1 RCUK Impact Report 2013,

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1 MEMORANDUM FROM RCUK IN RESPONSE TO THE HOUSE OF COMMONS BUSINESS INNOVATION AND SKILLS SELECT COMMITTEE INQUIRY INTO BUSINESS-UNIVERSITY COLLABORATION Executive Summary The Research Councils are committed to maximising the impact of their spending on research. Collaboration between business and universities is encouraged and the Research Councils undertake a number of supporting activities. The Research Councils provide advice and support to universities and businesses on collaboration by acting as a broker for research and through support for networking. The Research Councils operate a diverse range of programmes supporting businessuniversity collaboration. These include direct collaboration between Research Councils and industry to fund research into shared priorities, funding for the translation of university research, and support for collaborative research training and skilled personnel exchange. Research facilities may also serve as a venue or hub for business-university collaboration, around which specialised companies can cluster. 1. Research Councils UK is a strategic partnership set up to champion the research and activities of the seven UK Research Councils. RCUK was established in 2002 to enable the Councils to work together more effectively to enhance the overall impact and effectiveness of their research, training and innovation activities, contributing to the delivery of the Government s objectives for science and innovation. Further details are available at 2. This evidence is submitted by RCUK and represents its independent views. It does not include, or necessarily reflect the views of the Department for Business, Innovation and Skills (BIS). The submission is made on behalf of the following Councils: Arts and Humanities Research Council (AHRC) Biotechnology and Biological Sciences Research Council (BBSRC) Engineering and Physical Sciences Research Council (EPSRC) Economic and Social Research Council (ESRC) Medical Research Council (MRC) Natural Environment Research Council (NERC) Science and Technology Facilities Council (STFC) Introduction 3. The Research Councils invest around 3bn per year in research covering the full spectrum of academic disciplines. Funding is allocated on the basis of excellence, as judged by the Peer Review process. Grants are primarily allocated to research carried out within the Knowledge Base : the UK s universities and research institutes. 4. The Research Councils seek to make sure that the outcomes of this research are effectively applied throughout society and the economy and are committed to maximising the impact of the research they fund. This is expressed through the integration of RCUK s Pathways to Impact 1 within the application and assessment process for 1 RCUK Impact Report 2013,

2 Research Council funding, by which researchers can support their applications through illustrating how they might maximise the potential impact of their work. The Councils produce annual summaries of their impact, both individually 2 and jointly as RCUK Business-university collaboration is an important mechanism for supporting and boosting the impact of research, and as such fostering business-university collaboration is an important function of the Research Councils. RCUK plays a leadership role in supporting collaboration, and the Research Councils collaborate with over 2,500 companies, of which at least 1,000 are SMEs. 4 The Research Councils have a substantial portfolio of programmes, activities, funding streams and initiatives in place to support businessuniversity collaboration and commercialisation more generally. The diversity of these approaches reflects the diversity of cultures, structures and potential applications within the different research communities. 6. Research Councils support for business-university collaboration can be divided broadly into a series of types (more detail on examples of specific support for business-university collaboration can be found in Annex 1): 6.1 Brokerage and networking, where the Research Councils provide information about research to industry to facilitate collaboration, for example through support for the National Centre for Universities and Business 5 and the Gateway to Research Direct collaboration between Research Councils and industry, through the formation of strategic partnerships, Research Industry Clubs 7, 8 and consortia, enabling collaboration over funding for shared research goals. 6.3 Support for collaborative research and projects, for example Industrial Partnership Awards, 9, 10 Stand-Alone LINK, 11 the three Catalysts (BioMedical, 12, 13 14, 15 Agritech and Industrial Biotechnology 16, 17 ) funded with the Technology Strategy Board impact report 2013/ 4 RCUK Impact Report 2013 p.4, research/industry clubs/industry clubs index.aspx research/industrial partnership awards.aspx 10 PartnershipAward/index.htm 11 research/stand alone link.aspx 12 catalyst 13 emefundedprojectsandcasestudies/index.htm 14 tech catalyst 15 research/tsb competitions/agri tech catalyst.aspx 16 biotechnology catalyst 17 research/tsb competitions/ib catalyst.aspx

