CLL still provides Certificate/ Open Studies programmes and although reduced in number these still attract around 400 students, almost all from the local area.
WMG Academy for Young Engineers
A proposed ‘WMG Academy for Young Engineers at the University of Warwick’ has become a new University Technical College (UTC) project, approved under the government’s academies programme. This gives the go-ahead for a new state-of-the-art school close by the University of Warwick campus to cater for 640 students aged 14-19 from the Coventry, Warwickshire and Solihull areas. The aim is to provide young people, with an interest in engineering, a better way of learning and realising their ambitions. It will deliver a richer array of educational and employment opportunities to them, and to the local economy. The UTC is supported by JLR, Tata and 40 other local organisations and WMG was instrumental in assembling the consortium and its bid
"The growth of Jaguar Land Rover can only be sustained if we and our suppliers can find the right people with the right skills. WMG Academy for Young Engineers (at the University of Warwick) will be right on our doorstep, and is being led by WMG, which is already at the heart of our collaboration with universities on research and development and developing high level skills in our workforce. It will help to address very important issues at the beginning of the educational cycle, namely exciting young people about careers in engineering, and developing the pool of talent which we can all rely upon for future generations to come." Dr Ralf Speth, Jaguar Land Rover Chief Executive.
Teacher training
Warwick’s Institute of Education admits around 500 students each year. In 2010/11, 271 students completed their course and 27174 had found employment as teachers. Of these, 178 (66%) were working in the West Midlands. These new teachers are a major asset to the local area, providing an influx of new teaching techniques, and a commitment to improving educational outcomes.
Warwick also hosts the West Midlands Centre for Excellence in Teacher Training (WMCETT). This was originally (2007) funded by the Quality Improvement Agency but has continued to operate post-funding. It provides information and guidance services to teachers and trainers and a range of specialist training programmes.
The Business School, working with the Institute for Education, has launched the ‘Teaching Shakespeare’ initiative alongside the Royal Shakespeare Company (RSC). This new joint venture, aims to transform the classroom experience of Shakespeare through delivering high-quality online professional development for teachers. At the heart of Teaching Shakespeare is a specially-created set of online resources offering
74 Most of the remainder were seeking employment.
The University takes a lead role in school education
66% of Warwick trained teachers find employment in the region
An initiative for teaching Shakespeare
50
teachers unique access to a rehearsal room to gain confidence in teaching Shakespeare's plays through the performing arts. The venture aims to provide up to a thousand teachers a year, from around the world, with access to the RSC's resources and creative talent. Alongside the bespoke online platform, teachers can choose to access an intensive one week course delivered in Stratford-upon Avon. The aim is to transform pedagogical practice through exposure to the real-life rehearsal and performance process. Both of these courses are designed in order to provide a stand-alone package, or provide the building blocks for further postgraduate study. Following attendance of a course, teachers also have the opportunity to work with an academic tutor to gain their own postgraduate qualification, in the teaching of Shakespeare, accredited by the University of Warwick, and delivered in conjunction with the Institute for Education.
Cultural and sporting facilities
The Warwick Arts Centre is the second largest in the UK, 62% of visitors come from Coventry and Warwickshire
An independent study estimated the total value to the local community from the Arts Centre to be £27.7 million
The University’s sporting facilities were classified as 5* by the Times Good University Guide in 2007 - most to non-university residents
Events held on campus include: the International Children’s Games in 2005; the UK Schools Games in 2007 and the British Transplant Games in 2009.
Warwick Arts Centre
The Warwick Arts Centre is the second largest in the UK and has a major role in the social and cultural life of the region. This is reflected in the decision by the Arts Council to award the Centre National Portfolio status. The Centre prides itself on its innovative contemporary programme, bringing world-class performances to the West Midlands. In 2010/11 the centre put on nearly 494 individual performances, making up a combined audience of just fewer than 270,000.75
In 2010/11 the Centre recorded an income of £5.1m and ticket sales accounted for 37% of this income.76 The Centre made available data relating to the residence address of audience members and analysis shows that the majority of visitors to the Centre come from the immediate area:
62.4% of the total number of visitors come from Coventry and Warwickshire
11.0% come from the rest of the West Midlands
13.3% from rest of the UK
13.3% were unclassified.
75Warwick Arts Centre: http://www.warwickartscentre.co.uk/ 76 Warwick Arts Centre, Annual Report 2010/11
High demand from local residents
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The centre is, therefore, very much a local asset. As well as a source of employment for 45 people, the Centre itself provides a significant source of expenditure in the region. More important may be the indirect expenditure impacts as touring parties increasingly use the Centre as their base of operations.
The Centre also functions as a key element in the University’s venue/conferences offer. Butterworth Hall is the Centre’s principle venue and now can now support 1,500 people. During 2007-2009 the hall underwent a 6.9m refurbishment programme, leading to a two-storey extension and total overhaul of its facilities. Supported by donations from across the private and third sector, this refurbishment will secure the future of the venue as one fit for the 21st century. The Centre as a whole is seen as a major asset in attracting potential clients to the wider conference business.
An independent study77 of university impacts estimated the total value to the local community from the Arts Centre to be £27.7 million.
Sport at Warwick
The University’s sporting facilities are extensive and impressive and were classified as 5* by the Times Good University Guide in 2007. They are located on three main sites:
the Cryfield Pavilion has over 60 acres of playing fields
the Westwood area of campus is designed as a mini sports village and has a three court sports hall with a range of ancillary facilities
the Main Sports Centre houses a 25 metre, six lane swimming pool and leisure facilities.
