© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 1 Prof.DrTech. Algirdas Pakštas London Metropolitan University Dept. of Computing, Communications Technology and Mathematics

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 2 Abstract This talk is presenting overview of various opportunities and funding schemes which exist in the UK to support Knowledge Transfer activities. At first the general picture of various funding programs related to Knowledge Transfer is given. It is followed by the brief description of the UK Research Councils Knowledge Transfer Taxonomy. Role of the UK Department of Trade and Industry is explained with special attention to the Small and Middlesize Enterprises (SMEs). Finally, Knowledge Transfer Partnerships (KTPs) and way they work are presented.

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 3 Speakers Biography: Prof. Algirdas Pakštas received his M.Sc. in Radiophysics and Electronics in 1980 from the Irkutsk State University, Ph.D. in Systems Programming in 1987 from the Institute of Control Sciences, Moscow. Currently he is with the London Metropolitan University, Dept. of Computing, Communications Technology and Mathematics where he is heading research activities (Research Director). He is also doing research in the area of Communications Software Engineering and is teaching specialised courses such as “Network Planning and Management”. He is active in the following IEEE Communications Society Technical Committees: TC on Communications Software (Chair), TC on Multimedia Communications (past vice-Chair) and TC on Enterprise Networking (past vice Chair). He has published 3 research monographs (2 authored and 1 edited) and more than 140 other publications. He is a senior member of the IEEE and a member of the ACM and the New York Academy of Sciences. He is currently a member of the Editorial Boards of the ‘IEEE Communications Magazine”, “Cybernetics and Systems Analysis”, “Journal of Information and Organizational Sciences” and “CompSIS”.

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 4 Outline Definitions Research Councils UK (RCUK) Knowledge Transfer Taxonomy Role of the UK Department of Trade and Industry Knowledge Transfer Partnerships and How they Work Conclusions Some useful Web-sites

MARKET (New products, processes and services) ACADEMIA F’sight Foresight KTP( TCS) Research Council grants, Studentships, Fellowships INDUSTRY ACADEMIC/INDUSTRY COLLABORATION Managed & thematic programmes (RCs) University Challenge STEP Smart (and regional variants) Science Enterprise Challenge BASIC RESEARCH LINK and Foresight LINK Awards EC FP5-6 Applied PhDs: CASE; ENG D - Sector schemes Eg Biowise

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 6 Research Councils UK (RCUK) Knowledge Transfer Taxonomy Co-operation in Education and Training People and Knowledge Flow Collaborative Research with Users Commercialisation of R&D Knowledge Transfer Broad Classification

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 7 The Research Councils UK use a common set of schemes to promote KT – many are long-standing and well known. But can also accommodate considerable flexibility. Co-operation in Education and Training -at doctoral level, CASE and Industrial CASE -skills replenishment for those already in employment via CPD People and Knowledge Flow postgraduate students and 4000 research assistants on research grants supported each year -24 Faraday Partnerships, often hosted by independent Research and Technology Organisations, linking user needs and academic capabilities Collaborative Research with Users -LINK is the Government’s flagship scheme Commercialisation of R&D (NB - ip owned by universities) -exploitation of research performed within RC-owned institutes -business plan competitions; entrepreneurial training Some Specifics

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 8 Role of the UK Department of Trade and Industry Science & innovation: central to Government’s agenda –Key to increased productivity –Investment in innovation & research generates: new knowledge and technology supply of highly trained people knowledge transfer –Future of UK manufacturing and services in global market: must move up the value chain to secure future requires innovation in products, processes, organisation

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 9 Who are the players? over 3.5 M firms – from very large to very small 170 higher education institutions (HEIs) + FE colleges over 100 independent research organisations

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 10 Changes in DTI’s approach to innovation Changes in DTI’s approach to innovation moving from many “schemes” to a few “products” being more selective in what we support investing more in less involving business as advisers involving other supporters – eg RDAs linking with the science base thinking global being “foresightful”

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 11 Shift from many old, to fewer new products NEW WORLD (9 products) OLD WORLD (> 100 schemes) Regional Assistance Smart Grant for R&D Investigating an innovative idea Collaborative R&D Developing E Business Initiative to promote advanced metals technology Knowledge Transfer Partnerships High performance workplaces Supply Chain Groups SMART International Technology Service Eureka! Building Up Biomaterials Faradays LINK Harnessing Genomics Social Enterprise EGS RSA LINK Engineering ICT Carrier Programme Rethinking Construction Fit for the Future Launch Aid SETNET Envirowise ITEC Skills Programme UK Online for Business TCS Benchmarking Index CONNECT Inside UK Enterprise Phoenix Fund Acorn TASME Digital TV Initiative

