The Connected University: Universities, Knowledge Exchange and Local Economic Growth
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1 The Connected University: Universities, Knowledge Exchange and Local Economic Growth Michael Kitson University of Cambridge Meeting of the Directors General of Higher Education, Dublin 22 nd - 23 rd April, 2013
2 Acknowledgements Centre for Business Research (CBR) Project (ESRC-HEFCE HEFCW SFC and DEL funded) on University Industry Knowledge Exchange Principal Investigators: Alan Hughes and Michael Kitson Research Fellows: Maria Abreu and Vadim Grinevich CBR Survey and Database Team Anna Bullock, Isobel Milner Qualitative case study work with Philip Ternouth of CIHE on successful university-industry links published as Abreu et al 2008 Universities, Business and Knowledge Exchange ( Business Knowledge Exchange v7.pdf). CBR UK-wide surveys of enterprises and academics to characterise university-industry links: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6464.
3 PREAMBLE
4
5 THE EVOLUTION OF UNIVERSITY ENGAGEMENT
6 The evolution of university engagement in the UK Mode 1: the laissez faire model Importance of chance, luck and serendipity Mode 2: technology transfer - the entrepreneurial university Focus on a narrow range of technology transfer mechanisms Mode 3: knowledge exchange - the connected university Focus on a wide range of interactions Exchange rather than transfer
7 Mode 1: the laissez faire model Universities focussed on two missions research and education Example: the Cambridge Phenomenon initially developed when the University took little active interest in business engagement. In the past: University largely ignored IP issue Adopted a liberal attitude to what academics did Industrial liaison merely acted as window on what the university did little exchange or dialogue
8 Mode 2: technology transfer - the entrepreneurial university Focus on Technology Transfer Mechanisms: Patents, Licenses, Spin-outs
9 Limitations of the entrepreneurial university Significant economic and social returns but financial and private returns were frequently over-estimated Metrics distorting behaviour (Goodhart s Law: any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes) Model is incomplete
10 Stanford Office of Technology Licensing 65% of licensing earnings came from just 3 of the 8000 inventions which have passed through the doors of the OTL at Stanford Google s improved hypertext searching: $337 million DNA cloning: $255 million Functional antibodies: $229 million Stanford struggled to put a value on Google and opted for 2% of equity, and immediately cashed out post-ipo (Source: Katherine Ku, Director of Stanford University s Office of Technology Licensing )
11 Mode 3: knowledge exchange - the connected university Multiple knowledge exchange mechanisms Role of many disciplines (not just STEM) Interactions with public and third sectors as well as with business Public space functions (Universities do not move!) Relatively neglected, but distinctive Includes networking, social interaction, meetings, conferences etc Focus on exchange not simply transfer
12 Mode 3: knowledge exchange - the connected university Universities act as economic attractors - encouraging new investment into the local economy Universities act as local economic anchors stabilising the local economic making it more resiliant to shocks Universities act as transformers allowing local businesses to develop, upgrade and move into new markets
13 Survey of 22,000 Academics Survey of 2,500 Businesses
14 Quest for fundamental understanding? NO YES Research Activities NO The Republic of Science Considerations of use? YES Pure basic research Use-inspired basic research The Realm of Technology Pure applied research Source: Adapted from D. Stokes (1997) Pasteur s Quadrant Washington Brookings Institution
15 Quest for fundamental understanding? NO YES Research Activities NO The Republic of Science Considerations of use? YES Pure basic research (Bohr) Use-inspired basic research (Pasteur) The Realm of Technology Pure applied research (Edison) Source: Adapted from D. Stokes (1997) Pasteur s Quadrant Washington Brookings Institution
16 Basic Research (% of respondents) Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Health sciences Engineering, Materials science Social sciences Arts and Humanities Biology, Chemistry, Veterinary science Physics, Mathematics
17 Applied research (% of respondents) Health sciences Engineering, Materials science Social sciences Arts and Humanities Biology, Chemistry, Veterinary science Physics, Mathematics Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data
18 User-inspired basic research (% of respondents) Health sciences Engineering, Materials science Social sciences Arts and Humanities Biology, Chemistry, Veterinary science Physics, Mathematics Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
19 Commercialisation Activities Patents (7% of academics) Licenses (5% of academics) Spin- outs (4% of academics)