3 6.4 Support for industrial training and exchange of skilled people, for example CASE Studentships 18, Centres for Doctoral Training 19, 20, 21 and Knowledge Transfer Partnerships, 22 creating a pool of skilled people with experience in both academia and industry. 6.5 Flexible funding to universities for the translation of research, for example via Impact Acceleration Accounts, 23, 24 Follow on Funds, 25 and via grant funding for Pathways to Impact Support for hubs and shared facilities for research, for example Research and Innovation Campuses, 27, 28, 29, 30 Innovation Knowledge Centres 31 and Knowledge Exchange Hubs for the Creative Economy 32. The strengths and weaknesses of business-university collaboration in the UK and the UK s performance against international comparators. Question 1. What are the key strengths and weaknesses of the UK s innovation system in relation to business-university collaboration? 7. A key strength of the UK s innovation system is the excellence of its research base. Although the UK represents just 0.9% of the global population, it accounts for 6.4% of research publications and 15.9% of the world s most highly-cited research. It used to be said that this excellence in science and research was not reflected in the strength of relations between universities and business, but the World Economic Forum has put the UK in the top six countries for the effectiveness of such relations. The UK attracts major investment from overseas companies as a consequence of the excellence of our science and research, with wide benefits for the economy as a whole. 18 Collaborative Awards in Science and Engineering Studentships Opportunities/Postgraduate funding/pages/centres for Doctoral Training.aspx 21 and guidance/postgraduates/dtc/ exchange/opportunities/impactaccelerationaccounts.aspx 24 exchange/opportunities/impactaccelerationaccounts.aspx 25 on.aspx 26 prod/assets/documents/impacts/rcukimpactfaq.pdf techdaresbury.com/about/sci tech/ 29 innovation campuses/babraham research campus.aspx, We Do/Strengthen research impact/knowledge Exchange and Partnerships/Pages/KE Hubs for the Creative Economy.aspx

4 Question 2. How competitive is business-university collaboration in the UK against relevant international comparators? 8. The World Economic Forum s annual Global Competitiveness Report evaluates a range of indicators to assess different countries. Based on the Universityindustry collaboration in R&D indicator, the UK is ranked 5, 34 and it is highlighted as a notable competitive advantage. 35 Analyses of the UK s relative global performance have also been carried out by a number of organisations, including a report by Elsevier in 2013 at the behest of the Department for Business Innovation and Skills. 36 Effectiveness of Government initiatives to support innovation through businessuniversity collaboration. 9. The Research Councils undertake a range of evaluation exercises to determine the effectiveness of their policies. Following the recommendations of the Warry report, 37 RCUK carries out a biennial survey of user satisfaction from the users and consumers of the Research Councils research and facilities. The most recent survey (from 2012) found users broadly positive about their interactions with the Research Councils. Respondents felt that their understanding of RCUK was good. The survey found some enthusiasm for the potential of the Gateway to Research, the need for which was partly identified in the previous survey. 38 The 2014 survey is currently underway. Question 3. What are the strengths and weaknesses of the Catapult Centre model of business-university collaboration? What areas of research should future Catapult Centres focus on? 10. RCUK has no comment to make at present, although we note that the Catapult Centres are currently being reviewed and RCUK is preparing input for that review competitiveness 34 The Global Competitiveness Report , Klaus Schwab (ed.), World Economic Forum, p pdf 35 global competitiveness report /#= 36 of the uk research base internationalcomparison

