Europe wobbles…

Italy, Spain and Cyprus all strike fear into the hearts of economists.

The Eurozone is heating up again, as the realisation dawns that previous settlements were merely uneasy hiatuses.

The immediate problem is Cyprus, which finds itself on the verge of default due to contamination from Greece. The country, a small island nation in the Mediterranean, has close historical and financial links with crisis-stricken Athens, and was forced to seek aid from the EU last year. Last month, the Wall Street Journal's Stephen Filder received confirmation in Davos from Olli Rehn, the EU's economics commissioner, a rescue program for the country will require "substantially reducing government and bank debt" — in other words, a default.

Such a default will be problematic, because Cyprus, more so than most troubled Eurozone countries to date, operates as an off-shore banker for many of the world's super-rich — particularly, in this case, Russians. The country is likely to find itself stuck between two unpalatable options: either safeguarding its banking sector from losses by imposing huge burdens on its populace, or risking a run on the banks from overseas as foreign depositors try to get their money out.

There had been hope that the country may be able to get a bailout from the EU without causing too much damage to its domestic banking operation, but over the weekend, that became less likely. The SPD, the German opposition party, pushed for the country to be forced to consolidate its banks before any bailout would be agreed. According to Reuters, Merkel needs the support of the SPD to pass any bailout through the Bundestag (and of course, the EU needs the support of Germany before any bailout can go ahead) so this objection carries real weight.

The Cypriot problem is nasty, but largely internal; the country is too small to have any real contagion effects. The same cannot be said of Italy and Spain, both of which are sources of increased uncertainty.

In Italy, Silvio's back! The former prime minister — who, if he were anyone else, would surely be the "disgraced" former prime minister — is running for office on a platform of tax cuts (€4bn of them) over austerity. His coalition is in second place right now to the centre-left grouping, but its standing is improving — and the markets appear to be getting jumpy at that fact.

Berlusconi is being hampered by the fact that he no longer controls Italian media in the way he used to, but even so, a win for him is still alarmingly possible. (Regardless of the effect of deficit-funded tax-cuts on national economies, Berlusconi is unlikely to plough a viable economic course for Italy).

And in Spain, prime minister Mariano Rajoy has been accused of running an illegal slush fund. Yesterday afternoon, Rajoy issued a not-entirely-convincing rebuttal, telling a joint press conference with Angela Merkel that:

I repeat what I said Saturday: everything that has been said about me and my colleagues in the party is untrue, except for some things that have been published by some media outlets.

Merkel, "visibly upset", was also asked about the corruption allegations, and emphasised that "what is important is the relationship between the two governments".

Whatever happens to Rajoy, Berloscuni, and even Cyprus, the flurry of attention and fear generated by what ought to be business as usual for politics (except, maybe, the Cyprus problem) demonstrates how uneasy the situation in Europe remains. While we haven't heard a huge amount about the crisis recently, as the big minds in economics get distracted by talk of robots (not that the potential problems there aren't huge either), the situation is by no means fixed. The continent remains in much the same straits as Britain, but with the added straightjacket of a unified currency and intransigent Germany dampening hope.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com