Lambert Smith Hampton - General - Science Parks Report

Date: 03 Aug 2005

Lambert Smith Hampton's (LSH) recently published Science Parks report highlights a growing need for more research and development (R&D) facilities in the UK.

LSH research shows that there are now 72 science parks, with eight currently under construction or at the planning stage. Of the 72 developed science parks, just over 62% have room on site for future development, allowing for future growth and expansion of current tenants.

Nottingham's Science and Technology Park was specifically set up to address technology and innovation issues within the local economy in 1993. It links to the University of Nottingham, allowing space for business ideas within the University to spin out to the business world on the adjacent site. Although a huge success and almost full, it does have adjacent land for future expansion.

Philip Quiggin from LSH's Nottingham office explains: "In addition to the Nottingham Science Park, there are two other key facilities in the area; the former BASF site has been turned into some 200,000 sq ft of laboratory space and rebranded as 'BioCity', this is soaking up demand for R&D incubator type uses.

"In addition, Mansfield's i-centre provides an incubation facility for the region's innovation start-ups. Specifically catering for tenants with a creative science and technology bias, it provides mentoring facilities and is totally full; as a result, a preferred developer has now been selected to construct i-2."

LSH is acting on behalf of Network Space (a joint venture between Langtree Group plc and English Partnerships), which will create 43,000 sq ft of office space and 16,000 sq ft of production and workshop units at i-2. These will be promoted as 'graduation' space; providing room for companies within the i-centre to progress to larger units as their businesses bloom.

Phil continues: "It is important for R&D companies to have the right space to accommodate them once they have become more established. Availability of campuses such as this is a key factor in ensuring that companies which successfully establish themselves beyond start-up remain in the local area rather than migrating to a new location."

A science park is specifically designed to encourage the start-up and growth of innovative, knowledge-based businesses. They differ from business parks in that they can provide not only specialised laboratory space but also incubator space, which increases the chance of the company's survival and provides start-up companies with opportunities to collaborate and share ideas.

Science parks also have important relationships with centres of knowledge, notably universities and colleges, not only as a hotbed of business ideas, but also for mentoring, advice and provision of a skilled workforce.

The research showed a close correlation between spending on R&D and the development of science parks - both having increased by an average of around 5% over the past ten years. With further Government funding on the cards, this bodes well for their future growth prospects.

The Government is concerned that investment in R&D within the UK is substantially lower than that of every other major industrialised economy. The UK currently spends £20bn on R&D, representing 1.85% of domestic product, compared with 2.5% in Germany and 2.75 in the US.

The LSH report predicts that the Government's attempts to increase its R&D spend will lead to the establishment of 12 new science parks by 2008 an increase of 16% on today. The actual expansion in science park property could be even greater because 62% of existing parks have room for future developments.

Phil Quiggin of LSH Nottingham says: "The statistics outlined in the research highlight this as a growth market. Nottinghamshire is well placed to benefit, having already succeeded with its Nottingham Science and Technology Park and proven links with the Universities and the growth prospects for Mansfield's centre leave it hot on the heels of its county neighbour."

i2 Science Park

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