5 Question 4. What steps can be taken to improve the uptake of Knowledge Transfer Partnerships (KTPs), particularly among SMEs? 11. All Research Councils are partners in the national Knowledge Transfer Partnerships scheme. In 2012 RCUK and the Technology Strategy Board commissioned the then Council for Industry and Higher Education (now the National Centre for Universities and Business) to undertake a study of the key attributes for successful knowledge transfer partnerships. 39 As a follow-up to this study a number of short pamphlets have recently been published to highlight for different audiences how they can get involved in KTPs and the benefits of participating in this scheme. 40 Funding Question 5. Recent BIS analysis found that the UK exhibits a sustained, longterm pattern of under-investment in public and private research and development and publicly funded innovation. How does this affect businessuniversity collaboration in the UK? 12. Research Councils, often in partnership with other public funders of research, are increasingly working in collaboration with those companies who do recognise the potential of a sustained, long-term pattern of investment. We seek to deepen those existing relationships and encourage more businesses to take that approach. Question 6. Will the proposed changes to Higher Education Innovation Funding (HEIF), proposed in the Witty Review, be successful in increasing university engagement with innovative SMEs? 13. RCUK believe that HEIF can provide funding for the core infrastructure within universities that helps underpin knowledge exchange (KE) activities funded by the Research Councils. This allows universities to use the Research Councils KE funds synergistically to support specific projects associated with SMEs. For example, applicants are encouraged to apply for specific funding to support the Pathways to Impact components of their research projects 41, and SMEs are likely user partners for project research outcomes. Impact Acceleration Accounts, pioneered by EPSRC 42 and being trialled and rolled out by several councils, take the form of a block grant allocated to universities for KE activities. These allow funds for KE to be applied by universities in flexible and responsive ways which are more conducive to businesses requirements 39 attributes for successful knowledge transfer partnerships.html 40 transfer partnerships a best practice approach to openinnovation.html 41 prod/assets/documents/impacts/rcukimpactfaq.pdf (page 6) 42

6 (e.g. timeframes), particularly SMEs. The Research Councils expect universities to use such flexible funding streams to lever and add value to existing funds like HEIF. Question 7. What has been the effect of including commercial impact criteria in REF assessments and should the weighting increase to 25% as suggested in the Witty review? 14. There is a recognition that there are a many different ways in which research-related knowledge and skills deliver economic benefit for individuals, organisations and nations. These impacts are not derived purely from commercial activity and include increasing the effectiveness of public services and policy, and enhancing quality of life and health of the nation. These may become manifest at any stage in the research life cycle and beyond, so disciplines where lead times for research to reach impact are long, eg in biomedical research, may require proxies for economic activity to be considered. 15. Including the appraisal of both economic and societal impact within the current REF assessment does appear to be driving a cultural change within universities. The most visible signs are a greater understanding of the importance of impact and an increased focus on the credible articulation of the benefits of public research. These, plus the incentive for researchers to become involved in impact related activities in future, are likely to sustain this welcome cultural shift. A weighting increase to 25% for economic and societal impact would most likely enhance the momentum of change. Question 8. Will the Government s focus on the eight great technologies, as described in the industrial strategy, help to attract inward investment? 16. The identification and selection of the Eight Great Technologies was informed by work carried out by the Research Councils, along with TSB and GO-Science; including the RCUK Strategic Framework for Capital Investment. 43 The Strategic Framework sets out how the Research Councils will plan future investment in the UK s capital infrastructure for research. It was developed in consultation with universities, research organisations and the wider research and business communities, and was informed by the strategic plans of the Research Councils and input from a range of agencies. The priorities identified fed into the selection of the Eight Great Technologies, with the result that both are well aligned, although the Research Councils continue to fund an extremely broad portfolio of research and are committed to supporting impact and innovation across the full range of funded research. Research Councils support a great deal of activity underpinning future growth in strategic industrial sectors, and many have more than 50% of their spend aligned to the industrial strategy sectors. 17. There is evidence that the funding for synthetic biology (one of the Eight Great Technologies) is attracting international attention, in particular from venture capital funds. In addition, UK research commitment from international companies involved in 43

7 agritechnology has been encouraged by the combination of the industrial strategy and the Eight Great Technologies. Question 9. To what extent is this focus compatible with and complementary to the European Strategy for Key Enabling Technologies? 18. The European Strategy for Key Enabling Technologies aligns with the eight great technologies in a number of areas (e.g. advanced materials) and with Research Council priorities more generally (e.g. advanced manufacturing, biotechnology). This alignment should enable synergies to be more readily developed and will enhance the overall research programme funded in the UK and elsewhere in Europe. Local Growth Agenda Question 10. Are Local Enterprise Partnerships (LEPs) (and their counterparts in the rest of the UK) investing as much as they could in innovation and R&D? No response Question 11. How can LEPs, universities and Government encourage greater regional R&D investment? 19. The Research Councils allocate research funding to universities and research institutes on the basis of research excellence, which in turn, has an influence on regional investment and economic growth. While the Councils do not specifically fund research to drive regional growth, research excellence can be an important driver of local economies. As a consequence, the Research Councils possess a view of the strengths of different universities across the country. The Research Councils know which universities are carrying out excellent research in different fields, and they can therefore help identify a region s comparative advantages in research. As such, the Research Councils have the potential to serve as a facilitator for university-led regional growth. 20. The Gateway to Research 44 provides a mechanism for those outside the research system to track the research funded by the Research Councils and identify potential partners based on the existing research strengths of local universities. RCUK has made a programming interface for the Gateway to Research available for use by other developers in innovative systems. The JISC supported G4HE project makes use of this information to present data on research and collaborations, 45 enabling users to track the research carried out at different universities and identify new industrial and academic partners

