PROFESSOR DYLAN JONES-EVANS

If we are to create a successful knowledge-based economy, then the transfer of knowledge from universities to businesses will be a vital part of that transformation over the next decade. In particular, understanding what actually happens in the interactions between higher education and industry and improving the way both partners work together will be key in maximising the potential to create and support the industries of the future. That is why new research published this week by the Centre for Business Research at the University of Cambridge and the National Centre for Universities and Business (NCUB) should be vital reading for Vice Chancellors, chief executives and policymakers. It is an impressive study and this column will not be able to do justice to all of the results that have emerged from a survey of nearly 4,000 businesses examining how they interact with universities in the UK. However, some of the higher level findings show that universities and businesses do work together...

Since 1999, I have been championing the cause of the small number of firms that grow quickly and make a disproportionate impact on prosperity and job-creation in the economy.  After launching the first ever Wales Fast Growth 50, there has slowly been an increased interest in high growth (or scale-up) firms as various research studies continue to confirm their significant contribution to the UK economy.  One of those which continues to highlight the importance of such firms is the annual review by the Scaleup Institute, which defines high-growth (scaleup) firms as those growing their employment numbers or turnover by more than 20% a year over a period of three years with at least 10 employees at the start of the period. According to their latest report published last month, there were 33,445 scaleups in the UK in 2019, which is an increase of 24% on 2013 (as against a growth in GDP of 12% over the same period).  More importantly, they employed 3.2 million people and genera...

As we emerge from the economic downturn caused by the Covid-19 pandemic, it is clear that higher levels of entrepreneurship will one of the key factors in building back the Welsh and UK economies. Given this, it is worth examining the latest data on entrepreneurial activity in the UK from the Global Entrepreneurship Monitor (GEM). This worldwide project measured rates of entrepreneurship in 43 economies in 2020 with 9,453 adults interviewed for the UK study. As such, it gives us a comprehensive analysis of how entrepreneurship has been developing during one of the worst recessions in history. One of the key indicators within the GEM survey is Total early-stage Entrepreneurial Activity (TEA) which measures those individuals that start and manage a new business.  According to the study, the rate of early-stage entrepreneurship in Wales in 2020 was 6.5% which is lower than the UK (7.5%), England (7.7%) and Scotland but higher than Northern Ireland (5.4%).  Unfortunately, this is ...

  Since the general election in December 2019, the term ‘levelling up’ has become used regularly by politicians in addressing the economic and social inequalities that exist across the UK.  Whilst the Covid-19 pandemic clearly interrupted any plans for developing policies to deal this issue, it has returned as a central theme of the programme for government as set out in the Queen’s Speech earlier this year. But what does the UK Government mean by the term levelling up and what will the policy aim to achieve over the next three years? That very question was at the heart of a recent report published by the Business, Energy and Industrial Strategy Committee at the House of Commons. Unfortunately, the eleven MPs on the committee concluded that whilst it is something that is brought up constantly by the Prime Minister, the Cabinet and other politicians as being the central purpose and mission of the UK Government, there remains a lack of clarity about what it means beyond the aim ...

  As we move into a new economy where there will be considerable changes to the way we manage work after the pandemic, various studies are beginning to focus on the increasing importance of soft skills within the economy.  Certainly, some have suggested that during the lockdown, skills such as empathy, flexibility and self-determination, have become increasingly important in managing not only ourselves during a challenging time but also others who work with us. This is not surprising as unlike the hard subject-related skills we teach students in schools, colleges and universities, soft skills are more to do with improving an individual’s ability to listen well, communicate effectively, be positive and manage conflict.  They are also about building trust, working well with others and managing time effectively. In other words, these are the type of skills that many of us would assume that most organisations would be developing amongst their employees every day.  The go...

  Earlier this week, a forecast from the Organisation for Economic Cooperation and Development stated that the UK would have the fastest growth of any major economy in 2021.  However, it also suggested that following the biggest decline in its economy since the great Frost of 1709, it would take longer than many of its global competitors such as Germany or the USA to regain the losses suffered during the Covid-19 pandemic. Given this, it is clear that there will need to be a concerted effort by both government and the business community to regain lost ground over the next few years.  According to a report from Universities UK, a key actor in supporting businesses, employment and local regeneration will be higher education. By working in partnership with the  public, private and voluntary sectors, it can be a driving force behind the recovery of the UK as well helping to level up the UK through skilled graduates and driving forward local regeneration projects.  F...

