The UK’s innovation accelerator for transport,
Cardiff and its wider region have grand plans to accelerate the local innovation economy; with creation of an investment zone and a focus on industrial clusters among its standout initiatives.
Focus for the investment zone will include development of the region’s compound semiconductor capabilities; while a cluster aim includes increasing the number of cyber security companies in the region by half; with Media Cymru looking to grow potential in the creative industries.
Heavily involved in all three initiatives is the Cardiff Capital Region – covering 10 council areas – and Cardiff University (interviewed later in this piece); both of whom are participating in the second cohort of the Innovation Places Leadership Academy.
“The region has a real focus on innovation and growth through the development of clusters and initiatives-at-scale,” explains Cardiff Capital Region’s strategic director of policy, impact and partnerships, Colan Mehaffey.
“We are targeting areas we are confident in generating growth, have been data-driven in our decision making, and have been thinking about how best to create an innovation ecosystem,” he adds.
“The IPLA has helped us to work through challenges and collaborate with other regions in the UK to understand some of the best approaches to take to better distribute economic benefit across the region – from cities and coastal areas to the Northern Valleys; some of which have pronounced areas of deprivation and a real need for investment. They have also helped us to better tell our story as a region.”Cardiff Capital Region’s strategic director of policy, impact and partnerships, Colan Mehaffey
Cardiff Capital Region covers a population of 1.5 million people, and started operating as a ‘corporate joint committee’ with statutory powers including economic well-being, spatial planning and regional transport last April. The previous Government agreed to a ‘City Deal’ for the Cardiff region that will see £1.2 billion invested in infrastructure over 20 years, with the hope of unlocking £4 billion of private sector funding.
Before the autumn, Cardiff Capital Region will present its first regional transport plan which is set to include upgrades to connectivity, and remediation is planned at the former Aberthaw power station site, with a focus on low carbon energy and clean growth for the region.
It has created an Innovation Investment Capital fund worth £50 million to provide businesses with equity investment in growth areas to help them to scale, along with a £50 million Strategic Premises Fund to develop sites for businesses to operate – including £12 million for a film and television studio in Cardiff.
“Indicators show that in terms of economic and social development we are on pace with – or outpacing – other city regions in the UK,” Colan adds. “We have introduced key industrial clusters for compound semiconductors, fintech, cybersecurity, the creative industries, energy and the environment. They all combine to make us a very investable region.
“But we are also striving towards being a stronger, greener and fairer region, with opportunities for all people.”
Following its participation in the IPLA programme, Cardiff Capital Region took part in the Joining the Dots economic development initiative from Connected Places Catapult, and has been introduced to a possible partnership with a city region in Japan.
Colan says that placemaking done well can contribute enormously to a thriving innovation economy. “Having infrastructure for growth is critical, both in terms of planning and transport,” he says. “If we can achieve better connections between areas, we can supercharge our growth.”
Also driving forward on economic growth ambitions in the region alongside Cardiff Capital Region is Cardiff University, which supports enterprising companies by supporting the exchanging of knowledge around innovation.
Head of business engagement and partnerships Elin Lloyd Jones explains that the university is a co-partner on the region’s investment zone proposal, focused on growing the compound semiconductor activities around both Cardiff and Newport. Specifically, it is supporting on increasing the supply of skilled people to work in the sector and identifying funding opportunities.
“Not only do we deliver excellent research and teaching as a university, but we see ourselves as an anchor institution in the region,” says Elin.
“We're very aware of the cultural, social, economic and environmental benefits we offer the region; from being a large organisation employing 7000 people and attracting 35,000 students into the city. We're a global university, but very much of our city as well.”Cardiff University's Head of business engagement and partnerships, Elin Lloyd Jones
She adds that the funding landscape in Wales has changed markedly in recent years with the demise of European structural funds; so the Cardiff Capital Region has come into being at the right time. “It has an ambitious team in place who see the value of what the university can bring to some of the activities it is interested in.”
Cardiff was once a formidable industrial powerhouse, supplying the world with coal and iron. Recent decades have seen growth in insurance businesses, and now the region is looking to the creative sector including media production, as well as cybersecurity.
Within cybersecurity the university, Cardiff Capital Region and the Welsh Government are leading on efforts to create an innovation hub for South Wales to accelerate businesses and equip more people with relevant skills.
Cardiff University is also working closely with two other universities – Cardiff Metropolitan and the University of South Wales – to make sure the region has a joined-up approach to developing academic engagement; as well as working closely with business incubators such as TramShed Tech in the city centre.
Elin says the IPLA helps to improve the skills of place leaders by getting them to “better understand what is happening in their areas and identify opportunities”.
One of the takeaways from working with the IPLA and meeting with other places of potential in the UK was the benefits of cities or regions working closely together with nearby stakeholders as one team to forge closer relationships, she adds. “It's been quite an eye opener to go to other regions and see how they're tackling similar issues in post-industrial areas; using innovation to fuel the economy for this century.
“I've been very impressed by the work of the IPLA to bring a cohort of similar places together to discuss areas of common interest.”
Connected Places Catapult’s Director of Place Leadership, Sam Markey said: "Cardiff and the wider Cardiff Capital Region have significant potential for innovation-led local growth. We designed IPLA to equip leaders across these high-potential areas with the tools they need to align economic and investment strategies and the confidence to implement them effectively.
“It's been a privilege to work with this ambitious cohort in 2024, and we look forward to seeing how they harness opportunities to drive innovation and prosperity."
Read more about the work of the Innovation Places Leadership Academy and the work of the UK Innovation Districts Group which aims to revitalise under-performing downtown neighbourhoods into vibrant hubs for innovative and creative companies. Join us in creating a prosperous, inclusive future for the UK.
