The Higher Education Innovation Fund

1
The Higher Education Innovation Fund

• Vinnova
• and
• British Embassy seminar
• 21 March 2006

2
The aim of the Third Stream (Mission)

• That all Higher Education institutions are
  committed to making an active and effective
  contribution to improving both the performance of
  the UKs knowledge base, and the overall
  innovation performance of the economy for the
  social and economic benefit of the UK

3
The HE Innovation Fund(HEIF)

• To increase HEIs capability to respond to the
  needs of the economy and society
• For - impact on UK innovation performance
• Through a wide range of knowledge transfer,
  seed funding, enterprise education

4
General Issues

• Demonstrating value for money
• Delivery of benefit, not maximising income
• Developing economic and social impact
• Needs useable indicators for both
• Unlocking resources of diverse HE sector
• Need and scope for all HEIs engagement

5
HEFCE -Third Stream Scope
ENHANCING INNOVATION PRODUCTIVITYDELIVERING
ECONOMIC SOCIAL BENEFIT
NB This represents scope not scale
6
Case studies/Good practice

• Strategic direction and preparation for change
• Organisational change
• Internal standards and procedures
• Marketing
• Partnerships (non HEI)
• Results and evaluation
• http//www.hefce.ac.uk/reachout/casestudies/list.h
  tm

7
HEIF 3 Core Principles

• National scheme regional dimension
• Focus on promoting direct and indirect economic
  benefit to the UK
• Not for funding profit making actions
• Majority (75 of main fund) by formula
• Additional (25) by competitive bidding

8
HEIF 3 Overall

• 218 million main fund, 2006 to 2008
• Up to further 20 million for Centres for
  Knowledge Exchange activity (2006 to 2008)
• Continuing support and development of the third
  stream role for all HEIs
• Embedding change and enterprise as relevant for
  each HEI

9
Formulaic Element

• Core Funding, 164 million
• Every HEI (130) has received an allocation
• released by institutional high level plan
• Continue/broaden current good practice
• Extend and develop successful HEIF actions
• Collaboration strongly encouraged

10
Structure of the Formula

• Three formula components
• Capability/potential (academic FTE)
• Demand side (external income)
• Basket of activities to reflect delivered
  benefit and the diversity of the HE sector
• Modifiers - minimum 200 thousand
• - maximum 3 million
• - transition factor

11
Competitive element

• Two stage bidding process
• 90 bids received 23 going to second stage
• 54 million, not a top-up for previous action
• Limited number of awards from 3 to 5 million
• Impact is vital innovation very important
• Collaborate within and beyond England HEIs

12
HE-Business and Community InteractionSURVEYS

• UK Surveys annually from 2001
• Setting baseline, identifying trends
• Evolving/testing measures and benchmarking
• Potential to inform funding decisions CSR
• Informs HEIs management information
• Business includes companies and public sector
  et cetera

13
Selected deductions from 2005 HEBCI(2003-04 data)

• Large increase in licences granted (due, in part,
  to 2 HEIs)
• Slight decrease in IP and Contract Research
  income
• Increases in Collaborative Research (541
  million) and consultancy (211 million)
• 70 of HE Governors from BC (34 business)
• Over 5,200 dedicated third stream staff
• 300 million CPD income 215 million
  regeneration income
• Only 12 of HE institutions have no formal
  process for managing third stream activity
• 90 have dedicated enquiry point for SMEs
• Over 10,000 staff days for free public lectures
  (gt1,000 for chargeable events)

14
Selected data from 2005 HEBCI survey
15
Evolution of third stream funding
IMPACT
HEIs - and their activities - will be at
different stages on this trajectory...
16
Next steps?

• Overall Strategy
• Third stream as second mission for some
• Creative Industries and other sectors
• UK Spending Review

17
ANNEX

• Background information

18
REFERENCES

• HEFCE web pages
• www.hefce.ac.uk/
• HEFCE business and community web pages
• www.hefce.ac.uk/reachout/
• HE-business interaction survey web pages
• www.hefce.ac.uk/reachout/hebi/

19
HEROBC HE Reach-out to business and the
community fund

• Jan 2000 to July 2004 in two phases
• 92 million, 135 awards, 15 consortia
• Awards (generally) from 100 thousand to 1.1
  million
• First formal third stream funding for many
  HEIs includes Business Fellowships
• Awards to fund HEIs own plans

20
HEIF 1 HE Innovation fund first round

• Three years from Jan 2002
• 78 million, 89 awards, 16 consortia
• Awards (vs plans) from 250 thousand to
• 5 million
• Co-ordinated with University Challenge and
  Science Enterprise Challenge (UC and SEC)
• Often knowledge-transfer focused

21
HEIF 2HE Innovation Fund second round

• For all sizes and research profiles
• - global reach, local/regional impact
• Incorporating seed funds and enterprise training
• Total 186 million 2004 to 2006
• Includes 22 Centres for Knowledge Exchange
• 124 awards, 46 collaborative

22
Centres for knowledge exchange activity

• Knowledge Transfer/skills development
• 22 centres in 2004-06 (potentially beyond) under
  HEIF 2
• Scope for less research-specialist HEIs
• Deploying knowledge from a range of sources, as
  needed
• Up to 500 thousand per year each for up to 5
  years

23
HEACF HE Active Community Fund

• HE student and staff volunteering
• For generic skills development, working with
  not-for-profit organisations
• 37 million total conditionally allocated by
  formula across all English HEIs
• 2002 to 2006 now extended to 2009
• Volunteer awards scheme