8 21. The Research Councils also support and run a number of research institutes and large scale facilities, which have significant potential to support economic growth and development in their surrounding regions. These sites can serve as anchors around which clusters of research and development can emerge, boosting R&D investment in the area. These hubs attract businesses wishing to access the reservoir of research expertise and advanced facilities available at the sites. Large facilities like the ISIS neutron and muon source 46 and Diamond Light Source, 47 located at the Harwell Oxford Campus, are generally too expensive for individual companies or universities to build. They are accessed by both academic and industrial users, often working in collaboration, with the sites providing a valuable venue for business-university interaction. 22. The National Research and Innovation Campuses at Babraham, 48 Daresbury, 49 Harwell 50 and Norwich 51 are based around major, internationally leading and long-term investments in research capability developed and sponsored by STFC, BBSRC and other Research Councils. There is already significant business and commercial activity at these locations, attracted by the substantial research capabilities on the campus, with extraordinary potential to develop as national focal points for innovation in their fields. These four research and innovation campuses represent a major opportunity within the UK to deliver impact from research, leading to the growth of new and emerging companies and encouraging global businesses to invest. 23. A similar role is also being played at the NERC Research Centres 52 : NERC is funding the creation of new innovation hubs at campuses where they are co-located with universities and business enterprise (Edinburgh, Cambridge and Southampton). 24. The Research Councils also have a leadership role in the development of new, specialised hubs and clusters, bringing together both business and university partners. AHRC has committed funds to support four Knowledge Exchange Hubs for the creative economy. 53 The hubs offer brokerage and develop collaborations, investing in projects connecting arts and humanities researchers with creative and cultural businesses, large and small (including micro-enterprises), across the UK, to accelerate growth and innovation. 25. The Research Councils invest to support impact from these hubs, providing the infrastructure necessary for business and academic use of the facilities. This includes early stage business incubation in the form of office and lab space, access to expertise techdaresbury.com/ innovation campuses/norwich research park.aspx 52 British Geological Survey, National Oceanographic Centre (including the autonomous vehicles centre), Centre for Ecology and Hydrology, British Antarctic Survey, and the Heriot Watt centre for subsurface research and business We Do/Strengthen research impact/knowledge Exchange and Partnerships/Pages/KE Hubs for the Creative Economy.aspx

9 and business support. Examples of these include the Innovations Technology Access Centre, 54 and the ESA 55 and CERN Business Incubation Centres 56 based at the Harwell and Daresbury Campuses respectively. The Research Councils also support business incubation through dedicated technology transfer companies like STFC Innovations Ltd 57 and MRC Technology, 58 and through the Rainbow Seed Fund 59 to invest in early stage start-ups and spinouts. 26. Established in 2002, the Rainbow Seed Fund is a proven vehicle for accelerating the economic impact of research from Public Sector Research Establishments such as the John Innes Centre and Rutherford Appleton Laboratory. Through independent, experienced management and strong governance structures it leverages crucial advice, resources and funding at an early stage. It has already delivered considerable benefits, having brought 33 spin-outs to life and enabled them to attract over 160m of additional private investment, which represents a multiple of well over 15 times RSF s own investment The hubs have been successful at attracting external partners to invest and participate in R&D activities. Sci-Tech Daresbury, for example, is the venue for an extensive collaboration between Unilever, the University of Liverpool and STFC s Hartree Centre. 61 The Harwell Oxford Campus is home to the TSB Satellite Applications Catapult, 62 and will be joined by a new ESA centre and other companies in the space sector. It forms part of a growing Space Cluster built around existing investments in space research by TSB, STFC, NERC and other public and private sector partners. Question 12. How should LEPS direct their allocation of European Structural and Investment Funds in order to maximise increases in R&D output? 28. The Research Councils are working hard to build strong relationships with Local Enterprise Partnerships where appropriate, particularly those covering Research Council sites and facilities. The Research Councils support the federation approach that has been seen emerging where LEPs have grouped together around common goals and work streams. The Research Councils are aware that LEPs may not naturally appreciate all the opportunities offered by the UK Research Base, and that the Research Councils have a role to play in assisting them. Providing a bridging or brokering role can help provide the university sector with greater strategic influence. The Research Councils, in conjunction with the Higher Education Funding Council for England (HEFCE) and Universities UK have written to all UK universities and funding bic.org.uk/default.aspx 56 cern bic.org.uk/default.aspx seed fund.aspx 60 seed fund/ updated April

