The role of UK universities as economic drivers in a localisation agenda: A case study of City Deals.

Universities are important players in city and regional economic growth and prosperity. However, the relationship between ‘town and gown’ has often been criticised as not always being aligned, limiting the potential economic and societal benefits a close relationship might bring to the city and region. As
a major policy initiative following the 2008 financial crisis, the UK coalition government introduced City Deals in 2012 to support local economic growth in the city and regions, through a partnership approach between central government and local government working with other major stakeholders
to decide on regional priorities with funding from a mix of public and private sources. This paper considers the role of universities as localisation growth enablers through their involvement in City Deals, which is assessed through an initial review of stakeholder analysis and university civic engagement and by a qualitative case study of City Deals in Newcastle, Aberdeen, Belfast, and Stirling.
This research concludes that while universities participate in town and gown civic engagement to varying degrees, the ‘third mission’ where universities engage with societal needs and market demands by linking the university’s activity with its own socio-economic context (Pinto et al, 2016) is not a priority for UK universities in comparison with their teaching and research roles. Overall, the evidence points to City Deals providing an opportunity for universities to enhance their town and gown relationships especially through their role in innovation, as a ‘local leader,’ and as an engine for local economic development. However, the degree to which this is being delivered is variable, constrained
by the configuration of each deal, the input of the university, and the financial risk/value for money which the university is willing to take.