Most of the facilities are available to non-university residents. We were not able to obtain data on their use, but those consulted stated that this was extensive, both by individuals and teams. Other indicators of regional impact are:
the former Director of Sport and Physical Education acted as Chair of the Regional Sport Partnership. This enabled a diverse range of individuals and groups from Coventry & Warwickshire (e.g. schools, youth groups, retired people, disability groups and elite athletes) to benefit from the facilities and expertise available at the University. There are also relationships with local sports clubs and in particular, Godiva Harriers Athletics Club, based at Westwood campus.
national and international events held on campus include: the International Children’s Games in 2005; the UK Schools Games in 2007 and the British Transplant Games in 2009. In summer 2012 the University hosted the Coventry, Solihull and Warwickshire Schools Games and in 2013 the Corporate games will be held in Coventry attracting over 4,000 competitors, with the majority of the events taking place on campus. The University of
77 Degrees of Value op cit
A major economic contribution to the local economy
First class facilities open to residents
Contribution to the Regional Sport Partnership
Hosting national and international events
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Warwick made a major contribution to bringing the International Olympic Committee to Coventry which resulted in the city hosting the London Olympics 2012 volunteer and training events and football training in Coventry city.
other events held and organisations using the facilities include: the Football Association, England Women's National U17 Training Camps; the NIKE Premier Cup; the Football Association, England Men's National U19s Training Camps; the Premier League referees national training venue; the Glenn Hoddle Football Training Camp; Kelly Holmes Athletics Camp; British Universities & Colleges Sport (BUCS) National Tennis Finals; the Birmingham County Football Development Education Programme; and the UK “Transplant” Games.
there are outreach programmes e.g. people from local community use the Tennis Centre (including disabled people for wheel chair tennis). Funding is received from the Lawn tennis Association and Sports England for tennis and other programmes.
the University supports the Sports England “Playground to Podium” initiative which encourages young people including those with disability to participate in sport. The University provides the facilities and other services.
Concluding commentsCivic and public engagement is an impact channel which has been given less, and more recent, attention in the UK than knowledge exchange and training. In part, this reflects the difficulty of identifying and assessing impacts. Students and staff will contribute to their local communities through membership of voluntary and statutory organisations and can bring distinctive skills and experience to complement inputs from other residents. Much of this activity is, however, not recorded, much less evaluated78. The discussion above does, however, suggest that the University is making significant and valued contributions to the region and local communities arising through:
staff and student time. In one sense, the University is no different from other organisations in this respect, but there has been a focus on raising school student aspirations and access to HE and universities are obviously uniquely placed to contribute in this way. We would also note that the involvement of foreign students and staff in this type of activity may add another dimension
in the case of the Medical School, building on research excellence to deliver improved services in the Region
providing additional skills for the Region as a result of mainstream academic activities. This arises both through local involvement as part of the academic training programme, for example teacher training and the Medical School,
78 This is changing with improved recording of voluntary and community activities across the HE sector. Attempts have also been made to value these impacts through imputing costs to student and staff time. However, such estimates are subject to fairly obvious difficulties.
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and retention in the Region after qualification, The Centre for Lifelong Learning is a further example and also contributes to widening participation through its Foundation Degree and part-time provision
the Arts and Sports Centres making facilities available to residents (and other visitors).
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5. Global presence and connections
Overview
34% of academics are international, from 72 countries
Over 8,350 international students
500 Warwick undergraduates are expected to participate in an international exchange during 2012/13
Over 200 exchange partners in 40 countries
Over 45,000 alumni are resident in 193 countries
Tata Motors European Technical Centre (TMETC) is based at the University
The University has two major alliances, with:
Monash University in Australia
Centre for Urban Science and Progress an applied research institute, led by New York University and industry partners which include major multinationals
The International Student Barometer indicates high levels of satisfaction from Warwick’s international students.
As is the case with private sector firms, universities are increasingly operating in a globally competitive market. For universities, this relates to student recruitment, attraction of academic staff, research and teaching, knowledge/technology transfer etc. Universities are not ‘mobile’ like firms and can act as a stable ‘anchor’ for attracting resource to the local area. Research for the European Commission (2011)79 indicates that a globally connected university can act as a ‘window’ on the local region to the rest of the world, contributing to improved image and reputation of the region. Further, the study reports that this can benefit the development of the region in various ways: connecting people from all over the world into the region, acting as a vehicle for future cooperation; attracting researchers who may contribute to the development of new technologies, resulting in new and innovative activity; and acting as a lever for international investment to the region.
In addition, evidence published by the OECD (2008) states that investment in universities is more effective in generating research intensive foreign direct investment (FDI) than financial incentives to foreign investors:
Among the factors related to the host country the empirical evidence available suggests that the main location drivers are the
79 European Commission, DG Regional Policy, Connecting Universities to Regional Growth: A Practical Guide, 2011.
A globally connected university can act as a ‘window’ on the local region to the rest of the world, contributing to improved image and reputation of the region
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availability of world-class research infrastructure and skilled labour as well as the dynamism of the national innovation system, that is, the degree of interaction and collaboration among different firms and other “knowledge producing and diffusing organizations”…the availability of world-class researchers is arguably a more critical location driver [than financial incentives] for R&D-intensive FDI’80 .
The University is ‘globally connected’ and has a strong international presence. This has contributed to Warwick’s rise in world rankings of universities. As evidence, we present below some of the main areas in which the University achieves this.
Warwick – a globally connected universityThe University is rising through international rankings to achieve its goal of becoming one of the world’s top fifty universities by 2015. Its strategy is to “make Warwick an international beacon by embedding internationalism into every area of the University’s mission”. The University also makes the point that “international engagement provides competition for home students, and international benchmarking for research, and access to international research funding”. Further, it is an explicit mission of the University to attract international students and for all students to have the opportunity for multicultural experience. This reflects the academic and employer benefits of “globally aware” students: “global employers value global students” and that working in inter-cultural teams whilst at university prepare students for work in the “real world” after university.