10 recipients, encouraging them to work with their LEPs to bid for European Structural Funds. Question 13. To what extent will the new University Enterprise Zones encourage business university collaboration? No response

11 Annex 1 Examples of Research Council Programmes to Support Business- University Collaboration. Brokerage, Advice and Networking 29. The nature of the Research Councils work means that RCUK is almost unique in having an overall national picture of the excellent research being carried out across the UK in universities and research centres. It can therefore play a brokering role, helping companies engage with research carried out in universities and providing guidance on good practice. Gateway to Research 30. Business desire for a single point of contact to search for and access Council-funded research has led to the creation of the Gateway to Research, 63 a web-portal and search tool which provides access to Research Council and TSB funded research and information. This should help enable business-university connections which may lead to future collaborations, and keep business users up to date about developments in their field. The portal has been well received by users, and had around 4,800 visitors a month between its beta release in November 2012 and its official launch in December RCUK has made a programming interface (API) for the Gateway to Research available, for use by external software developers, allowing them to use the underlying information in new ways. The JISC supported G4HE project makes use of this information to present data on research and collaborations, 65 enabling users to track the various research projects undertaken by different universities. National Centre for Universities and Business 31. RCUK has also agreed, with TSB and other funding bodies, to provide funding support for two years to the National Centre for Universities and Business (NCUB) 66. The NCUB was established to develop, promote and support collaboration between universities and business. Through NCUB, RCUK and TSB commissioned the report Best Practice Strategies for Successful Innovation Through University-Business Collaboration. 67 Networking 32. RCUK provides advice and support to business on working with universities, advertising the benefits of collaboration for innovation through publications and supporting networks. The RCUK booklet Innovation and The Research Councils 68 was launched at TSB s Innovate UK 2013 conference, attended by over 3,000 people from UK and international business and academia. The case studies within advertise the myriad RCUK Impact Report 2013 p.5, and partners/funders and partners.html 67 practice strategies for successful innovation through universitybusiness collaboration.html 68

12 possibilities of collaboration with the UK s research base. 69 A new booklet on the benefits of collaboration with the research base is planned for later in STFC runs an Innovations Club, 70 bringing together industry and academia to form new collaborative partnerships through a series of technology focussed events and through a monthly newsletter. 34. Ultimately, RCUK hopes to build on its work in the area of brokerage between business and academia, working with NCUB to link Gateway to Research to a National Brokerage Platform, alongside the TSB, linking world class academics and innovative businesses. Research into Innovation 35. The Research Councils also fund and support a range of research into innovation itself. ESRC supports the work of the UK-Innovation Research Centre, 71 (in conjunction with TSB, Nesta and the Department for Business Innovation and Skills) based at Imperial College and the University of Cambridge. It seeks to understand the process of innovation and improve the application of research to the wider economy. 36. The AHRC-funded Brighton Fuse project 72 at the Universities of Brighton and Sussex, in collaboration with the National Council for Universities and Business and Wired Sussex, has provided empirical evidence on the emergence of a new sector of business fusing skills in the arts, humanities, and design with digital technology to achieve growth, as well as significantly higher levels of innovation, within the Brighton creative, digital and IT business cluster. Advice on Collaboration Agreements 37. The Research Councils provide advice and support to researchers on how to manage and coordinate their collaboration with industry: for example, MRC encourages and supports collaborative research between industry and academia through the use of standardised collaborative research agreements. The model Industry Collaborative Research Agreement (micra) 73 was developed in collaboration with the Department of Health, to enable research across academia, industry and the NHS, and has crosssector endorsement. 74 In other circumstances MRC Industry Collaboration Agreements (MICA) are often used, providing a standardised mechanism for establishing an agreement between academic and industrial research partners which can be applied to most MRC funding schemes. 75 Similarly, EPSRC provides advice to universities that want to collaborate with industry, 76 primarily based on the model Research Collaboration 69 prod/assets/documents/publications/innovationbookletfinalweb.pdf

