SEEDA programmes

1
SEEDA programmes aspirations for supporting
Knowledge Transfer between HE and Business
HESE/Enterprise Hub Workshop - 25th November 2004

• Dr David Harris
• Head of Innovation
• South East England Development Agency

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Strategic Context for RDA Role
PSA Target 2
Improve the relative international performance
of the UK research base and increase the overall
innovation performance of the UK economy, making
continued progress to 2008, including through
effective knowledge transfer amongst
universities, research institutions and business
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Strategic Context for RDA Role
PSA Target 2
10-Year Investment Framework 2004-2014

• Ambitions for UK Science Innovation
• World class research at UKs best centres
• Sustainable SET Research Base
• Greater responsiveness of Research Base to needs
  of the economy
• Increased Business investment in RD
• especially through drawing on SET Base
• More responsive supply of SET Skills
• Confidence in science innovation across UK
  society

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Lambert and the RDAs

• Aim
• how to raise the level of demand by business for
  research
• Recommendations
• 2.3 An enhanced role for RDAs in facilitating
  business-KB links
• 5.1 RDAs should have targets that promote
  business-KB collaboration
• 6.2 A new stream of business-relevant research
  funding ( 100m-200m)
• Government response
• Agrees RDAs best placed to promote needs of
  businesses within their regions
• Will task RDAs to help businesses develop links
  with research base
• RDAs deployment of own funds (no new funding!)
  should
• Be driven by clear support from business
• Complement national innovation priorities
• Not directly subsidise industrys near-market
  research

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Strategic Context for RDA Role
PSA Target 2
10-Year Investment Framework 2004-2014
Key objectives
UK Science Base OST RCs
Knowledge Transfer OST/DTI RCs, RDAs
Business innovation DTI RDAs

• Related Regional economic indicators
• Business-Knowledge Base interaction
• Business expenditure on RD as of GVA
• of businesses having introduced new products,
  services or processes

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The magnitude of the challenge
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UK RD ambition sustained growth in public and
private investment
2.9
USA
RD as share of GDP
2.7
Germany
2.5
2.3
France
Percentage
Ambition 2½ by 2014
2.1
UK
Trend 1985-97
10-year investment framework period
1.9
Trend 1997-2004
1.7
Data from HMT, 2004
1.5
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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Towards a 2.5 RD/GDP rateRD investment as
GDP
increase of 12bn in BERD across UK, from 3.6bn
to 6.6bn in the SE in 10 yrs!
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Innovation activities
Data from CIS3
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Companies links with the knowledge base

• Sources of knowledge - Top of list
• Customer feedback, RD within company
• The internet, competitors, literature
• New employees
• Bottom of list (of 23)
• Universities
• Factors helping innovation - Top of list
• Key local market opportunities
• Sophisticated customer base
• Strong networks with research institutions

From Creating Enterprising Places - Chrissie
Baxter, MIT Peter Taylor, U of Cambridge
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To sum up, the challenges are

• Overall investment in RD low by international
  standards
• SE needs to increase investment by 75 (BERD up
  by 3bn/10yrs!)
• Productivity growth from RD not being realised
  in the SE
• SE has 25 of UK BERD, and 1/3 of public sector
  RD expenditure BUT only 16 of GDP
• Low productivity by non-financial Service sectors
  
• 53 of workforce generates only 37 of GDP
• Misalignment of research base with business needs
• Universities are the last place companies get
  their ideas from
• Evidence of lagging innovativeness in UK business
• RDAs tasked with new responsibility to
  contribute

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RDAs are already Lambert active

• Regional Science and Industry Councils (All)
• Fostering/brokering of links between HEIs and
  SMEs
• Projects involving SMEs
• Funding / Part funding / Match funding of
  HEI-Business research projects
• Investment in collaborative research facilities
  and programmes

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Increasing business demand for Knowledge

• SEEDA is thinking about
• Better business-HEI KT networks
• Initially focused on SE research strengths
• SEEDA-funded extension of existing national
  schemes
• Grants for RD, KTPs, STEP
• Technical support for bidding
• Regional technology advisors (in key
  nodes/Blinks?)
• Both niche and generalist business-credible
  gateways to RD opportunities
• Improving accessibility of information about
  research
• Enhancing MAS with innovation advice
• Human (physical) KT into businesses/Alumni links
• Communication campaigns (roadshows etc.
  extending reach)
• Capital investment in collaborative
  infrastructure?

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Research strengths mapping

• Revision by end November
• Send out for validation
• Extend to PSREs
• Online with SEEOn-line?
• Technology Strategy Roadshow
• Southampton, 3rd December
• Pilot Knowledge Transfer Networks
• Secondees needed to facilitate

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KT concept (niche/SET strengths focused)
Intelligence
Outcomes
SEEDA
Industry Strengths
Consortia
Knowledge Transfer Networks
Innovation
Knowledge Base Strengths
Knowledge Partnerships
Knowledge Transfer
Collaborative RD
Leverage BERD
Foresight Challenges
Emerging Technologies
DTI Technology Strategy Research Councils
inform
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Knowledge transfer perspectives
Industry (demand)
Business for my research
BDMs
RTAs
Research for my business
Universities (supply)
Goal convergence (towards business demand!)
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Issues

• Capacity of SMEs to absorb/exploit knowledge
• Capacity/culture of business to increase to
  acquire Knowledge (3bn), of HEIs to deliver
• Reaching stimulating the larger SMEs (whence
  most growth)
• Getting the balance of innovation support effort
  right across the business / economic spectrum
• Innovation is not just about technology
• Low tech/no tech businesses are also key for
  productivity growth (Services account for gt65 of
  the economy)
• Emphasis on responsiveness to demand
• Skills, skills, skills
• Culture change

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Questions?
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Postscript

• The challenge is to create the conditions where
  all our firms put innovation at the centre of
  their strategies for the future.
• Rt. Hon. Tony Blair, Prime Minister
• Innovation Report, Dec 03