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The Connected University: Universities, Knowledge Exchange and Local Economic Growth Michael Kitson University of Cambridge www.michaelkitson.org Meeting.

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Presentation on theme: "The Connected University: Universities, Knowledge Exchange and Local Economic Growth Michael Kitson University of Cambridge www.michaelkitson.org Meeting."— Presentation transcript:

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 PREAMBLE

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4 THE EVOLUTION OF UNIVERSITY ENGAGEMENT

5 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

6 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

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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

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11 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 )

12 $150 million: royalties received by the University of Florida from sales of Gatorade developed by inventor Dr. Robert Cade

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14 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’

15 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

16 Survey of 2,500 Businesses Survey of 22,000 Academics

17 Basic or Applied ?

18 Research Activities Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution The Republic of Science Pure basic research Use-inspired basic research The Realm of Technology Pure applied research Quest for fundamental understanding? NO YES Considerations of use?

19 Research Activities Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution The Republic of Science Pure basic research (Bohr) Use-inspired basic research (Pasteur) The Realm of Technology Pure applied research (Edison) Quest for fundamental understanding? NO YES Considerations of use?

20 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

21 Applied 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 6462.

22 User-inspired 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 6462.

23 TECHNOLOGY TRANSFER

24 Commercialisation Activities Patents (7% of academics) Licenses (5% of academics) Spin- outs (4% of academics)

25 Taken out a patent in the last 3 years (% 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 6462.

26 Licensed research outputs to a company in the last 3 years (% 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 6462.

27 Formed a spin out company in the last 3 years (% 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 6462.

28 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

29 Licensed research Patenting Spun-out company Formed/run consultancy Commercialisation activities Community- based activities Lectures for the community Schools project Community-based sports Public exhibitions People-based activities Giving invited lectures Student placements Participating in networks Standard-setting forums Enterprise education Curriculum development Attending conferences Sitting on advisory boards Employee training Format adapted from Ulrichsen (2009) Academic Interactions with External Organisations 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.

30 Setting of physical facilities Contract research Consultancy services External secondment Joint Publications Prototyping and testing Informal advice Research consortia Hosting personnel Joint research Problem-solving activities Licensed research Patenting Spun-out company Formed/run consultancy Commercialisation activities Community- based activities Lectures for the community Schools project Community-based sports Public exhibitions People-based activities Giving invited lectures Student placements Participating in networks Standard-setting forums Enterprise education Curriculum development Attending conferences Sitting on advisory boards Employee training Format adapted from Ulrichsen (2009) Academic Interactions with External Organisations 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.

31 THE IMPORTANCE OF BUSINESS LINKS

32 Partners Private sector companies across a range of sectors (40% of academics) Public sector - UK and abroad (53% of academics) Third sector – including charities, non- profit organisations and social enterprises (44% of academics)

33 Interactions with private sector companies (% 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 6462.

34 Interactions with public sector organisations (% 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 6462.

35 Interactions with the third sector organisations (% 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 6462.

36 Importance of Technological Innovation

37 Why businesses interact with universities? 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.

38 Who do businesses interact with? 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.

39 Constraints

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41 Constraints on interactions with external organisations (% of respondents – All and Engineering) 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

42 Academic and business perceptions of constraints on interactions 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.

43 Reasons for not interacting (% of non collaborating firms) 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.

44 How are interactions with universities initiated? 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.

45 Businesses (%) employing someone to liaise with universities 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.

46 Businesses (%) interacting with universities 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

47 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

48 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

49 The connectivity of universities: a wider perspective Focus on university-business links Ignores the many and varied interactions with the public and third sectors

50 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

51 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

52 POLICY IMPLICATIONS

53 Implications for policy 1 Importance of demand-side limitations Lack of competences and relevant skills in business

54 Implications for policy 2 The size problem Difficult for SMEs to connect with universities The aggregation problem for KE projects

55 Implications for policy 3 The information problem – lack of knowledge about what academia can offer and how to access it

56 Implications for policy 4 The reality problem – there are 120,000 academics in the UK and 4.8 million businesses

57 Implications for policy 5 The short-termism problem – focus on research with an ‘economic impact’

58 Building a connected university: attractor, anchor and transformer Attract, retain and develop high value- added sectors –Source of skilled labour –Problem solving and knowledge exchange –The hub of local connectivity –Source of local ‘buzz’

59 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

60 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

61 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

62 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

63 THE ACADEMIC IVORY TOWER IS A MYTH


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