How higher education can help community growth

Many businesses depend on the strength and success of our higher education sector, says Jackie Leiper

There are certain things our universities must address to secure long-term financial stability

Scotland, like many parts of the UK, benefits significantly from its universities, which provide jobs, drive income and contribute expertise to local communities. Renowned worldwide for their outstanding academic education and cutting-edge research, these institutions are vital national assets that help underpin Scotland's reputation on the global stage.

Scottish universities are also more than academic powerhouses; they are deeply woven into the fabric of our communities. For instance, the University of Glasgow, the fourth-oldest university in the English-speaking world, is not only a centre of learning but also an integral part of the city itself, contributing to its rich culture and history.

However, their wider role in community growth often receives less attention compared to their contributions in teaching and innovation.

Glasgow University shapes regional policy, fosters growth and drives innovation

With the UK Government focusing on devolution and regional growth, now is the time to champion the importance of universities as engines of local economic development. Through research, innovation and collaboration with businesses, universities significantly boost private sector productivity, contributing £40 billion annually.

For instance, the University of Glasgow, as the lead partner in the Glasgow Riverside Innovation District, collaborates with the City Council and Scottish Enterprise. This initiative expands the city's infrastructure for health and life sciences innovation, offering lab and office space and attracting new companies. In the past year alone, spinouts from the University have raised £65 million and employed over 250 people. Replicating such partnerships across Scotland could have a transformative impact.

Recently, the UK Education Secretary described higher education institutions as civic anchors, integral to local life in towns and cities. The ongoing shift towards devolution, with enhanced powers for local leaders, provides a timely opportunity for universities to play a key role in shaping regional policies, fostering growth and driving innovation.

In this context, Bank of Scotland and PwC UK have collaborated on a new report addressing how universities can further enhance their contributions to regional regeneration and growth while building financial resilience.

The report recommends that universities make community engagement a core part of their mission, integrating civic responsibilities alongside teaching and research. Globally, the most successful institutions treat these three areas as interconnected and equally valuable. This is not to say that our universities shouldn’t also pursue national and international goals, but that their regional roles should serve as a strong foundation for broader aspirations.

Achieving success in this area often depends on building strong partnerships with local businesses, public sector organisations and other educational institutions. The collaboration seen in Glasgow highlights how universities can serve as foundational partners in addressing local social priorities.

Furthermore, the report emphasises the real and urgent need for universities to simplify access for prospective collaborators. This includes establishing modern leadership practices that encourage agility, commercial thinking and increase considered risk-taking among academic staff. Additionally, the report highlights how universities should highlight the economic and societal value of their contributions, to help secure long-term financial stability.

With connections to 70% of UK universities, Bank of Scotland recognises the strategic and financial challenges facing the sector and is committed to addressing them. The Government has also promised £40m over the next five years to support the commercialisation of research and help university entrepreneurs get proof of concept funding. Empowering universities to act as catalysts for regional and national growth will benefit everyone.

Many current and future businesses depend on the strength and success of our higher education sector. To fully realise its transformative potential, this sector needs greater support, collaboration and protection. Now is the time to take action and empower universities to become the strongest possible anchors and drivers of growth for their communities.

Jackie Leiper is the Bank of Scotland’s Ambassador

Comments