1. University-business engagement for Innovation –
a partnership that works?
Professor Nola Hewitt-Dundas

2. Conventional Wisdom
Public investment in Universities (and in particular research) is based on expectation of strong public good
Universities are perceived to play a key role in the knowledge economy
“The challenge is therefore not so much to develop new research capabilities but rather ensure that NI can better utilise its current research strengths.” Economic Strategy, 2011, p.76
University knowledge is sensitive to distance – in NI this may also be geographically constrained
Disconnect between Higher Education and Business – Problematic partnership?

3. Assumptions & Agenda… Assumptions:
Universities are Homogenous ‘Sources’ of knowledge
All businesses should be cooperating with Universities for Innovation
Northern Ireland universities are not good at cooperating with businesses
Agenda:
Do all Universities offer the same knowledge to businesses?
To what extent are businesses ‘partnering’ with Universities for innovation?
What type of businesses are ‘partnering’ with Universities for innovation?
Is NI underperforming in ‘partnering’ between Universities and businesses?

4. How do Universities differ? LRI and HRI!
2007 UK Government review of science and innovation policy distinguished between
‘research universities focusing on curiosity-driven research, teaching and knowledge transfer, and
business-facing universities focusing on the equally important economic mission of professional teaching, user-driven research and problem-solving with local and regional companies’
(HM Treasury, 2007, p. 5).
Perceived strategic contribution:
HRI – greater strategic focus on knowledge transfer activities related to development and exploitation of IP
LRI – human capital development and local partnerships
Reflects organisational goals and objectives,  strategic academic priorities
 valorization of this academically and commercially

5. How do Universities differ? LRI and HRI!
Knowledge Transfer Activity:
HRI – significantly greater income from IP activities (Licenses & Spin-outs)
HRI – do not confine themselves to ‘co-production’ engagement with businesses
But also from all other forms of KT e.g. contract research, collaborative research, consultancy, facilities & equipment hire, training and CPD
Suggests that Research - through academic publications and IP - acts as a market signal to businesses

6. What do businesses want from Universities?
Majority of interaction with Universities is motivated by factors other than immediate commercial outcomes
Obtaining knowledge of scientific and technological advances
Access to instruments and experimental materials
Access to students and faculty (knowledge talent)
Solving specific problems
How do they get this?
Employees – including placements
Formally – collaborative research, contract research, consultancy, facilities & equipment, CPD and training, IP (licenses), KTPs, innovation vouchers etc.; People-based activities e.g. lectures, advisory boards
Informally – social contacts

7. Proportion of NI firms with Links for Innovation, and links to Universities

8. What type of businesses cooperate with Universities?
Have Internal R&D capability
Above average share of Graduates (relative to sector)
Lower employment growth
Introducing new to the market products or services
Higher share of sales from export markets
Government support for R&D or innovation
Local Universities
Small firms
Where the lack of qualified personnel is a barrier to innovation
Where there is a research-intensive university nearby
Where government support is regional (as opposed to EU)

9. Measuring Knowledge Transfer Activity across the UK Regions

10. Regional Knowledge Transfer Activity

11. Regional Knowledge Transfer Activity

12. Not so Conventional Wisdom
Development of University Inward and Business Outward mentality
Investment in NI University research has not increased significantly.
Where should the policy priority be?
developing cooperation for regional impact OR
developing research excellence
Not all universities are the same – policy expectations must be balanced against the organisational priorities of each University
Greater Localization of Knowledge in NI - Northern Ireland Universities are outperforming universities in all other UK regions in the share of activity performed locally. Is it possible to exceed an optimum level of local engagement?
Not all ‘Northern Ireland’ businesses can benefit from University Knowledge – need for realistic policy making in nurturing university-business links