After examining the ‘steady as she goes’ approach of the Welsh Labour Party and the blue sky thinking of Plaid Cymru’s approach to economic development in their respective manifestos, this week looks in detail at the plans from the Welsh Conservatives to improve the economy in Wales. Whilst drawing on the closer relationship that a Welsh Conservative Government would have with Westminster especially in terms of funding, some of the manifesto remains consistent with the traditional mantra of lower taxes for business and greater investment in upgrading the road network in Wales.  For example, there is a promise yet again to abolish business rates for small firms, a key pledge that has been central to the economic plans of every manifesto since 2007. This is supplemented by the idea that Business Rate Free Zones should be created to provide a three-year business rate holiday for firms although little detail is provided as to their location.  And given the stance of the party duri...

As noted last week, the economic manifesto from the Welsh Labour Party for the 2021 Senedd elections is very much a continuation their approach during the previous five years with few ideas put forward to radically transform the Welsh economy.  In contrast, Plaid Cymru’s long and detailed manifesto seemingly wants to change everything and is teeming with countless ideas that aim to create a new and very different approach to economic development. The main challenge in trying to assess this manifesto is that it does seem, at times, like a white board full of post-it notes that has yet to be honed sufficiently into the small number of key priorities that any party forming a government would need to focus on to deliver a coherent programme over the next five years.  Nevertheless, there are some interesting proposals that could be impactful on changing the direction of the Welsh economy. Perhaps the most significant is the focus on the “Local First” principle which aims to  i...

After one of the most tumultuous years in the history of this nation, Welsh voters will be going to the polls on May 6th to choose the next Welsh Government. Given what has happened in the last twelve months, it will be critical to have strong policies to help the economic recovery and to ensure that we do not fall further behind the rest of the UK in terms of prosperity and employment after the Covid-19 pandemic. So what have the main parties to offer in terms of the Welsh economy? That is what this column will be examining over the next three weeks prior to the Senedd election and there is no better place to start than by examining some of the promises from the current incumbents in the job, the Welsh Labour Party. Given that it has been in government since 1999, it may be understandable that the party is following a ‘steady as she goes’ and ‘safety first’ approach rather than the radical call to arms that some would argue is necessary at a time of crisis especially for an economy th...

  Last week, the latest edition of the Global Innovation Index (GII) was published, a report. that is not only an annual assessment of innovation trends but also examines the individual performance of 131 economies around the world. According to the index, the three most innovative nations in the world are Switzerland, Sweden and the United States with the United Kingdom ranking fourth, an increase of one since last year. Interestingly, the UK ranks first in the world for the quality of scientific publications and second in the quality of its universities. More broadly, the report makes a number of notable findings. Whilst innovation is concentrated at the level of science and technology clusters in a small number of high-income economies (with Cambridge and Oxford identified as the leading locations), the innovation performance in many developing economies has been impressive despite various challenges such as the decline in the funding of innovation. In fact, there continues to b...

As many economists will tell you, innovation is key to improving the competitiveness of nations and regions around the World, especially in recovering from the economic downturn caused by the current Covid-19 pandemic. Given this, it is good news that the UK Government has set a target in its 2017 Industrial Strategy of raising public and private investment in research and development (R&D) from 1.7% of GDP to 2.4% by 2027.  This increased spending on scientific and technological development will then hopefully be commercialised by businesses with positive impacts on the UK economy.  Whether that happens will be largely dependent on the number of businesses that are engaged in innovation across the UK. Unfortunately, the latest data shows this is in decline and according to the latest UK Innovation Survey 2019 which was published this week and covers the period 2016-2018, only 38% of UK businesses were innovation active as compared to 49% for the period 2014-16.  By s...

