Fulfilling the potential of universities to drive economic growth
By Sir Tim Wilson, Chair of Hertfordshire Local Enterprise Partnership
The English university sector is facing huge changes during the next 24 months. After two decades of relative stability in terms of the government’s relationship with the sector, we are about to experience a seismic shift in that relationship. This should not surprise anyone; for a governance structure to survive for two decades in a volatile political environment is almost unparalleled. But stability in governance disguises major changes in purpose and role.
Local Enterprise Partnerships (LEP) are designed as business¬led organisations with agendas that are congruent with many university outputs.
Two decades ago universities were arguably at the fringe of educational policy; a comfortable place of academic autonomy and freedom. But the world has changed. Now, in the globally competitive 21st century, universities are at the very heart of economic and social policy. Intellectual power and high level skills are non¬negotiable in a prosperous modern society and universities are the primary agents in delivering these agendas. A thriving knowledge economy depends upon its universities in three critical dimensions; the application and exploitation of research capability, the enterprise and entrepreneurial culture that is developed amongst its students, and the applicability of the knowledge and skills of graduates contributing to economic prosperity. All three have evolved through a growing degree of business/university collaboration.
We can trace back the change in policy on university/business interaction to the Dearing report (1997). In this century, the Lambert review of university business partnerships (2003) identified considerable good practice but also indicated the distance that had to be travelled if the nation was to fully benefit from the potential of its universities. The Sainsbury Race to the Top report (2007) further emphasised progress and highlighted the potential for the future if we could embrace collaboration in a meaningful and sustained manner. In recent years the Technology Strategy Board has taken a major influence by funding near market research both in generic themes and in support of specific company development. HEFCE has an established and consolidated funding stream that has gone beyond the creation of capacity to engage with business, and rewards success. The Research Councils now include impact as a measure of value and, critically, the research assessment exercise is being replaced by a new model which will include assessment of the impact of research, a factor that will materially affect future funding and hence future research investment decisions.
Many universities no longer modestly hide the impact of their research, they promote and celebrate it. The amount of collaborative research between UK business and UK universities has grown dramatically; and many of the obstacles presented by intellectual property barriers have been removed by innovative and collaborative thinking.
Perhaps the best measure of progress is that many in the USA now look to the UK for good practice; a reversal of the situation ‘pre¬Lambert’. But we are scratching the surface of what is possible. Structural weaknesses remain. There has been no comprehensive business¬led organisation that ensured connectivity between local economic development and universities; between wealth creating organisations and the innovation and skills supply chain that is provided by universities; until now.
Local Enterprise Partnerships (LEP) are designed as business¬led organisations with agendas that are congruent with many university outputs. They have the potential to be key players in business¬university relationships; to leverage the strengths, capabilities and brands of universities to the economic benefit of their locality. If LEPs are able to consolidate the business voice within their areas, then this will provide an efficient, regular and accessible communication channel between universities and the local business community; something that is notoriously difficult at the moment.
The ability of a university to present its portfolio of services and its range of skills and knowledge through one recognised and authoritative channel would bring a very significant advance in potential collaboration, to the further benefit of economic growth.
But necessary change is not limited to representation of the business community. For universities to play their full roles in economic development, further cultural change is needed on our campuses. For those universities that are committed to business support, it means establishing a campus culture where it is not only acceptable to work with business exploiting research and intellectual strengths, it is expected and it is celebrated. It means building a campus culture where it is not only acceptable to have spin¬out and spin¬in companies; it is the norm. It means building a campus culture where enterprise and entrepreneurism amongst students and staff is not only permitted; it is encouraged, supported and championed. Only in that way will we establish UK universities as world leaders in business support and interaction.
However, this is insufficient if universities are not recognised within their own communities as agents for change. Therein lies a further fundamental challenge; local recognition. Has the population of a university city/town any idea of the world class research being undertaken within their community, or of the economic impact and employment effects of collaboration between their local university and local companies? Has the University sector persuaded every MP of the vitality and value of our universities? Have we persuaded the population as a whole; why isn’t the media saturated with stories about research and innovation emanating from our campuses?
Universities are facing a period of huge change, of turbulence and uncertainty; such times bring huge challenges, but also huge opportunities. If our universities are to fulfil their potential, it is time for them to meet the challenge of being engines for economic growth; it is time for UK universities to take their place as world leaders in business support and interaction.
Sir Tim Wilson, former Vice¬Chancellor of the University of Hertfordshire, is a strong advocate of the role of universities in economic development and is currently leading a government review into university¬industry collaboration. He is also Chair of the Hertfordshire Local Enterprise Partnership