The University has linkages with over 200 institutions around the globe and is involved in various research collaborations and international alliances. The profile of overseas students and staff, as well as some of the main international related activities are noted below.
International students and staff
There are over 8,35081 international students at the University of Warwick. There are also many international staff working at the University (academics, researchers and other staff). Key statistics include82:
of the total overseas student population, just over 3,460 are undergraduates and just over 4,890 are postgraduates (research and taught)
approximately one-third of Warwick academics are international from 72 countries/nationalities (52 non-EU plus 20 EU)
over 40% of Warwick Volunteers’ members are international students
80 Guimon, Government Strategies to attract R&D Intensive FDI. OECD, Global Forum on International Investment, 2008. See also: IPPR North, Beyond Bricks and Mortar Boards – Universities and the Future of Regional Economic Development, 2012. 81 University of Warwick, Key facts on international activity, May 2012. (Note: international student figures from this source are based on total student population estimates which are different to those stated elsewhere in this report).82 The University of Warwick.
Global connectedness is a key element of the University’s strategy
Approximately one-third of students are from outside the UK
There are many and diverse connections between students and staff and the international community
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World@Warwick83 aims to integrate UK and international student communities on campus. It is the third largest Students’ Union society at the University – over half of its members are international students. In addition, there are currently 38 Students’ Union cultural societies.
One World Week84 is the largest annual event held on campus, with over 200 student volunteers – it is claimed by Warwick Students’ Union to be the world’s largest student-run international event
over 45,000 international alumni are resident in 193 countries. A network of 115 alumni ambassadors or representatives are associated with alumni groups in 49 countries.
just under 500 Warwick undergraduates are expected to participate in an international exchange during 2012/13. The number of outgoing exchange students matches the number of incoming students from overseas.
there are over 200 exchange partners (161 European and c. 45 non-European) in 40 countries.
Tata Motors European Technical Centre (TMETC) at the University illustrates the benefits of major investment to the regional and local economies. The Indian-based Tata group comprises over 100 operating companies in seven business sectors and in more than 80 countries. The TMETC was established at the University in 2005, collaborating with the Warwick Manufacturing Group on automotive research, design and development. It works with European equipment manufacturers, first-tier suppliers and engineering consultancies.
It can be argued that the presence of Tata at the University contributes in a major way to the improved image and reputation of the West Midlands region and specifically Coventry, as a centre for high value-added R&D activity in the automotive and engineering industry. The presence of a major inward investor like Tata gives a positive signal to other major firms to consider investing and potentially locating in the West Midlands.
Over time, there may also be wider benefits in the form of economic agglomeration effects – i.e. economic benefits arising from spatial proximity between companies within the same industry (also referred to as ‘localisation economies’). In our view, agglomeration effects are likely to arise, although further evidence would need to be gathered to demonstrate this.
International alliances
Two of the main academic alliances are highlighted below.
Institutional alliance with Monash University in Australia
This new formal institutional alliance aims to meet the increasing student, industry and government demand for universities to produce graduates with a global
83 http://www.warwicksu.com/worldatwarwick/home/84 http://www.oneworldweek.net/
A major initiative with global connections
An international alliance to produce graduates with a global education, and undertake research that aims to address world-relevant and strategically important problems
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education, and undertake research that aims to address world-relevant and strategically important problems. The aim is to enable and develop collaborative ideas. The financial contribution is £3m per institution per year. Some main initiatives under this institutional alliance already underway include:
‘£500,000 has been awarded by the UK Engineering and Physical Sciences Research Council (EPSRC) under its 'Building Global Engagements' programme to build connections in the physical sciences in the year to end-March 2013
£66,000 has been received from the Australian Government to support student mobility
£200,000 Australian Research Council grant to build collaborations in engineering
Green Steps, Monash University’s award-winning sustainability education programme has run its first international course for students at Warwick in July with a larger programme planned for 2013
students from both universities will co-produce Reinvention, Warwick’s on-line peer-reviewed journal, dedicated to the publication of high-quality undergraduate student research from all disciplinary areas
joint PhD agreement – joint course applications and regulations are being finalised to enable recruitment from late 2012’.
Centre for Urban Science and Progress (CUSP)85
This is an applied science research institute which will be a partnership of institutions, led by New York University (NYU) and NYU-Poly alongside a consortium of universities including: Warwick, Carnegie Mellon University, The City University of New York, The Indian Institute of Technology, and The University of Toronto. The industry partners include: IBM, Cisco, Siemens, Con Edison, National Grid, Xerox, Arup, IDEO, and AECOM. The University of Warwick is the only European university involved in CUSP.
International student surveyThe International Student Barometer86 (ISB) is the largest online annual survey of international students in the world. The survey obtains feedback from international students on their university experience. Table 5-9 shows the proportion of Warwick respondents that would recommend the University and comparisons with all UK and global respondents. A high proportion of Warwick respondents would recommend the University and an even greater proportion of Warwick respondents are satisfied overall with the University.
85 http://www2.warwick.ac.uk/fac/cross_fac/gpp/sustainablecities/cusp/86 http://www.i-graduate.org/services/international-student-barometer-and-student-barometer/
An international alliance with public and private partners
Warwick scores highly in terms of international student feedback
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Table 5-9: Proportion of students recommending their university and reporting overall satisfaction
Global ISBSB
UK Warwick
2012 2012 2012 2011 2010
Recommendation 79% 80% 83% 81% 81%
Overall satisfaction 87% 88% 90% 89% Not found
Base 51,367 44,712 22,44 934 791Source: University of Warwick. Note: ISBSB covers institutions from the UK and overseas.