Are digital skills optional for businesses to succeed? That is the question posed by a recent report commissioned by the UK Government’s Department for Digital, Culture, Media and Sport (DCMS). As various studies have shown, digital skills are becoming increasingly important for businesses to develop competitive advantage, retain and attract talent and to develop innovative ways of working. Yet, we are still not completely sure of the demand for digital skills which can vary from basic word processing skills to knowledge of highly specific software.  By analysing millions of online job adverts in the UK, this study attempts to address this issue and give pointers as to the future policy support needed to enhance digital skills demand and provision across the UK. The first finding from the study is that employers are increasingly requesting baseline digital skills - such as Microsoft Office – as essential for entry into jobs with over three quarters of employment opportunities withi...

  Today’s businesses thrive on talented individuals at all levels of the workforce. As a result, the attraction and retention of employees with the right skills, experience and aptitudes has become one of the main competitive tools for firms across the globe. In particular, there is increasing evidence of a growing demand for millennials, namely those individuals born between 1980 and 1995 who have grown up with digital technology during the last two decades. There are currently around 14 million millennials in the UK yet many employers still have little understanding of this group despite the fact that they will be the future leaders in many organisations. This lack of knowledge has been examined by a report from the accountants KPMG. “Meet the Millennials” explores the characteristics of those who grew up during a period of rapid change and, more importantly, how companies can attract and retain them. According to the study, millennials are quite different to previous generations...

As one of the most talented individuals of the 2016 intake into the National Assembly for Wales, it was clear that Lee Waters was not going to be an orthodox assembly member during his first term.  Quickly promoted to Deputy Minister for Economy and Transport when Mark Drakeford became First Minister last year, he took little time in pushing the boundaries in terms of what he believes would help develop the Welsh economy and became quickly known as someone who was not afraid to speak his mind. Therefore, it may not have been too much of a shock to those of us who have known Lee for a number of years that, in a speech in Cardiff last week, he said that the Welsh Government had pretended to know what it was doing for 20 years, that efforts to improve the economy under devolution had not worked and it was time for a different approach.  As reported in this newspaper, Lee said that “Nobody knows what they're doing on the economy…Everybody is making it up as we go along - and let's...

Having worked within various business schools across the UK for over a quarter of a century, I cannot emphasise enough the importance of research in creating an understanding of not only the overall economy but, more importantly, in giving individual organisations the support they need to create wealth and employment in our society. Despite this, it would seem that this important element of business education has been diminishing over the last five years. According to the Association of Business Schools, there was a total decrease in research income for business and management research from 2010/11 to 2015/16. Of course, some would say that this is not surprising given that it is probable that overall research spending has been reducing in universities. However, the reality is that total research income for higher education has actually increased by a third to nearly £6 billion. Whilst there has been a decrease of 8 per cent in the overall income to business schools, other sub...

Earlier this year, Eluned Morgan - the Assembly Member for Mid and West Wales - called for the Welsh Government to develop a specific economic strategy for rural Wales. Following this call to arms, a group of people with a track record of delivery across the rural economy was brought together to make some initial recommendations to the Welsh Government. Their report “Rural Wales – time to meet the challenge 2025” was published last month and contains some critical findings and, more importantly, makes the case that the rural parts of this nation face a very different challenge to the South Wales Valleys, industrial North East Wales and the cities of Swansea, Newport and Cardiff. This is especially in terms of the delivery of public services and in ensuring that rural areas get a fair share of both UK and Welsh government resources. But whilst it is important to make the public sector more relevant to the needs of rural Wales, the economy will only grow if the private sector be...

Twenty-six years ago, I was appointed to my very first job as a research fellow at Durham University Business School, then the leading centre for entrepreneurship research and development in Europe. The two and a half years I spent there were a wonderful education and experience and created the foundation for the rest of my career. It was therefore fantastic to finally return again to Durham last weekend to see not only how the city itself had changed but also how the economy of the North East of England had developed since my departure in 1994. Some may ask why this region in England would be relevant at all to anyone studying the economic state of Wales but in many respects, it is the one part of the UK that is most similar to ours both in terms of prosperity, employment and industry. Both the North East of England and Wales are post-industrial peripheral economies struggling to find a new identity in an increasingly globalised world and we have much to learn from each oth...