The Connected University:
Universities, Knowledge
Exchange and Local
Economic Growth
Michael Kitson
University of Cambridge
www.michaelkitson.org
Meeting of the Directors General
of Higher Education, Dublin 22nd23rd April, 2013
PREAMBLE
THE EVOLUTION OF
UNIVERSITY
ENGAGEMENT
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
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
Mode 2: technology transfer - the
entrepreneurial university
• Focus on Technology Transfer
• Mechanisms: Patents, Licenses, Spin-outs
Limitations of the entrepreneurial
university
• Significant economic and social returns
but financial and private returns were
frequently over-estimated
• Metrics distorting behaviour (Goodhart’s
Law: any observed statistical regularity will
tend to collapse once pressure is placed
upon it for control purposes)
• Model is incomplete
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
– Google’s 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 University’s Office of Technology Licensing )
$150 million: royalties received by
the University of Florida from sales
of Gatorade developed by inventor
Dr. Robert Cade
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’
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
Survey of
22,000
Academics
Survey of
2,500
Businesses
Basic or Applied ?
Considerations of use?
NO
YES
The Republic of Science
Pure basic
research
YES
Use-inspired basic
research
The Realm of Technology
NO
Quest for fundamental understanding?
Research Activities
Pure applied
research
Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution
Research Activities
NO
YES
YES
The Republic of Science
Pure basic
research
(Bohr)
Use-inspired basic
research
(Pasteur)
The Realm of Technology
NO
Quest for fundamental understanding?
Considerations of use?
Pure applied
research
(Edison)
Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution
Basic Research (% of respondents)
Health sciences
Engineering, Materials science
Social sciences
Arts and Humanities
Biology, Chemistry, Veterinary science
Physics, Mathematics
0
20
40
60
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.
.
80
Applied research (% of
respondents)
Health sciences
Engineering, Materials science
Social sciences
Arts and Humanities
Biology, Chemistry, Veterinary science
Physics, Mathematics
0
20
40
60
80
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
User-inspired basic research
(% of respondents)
Health sciences
Engineering, Materials science
Social sciences
Arts and Humanities
Biology, Chemistry, Veterinary science
Physics, Mathematics
0
20
40
60
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
.
80
TECHNOLOGY
TRANSFER
Commercialisation Activities
• Patents (7% of academics)
• Licenses (5% of academics)
• Spin- outs (4% of academics)
Taken out a patent in the last 3 years (%
of respondents)
All
Engineering, Materials science
Biology, Chemistry, Veterinary science
Health sciences
Physics, Mathematics
Social sciences
Arts and Humanities
Professor
Reader/Senior lecturer/Lecturer
Other position
Male
Female
Basic research
User-inspired basic research
Applied research
0
5
10
15
20
25
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.
30
Licensed research outputs to a company in
the last 3 years (% of respondents)
All
Engineering, Materials science
Biology, Chemistry, Veterinary science
Health sciences
Physics, Mathematics
Social sciences
Arts and Humanities
Professor
Reader/Senior lecturer/Lecturer
Other position
Male
Female
Basic research
User-inspired basic research
Applied research
0
5
10
15
20
25
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.
30
Formed a spin out company in the last 3
years (% of respondents)
All
Engineering, Materials science
Biology, Chemistry, Veterinary science
Health sciences
Physics, Mathematics
Social sciences
Arts and Humanities
Professor
Reader/Senior lecturer/Lecturer
Other position
Male
Female
Basic research
User-inspired basic research
Applied research
0
5
10
15
20
25
30
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
.
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
Academic Interactions with External Organisations
People-based activities
Standard-setting
forums
Giving invited
lectures
Participating
in networks
Enterprise
education
Student
placements
Curriculum
development
Communitybased
activities
Lectures for
the community
Attending
conferences
Sitting on
advisory boards
Employee
training
Commercialisation
activities
5
Licensed
research
Public
exhibitions
7
Patenting
Schools
project
4
Community-based
sports
Spun-out
company
14
Formed/run
consultancy
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.
Academic Interactions with External Organisations
People-based activities
65
87
Standard-setting
forums
Giving invited
lectures
Participating
in networks
38
6
Enterprise
education
31
Sitting on
advisory boards
Attending
conferences
33
Student
placements
Communitybased
activities
38
33
67
28
Commercialisation
activities
35
Public
exhibitions
Research
consortia
57
7
Informal
advice
Patenting
10
Prototyping
and testing
15
30
Schools
project
Problem-solving activities
5
Licensed
research
Lectures for
the community
4
3
Community-based
sports
Employee
training
Curriculum
development
Spun-out
company
49
Hosting
personnel
Joint
research
43
27
Consultancy
services
10
External
secondment
37
14
Formed/run
consultancy
46
Joint
Publications
Contract
research
9
Setting of
physical
facilities
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.