Table 5-10 shows the proportion of students satisfied with their university in relation to ‘learning’, ‘living’ and ‘support’ overall. Again the results for Warwick are positive.
Table 5-10: Proportion of students satisfied with their university in relation to ‘learning’, ‘living’ and ‘support’ overall
Global ISBSB
UK Warwick
2012 2012 2012 2011 2010
Learning overall 85% 85% 86% 84% 87%
Living overall 86% 87% 88% 85% 88%
Support overall 89% 89% 92% 90% 90%
Base 51,367 44,712 22,44 934 See Note (2)
Source: University of Warwick. Note: (1) ISBSB covers institutions from the UK and overseas; (2) Base for ‘learning’ =835; Base for ‘living’ =812; and Base for ‘support’ = 724.
The results on ‘reflection’ (Table 5-11), support the satisfaction levels reported above.
Table 5-11: Reflections of the student
Global ISBSB
UK Warwick
The University experience has lived up to my expectations 81% 82% 86%
My course of study has been worth the investment of money 79% 80% 81%
My course of study has been worth the investment of time 87% 87% 90%
Base51,367 44,71
222,44
Source: UoW. Note: (1) ISBSB covers institutions from the UK and overseas; (2) one response category has been deleted as not directly relevant.
We conclude that the Warwick respondents consider the institution and the place positively and would recommend it to others. This may in turn encourage other students to study and also visits by family and friends. It is interesting to note the wide range of countries from which respondents originate: Far East, Indian-subcontinent, Europe and elsewhere.
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From international to local impact?From the ‘snapshot’ of the University’s international activities it can be seen that the University is already a progressive international institution. The question is to what extent this generated local benefits too. To the extent that the international links strengthen the University as whole, there will be local benefits arising through the channels described elsewhere in this report. More specifically:
international student fees benefit the University and their spend in the West Midlands, brings additional income to the region, as does visits by family and friends to the region87
employers are looking for foreign language skills, inter-cultural skills and Warwick has a high proportion of international students who have these skills
there are benefits for home students that they are better prepared for an internationally competitive job market by having had international experiences and working in ‘international teams’
a large proportion of international students are ‘Warwick Volunteers’, thus contributing to social benefits for the local area
more international students tend to stay on for postgraduate studies compared to home students and they are an important research resource
home students benefit from inter-cultural interaction
and of course research excellence requires international collaboration.
Another important initiative is the Higher Education Foundation Programme (HEFP)88 This is a pre-university course that prospective international students can enrol on to help them prepare you higher education study in the UK (equivalent to A-level). The Programme has been running for 30 years and attracts students from over 50 countries. There are 300 places every year and applicants are in the 16-17 years old. Courses are offered in: biomedical science, business studies, law, science and engineering, social science. Two local colleges deliver the courses: Stratford-upon-Avon College and Warwickshire College. Fees for the course are around £13,800 p.a. (one year programme) so some employment at the University and participating colleges is created. From the HEFP, around 50% go onto higher education in the West Midlands.
Concluding commentsThe above mentioned activities and impacts point to the benefits of internationalisation. The international reach of the University raises the international profile of the region which may help in facilitating international
87 For example, a study for the University of Sheffield reports that international students make a net contribution to Sheffield’s economy of £120.3 million, rising to £136.8 million for the region (Yorkshire & Humber). Oxford Economics (2013) Economic Costs and Benefits of International Students. A Report for the University of Sheffield. 88 http://www2.warwick.ac.uk/study/hefp/
The Region benefits from: fees paid by international students and their spend in the local economy; foreign language skills in the Region; home student’s awareness of other countries, research excellence through international collaborations; and, the contacts established with alumni and foreign collaborators
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business contacts for local firms. Probably more important, it increases the attractions of the region to inward investors, especially for those which require links to a university, but also for those which consider a leading university will add to the quality of life in the area. We are confident that this is the case. Given the OECD finding that investment in universities is more effective in generating research intensive FDI than financial incentives to foreign investors, the examples of investment in the region from Tata and other organisations demonstrate that the University is playing its role in making the West Midland’s offer attractive to foreign investors.
A further second point is that international alumni often take up influential positions in business or government in their home countries or elsewhere. The contacts established while at the University can be long lasting and valuable. We have not been able to identify tangible evidence of such impacts, but would note that, in particular, both WMG and WBS have substantial numbers of international alumni. The literature identifies longer-term intangible benefits on local economies (often referred to as ‘catalytic effects’)89 as a result of international students having a favourable attitude towards a university’s region, including after the students have progressed to influential positions in their careers.
The scale and quality of the University’s international linkages through its: foreign students, links with businesses overseas and inward investors, partnerships/networks with other universities and organisations, indicates it is well positioned to exploit the economic, cultural and social benefits for the regional economy in the future. Further, the University can be considered to be contributing to the ‘five drivers of productivity’ that interact to underpin long-term productivity performance of an economy: investment, innovation, skills, enterprise and competition.
89 See for example: Oxford Economics, The economic impact of London’s international students, 2007. http://www.londonhigher.ac.uk/fileadmin/documents/OxfordEconomicsReport.pdf
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Annex A: Estimating expenditure impacts
Definition of local and regional areasA.1 In order to fully estimate the impact of the University, it was necessary to analyse the effects
of expenditure at three different scales: local, regional and outside the region.