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 12 DTI Business Support DTI Business Support Aim: to make DTI support easier to understand, simpler to access and more effective –About 150 DTI schemes reduced to 9 “ products ” –First line of access through Business Links –Flexibility within products to work with the market –Complement other providers – eg Regional Development Agencies (RDAs), EU –Science & Technology products developed more strategically

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 13 Products for SMEs only  Grant for Investigating an Innovative Idea  Grant for R&D (Smart)  Small Firms Loan Guarantee

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 14 Grant for Investigating an Innovative Idea Pilot - will run until March Open to SMEs and individuals intending to start a business in England. Applications must be for a specific innovative idea which: – Has the potential to deliver a business benefit from a new or improved product, process or service – Requires enhanced technological or organisational capability – Has a role to play in commercial success of the business The grant provides Part reimbursement for: – a mentor (Business Link adviser or independent consultant) to oversee the project; and – access to expert consultant advice required by the SME to achieve their innovative idea

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 15 Grant for Investigating an Innovative Idea Diagnostic Applicants must have undertaken a pre-application diagnostic to highlight any weaknesses and barriers in their ability to implement the innovative idea. Deliverable A robust action plan that addresses all the weaknesses and barriers highlighted by the diagnostic and helps the business to implement the innovative idea successfully. Grant level 75% of total consultancy costs up to a maximum of £12K.

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 16 Grant for R&D: (Successor to Smart) Four types of support –Micro Projects –Research Projects (formerly Feasibility Studies) –Development Projects –Exceptional Development Projects

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 17 Grant for R&D: Quick Look Guide

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 18 Grant for Research & Development Appraisal criteria : Eligibility (eg size of business) Technological innovation Technical risk Management ability Commercial potential Need for support

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 19 Grant for R&D: Changes in 2004 From 23 April 2004, grants awarded via competitions SBS Regional teams determine competition dates in their Region Website -

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 20 Small Firms Loan Guarantee Small Firms Loan Guarantee Available to SMEs with viable business proposals but lacking security Guarantee for 75% of a bank loan of £5,000 to max £250,000 for 2-10 years DTI charges a premium of 2% on the outstanding amount of the loan

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? Products for any size of firm  Knowledge Transfer Partnerships (TCS+CBP)  Best practice networks  Implementing best practice  Knowledge transfer networks  Collaborative research and development  Regional Capital Investment.

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 22 Knowledge Transfer Partnerships Merger of TCS and CBP Graduates work in a firm for 1 to 3 years Specific project that will benefit the business Partnership with HEI or FE college or RTO Joint project supervision Business training for the graduate Cost to business offset by Government sponsors

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 23  New awareness campaign to show businesses what ’ s working in other businesses, and encourage adoption  Awareness activities co-ordinated with/through partner organisations (e.g. RDAs, SBS)  Content covering the five themes of e-business, skills, high-performance workplaces, business processes and business relationships  Horizon Scanning to keep ‘ Best Practice ’ up-to- date and appropriate for business needs  Feedback loop to incorporate successes into future best practice content Access to best business practice ACCESS TO BEST BUSINESS PRACTICE

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 24  Facilitated diagnostic to identify business strengths and weaknesses, delivered by trained advisers from the Business Links  Based on results of the diagnostic, the adviser facilitates action planning with the firm.  Adviser brokers introduction to accredited expert to help tailor and implement a best practice project  Follow-up diagnostic 6 to 12 months after completion to evaluate and demonstrate benefits  Additional support is planned for projects that deliver improvements in supply chain management and workplace practice Support to implement best business practice SUPPORT TO IMPLEMENT BEST BUSINESS PRACTICE

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? Cross-cutting help - international  DTI Global Watch Service  UK Trade and Investment services  EU Framework Programme  EUREKA

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 26 DTI Global Watch Service Global Watch Technology PartneringGlobal Watch Technology Partnering –International Technology Promoters (ITP) Global Watch MissionsGlobal Watch Missions Global Watch SecondmentsGlobal Watch Secondments Global Watch InformationGlobal Watch Information –Global Watch and UK Watch magazines –

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 27 Knowledge Transfer Partnerships Mission “ To strengthen the competitiveness and wealth creation of the UK by the stimulation of innovation in industry through collaborative partnerships between the science, engineering and technology base and industry” Extension of the TCS scheme (formally Teaching Company Scheme)

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 28 KTP Sponsors UK Central Government Departments: –Department of Trade and Industry –Department of Health –Department for Environment, Food and Rural Affairs UK Research Councils –Biotechnology and Biological Sciences Research Council –Economic and Social Research Council –Engineering and Physical Sciences Research Council –Natural Environment Research Council –Particle Physics and Astronomy Research Council Government Institutions in the UK Member Countries –Invest Northern Ireland –Scottish Executive –Welsh Assembly Government

