Lessons from America

For the last week, I have been a guest of the University of North Carolina at Greensboro, where I was invited to meet with organisations involved in developing enterprise, innovation and leadership studies, and to give a lecture on the future of the Welsh economy to staff, students and local businesses.

I was honoured to be given the opportunity to talk about what is happening in Wales in terms of entrepreneurship and the economy and, more importantly, to spread the message about how Welsh entrepreneurs are developing and growing their businesses. Wales needs to build greater links with America and hopefully the lecture will makes some contribution to promote Wales, and the best of Welsh business, to individuals and businesses within one of the most innovative regions in the USA.

Given my research background in examining technology-based entrepreneurs, I have also been fascinated by discussions about one of the oldest and largest science parks in North America, namely the Research Triangle Park (RTP) in North Carolina.

Located at an equal distance of around 20 miles from each of the three main universities, namely Duke University in Durham, the University of North Carolina in Chapel Hill and North Carolina State University in Raleigh, this development is a high-technology knowledge-based initiative which has served as a major economic driver for the region.

To give you an idea of its impact, the 7,000 acre site currently has over 160 firms employing over 40,000 full-time knowledge workers. Its success can be measured by the fact that to date, nearly 5,000 patents have been registered with major inventions such as astroturf, 3D Ultrasound, cochlear implants and the UPC Barcode emerging from the research undertaken within the region. Not surprisingly, the major attraction for many large firms is the access to the knowledge base of the area, with the so-called ‘Research Triangle region’ having eleven colleges and universities which provide over 15,000 graduates every year.

As well as the research and development operations of large firms, the RTP houses public research laboratories, such as the US Government’s National Institute for Environmental Health Studies, and incubator facilities for university spin-outs. Its BioVenture Centre provides new high technology firms with access to a world-class bioresearch infrastructure that includes state-of-the-art laboratories, equipment, and business services, whilst the First Flight Venture Centre, which serves the initial needs of entrepreneurs and early-stage companies, was ranked as the Best Science-Based Incubator in 2005.

Therefore, RTP is a world class model for innovation, education, and economic development that has been replicated globally to create high value well paid jobs in growing knowledge-based sectors. For example, the average salary in the RTP is almost twice that of the regional average. As a result, it has stopped the “brain drain” from North Carolina and acted as a magnet for attracting inward investment to transform the region’s economy.

Clearly, there are lessons for the Welsh economy in the success of such an initiative. Whilst we have the Technium network for supporting early stage ventures, Wales has yet to take the next step and develop a major initiative which would create a science or technology park.

This is a mystery to many, as there have been a high number of property developments during the last decade but none which have focussed specifically on a large scale site which could attract major investors in technology-based sectors. As a result, many businesses which come into Wales tend to be isolated on different sites and therefore cannot take advantage of the major synergies that could be made through potential networking with other similar companies in the same location.

The RTP development in North Carolina has shown what can be achieved when a concerted effort is made to create a competitive advantage through ensuring that the knowledge-base of the region collaborates closely with technology-based industry. By also working with more than one university, it has been able to draw together the different expertise available in each institution and therefore made the park a more attractive option.

Whilst we may not be able to replicate the success of this concept overnight, I would challenge policymakers to take advantage of the research expertise of the universities in South Wales, particularly Cardiff and Swansea, and consider the feasibility of a similar project.

As in North Carolina, this would not have to be based next to each university but could, given the excellent transport links, be based somewhere like Bridgend which, being in an area which qualifies for European support, could attract the funds necessary to get the project off the ground.

Certainly, if we can replicate only a tenth of the success of the Research Triangle in creating knowledge-based firms, well-paid jobs, and scientific patents, it would be an enormous boost to our economy.