Coventry City
Warwick district
Leamington Spa comprising of the following ward areas: Brunswick, Milverton, Manor, Crown, Claredon and Willes
Kenilworth comprising of the following ward areas: Abbey, St Johns, Park Hill
Coventry and Warwickshire (Local impact) comprising of the following local authority districts: Coventry, North Warwickshire, Nuneaton and Bedworth, Rugby, Stratford-on-Avon and Warwick
the rest of the West Midlands (Regional impact) comprising of the following local authority districts: Birmingham, Bromsgrove, Cannock Chase, Dudley, East Staffordshire, County of Herefordshire, Lichfield, Malvern Hills, Newcastle-under-Lyme, Redditch, Sandwell, Shropshire, Solihull, South Staffordshire, Stafford, Staffordshire Moorlands, Stoke-on-Trent, Tamworth, Telford and Wrekin, Walsall, Wolverhampton, Worcester, Wychavon and Wyre Forest.
the rest of the UK.
A.2 A small number of postcodes were unavailable. These were recorded in the subsequent analysis as ‘unclassified’ and included postcodes outside of the UK.
Sources of local expenditure and their treatment A.3 To calculate the direct impact, we analysed the following data:
University expenditure on goods and services
University expenditure on staff salaries
Students’ Union expenditure on goods and services
Students’ Union expenditure on staff salaries
Student expenditure data, using student data from the University and the department of Innovation, Universities and Skills ‘Student Income and Expenditure Survey’ (2009).
A.4 Data was obtained from different departments of the University, including HR, Finance and the Students’ Union, using lead contacts supplied by the University. As many of the departments collect the data in different timescales, e.g. financial year, academic year we
1
have used the most recent dataset available, and specified these where possible. For each type of expenditure, postcodes were also specified which allowed the impact to be estimated at the appropriate geographic scale. Each of these sets of data is discussed further below.
A.5 Each dataset was built into an economic model, to allow the full impact of expenditure to be estimated. We used the data to calculate the total direct expenditure occurring from each source. We then removed any expenditure which took place outside the local economy to estimate the direct expenditure impacts at a local level. A similar exercise was then conducted at a regional level. Once the direct impacts had been calculated, we then applied multipliers to establish the indirect impacts. Below, we discuss the impacts arising from each expenditure source in turn.
University expenditure
A.6 We analysed details of University expenditure for 2011/12 (covering the period 01/08/2011- 31/07/2012). This included details about the values and the location of expenditure, as well as the number of vendors. The data covers all purchases made by University (excluding the Students’ Union) and was analysed by postcode. The results are shown in Table A-1. Where purchases did not include a location for the supplier, they have been categorised as ‘unclassified’ in our analysis.
Table A-1: Summary of University purchases data, 2011/12
Area Total expenditure
2011-12
% of total value (2011-
12)
Number of vendors (2011-
12)
% of vendors (2011-12)
Warwick district £3,359,973 1.2% 269 4.0%
Coventry £26,798,533 9.2% 504 7.6%
Leamington Spa £1,772,275 0.6% 93 1.4%
Kenilworth £1,279,940 0.4% 109 1.6%
Coventry & Warwickshire (Local impact)
£47,494,142 16.3% 1,096 16.5%
Other West Midlands £21,069,500 7.2% 250 3.8%
Total West Midlands (Regional Impact)
£68,563,642 23.6% 1,346 20.3%
Rest of UK £170,062,075 58.4% 4,293 64.6%
Rest of World £13,561,967 4.7% 942 14.2%
Unclassified £38,890,486 13.4% 62 0.9%
Total £291,078,170 100.0% 6,643 100.0%Source: SQW calculations, using University of Warwick data covering the academic year from (01/08/2011- 31/07/2012)
N.B. Numbers may not sum due to rounding.
University expenditure on staff salaries
A.7 For this analysis, we used payroll data accurate to the 2011/12 (financial year), which was supplied by the University of Warwick. Payroll data was provided for all employees (excluding those working at the Students’ Union) and detailed their full-time equivalency, their gross pay, their net pay, and their postcode of residence where available.
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A.8 This enabled us to establish the impact of University employment by geography. Table A-2 summarises the data, providing by geographical residence: the number of employees, full time equivalent jobs, gross pay total and average, and net pay total and average.
A.9 Table A-2 shows that the University provided some form of employment to over 5,700 people in 2011/12. Taking into account part-time arrangements (and additional responsibilities), this is equivalent to over 5,000 full-time equivalent jobs.
Table A-2: Summary of University payroll data, 2011/12
Area Number of
Staff
No. of staff (FTE)
Gross pay Average
(£)
Gross pay Total (£)
Net pay Average
(£)
Net pay Total (£)
Warwick district 1,192 1,086 £39,426 £42,812,566 £27,570 £29,938,162
Coventry 2,544 2,191 £24,172 £52,959,777 £18,364 £40,234,137
Leamington Spa
480 443 £40,293 £17,851,980 £27,929 £12,373,800
Kenilworth 494 446 £39,232 £17,495,234 £27,472 £12,250,960
Coventry and Warwickshire (local impact)
4,433 3,904 £29,876 £116,623,903
£21,819 £85,172,350
Other West Midlands
457 411 £35,497 £14,588,152 £24,378 £10,018,618
West Midlands (Regional impact)
4,890 4,315 £30,412 £131,212,055
£22,063 £95,190,968
Rest of UK 761 698 £38,626 £26,956,747 £26,919 £18,786,635
Unclassified 67 55 £20,773 £1,146,129 £15,950 £880,027
Total Staff 5,718 5,068 £31,438 £159,314,932
£22,665 £114,857,629
Source: SQW calculations, using University of Warwick Students’ Union data covering the financial year from (01/04/2011 to 31/03/2012) N.B. Numbers may not sum due to rounding.
