Boosting innovation through research commercialization and knowledge exchange Nola Hewitt-Dundas CABS Annual Conference 6 November 2018

The Marketization of Higher Education University Context: The Marketization of Higher Education 2010- move away from Block Grant, approval of increase in student fees, (2013) removal of cap on student recruitment, increased non-EU student recruitment … “For the purposes of the REF, impact is defined as an effect on, change or benefit to the economy, society, culture, public policy or services, health, the environment or quality of life, beyond academia” Policy Context: Science and Innovation Investment Framework 2004-2014 (July 2004) ‘Over the next ten years, it is critical that the levels of business engagement with the science base increase, to realise fully the economic potential of the outputs of our scientists and engineers to turn basic and strategic research into successful new products and services, and to engage more fully with business’. In 2010, following the economic crisis, Government approved student fees increases to between £6000 (minimum) and £9000 pa (maximum), with the maximum value quickly becoming the norm (HEPI, 2014). This increase in student fees was, however, in the context of a move away from a government block-grant to universities with the funding of courses now largely dependent on student fees. Until 2013, however, universities were capped in the number of UK undergraduate students they were permitted to recruit as these students were provided with a fee-loan from government.   From 2012-13 HE Reforms introduced a core and margin system where 85,000 student places were permitted across higher education providers coupled with uncapped recruitment of highly qualified entrants with flexibility for providers offering high quality courses with an average tuition fee of below £7,500 per annum. http://www.publications.parliament.uk/pa/ld201213/ldselect/ldsctech/37/37.pdf by 2012 the UK had 302,680 non-EU students, or 12.6 per cent of the share of international student market (Universities UK). http://www.universitiesuk.ac.uk/policy-and-analysis/reports/Documents/2014/international-students-in-higher-education.pdf

Economic Challenges 1. Persistently low productivity growth

Innovation in the UK: EU context (% of innovating firms) Economic Challenges 2. Mediocre Innovation Performance This chart illustrates the proportion of firms undertaking NTM and NTF innovation derived from the CIS definitions I discussed earlier Note the position of the UK in the middle of the distribution – below France but above Slovenia and the Czech Republic!! Ireland note is at the top of the league table and I will have a bit more to say about this later… But for the moment the key thing is the middling performance of the UK…. And if we look across the UK (or at least England)… Innovation in the UK: EU context (% of innovating firms) Source: http://ec.europa.eu/eurostat/statistics-explained/index.php/Innovation_statistics

The geography of Innovation and New to the Market Innovation In England …. We see considerable variation between local areas…. The most innovative areas – in the arc of innovation – are broadly in line with Europe’s most innovative economies – Ireland, Germany, Finland – while England’s weakest areas have an innovation performance comparable to some fo the Eastern European economies in the national league table… So much for the benchmarks … now what can we say about policy effectiveness….

Universities are losing out in the Open Innovation era. Source: UK Innovation Survey 2017, Main Report

Does it matter if University- Business collaboration in relatively low Question: Does it matter if University- Business collaboration in relatively low Businesses Collaborating with Universities are: 11 percent more likely to introduce New to the Market Innovations than just New to the Firm Innovations These New to the Market Innovations are more successful in the market, generating between 4% and 5% more sales than for firms without university collaboration. Product Innovation increases productivity Holds across all sizebands Source: Hewitt-Dundas N and Roper S (2017) Research Paper no. 55, https://www.enterpriseresearch.ac.uk/people/nola-hewitt-dundas/

How can greater collaboration be stimulated? Innovation Strategy: Innovation Strategy is important - Firms introducing innovations that are new to the market and more likely to collaborate with Universities. Learning to Collaborate: Medium and Large firms – University collaboration more likely if previously collaborated with consultants Small firms - University collaboration more likely if previously collaborated with customers Capabilities & Awareness and Access to partners Relationships take time: Prior collaboration is important - firms who collaborate with a University in one period are 22% more likely to collaborate with a university in the next period. How can greater collaboration be stimulated? At Upper Quartile in England £5.3m p.a. Contract Research £60m p.a. CPD & CE £21m p.a. IP to SMEs Source: Hewitt-Dundas & Roper (2016) http://dera.ioe.ac.uk/26434/