20 Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Taken out a patent in the last 3 years (% of respondents) All Engineering, Materials science Biology, Chemistry, Veterinary science Health sciences Physics, Mathematics Social sciences Arts and Humanities Professor Reader/Senior lecturer/lecturer Other position Male Female Basic research User-inspired basic research Applied research
21 Licensed research outputs to a company in the last 3 years (% of respondents) All Engineering, Materials science Biology, Chemistry, Veterinary science Health sciences Physics, Mathematics Social sciences Arts and Humanities Professor Reader/Senior lecturer/lecturer Other position Male Female Basic research User-inspired basic research Applied research Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
22 Formed a spin out company in the last 3 years (% of respondents) All Engineering, Materials science Biology, Chemistry, Veterinary science Health sciences Physics, Mathematics Social sciences Arts and Humanities Professor Reader/Senior lecturer/lecturer Other position Male Female Basic research User-inspired basic research Applied research Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
23 Other types of Interactions People based activities Training, networks, conferences etc Problem-solving activities Contract research, joint publications, informal advice etc Community based activities Lectures for the community, exhibitions, school projects
24 Academic Interactions with External Organisations People-based activities Standard-setting forums Giving invited lectures Participating in networks Enterprise education Attending conferences Sitting on advisory boards Student placements Curriculum development Employee training Lectures for the community Communitybased activities Public exhibitions Commercialisation activities 5 Licensed research 7 Patenting Schools project Community-based sports 4 Spun-out company 14 Formed/run consultancy Format adapted from Ulrichsen (2009) Source: Abreu, M., Grinevich, V., Hughes, A. and Kitson, M. (2009), Knowledge Exchange between Academics and the Business, Public and Third Sectors, Centre for Business Research, University of Cambridge, Cambridge.
25 Academic Interactions with External Organisations People-based activities 65 Standard-setting forums Giving invited lectures 33 Participating in networks 31 Enterprise education Attending conferences Sitting on advisory boards Student placements Curriculum development Employee training Lectures for the community Schools project 30 Communitybased activities 3 Community-based sports Public exhibitions 15 Commercialisation activities 5 Licensed research Spun-out company 7 Patenting 4 14 Formed/run consultancy 57 Informal advice Problem-solving activities Prototyping and testing Research consortia Joint Publications Hosting personnel 10 External secondment Joint research Contract research 9 43 Consultancy services Setting of physical facilities Format adapted from Ulrichsen (2009) Source: Abreu, M., Grinevich, V., Hughes, A. and Kitson, M. (2009), Knowledge Exchange between Academics and the Business, Public and Third Sectors, Centre for Business Research, University of Cambridge, Cambridge.
26 Partners Private sector companies across a range of sectors (40% of academics) Public sector - UK and abroad (53% of academics) Third sector including charities, nonprofit organisations and social enterprises (44% of academics)
27 Interactions with private sector companies (% of respondents) All Engineering, Materials science Biology, Chemistry, Veterinary science Physics, Mathematics Social sciences Health sciences Arts and Humanities Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
28 Interactions with public sector organisations (% of respondents) All Health sciences Social sciences Engineering, Materials science Arts and Humanities Physics, Mathematics Biology, Chemistry, Veterinary science Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
29 Interactions with the third sector organisations (% of respondents) All Health sciences Social sciences Arts and Humanities Biology, Chemistry, Veterinary science Engineering, Materials science Physics, Mathematics Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462.
30 Why businesses interact with universities? Inbound logistics Operations Outbound logistics Marketing and sales Service Introduction of new product and/or new process Procurement Technology development Human Resource Management Firm infrastructure Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number %
31 Who do businesses interact with? Engineering/ Technology Business and Financial Studies Mathematics/ Computing Architecture/ Building/ Planning and Urban Design Materials Science Education Economics and Social Science Creative Arts Medicine/Dentistry Physics/ Astronomy/ Earth Science Chemistry Biological Science Veterinary/ Agricultural Studies Language Studies Other Humanities % Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6464.