Students’ Union expenditure
A.10 Purchase data received from the Students’ Union covered the period from 01/08/11 to 27/05/12. It is likely that the Students’ Union expenditure will be minimal over the summer months, when the students are on holiday, and so we do not think it would be prudent to gross these figures up to 12 months. The impacts have therefore been calculated using the more conservative 10 month figures. A summary of the Union’s purchase data is shown in Table A-3, broken down by geography.
Table A-3: Summary of Students’ Union purchases data, 2011/12
Area Total expenditure 2011-12 (10 months)
% of total value (2011-12)
Warwick district £17,314 0.7%
Coventry £1,078,864 42.4%
Leamington Spa £10,770 0.4%
Kenilworth £2,832 0.1%
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Area Total expenditure 2011-12 (10 months)
% of total value (2011-12)
Coventry & Warwickshire (Local impact)
£1,239,823 48.8%
Other West Midlands £246,860 9.7%
Total West Midlands (Regional Impact)
£1,486,683 58.5%
Rest of UK £1,056,421 41.5%
Total expenditure £2,543,105 100.0%Source: SQW calculations, using University of Warwick Students’ Union data covering a ten month time period (01/08/2011-
27/5/2012). N.B. Numbers may not sum due to rounding.
Students’ Union payroll data
A.11 Payroll data received from the Students’ Union covered the period from 01/08/11 to 27/05/12. As with Students’ Union expenditure, the Students’ Union payroll data has been analysed using data from a 10 month period. The data was analysed by geography, using residential postcodes of staff. A summary of the direct expenditure impacts arising from Students’ Union staff wages in each of the relevant geographies is shown in Table A-4.
Table A-4: Summary of Students’ Union Payroll expenditure, 2011-12
Area FTE jobs Payroll (£)
Warwick district 35.7 £591,549
Coventry 63.4 £1,261,496
Leamington Spa 33.6 £523,522
Kenilworth 0.5 £7,532
Coventry & Warwickshire (Local impact) 104.6 £2,021,853
Other West Midlands 5.2 £190,437
Total West Midlands (Regional Impact) 110 £2,212,290
Rest of UK 6.0 £126,787
Total FTEs 115.8 £2,339,077Source: SQW calculations, using University of Warwick Students’ Union data which covered a ten month period from
01/08/11 – 27/05/12. N.B. Numbers may not sum due to rounding.
Student expenditure
A.12 The presence of the University of Warwick implies that there is an additional influx of students within the local area, which may not have otherwise existed without the University. As such, the expenditure of students is a direct impact of the University and we have estimated this using the assumptions below (Table A-5).
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Table A-5: Assumptions used in the calculation of student expenditure
Issue Assumption
Calculating student numbers
There were 29,225 students in total (i.e. including all UK and overseas students) for the 2011/2012 academic year. See also Annex B.[Note: these figures are based on student numbers provided by the University in August 2012 and represent an approximate count of students at that time. The total figure includes students who were subsequently not counted in the final HESA return (due to non-enrolment, non-attendance, non-eligibility, etc.). The final headcount to HESA was 27,442 for 2011/12] The student expenditure impact calculations are based on the data supplied to us in August 2012 (i.e. total count of 29,225 students).
Calculating number of full time and part time students
The Department for Innovation, Universities and Skills (now the Department of Business, Innovation and Skills) Student Income and Expenditure Study 2007/2008 study (published 2009)90 notes that expenditure for full time and part time students differs. Therefore, we calculated the number of full and part time students at each geographic scale to estimate the full impact of the University.
Distance learning students
These students have been discounted on the assumption that they are very rarely on campus and as such do not spend additionally as a result of the University’s existence.
Choosing local or regional universities
HEFCE 2009-10 indicates that the 86% of students from the West Midlands choose to study from within the region.91
Our calculations based on University of Warwick data indicates: 18.8% of University of Warwick students are from the West Midlands
region. Therefore, we discounted 16.2% (86.0% x 18.8%) of the student expenditure on the assumption that their contribution to the economy is not additional.
10.6% of University of Warwick students are from the Coventry and Warwickshire region. Therefore, we discounted 9.1% (86.0% x 10.6%) of the student expenditure on the assumption that their contribution to the economy is not additional.
4.9% of University of Warwick students are from Coventry. Therefore, we discounted 4.2% (86.0% x 4.9%) of the student expenditure on the assumption that their contribution to the economy is not additional.
1.4% of University of Warwick students are from Leamington Spa. Therefore, we discounted 1.2% (86.0% x 1.4%) of the student expenditure on the assumption that their contribution to the economy is not additional.
0.7% of University of Warwick students are from Kenilworth. Therefore, we discounted 0.6% (86.0% x 0.7%) of the student expenditure on the assumption that their contribution to the economy is not additional.
Amount of expenditure
We have used the average student expenditure taken from the BIS Student Income and Expenditure Study 2007/2008 study92. The expenditure was as follows:
Full time students: Living costs £7,131 per year Housing costs £2,695 per year Participation costs £3,459 per year Children costs £167 per year Total £13,452 per year
90 Source: Department for Innovation, Universities and Skills now the Department of Business, Innovation and Skills(2009), ‘Student Income and Expenditure Survey 2007/08’ http://www.bis.gov.uk/assets/BISCore/corporate/MigratedD/publications/D/DIUS_RR_09_05.pdf 91 Source: HEFCE (2010) 2009-10 Regional profiles West Midlands http://www.hefce.ac.uk/media/hefce/content/pubs/2012/201207/WestMidlands.pdf 92 Ibid.
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Issue Assumption
Part time students Living costs £11,551 per year Housing costs £3,575 per year Participation costs £2,075 per year Children costs £841 per year Total £18,042 per year
These figures have had GDP deflators applied, to convert the 2007/2008 prices to 2011/12 prices (i.e. 2007/8 values multiplied by 1.098).
