The Role of the Business Schools in Promoting Innovation and Growth in the United Kingdom Professor Angus Laing Loughborough University Chair: Association of Business Schools Schools

ABS Innovation Task Force Purpose of the Task Force is to: provide evidence of how business schools can support the government’s innovation and growth strategy identify gaps in business school capability and policy barriers to schools supporting innovation and growth raise profile of business school community in policy circles and position as a ‘strategic subject’ Task Force is co-chaired by: Richard Rawlinson, Vice President, Booz & Company, London Prof. Richard Thorpe, Pro-Dean for Research, Leeds University Business School 2

ABS Innovation Task Force II Task Force is focusing on key themes of: student employability, enhanced exploitation of technology, faculty capacity building to engage with business review of funding to support world-class research. Close engagement with Ministers (Willetts and Cable) senior policy advisers (Lords Hesseltine and Young) Linking directly with BIS initiatives around support for MSBs and UKTI ‘mini-MBA on exporting’ 3

A perceptual challenge … “… a new form of techno-nationalism in which policy makers compare innovative capacity based on input measures, such as the number of scientists and patents generated, without accounting for the ability to convert invention into value” (AACSB Innovation Report) Yet ultimately innovation, and in turn growth, is as much about leadership and management – the natural domain of business schools – as it is about science and technology. 4

The economic challenge … Rebalancing the economy Commercialization of research Role of Medium and Small Enterprises Formal education of managers Financing of higher education 5

Business Schools record of success... ~130 schools in the UK 269,000 FTE students, up 60% in 15 years, now 14% of all HE students 35% FTE students non-domiciled Successful overseas campuses 21 EQUIS accredited schools - more than any other European country Second only to US in citations and publications Important financial contribution to many universities 6

So why change ? 7

Because there’s a problem... Series of reports evaluating business engagement Warry Report, Excellence with Impact 2007 (RCUK) HMG’s Plan for Growth and Higher Education White Paper Wilson, the V-C from Hertfordshire University, wrote a detailed report on universities and engagement... mentioned business schools just once Highly consistent messages from reports Programmes / Courses lack relevance, topicality and application focus Poor diffusion of research to industry Little cross-disciplinary integration, little focus on entrepreneurialism Lack of business engagement, especially severe with SMEs Repetitive complaints from business and government Graduates lack the skills, business and innovation not benefiting 8

Competitive threats Stakeholder commitment Moral purpose 9

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 10

Case for change Academics appreciation of the extent of change: Technological Political Behavioural Ongoing debate of over role and shape of business schools Learned and established behaviours linked to performance indicators 11

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 2.Provide examples of good practice that are scalable and replicable 12

Scalable and replicable examples INDEX (Innovation Delivers Expansion) Voucher Scheme Glendonbrook Centre for Enterprise Education Sheffield City Leadership Programme Finance for Growth: Impact of Private Equity UKTI ‘mini MBA for Exporting’ 13

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 2.Provide examples of good practice that are scalable and replicable 3.Refocus on innovation in pedagogy 14

Innovation in pedagogy Investment of time and funds in pedegogy Flexibility in timing and format – “Any time, any place” Integration of technology: Open access content (Moocs) Social media platforms Integration of work-based learning opportunities Cross-disciplinary programmes 15

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 2.Provide examples of good practice that are scalable and replicable 3.Refocus on innovation in pedagogy 4.Change systems of reward to support innovation and engagement – for institution and individual 16

Reward and recognition systems League tables: Generic (THE/QS) and specific (Beyond Grey Pinstripes) McKinsey – measure graduate employment as well as T & R Accreditation drivers – institutional isomorphism? Assessing research - RAE to REF = Impact International labour market standards Internal promotion criteria 17

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 2.Provide examples of good practice that are scalable and replicable 3.Refocus on innovation in pedagogy 4.Change systems of reward to support innovation and engagement – for institution and individual 5.Clarify the value of more differentiation by schools 18

Institutional differentiation More local engagement or more international? Closer to other faculties or more distant? Research, teaching or engagement tilt? Emphasis on an industry or an issue? 19

The problem is well recognized 1.The case for change needs to be made, primarily to the academic community 2.Provide examples of good practice that are scalable and replicable 3.Refocus on innovation in pedagogy 4.Change systems of reward to support innovation and engagement – for institution and individual 5.Clarify the value of more differentiation by schools 6.Identify what could change in businesses and what government can do to help 20

Issues around research engagement with businesses Value of continuity, longevity and institutional engagement. Connection to particular industries The 4* journals criteria and the REF framework Research dissemination as a distinct problem Skills issue – how to complement academic skills with skills for effective impact on a company? Ignorance and expectations from business, and navigational difficulties for managers 21

So where does that leave us … 22 Institutional change Innovate in pedagogy Enrich the mix of staff skills Invest in research dissemination Add access navigators and signposting Differentiate institutions to enable research connection and useful forums Systemic change Adapt research evaluation, develop publications to redress 4* mix Funding and other institutional rewards for impact, new institutional ranking criteria Enhanced and more varied career paths within schools New institutional sponsorship to engage business more closely

… and what can we do collectively? Lobby policy makers: STEMM – ‘Management Matters’ Diversity of performance metrics Build relationships: With business bodies – common agendas With publishers – practice journal guide Develop capacity: Practitioners into Schools – FME Re-skilling academics 23