THE prospect of rising tuition fees at universities has prompted national debate and repeated front page headlines.
The economic impact of universities on their localities is discussed far less often, yet it is central to regional growth.
Nationally universities generate £59bn for the economy, putting them well ahead of many industry sectors, according to a research study for the Economic and Social Research Council.
Student spending power supports and creates businesses, and companies with university collaborations are far more likely to innovate new products.
What difference do the North East’s five universities make to its economy, investment, workforce and prospects of a region? Together they employ around 23,000 people, generate a turnover of more than £1bn a year, and attract over 120,000 students.
A report looking at the impact of business schools on the regional economy makes for interesting reading.
The Association of Business Schools report found that UK business schools generate £2bn each year in direct income for the UK economy, and have a huge impact on local economies of around £7bn a year.
The leading role of business schools in working with local industries to create jobs and boost productivity is central to their success.
University spin-out businesses generate new products and job opportunities. Professional courses produce highly-skilled workforces; placements of business and management students in local companies refresh traditional thinking and research and consultancy projects improve profits and profiles.
Graduates help to commercialise new ideas from all sectors, including the science, technology, engineering and maths (STEM) subjects, which are seen as central to government funding.
The longer-term success of STEM-based businesses, however, is more likely to increase if they combine their ideas with the enterprising, astute approach of business school graduates.
Business schools have developed from being education providers to becoming an important part of the region’s business community, helping to create and carry out new economic policy.
As the headlines continue to focus on fees and funding at universities, it’s heartening to reflect on the significant impact of effective business schools.
The skills we teach help to drive the economy forward by transforming knowledge into profitable businesses.
The North East has five strong business schools, each attracting students and staff to the region, and each creating entrepreneurial ideas and people to take the economy forward.
Dr Sonal Minocha is associate dean of the Faculty of Business and Law at the University of Sunderland