32 Source: Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6462 Constraints on interactions with external organisations (% of respondents All and Engineering) Lack of time Bureaucracy /inflexibility of univ admin Insufficient rewards Insufficient resources Unwillingness in external org to meet full cost Lack of interaction resources in external organisation Identifying partners Differences in timescale Lack of external interest Lack of experience in external organisation Poor marketing/technical/negotiation skills in univ Reaching agreement on terms (incl IP) Cultural differences Other All Engineering, Materials Science
33 Academic and business perceptions of constraints on interactions Cultural differences 45 Bureaucracy /inflexibility of univ admin Reaching agreement on terms (incl IP) Insufficient rewards Lack of experience in dealing with academics Academics Business Insufficient resources internally Lack of external interest Identifying partners Differences in timescale Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6464.
34 Reasons for not interacting (% of non collaborating firms) Not considered relevant No information on potential benefits No information on how to go about it Considered too time consuming Considered too complicated Considered too expensive Tried in the past and it did not work Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number %
35 How are interactions with universities initiated? Firms actions in approaching academics and/or HEIs directly Individual academics A third party organisation Mutual actions following up informal contacts (including those through your employees) Mutual actions following up contact at a formal conference or meeting University knowledge/technology transfer office or other university administrative office % Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6464.
36 % Businesses (%) employing someone to liaise with universities All Micro Small Medium Large 0 Source: Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number 6464.
37 Source:Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Businesses (%) interacting with 90 universities All Micro Small Medium Large
38 The connectivity of universities: a wider perspective Research: the importance of applied research with an economic impact Basic and Applied a simplistic distinction Impact is complex and uncertain: unknown unknowns
39 The connectivity of universities: a wider perspective The importance of technology transfer Only part of the knowledge exchange picture ignores many people-based, problem-solving and community interactions
40 The connectivity of universities: a wider perspective Focus on university-business links Ignores the many and varied interactions with the public and third sectors
41 The connectivity of universities: a wider perspective Businesses connect with academia for technical innovation Businesses connect with academia for many reasons, many of which are NOT concerned with technical innovation
42 The connectivity of universities: a wider perspective Major constraints include cultural difference and disputes over IP Such constraints only apply to small range of interactions Significant constraints/problems include a lack of resources (time and people) and a lack of information
43 POLICY IMPLICATIONS
44 Implications for policy 1 Importance of demand-side limitations Lack of competences and relevant skills in business
45 Implications for policy 2 The size problem Difficult for SMEs to connect with universities The aggregation problem for KE projects
46 Implications for policy 3 The information problem lack of knowledge about what academia can offer and how to access it
47 Implications for policy 4 The reality problem there are 120,000 academics in the UK and 4.8 million businesses
48 Implications for policy 5 The short-termism problem focus on research with an economic impact
49 Building a connected university: attractor, anchor and transformer Attract, retain and develop high valueadded sectors Source of skilled labour Problem solving and knowledge exchange The hub of local connectivity Source of local buzz
50 Building a connected university: local economic alignment Develop synergies with the local economy In knowledge generating locations New industry formation based on novel technologies and university research In knowledge using locations Diversification into technologically-related industries Upgrading of existing industries: providing technical problem-solving advice and skills
51 Building a connected university: an audit of knowledge exchange Measure and evaluate the state of knowledge exchange Often many hidden connections not captured in conventional metrics
52 Building a connected university: network building Triple Helix: foster and strengthen connectivity between the university, business and policy makers May require the development of new institutions In or outside the university? eg Fraunhofers in Germany, Catapults in the UK (technology and innovation centres) Train boundary spanners But networks must be outward looking and not just inward looking
53 Conclusions A university can be an institution for change and a promoter of stability A source of connectivity Provider of public space Provider of human, social and cultural capital
54 THE ACADEMIC IVORY TOWER IS A MYTH
55 References Abreu, M., Grinevich, V., Hughes, A. and Kitson, M. (2009), Knowledge Exchange between Academics and the Business, Public and Third Sectors, Centre for Business Research, University of Cambridge, Cambridge. Cambridge Centre for Business Research Survey of Knowledge Exchange Activity by UK Academics (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Cambridge Centre For Business Research Survey Of Knowledge Exchange Activity By United Kingdom Businesses, (Hughes, A., Kitson, M., Abreu, M., Grinevich, V., Bullock, A. and Milner, I.) UK Data Archive Study Number Hughes, A. and Kitson, M. (2012) Pathways to impact and the strategic role of universities: new evidence on the breadth and depth of university knowledge exchange in the UK and the factors constraining its development, Cambridge Journal of Economics,36(3): Stokes, D. (1997) Pasteur s Quadrant Washington Brookings Institution
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