Expenditure back to the university
We have discounted expenditure on accommodation for those that live in university-owned accommodation. This is not an additional impact, and will be taken into account in the university’s own spending.
Living at home We have disregarded those that live in their own home, their parent’s home or their marital home because it is assumed that whatever these people spend on housing they would have spent regardless of attendance or non-attendance at the university.
Seasonal impact Students do not attend the university all year, and as such we have assumed the spending of students to be calculated on a basis of eight months.
Students’ Union spending
Students also spend money within the Students’ Union. The Students’ Union tradable income will take account of this and as such, this has been deducted.
Source: SQW calculations using University of Warwick data.
A.13 The key data used are outlined in the following table (Table A-6):
Table A-6: Student expenditure summary
Stage of calculation Data
University of Warwick student expenditure in total: (calculated by multiplying number of part time and full time students by appropriate expenditure in BIS study)
Regional (West Midlands)Expenditure on: Living = £164,158,125 Housing = £59,933,665 Participation = £70,222,012 Children = £5,362,380 Total = £299,676,182
Local (Coventry & Warwickshire)Expenditure on: Living = £145,566,448 Housing = £53,864,721 Participation = £65,479,794 Children = £4,235,776 Total = £269,146,739
Coventry:Expenditure on: Living = £96,463,468 Housing = £36,012,041 Participation = £44,808,548 Children = £2,577,832 Total = £179,861,889
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Stage of calculation Data
Leamington Spa:Expenditure on: Living = £36,052,380 Housing = £13,468,699 Participation = £16,544,984 Children = £16,789,291 Total = £82,855,354
Kenilworth:Expenditure on: Living = £2,017,612 Housing = £677,201 Participation = £597,649 Children = £597,649 Total = £3,890,110
Student expenditure reduced for seasonal impact (eight months)
Regional (West Midlands) £199,784,121 (£299,676,182 / 12 x 8 months)
Local (Coventry & Warwickshire) £179,431,159 (£269,146,739 / 12 x 8 months)
Coventry £119,907,926 (£179,861,889 / 12 x 8 months)
Leamington Spa £55,236,903 (£82,855,354 / 12 x 8 months)
Kenilworth£2,593,407 (£3,890,110 / 12 x 8 months)
Student expenditure after discounting for non-additional student expenditure
Regional (West Midlands) £167,502,425 (£199,784,121 reduced by 16.2%)
Local (Coventry & Warwickshire) £163,131,504 (£179,431,159 reduced by 9.1%)
Coventry £114,844,509 (£119,907,926 reduced by 4.2%)
Leamington Spa £54,549,338 (£55,236,903 reduced by 1.2%)
Kenilworth £2,577,915 (£2,593,407 reduced by 0.6%)
Student expenditure after discounting for living at home expenditure and expenditure on university accommodation
Regional (West Midlands)£143,310,977 (£167,502,425 - £24,196,482)
Local (Coventry & Warwickshire)
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Stage of calculation Data
£138,940,056 (£163,131,504 - £24,196,482)
Coventry£103,935,387 (£114,844,509 - £10,896,478)
Leamington Spa£50,465,971 (£54,549,338 - £4,078,635)
Kenilworth£2,241,842 (£2,577,915 - £335,683)
Student expenditure after deducting expenditure back to Students’ Union
Total regional impact (West Midlands)£138,527,101 (£143,310,977 – £4,783,876)
Total local impact (Coventry & Warwickshire) £134,156,180 (£138,940,056 – £4,783,876)
Coventry£101,778,100 (£103,935,387 - £2,154,338)
Leamington Spa£49,658,482 (£50,465,971 - £806,385)
Kenilworth£2,175,383 (£2,241,842 - £66,368)
Source: SQW calculations based on University of Warwick data for the academic year (01/10/2011 – 30/09/2012).
A.14 Following these assumptions, the estimated total impact of student expenditure for 2011/12 is as follows:
• £134.2 million at a local level (Coventry and Warwickshire)
• £138.5 million at a regional level (West Midlands).
Impact estimatesA.15 Combining all the different types of expenditure discussed above, gives us the total direct
impact arising from expenditure associated with the University of Warwick. A summary of these impacts at both a local and regional level is shown in Table A-7.
Table A-7: Direct impacts, 2011/12
Local impact (Coventry &
Warwickshire)
Regional impact (West
Midlands)
Coventry Leamington Spa
Kenilworth
University payroll
£85,172,350 £95,190,968 40,234,137 12,373,800 12,250,960
University purchases
£47,494,142 £68,563,642 26,798,533 1,772,275 1,279,9401,279,940
Students’ Union payroll
£2,021,853 £2,212,290 1,261,496 523,522 7,532
Students’ £1,239,823 £1,486,683 1,078,864 10,770 2,832
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Local impact (Coventry &
Warwickshire)
Regional impact (West
Midlands)
Coventry Leamington Spa
Kenilworth
Union purchases
Student expenditure
£134,156,180 £138,527,101 101,778,100 49,658,482 2,175,383
Total impact £270,084,348 £305,980,684 171,151,130 64,338,849 15,716,648Source: SQW calculations, using University of Warwick data N.B. Numbers may not sum due to rounding.
Multipliers
A.16 In addition to the direct impacts, there will also be knock-on effects that occur through re-spending locally and regionally (indirect and induced). In other words, after the direct expenditure impacts through purchases, staff wages and student spending, there will be further rounds of spending. For example, staff spending their wages on goods and services in the economy, generating further business and employment. The purchases made will create employment in businesses, for which employees will be paid wages, which in turn will be spent in the local and regional economies. These knock-on effects are measured using economic multipliers.