13 Agreements drawn up by the Lambert Working Group on Intellectual Property as part of the Lambert review on business-university collaborations. 77 Direct Collaboration between Research Councils and Industry Strategic Partnerships 38. EPSRC and NERC have formed a number of strategic partnerships with industrial partners in order to more closely align research and innovation priorities and collaboratively fund calls for research. 78 These formal agreements enable both parties to share information and strategy and jointly support each other s objectives, and jointly fund research, training and other innovation activities in UK universities. 79 Catalyst Funding 39. To support the development and commercialisation of research in specific technology areas, the Research Councils and TSB have collaborated to create Catalyst schemes, large scale targeted funding competitions in pursuit of a set of related scientific objectives. Three Catalysts have been set up so far: The Biomedical Catalyst (TSB and MRC), Agricultural Technology Catalyst (TSB, BBSRC & DFID), Industrial Biotechnology (BBSRC, TSB and EPSRC), the first round of the new Energy Catalyst scheme (EPSRC, TSB and DECC) will open in May 2014 with 25m available. 80 The Catalysts support businesses and academics to develop solutions to a range of specified challenges. Each offers a range of funding streams targeted at different stages of the innovation and commercialisation process, starting with the translation of research from academic settings, up to the experimental development of commercial scale operations. 81,82,83 The funding streams are specifically designed to support business-university collaboration and engagement, and in the case of the Biomedical Catalyst, targeted at SMEs. Consortia 40. Consortia of Research Councils, other funding bodies and industrial partners have been formed in a number of specific research areas to create funding pots for carrying out research in collaboration with industry. These include seven Chemical Biology Networks (Joint BBSRC, MRC, EPSRC) 84, the BBSRC Networks in Industrial Biotechnology (BBSRC with EPSRC), 85 the Horticulture and Potato Initiative, 86 and a number of Research and Industry Clubs, including the recently launched Sustainable Agriculture Research and Innovation Club (SARIC), jointly funded by NERC and BBSRC. 87 Through these consortia, Research Councils collaborate with industry to fund industrially relevant research and link together academia and business intro.htm catalyst 81 research/tsb competitions/ib catalyst.aspx 82 catalyst 83 research/tsb competitions/agri tech catalyst.aspx 84 research/programmes/chemical biology networks.aspx research/programmes/horticulture potato/horticulturepotato index.aspx 87 sustainable ag club workshop.aspx 88 research/industry clubs/industry clubs index.aspx

14 41. MRC has encouraged the formation of a number of disease focussed consortia to stratify disease, these consortia incorporate universities and large companies, and enable collaboration and targeting of specific medical research problems. The diabetes focussed MASTERMIND Consortium 89 has over 20 partners, including the University of Exeter, healthcare providers and major pharmaceutical companies. 42. AHRC has also partnered with Nesta and Arts Councils in England, Wales and Scotland on digital R&D investments in the creative and cultural sectors EPSRC and BBSRC, with TSB, fund Innovation and Knowledge Centres (IKCs) to support and coordinate the development and commercialisation of emerging and disruptive technologies. Based within a university, but drawing in multiple collaborators nationwide from academia and industry, IKCs are led by small entrepreneurial teams. The Research Councils have supported IKCs in a range of fields, including Synthetic Biology and Medical Devices. 91 Specialised Funding for Collaborative Research 44. Industrial Partnership Awards (BBSRC) 92 provide funding for research in which at least 10% of full economic cost (FEC) is funded by an industrial partner. Stand-Alone LINK (BBSRC) 93 funding covers pre-competitive research projects which are 50:50 funded with industrial partners. 45. STFC s Innovations Partnership Scheme (IPS) provides funding for joint projects with an industrial partner, designed to commercialise technology developed through STFC s research programme NERC s Innovation Projects provide funding to translate research outputs into user applicable outcomes, requiring direct business-university collaboration as integral to the process. Flexible Funding for Translation 47. More flexible forms of funding for collaboration between business and universities is provided via a range of schemes. Impact Acceleration Accounts (IAA) are block grants of innovation funding, awarded to universities and research centres which allow their own knowledge exchange teams to allocate funds flexibly and creatively to opportunities for translation. 95 Each university is expected to make effective use of its IAA funding and engagement with business is one of the major approaches for doing so. IAAs and their 89 F78C 4759 A36C 93219E469AD funding/funding programmes/digital rd fund arts/ 91 Advanced Manufacturing Technology for Photonics and Electrons; Ultra Precision and Structured Surfaces; Centre for Secure Information Technologies; Medical Technologies; Sustainable Product Engineering Centre for Innovative Functional Industrial Coatings; Centre for Smart Infrastructure and Construction; Synthetic Biology Innovation and Commercialisation Industrial Translation Engine research/industrial partnership awards.aspx 93 research/stand alone link.aspx exchange/opportunities/impactaccelerationaccounts.aspx