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 29 Knowledge Transfer Partnerships KTP = TCS + x + y x = Scope for shorter projects y = Projects with FE Colleges (teaching at NVQ Level 4 in the subject) Like TCS, KT Partnerships will be about enabling UK businesses to access the wealth of knowledge, expertise and skills in the UK’s Knowledge Base

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 30 Knowledge Transfer Partnerships A KT Partnership could be about accessing leading edge technology and knowledge from the UK’s highest rated academic departments Or working with academics in a University’s Business School to help a business develop its marketing strategy Or working with tutors in a Further Education College on a technical, but not leading edge, project, perhaps by helping to develop a database or website

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 31 Summary of objectives of every Knowledge Transfer Partnership facilitate the transfer of knowledge and the spread of technical and business skills through innovation project provide company-based training for graduates in order to enhance their business and specialist skills stimulate and enhance business relevant research and training undertaken by the knowledge base

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 32 What is a Knowledge Transfer Partnership? A collaboration involving 3 partners with gain for all: 1.A company that would benefit from additional expertise to aid innovative product, process or market development 2.An academic team with the mix of expertise to fill the ‘expertise gap’ 3.At least one graduate - KTP Associate – to carryout the project work in the company over 1-3 years, jointly supervised by company and academics.

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 33 Strategic Company-Based Project Improve Productivity and Company Enhances Knowledge Base’s Relevance to Business Enhances Graduate Career(s)

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 34 Criteria for Projects Company financially able to complete and exploit the programme Programme will create strategically important change for the company Academic input essential for an innovative result Associate s t r e t c h e d

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 35 Project Lifecycle Idea Outline approval Proposal Grant 1 to 5 years Grading Awards Carry out the work Final Report Post-project plans Recruit graduate/s

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 36 University benefits  Understanding of industrial requirements and commercial imperatives  Opportunities to put ideas into action  Development of relationships for other research projects  Staff development  Framework ideal for younger academics to build relationships with industry in ‘safe environment’ supported by senior academics & KTP consultants and to develop and hone new skills  Student placements  Student projects  Publishing academic papers

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 37 University benefits  Knowledge Transfer Income  Value of typical 2 yr project with SME £100k  £21K Direct to School +£25 overhead  KTP Center's Partners awarded c. £10m in TCS/KTP income since Centre estab. in 1998  U of E awards c. £2m  Tip of the iceberg of opportunity  Annual KTP grant ‘pot’ c. £25m  Including company contribution ‘pot’ c. £42m  Approx 14% coming to Scottish universities

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 38 Role of the Supervisors  Industrial Supervisor  Day-to-day support to the project and the Associate  Guides Associate’s professional development  Academic Supervisor  Regular support to project and Associate (visits company on average ½ day per week)  Guide Associate’s Professional development  Links to expertise with the Knowledge Base partner

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 39 What’s changed from TCS of old? Project duration months Academic outcomes emphasised KTP Centre support : –To ensure project plans are well defined & developed to facilitate maximum benefit for all –Minimal effort in proposal preparation & submission –To enhance chances of approval – 100% success! –Co-ordinate Associate recruitment process –Introduction of potential partners

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 40 Every KT Partnership is like a 3-legged stool –Leg 1: facilitating the transfer of knowledge into a business –Leg 2: providing business based training and experience for graduates (10% of their time) –Leg 3: enhancing the business relevance of teaching and research in the knowledge base But, like a 3 legged stool, without any one of those legs, or if any one of them is weak, a KT Partnership will fall over

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 41 CONCLUSIONS UK is a wealthy Western economy with long time experience of managing its Hi-Tech industries and Academia (including various consequences of non- careful investment into Engineering, R&D, Knowledge Transfer and Higher Education) and currently there are lot of changes; The Baltic States (Estonia, Latvia, Lithuania) is much smaller economy which currently has significant opportunities to exploit its Knowledge Transfer potential as well as opportunities to fail doing that; The focused government programs in the Baltic States are needed which will encourage, enable and equip the Academia, Businesses and People with necessary instruments and resources in order to implement such potential and there is a lot to be learnt from the UK experience in order to avoid repeating common mistakes…

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 42 Some useful websites UK DTIwww.dti.gov.uk (currently the noise seems to be that the Office of Science and Technology will leave the DTI and go to the Department for Education and Skills (DFeS) – THES April 1, 2005, p5) KTP Global Watch Faraday Partnerships Eureka FP6

© Algirdas Pakštas UK Knowledge Transfer Experience:Can it be Applied in Baltic States? 43 More websites – science parks and finance UKBI UKSPA IASP BVCA