A.17 The evidence on the value of multipliers varies widely. The Department for Business, Innovation and Skills (BIS) published evidence (2009)93 on multipliers (indirect and induced) at a sub-regional and regional level, based on evaluation data across a range of intervention types. At a sub-regional level the range was very wide (1.00 to 2.71), with the overall mean multiplier value of 1.25 (based on 137 observations). Similarly, at a regional level, the range was wide (1.00 to 3.25), with the overall mean multiplier of 1.45 (based on 326 observations).
A.18 Further, evidence from Universities UK (2010)94 gives a ‘regional output multiplier’ for the West Midlands of 2.01 (applied to university output). This value we consider to be relatively high and would wish to adopt a more conservative approach to arriving at appropriate multipliers.
A.19 Taking into account this evidence and based on our own judgement we have used the following multiplier values: 1.30 for local level, and 1.70 for regional level. These multiplier values we consider to be reasonably conservative and appropriate for calculating the knock-on effects from the direct impacts associated with the University and students.
A.20 Following from this, we applied a multiplier of 1.70 for West Midlands and 1.30 for Coventry & Warwickshire. In the absence of relevant multiplier for smaller geographies - Coventry, Leamington Spa and Kenilworth - we applied the same local level multiplier of 1.30 to estimate the impacts associated with these geographies.
A.21 Applying regional and local multipliers to the direct impacts gives the total economic impacts shown in Table A-8. 93 Department for Business, Innovation & Skills, (October 2009) BIS Occasional Paper No. 1, Research to improve the assessment of additionality. http://www.bis.gov.uk/files/file54063.pdf (see Tables 7.1 and 7.2). 94 U. Kelly, D. McLellan, Iain McNicoll, The University of Strathclyde for Universities UK (2010), Making an economic impact: Higher education and the English regions. http://www.nwua.ac.uk/Publications/Reports/Docs/Making%20an%20economic%20impact%20-%20Higher%20education%20and%20the%20English%20regions%20(June%202010).pdf
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Table A-8: Total direct, indirect and induced impacts, 2011/12
Local impact (Coventry &
Warwickshire)
Regional impact (West
Midlands)
Coventry Leamington Spa
Kenilworth
University payroll
£110,724,055 £161,824,645 52,304,378 16,085,940 15,926,248
University purchases
£61,742,385 £116,558,191 34,838,093 2,303,958 1,663,922
Students’ Union payroll
£2,628,410 £3,760,893 1,639,945 680,579 9,791
Students’ Union purchases
£1,611,770 £2,527,361 1,402,523 14,001 3,682
Student expenditure
£174,403,033 £235,496,072 132,311,530 64,556,026 2,827,998
Total impact £351,109,653 £520,167,163 222,496,469 83,640,504 20,431,642Source: SQW calculations, using University of Warwick data N.B. Numbers may not sum due to rounding.
Impact on local and key regional employment
A.22 The University itself and the Students’ Union directly employ residents of the local and regional area. This amounts to 4,425 FTE jobs to residents in the West Midlands. However, in addition there are jobs generated in the local and regional economies through the University (incl. Students’ Union) and student expenditure. We calculate this impact by dividing the total direct and indirect impact (subtracting University and Students’ payroll expenditure) by the GVA per filled job figure. In our calculation we have used a GVA per filled job value of £38,19395, sourced from the Office for National Statistics. The results in Table A-9 below indicates that the presence of the University creates a further 6,910 FTE jobs to residents in the local area and over 11,069 FTE jobs to residents in the region.
Table A-9: Total impact on jobs, 2011/12
95 This is calculated from GVA and employment figures for 2011 taken from ONS (2013), Regional Economic Indicators, GVA per filled job, Table1 Updated Regional GVA/Job and updated Regional GVA/Hour. http://www.ons.gov.uk/ons/search/index.html?newquery=gva+per+job
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Local impact (Coventry &
Warwickshire)
Regional impact (West
Midlands)
Coventry Leamington Spa
Kenilworth
Total jobs at University of Warwick
3,904 4,315 2,191 443 446
Total jobs at Students’ Union
105 110 63 34 0
Extra jobs created as a result of expenditure associated with the University and Students’ Union
6,910 11,069 4,739 1,852 214
Total jobs 10,918 15,493 6,993 2,329 660Source: SQW calculations, using University of Warwick data, based on full-time equivalent (FTE). N.B. Numbers may not
sum due to rounding
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Annex B: Student data
Number of studentsThe University of Warwick provided data on the number of students for the academic year 2011-12. Analysis of these data indicate that there are a total of 29,225 students of which 19,512 live in Coventry & Warwickshire and 21,368 live in the West Midlands, during term time. A full breakdown of student numbers by geography is presented in Table B-10.
Table B-10: Student numbers at different geographic scales (resident during term time)
AreaNumber of
students (F/T)
Number of students
(P/T)
Total number of
Students
Warwick district 5,125 401 5,526
Coventry 12,617 562 13,179
Leamington Spa 4,735 198 4,933
Kenilworth 108 108 406
Coventry & Warwickshire (local impact) 18,058 1,454 19,512
Other West Midlands 644 1,212 1,856
Total West Midlands (regional impact) 18,702 2,666 21,368
Rest of UK 1,197 4,031 5,228
(Unclassified) 855 1,774 2,629
Total Students 20,754 8,471 29,225Source: University of Warwick data.
These figures are based on student numbers provided by the University in August 2012 and are an approximate count of students at that time. These include students who were subsequently not counted in the final HESA return (due to non-enrolment, non-attendance, non-eligibility, etc.) and we understand from the University that the final headcount to HESA was 27,442 (for 2011-12).
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