1. Public and Corporate Economic Consultants PACEC 1 © Tomas Ulrichsen The Role of Government Policy in Supporting Knowledge Exchange in English Higher Education Institutions A presentation by Tomas Ulrichsen, PACEC Investigating Academic Impact London School of Economics 13 th June 2011 Presentation based primarily on research led by Barry Moore (PACEC), Tomas Ulrichsen (PACEC) and Alan Hughes (CBR) over the period 2007 – 2011

2. Public and Corporate Economic Consultants PACEC Introduction Growth in knowledge exchange activity Role of government policy (HEIF and its predecessors) for developing knowledge exchange Impacts on external organisations, academics and communities Impacts of HEIF on culture and capacity to engage Challenges remaining 2© Tomas Ulrichsen

3. Public and Corporate Economic Consultants PACEC Growth in knowledge exchange income 2001-2010 © Tomas Ulrichsen3 Contract research Collab. research Courses Consultancy Facilities & equip. IP revenues Income stream 842 564 484 301 92 70 2010 income (£m) 33 22 19 12 4 3 2010 share of total (%) 13.1 3.8 11.6 12.6 15.1 17.6 CAGR 01-10 (%) Regeneration17474.4 44 -2 10 18 8 -46 Growth 09-10 (£million) 33 KE income2,5281009.365 Knowledge exchange income (£ millions, constant 2009/10 prices) Year Source: HEBCI 2000/01-2009/10, PACEC analysis for BIS

4. Public and Corporate Economic Consultants PACEC Evolution of Government Support for Knowledge Exchange © Tomas Ulrichsen4 HEIF Total KE funding HEROBC Total accumulated funding 00/01 – 10/11:£1,040 million (£1,110 million) ( constant 2003 prices (current prices) Aim of funding to correct market and system failures to support the building of capacity and capability of HEIs to increase their economic and social impacts, and to change culture towards knowledge exchange Knowledge exchange funding (£ millions, constant 2009/10 prices) Source: HEFCE, PACEC/CBR analysis

5. Public and Corporate Economic Consultants PACEC Infrastructure Supporting the Knowledge Exchange Process © Tomas Ulrichsen5 Source: PACEC audit of HEI KE infrastructure

6. Public and Corporate Economic Consultants PACEC Impacts of Knowledge Exchange on Users © Tomas Ulrichsen6 Academics External organisations Communities With STEMWith Non-STEM Sources: PACEC/CBR Survey of External Organisations (2008); PACEC/CBR Survey of Academics (2008); PACEC Survey of staff at the University of Essex; PACEC interviews with staff at University of York; PACEC/CBR Case Studies of 30 HEIs (2008) Support for product / process innovation Skills development Workforce / management skills development Marketing Business model / strategy Insights, funding, contacts for research Case studies / practical knowledge for teaching University outreach More informed public / better able to solve problems Improved employability, capabilities / skills Contributions to social cohesion

7. Public and Corporate Economic Consultants PACEC Impacts of Government Policy on Knowledge Exchange © Tomas Ulrichsen7 …On KE outputs …On culture / attitudes Extensive triangulated research programme showed that government support has played significant role in helping HEIs build capacity / capability to engage - significant gross additionality  Scale of KE greater than would otherwise be  Critical for developing KE infrastructure  Leverage other funding  Backed up strategic KE campaigns with resources HEIF funding has helped drive increasing support for knowledge exchange at leadership level and amongst academics But culture/attitudes not yet fully supportive Strong view that KE cannot come at expense of academic freedom /research quality Source: PACEC/CBR (2009) Evaluation of the Effectiveness and Role of HEFCE Third Stream Funding, report 2009/15 to HEFCE

8. Public and Corporate Economic Consultants PACEC Can HEIs Do More? 8 33 37 15 14 32 18 28 19 34 16 29 12 I do not feel knowledgeable about the issues involved but would be interested in the commercial application of my research I feel knowledgeable about the issues involved in getting research commercialised I am not really interested in the commercial application of my research I would not want to be directly involved in the commercial application of my research Huma- nities STEM Social sciences % academic respondents © Tomas Ulrichsen Source: PACEC/CBR Survey of Academics (2008)

9. Public and Corporate Economic Consultants PACEC What Constrains Impacts? © Tomas Ulrichsen9 Higher Education Institution Private / public / third sector organisation  Lack of time  Bureaucracy and inflexibility of HEI administration  Difficulties in identifying partners  Insufficient rewards and lack of awareness of the benefits from the interactions  Lack of understanding by academics of the process  Capacity and capability of the KE system still developing / evolving  Lack of resources within external organisations to fund the KE engagement  Insufficient benefits from the interaction  Lack of interest by external organisations and lack of demand for KE  Intellectual property agreements as a barrier to some, albeit minority of, KE engagement Source: PACEC/CBR Survey of Academics (2008); PACEC/CBR Survey of Enterprise Offices (2010); CBR Survey of Enterprises (2008)

10. Public and Corporate Economic Consultants PACEC Conclusions Last decade has seen significant increases in KE activity Enabled, in part, by targeted, flexible government funding for KE enabling culture change / developing capacity to engage (infrastructure, skills etc.) But still constraints that need to be addressed Diverse range of external impacts that vary by STEM / social scientists Synergistic impacts on research/teaching HEIF funding has been protected (in cash terms) emphasizing government’s commitment to KE But emphasis shifted to rewarding better performers (based on KE income) rather general capacity building - some losing part / all of funding Big questions: what will HEIs who lost some/all funding do now? And what impact will this have on academics seeking to achieve impact of their research/teaching through KE? © Tomas Ulrichsen10