Robert Huggins and Daniel Prokop Centre for International Competitiveness, Cardiff School of Management, University of Wales Institute, Cardiff Presentation at the ‘Making An Impact – Universities and the Regional Economy’ Conference London, 4 th November, 2009 Universities as Knowledge Network Nodes: Key Institutional and Industrial Players

Objective The aim of the presentation is to analyse the knowledge and innovation links between UK universities and large industrial R&D performers located in the UK. The aim of the presentation is to analyse the knowledge and innovation links between UK universities and large industrial R&D performers located in the UK. We seek to address the following questions: We seek to address the following questions: Which universities possess the most developed knowledge networks with large industrial R&D players? Which universities possess the most developed knowledge networks with large industrial R&D players? Which industrial players possess the most developed knowledge networks with the UK higher education sector? Which industrial players possess the most developed knowledge networks with the UK higher education sector? Do these links impact on the performance of universities as research and knowledge commercialisation institutions? Do these links impact on the performance of universities as research and knowledge commercialisation institutions? What are the spatial patterns in terms of the regional dimensions of university links with large R&D performers? What are the spatial patterns in terms of the regional dimensions of university links with large R&D performers?

Context Universities are increasingly viewed as key institutions in the regional economic development process and are often described as central nodes of the knowledge-driven economy. Universities are increasingly viewed as key institutions in the regional economic development process and are often described as central nodes of the knowledge-driven economy. University knowledge is increasingly viewed as almost a panacea for promoting knowledge-based economic development. University knowledge is increasingly viewed as almost a panacea for promoting knowledge-based economic development. In general, universities are portrayed as forming important actors within networks of regional clusters of knowledge-based activities or systems of regional innovation. In general, universities are portrayed as forming important actors within networks of regional clusters of knowledge-based activities or systems of regional innovation. Within the systemic view of innovation, regions are considered as ‘laboratories’ providing the crucial knowledge infrastructure for innovation. Within the systemic view of innovation, regions are considered as ‘laboratories’ providing the crucial knowledge infrastructure for innovation. However, although local knowledge sources are utilised in the innovation process, global (or at least ‘non-local’) knowledge pipelines are also considered to be of growing importance to innovation. However, although local knowledge sources are utilised in the innovation process, global (or at least ‘non-local’) knowledge pipelines are also considered to be of growing importance to innovation.

Research Method Preparation of a database of organisations – and their location - (public and private sector) that had ‘knowledge links’ with UK universities between Preparation of a database of organisations – and their location - (public and private sector) that had ‘knowledge links’ with UK universities between Knowledge links defined as activities relating to: collaborative research; contract and consultancy research; patenting, licensing, and spin-outs. Knowledge links defined as activities relating to: collaborative research; contract and consultancy research; patenting, licensing, and spin-outs. Data principally collected from university documentation: annual reports; research reviews’ technology transfer reports; research and enterprise web pages. Data principally collected from university documentation: annual reports; research reviews’ technology transfer reports; research and enterprise web pages. Database of c. 10,000 organisations and their location prepared. Database of c. 10,000 organisations and their location prepared. Analysis of database to identify those organisations listed on the UK government’s “The 2008 R&D Scoreboard: The Top 850 UK and 1400 Global Companies by R&D Investment”. Analysis of database to identify those organisations listed on the UK government’s “The 2008 R&D Scoreboard: The Top 850 UK and 1400 Global Companies by R&D Investment”. Approximately 450 companies in our database were listed on either the UK or Global R&D investment list. Approximately 450 companies in our database were listed on either the UK or Global R&D investment list.

UK University Links with Large R&D Performing Firms (Top 20)

Large R&D Performing Firms Links with UK Universities (Top 20)

UK University Links with Large R&D Performing Firms by Region (University Location)

Regional Location of R&D Performing Sites of Large R&D Performing Firms with Links to UK Universities

% of Links With Large R&D Performers Based Outside the Region of Location (Top 20 Universities)

UK University Links with Large R&D Performing Firms Within and Outside Region of Location

Sector Breakdown of Large R&D Performing Firms with Links to UK Universities (R&D Investment)

Total R&D Investment of Partners Linked with UK Universities (Top 20 Universities)

Factors Associated with University Research and Knowledge Transfer Income (** Correlation is significant at the 0.01 level (2-tailed)) University Research Income University Knowledge Transfer (KT) Income Research Income [£000] 0.880** KT Income [£000] 0.880** FTE employment 0.842**0.849** University type: old=1; new= **0.501** Number of Links with Large R&D performers in its Region 0.757**0.722** Number of Links Large R&D performers outside its Region 0.692**0.706** Total Number of Links with Large R&D performers 0.743**0.744** R&D Expenditure of Collaborating Large R&D performers 0.684**0.651** Portfolio of Active Patents 0.775**0.700**

Conclusions There are strong knowledge links between leading research- intensive universities and leading industrial R&D performers in the UK. There are strong knowledge links between leading research- intensive universities and leading industrial R&D performers in the UK. These links benefit both players through a greater capacity to innovate and commercialise knowledge: These links benefit both players through a greater capacity to innovate and commercialise knowledge:  Those universities with a greater number of links to large R&D performers have significantly higher levels of research and knowledge transfer income compared to those with less links.  Those firms with the greater number of links to high research income universities invest more in R&D. There is a strong regional pattern to these knowledge links: There is a strong regional pattern to these knowledge links: Leading research universities in the Greater South East are better ‘placed’ to establish links with the relatively high number of industrial R&D performers located in close proximity, i.e. within the same region. Leading research universities in the Greater South East are better ‘placed’ to establish links with the relatively high number of industrial R&D performers located in close proximity, i.e. within the same region. Universities in less competitive regions do not have the same density of R&D performers in close proximity, with which they can potentially forge links. Universities in less competitive regions do not have the same density of R&D performers in close proximity, with which they can potentially forge links. Universities in less competitive regions are ‘forced’ to cultivate links with R&D performers based at a relative distance to their own location. Universities in less competitive regions are ‘forced’ to cultivate links with R&D performers based at a relative distance to their own location.

Conclusions (2) Less competitive regions are generally compromised by universities that are less research intensive (on the whole) and less linked to industrial knowledge bases than their counterparts in the GSE. Less competitive regions are generally compromised by universities that are less research intensive (on the whole) and less linked to industrial knowledge bases than their counterparts in the GSE. Although much university knowledge transfer policy is based on establishing links with SMEs, it is clear that links with the ‘big ticket’ large R&D performers are closely connected with university performance. Although much university knowledge transfer policy is based on establishing links with SMEs, it is clear that links with the ‘big ticket’ large R&D performers are closely connected with university performance. There is a clear need to better articulate policies aimed at improving the knowledge bases of relatively lagging regions. There is a clear need to better articulate policies aimed at improving the knowledge bases of relatively lagging regions. Clearly, the movement of knowledge infrastructure across regions is not a feasible option. Clearly, the movement of knowledge infrastructure across regions is not a feasible option. This suggests that better connecting knowledge bases across regions – both in the UK and globally – provides a more realistic option. This suggests that better connecting knowledge bases across regions – both in the UK and globally – provides a more realistic option.

Thank You