The Connected University: Universities, Knowledge Exchange and Local Economic Growth

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The Connected University Universities, Knowledge
Exchange and Local Economic Growth Michael
Kitson University of Cambridge www.michaelkitson.o
rg Meeting of the Directors General of Higher
Education, Dublin 22nd-23rd April, 2013
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• PREAMBLE

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• THE EVOLUTION OF UNIVERSITY
• ENGAGEMENT

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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

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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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Mode 2 technology transfer - the
entrepreneurial university

• Focus on Technology Transfer
• Mechanisms Patents, Licenses, Spin-outs

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Limitations of the entrepreneurial university

• Significant economic and social returns but
  financial and private returns were frequently
  over-estimated
• Metrics distorting behaviour (Goodharts 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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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
• Googles 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
  Universitys Office of Technology Licensing )

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

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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

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Survey of 2,500 Businesses
Survey of 22,000 Academics
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Basic or Applied ?
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Research Activities
Quest for fundamental understanding?
Considerations of use?
NO YES

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

The Republic of Science Pure basic research (Bohr) Use-inspired basic research (Pasteur)
The Realm of Technology Pure applied research (Edison)
NO YES
Source Adapted from D. Stokes (1997) Pasteurs
Quadrant Washington Brookings Institution
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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. .
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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.
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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.
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TECHNOLOGY TRANSFER
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Commercialisation Activities

• Patents (7 of academics)
• Licenses (5 of academics)
• Spin- outs (4 of academics)

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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.
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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.
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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.
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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

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Academic Interactions with External Organisations
People-based activities
Standard-setting forums
Sitting on advisory boards
Giving invited lectures
Participating in networks
Enterprise education
Attending conferences
Student placements
Employee training
Curriculum development
Commercialisation activities
Community- based activities
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Licensed research
Lectures for the community
7
Public exhibitions
Patenting
Schools project
4
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Spun-out company
Formed/run consultancy
Community-based sports
Format adapted from Ulrichsen (2009)
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.
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Academic Interactions with External Organisations
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People-based activities
65
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Standard-setting forums
6
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Sitting on advisory boards
Giving invited lectures
Participating in networks
Enterprise education
Attending conferences
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67
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Student placements
Employee training
Curriculum development
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Problem-solving activities
Commercialisation activities
Community- based activities
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Joint research
5
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Hosting personnel
Licensed research
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Research consortia
Lectures for the community
7
Consultancy services
Public exhibitions
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10
Informal advice
Patenting
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15
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External secondment
Prototyping and testing
14
Schools project
4
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3
9
Contract research
Spun-out company
Formed/run consultancy
Community-based sports
Setting of physical facilities
Joint Publications
Format adapted from Ulrichsen (2009)
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.
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THE IMPORTANCE OF BUSINESS LINKS
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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)

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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.
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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.
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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.
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Importance of Technological Innovation
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Why businesses interact with universities?
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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Who do businesses interact with?
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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Constraints
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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
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Academic and business perceptions of constraints
on interactions
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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Reasons for not interacting ( of non
collaborating firms)
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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How are interactions with universities initiated?
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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Businesses () employing someone to liaise with
universities
Source Cambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464.
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Businesses () interacting with universities
SourceCambridge Centre For Business Research
Survey Of Knowledge Exchange Activity By United
Kingdom Businesses, 2005-2009 (Hughes, A.,
Kitson, M., Abreu, M., Grinevich, V., Bullock, A.
and Milner, I.) UK Data Archive Study Number
6464. .
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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

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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

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The connectivity of universities a wider
perspective

• Focus on university-business links
• Ignores the many and varied interactions with the
  public and third sectors

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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

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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

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• POLICYIMPLICATIONS

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Implications for policy 1

• Importance of demand-side limitations
• Lack of competences and relevant skills in
  business

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Implications for policy 2

• The size problem
• Difficult for SMEs to connect with universities
• The aggregation problem for KE projects

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Implications for policy 3

• The information problem lack of knowledge about
  what academia can offer and how to access it

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Implications for policy 4

• The reality problem there are 120,000 academics
  in the UK and 4.8 million businesses

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Implications for policy 5

• The short-termism problem focus on research
  with an economic impact

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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

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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

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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

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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

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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

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THE ACADEMIC IVORY TOWER IS A MYTH