Realizing the potential contribution of higher education institutions to their regions and communities

Abstract

Introduction There is a clear trend towards a more regional approach in terms of many aspects of government policy in the UK. In particular, it is recognized that industrial policy may be more effective if delivered on a regional or local basis rather than centrally. The approach towards a Higher Education (HE) policy has also changed dramatically in the UK, as in many other countries. As well as expanding significantly in terms of size, HE is being considered carefully in terms of its economic contribution. Combining these two trends, the one in industrial policy and the other in HE, prorides a rationale for policy to focus upon the regional and economic contribution of Higher Education Institutions (HEIs). The economic contribution of HE occurs in three main form*, First, universities make a direct contribution to the local economy in terms of their employment and expenditures. Second, they generate technological progress and technology transfer. Third, they supply high level skills and competencies. In this paper we focus upon HE as a supplier ofsldlls and competencies rather than technological progress or regional multiplier activity. There are good reasons to suppose that labour market conditions in the UK which concern, in particular, the demand for and supply of higher level skills and competencies from HEIs are far from efficient. It would be expected that structural problems obtain, since it is unlikely that adjustment processes in universities operate at the same speed as labour market requirements change. Although the predse nature of structural incompatibilities is difficult to observe or identiff], in practice, their implications are significant because they effectively prohibit any realistic attempt by universities to respond immediately to changing patterns of demand. Inefficiendes will also occur, however, if the information available on demand and supply conditions in this area of the labour market is inadequate. In this paper we focus upon the rapidly changing conditions in this area of the labour market and identify the need for a more systematic approach to information collecfion, interpretation and dissemination. This would enable an improved, though still imperfect, match between the supply of HE and the needs of the labour market. In pursuing this argument, we focus briefly on the existence of wide variations between and within regions before considering some of the major changes in the nature of HE. We then focus upon HE in the East Midlands to demonstrate the variety of institutions which obtain and, therefore, the potential to meet most requirements