15 EPSRC pioneered predecessors Knowledge Transfer Accounts were designed to enable universities to pursue impact. EPSRC has funded IAAs since 2012, ESRC is in the process of introducing IAAs and STFC, BBSRC and NERC are currently running pilot schemes. 48. The NERC Knowledge Exchange Fellowship 96 scheme provides funds to academics to enable them to spend up to 80% of their time over up to three years engaging with research users, particularly businesses, developing and brokering relationships between users and their host institution, accelerating access and uptake of research outputs and generating long-lasting business-university collaborations. 49. Follow-on-Funds, as run by BBSRC, 97 NERC, 98 AHRC, 99 and STFC, 100 allow the development of ideas towards commercial application. This helps ensure that research ideas are matured and fit for purpose before they are exposed to application in a commercial setting. Collaborative Funding for Researchers, Training and Personnel Exchange 50. The Research Councils collaborate extensively with industry through funding individual researchers and academics to work across and between sectors in order to facilitate the transfer of knowledge and expertise. Knowledge Transfer Partnerships, supported by the Research Councils and TSB, enable collaboration between a university and a business on a specific project, led and coordinated by an associate, a recent graduate drawn from the knowledge base. 51. Research Councils fund around 25% of the UK s PhD students. Doctoral training represents an avenue for further business-university collaboration and all Councils encourage collaboration and placements with businesses. CASE Studentships are PhDs which are attached to collaborative projects between academia and industry. These are allocated to companies with a track record in postgraduate development who join an Industrial CASE Partnership. 101 CASE doctoral awards account for 21% of all Research Council funded studentships. 102 EPSRC, NERC and other Research Councils have set up a number of Centres for Doctoral Training, all of which have business support and carry out research in collaboration with business. Many operate on a highly collaborative model, where, students spend around 75% of their time working directly with a company (EngD centres). 103 Research Councils also support funded internships for PhD students receiving funding, providing them with the opportunity to gain experience working with non-academic organisations as part of their PhD training on.aspx Opportunities/Pages/Follow on Funding.aspx RCUK Impact Report 2013 p.3,

16 52. Other schemes which support interchange and exchange between academic and industrial communities include: Royal Society Industry Fellowships (Co-Funded with EPSRC, NERC, BBSRC, Rolls-Royce plc and BP plc) provide funding for academics to build links with industry, 104 BBSRC Flexible Interchange Programme, 105 EPSRC Knowledge Transfer Secondments, 106 Knowledge Exchange Fellowships, Innovation Internships, Royal Society of Edinburgh Enterprise Fellowships 107 and the Young Entrepreneurs Schemes. 108 New schemes include the recent EPSRC pilot of a scheme providing mid-career academics with industrial mentors. Many of the skilled people supported through these activities go on to have a greater appreciation and understanding of the challenges and rewards of business-university collaboration and enhance the overall strength of the relationship between universities and business in general. 104 Funded by EPSRC, BBSRC, NERC, Rolls Royce plc and BP plc fellowship/ information/flexible interchange programme.aspx yes.aspx