THE IMPORTANCE OF
BUSINESS LINKS
Partners
• Private sector companies across a range
of sectors (40% of academics)
• Public sector - UK and abroad (53% of
academics)
• Third sector – including charities, nonprofit organisations and social enterprises
(44% of academics)
Interactions with private sector
companies (% of respondents)
All
Engineering, Materials science
Biology, Chemistry, Veterinary science
Physics, Mathematics
Social sciences
Health sciences
Arts and Humanities
0
20
40
60
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.
80
Interactions with public sector
organisations (% of respondents)
All
Health sciences
Social sciences
Engineering, Materials science
Arts and Humanities
Physics, Mathematics
Biology, Chemistry, Veterinary science
0
20
40
60
80
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.
Interactions with the third sector
organisations (% of respondents)
All
Health sciences
Social sciences
Arts and Humanities
Biology, Chemistry, Veterinary science
Engineering, Materials science
Physics, Mathematics
0
10
20
30
40
50
60
70
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.
80
Importance of
Technological
Innovation
Why businesses interact with
universities?
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Introduction of new product and/or new process
Procurement
Technology development
Human Resource Management
Firm infrastructure
0
10
20
%
30
40
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.
Who do businesses interact
with?
Engineering/ Technology
Business and Financial Studies
Mathematics/ Computing
Architecture/ Building/ Planning and Urban Design
Materials Science
Education
Economics and Social Science
Creative Arts
Medicine/Dentistry
Physics/ Astronomy/ Earth Science
Chemistry
Biological Science
Veterinary/ Agricultural Studies
Language Studies
Other Humanities
0
5
10
15
20
%
25
30
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.
35
Constraints
Constraints on interactions with external
organisations (% of respondents – All and
Engineering)
Lack of time
Bureaucracy /inflexibility of univ admin
Insufficient rewards
Insufficient resources
Unwillingness in external org to meet full cost
Lack of interaction resources in external organisation
Identifying partners
Differences in timescale
Lack of external interest
Lack of experience in external organisation
Poor marketing/technical/negotiation skills in univ
Reaching agreement on terms (incl IP)
Cultural differences
Other
0
All
10
20
30
40
50
60
70
Engineering, Materials Science
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
Academic and business perceptions of
constraints on interactions
Bureaucracy /inflexibility of
univ admin
Insufficient rewards
Insufficient resources internally
Identifying partners
Cultural differences
45
40
35
30
25
20
15
10
5
0
Reaching agreement on terms
(incl IP)
Lack of experience in dealing
with academics
Academics
Business
Lack of external interest
Differences in timescale
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.
Reasons for not interacting (% of
non collaborating firms)
Not considered relevant
No information on potential benefits
No information on how to go about it
Considered too time consuming
Considered too complicated
Considered too expensive
Tried in the past and it did not work
0
10
20
30
40
%
50
60
70
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.
80
How are interactions with
universities initiated?
Firms actions in approaching academics and/or HEIs directly
Individual academics
A third party organisation
Mutual actions following up informal contacts (including
those through your employees)
Mutual actions following up contact at a formal conference
or meeting
University knowledge/technology transfer office or other
university administrative office
0
10
20
30
40
50
%
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.
Businesses (%) employing someone
to liaise with universities
60
80
70
50
60
40
%
50
30
40
30
20
20
10
10
0
0
All
Micro
Small
Medium
Large
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.
Businesses (%) interacting with
universities
90
80
70
60
50
40
30
20
10
0
All
Micro
Small
Medium
Large
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.
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
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
The connectivity of universities:
a wider perspective
• Focus on university-business links
• Ignores the many and varied
interactions with the public and third
sectors
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
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
POLICY
IMPLICATIONS
Implications for policy 1
• Importance of demand-side
limitations
• Lack of competences and relevant
skills in business
Implications for policy 2
• The size problem
• Difficult for SMEs to connect with
universities
• The aggregation problem for KE projects
Implications for policy 3
• The information problem – lack of
knowledge about what academia can offer
and how to access it
Implications for policy 4
• The reality problem – there are 120,000
academics in the UK and 4.8 million
businesses
Implications for policy 5
• The short-termism problem – focus on
research with an ‘economic impact’
Building a connected university:
attractor, anchor and transformer
• Attract, retain and develop high valueadded sectors
– Source of skilled labour
– Problem solving and knowledge exchange
– The hub of local connectivity
– Source of local ‘buzz’
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
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
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
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
THE
ACADEMIC
IVORY TOWER
IS A MYTH