1. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 1 Socioeconomic Institute – University of Zurich Entrepreneurial Universities – Lessons from Swiss Universities of Applied Sciences Swiss Federal Office for Professional Education and Technology OPET Socioeconomic Institute – University of Zurich beat.hotz@bbt.admin.chbeat.hotz@bbt.admin.ch; andreas.reuter@bbt.admin.chandreas.reuter@bbt.admin.ch homepage: http://www.soi.unizh.ch/chairs/hotz/index/html Parallel Session 1, 21 th April 2005 Six Countries Programme Conference The Future of Research, Rotterdam, 21-22 th April 2005 Beat Hotz-Hart (in co-operation with Andreas Reuter-Hofer)

2. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 2 Table of Content 1.Entrepreneurial Public Research Organisations (EPRO): its meaning and trends in Europe 2.Situation in Switzerland: the example of Universities of Applied Sciences 3.Lessons from Swiss experience on UAS and implications for successful EPRO 4.Summary and outlook into the future

3. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 3 1. Entrepreneurial Public Research Organisation: its meaning University reform of organisational setting according to managerial principles Customer orientation and marketing of R&D findings, of competences and infrastructure Adjustment of employment contract of R&D personel Creating independent KTT-Offices with a broad portfolio of services Build up of its own portfolio of licences and investments Extending joint finances in teaching and R&D with business sector

4. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 4... and its major success factors as a Business Model,Entrepreneurial = market-oriented! Customer focus / driving forces behind innovation –Need for stronger science-based knowlegde / fusion technologies by firms –Need for extensive external enabling services by firms –More outsourcing and flexibility, acquisition of exclusive market- oriented external knowlegde and expertise by SMEs (Open innovation, Chesborough) Excellent base of human capital and knowledge High flexibility International network

5. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 5 Trends in Europe: Stronger differentiation of institutions Build up and expansion of KTT-Offices at Universities and Universities of Applied Sciences Creation of independent KTT-organisations close to Universities Build up and internationalisation of large scale R&D-Institutions Expansion of R&D-service provider in the private sector (KIBS) etc.

6. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 6 Trends in Europe: Attempt to classify important examples Degree of freedom of R&D Financing R&D Low (commercial focus) High (no commercial focus) public privat Universities of Applied Sciences (incl. their KTT-offices) KTT by natural science-oriented Universities Big Research Institutes in R&D Private R&D services Autonomous KTT-organisations with own R&D-capacities and strong relationship to university GWT Dresden: 79% by firms, total R&D contracts:100% FH Schweiz: less than 20% by firms; total R&D contracts?, 5 spin-offs, 5 license agreements GermanFhG: more than 30% by firms, total R&D contracts: 60% Imperial College London: 20% by firms; total R&D contracts: more than 40%, 50 spin-offs, 60 license agreements

7. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 7 2. Situation in Switzerland Degree of freedom of R&D Low (commercial focus) High (no commercial focus) publicprivat ETH Zurich and Lausanne Cantonal Universities Big Research Institutes in R&D Private R&D services Autonomous KTT-organisations with own R&D-capacities and strong relationship to own university Universities of Applied Sciences (incl. their KTT-offices) Financing R&D

8. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 8 Situation in Switzerland: The,political view... The Example of Switzerland (2) – The,Political View Economic System Knowledge-Transfer ETH Cant. Univers. Scientific System SME MNE UAS Performance contract KTT Practical orientation,Transformer of basic research Political solution of EPRO

9. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 9 Situation in Switzerland: The,true story is more complex! Economic System Knowledge-Transfer FH MNE Start-ups privat R&D services Scientific System Spin- offs County Univers. SME ETH

10. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 10 Situation in Switzerland: Empirical Evidence in 2002 Source: CEST Swiss Fed. Inst. of Technology County Universities UAS

11. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 11 Explanation (I): Basic research-oriented innovation processes Free Basic Research Applied Research: Technology Development Product Development Market Sales Knowledge- orientiented basic research proactiv, targeted basic research Product and Process Development Market Sales reactiv, targeted basic research,Classical approach The new mode ETH and Universities Universities for Applied Sciences Private R&D Services

12. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 12 Explanation (I): … and its consequences Free Basic Research proactiv, targeted basic research Product and Process Development Market Sales reactiv, targeted basic research Universities for Applied Sciences Private R&D Services ETH and Big Universities Customer focus: need for … stronger science-based knowledge / fusion technologies by firms extensive external enabling services by firms Institutional Consequences! Customer focus: need for … extensive external enabling services by firms exclusive market- oriented knowledge

13. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 13 Strongly science-based Empirical Evidence: Outsourcing of R&D expenditure acc. Economic sector und recipient, 2000, in mio CHF important role of private R&D- services major EPRO- competition from abroad

14. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 14 Empirical Evidence: Major clients of innovation agency, CTI, according to project contracts

15. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 15 Explanation (II): the impact of Bologna – Relationship between teaching and R&D BachelorMaster UAS mainly teaching Related to practical and a_R&D No research on top level needed Missing incentives for staff with aR&D interests Mainstream in the eyes of Unis Teaching including R&D Active R&D on top level needed Strong staff with R&D-potential Links to companies Knowledge base and competences finned out Growing separation of aR&D from top level research Customer focus: Second best solution as partner in transfer of scientific knowledge Scientific knowledge base and competences are renewed regularly Customer focus: First best solution as partner in transfer of scientific knowledge

16. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 16 Explanation (III): Education, Labour Market and Competition in R&D Economic System Universities Teaching on tertiary level UAS Start-ups private R&D services Spin- offs Firms Flow of research- trained human capital Competition in KTT

17. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 17 3. Lessons from Swiss Experience on UAS Driving forces behind innovation and research are interrelated ! –Innovation depends on basic research and a strong science-based knowledge –Fusion technologies Political vision of UAS in danger with respect to R&D and KTT -Bologna weakens science base of UAS –Service activities of top universities in KTT are increased –Firms look for internationally oriented first best-solutions with public or private partners –Increasing competition of UAS through private services and increasing number of academics Natural selection of autonomous RTOs brings best results on successful EPRO-Business Model

18. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 18 Implications for Successful Business Model on EPRO Competition pressure through …. growing supply in KTT from private side foreign institutes in basic research with potential for transfer increases Strength of RTOs is based on basic research Customer focus by looking for institutional partners in science- based knowledge transfer Its own strong human capital base Specialisation and focussing needed -> Build up of new institutions Overall supply of services needed (enabling customers!)

19. 6CP, Parallel Session 1, 21 th April 2005 Hotz-Hart 19 Summary and outlook Growing differentiation between universities and R&D- institutions Growing differentiation within research based top universities Increasing supply of private services in R&D Intensified international competition amongst the best EPRO UAS lose relevance in R&D -> Trend towards teaching universities R&D of major research institutions focuses more on basic research