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MEMORANDUM FROM RCUK IN RESPONSE TO THE HOUSE OF COMMONS BUSINESS INNOVATION AND SKILLS SELECT COMMITTEE INQUIRY INTO BUSINESS-UNIVERSITY COLLABORATION

Executive Summary

 The Research Councils are committed to maximising the impact of their spending on research. Collaboration between business and universities is encouraged and the Research Councils undertake a number of supporting activities.

 The Research Councils provide advice and support to universities and businesses on collaboration by acting as a ‘broker’ for research and through support for networking.  The Research Councils operate a diverse range of programmes supporting

business-university collaboration. These include direct collaboration between Research Councils and industry to fund research into shared priorities, funding for the

translation of university research, and support for collaborative research training and skilled personnel exchange.

 Research facilities may also serve as a venue or hub for business-university collaboration, around which specialised companies can cluster.

1. Research Councils UK is a strategic partnership set up to champion the research and activities of the seven UK Research Councils. RCUK was established in 2002 to enable the Councils to work together more effectively to enhance the overall impact and

effectiveness of their research, training and innovation activities, contributing to the delivery of the Government’s objectives for science and innovation. Further details are available at www.rcuk.ac.uk .

2. This evidence is submitted by RCUK and represents its independent views. It does not include, or necessarily reflect the views of the Department for Business, Innovation and Skills (BIS). The submission is made on behalf of the following Councils:

Arts and Humanities Research Council (AHRC)

Biotechnology and Biological Sciences Research Council (BBSRC) Engineering and Physical Sciences Research Council (EPSRC) Economic and Social Research Council (ESRC)

Medical Research Council (MRC)

Natural Environment Research Council (NERC) Science and Technology Facilities Council (STFC)  

Introduction

3. The Research Councils invest around £3bn per year in research covering the full spectrum of academic disciplines. Funding is allocated on the basis of excellence, as judged by the Peer Review process. Grants are primarily allocated to research carried out within the ‘Knowledge Base’: the UK’s universities and research institutes.

4. The Research Councils seek to make sure that the outcomes of this research are

effectively applied throughout society and the economy and are committed to maximising the impact of the research they fund. This is expressed through the integration of

RCUK’s Pathways to Impact1 within the application and assessment process for

      

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Research Council funding, by which researchers can support their applications through illustrating how they might maximise the potential impact of their work. The Councils

produce annual summaries of their impact, both individually2 and jointly as RCUK.3

5. Business-university collaboration is an important mechanism for supporting and boosting the impact of research, and as such fostering business-university collaboration is an important function of the Research Councils. RCUK plays a leadership role in supporting collaboration, and the Research Councils collaborate with over 2,500 companies, of

which at least 1,000 are SMEs.4 The Research Councils have a substantial portfolio of

programmes, activities, funding streams and initiatives in place to support business-university collaboration and commercialisation more generally. The diversity of these approaches reflects the diversity of cultures, structures and potential applications within the different research communities.

6. Research Councils’ support for business-university collaboration can be divided broadly into a series of types (more detail on examples of specific support for business-university collaboration can be found in Annex 1):

6.1 Brokerage and networking, where the Research Councils provide information about research to industry to facilitate collaboration, for example through support for the

National Centre for Universities and Business5 and the Gateway to Research.6

6.2 Direct collaborationbetween Research Councils and industry, through the formation

of strategic partnerships, Research Industry Clubs7, 8 and consortia, enabling

collaboration over funding for shared research goals.

6.3 Support for collaborative research and projects, for example Industrial Partnership

Awards,9, 10 Stand-Alone LINK,11 the three Catalysts (BioMedical,12, 13 Agritech14, 15

and Industrial Biotechnology16,17) funded with the Technology Strategy Board.

      

2

 http://www.rcuk.ac.uk/ke/impact2013/  

3 http://www.rcuk.ac.uk/publications/reports/rcukimpactreport2013/   4

 RCUK Impact Report 2013 p.4, http://www.rcuk.ac.uk/ke/impacts/   

5

 http://www.ncub.co.uk/ 

6 http://gtr.rcuk.ac.uk/  

7 http://www.bbsrc.ac.uk/business/collaborativeresearch/industryclubs/industryclubsindex.aspx   8

 http://www.nerc.ac.uk/innovation/activities/sustainablefood/saric/  

9 http://www.bbsrc.ac.uk/business/collaborativeresearch/industrialpartnershipawards.aspx   10 http://www.mrc.ac.uk/Fundingopportunities/Fellowships/WorkingwithIndustry/MRCFellowship

PartnershipAward/index.htm  

11 http://www.bbsrc.ac.uk/business/collaborativeresearch/standalonelink.aspx   12 https://www.innovateuk.org/biomedicalcatalyst   13   http://www.mrc.ac.uk/Ourresearch/ResearchInitiatives/Translationalresearch/MRCTSBBiomedicalCatalystSch emeFundedProjectsandCaseStudies/index.htm   14

 https://www.innovateuk.org/agri‐tech‐catalyst  

15

 http://www.bbsrc.ac.uk/business/collaborative‐research/tsb‐competitions/agri‐tech‐catalyst.aspx  

16 https://www.innovateuk.org/industrialbiotechnologycatalyst  

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6.4 Support for industrial training and exchange of skilled people, for example CASE

Studentships18, Centres for Doctoral Training19,20,21 and Knowledge Transfer

Partnerships,22 creating a pool of skilled people with experience in both academia

and industry.

6.5 Flexible funding to universities for the translation of research, for example via Impact

Acceleration Accounts, 23,24 Follow on Funds,25 and via grant funding for Pathways to

Impact26

6.6 Support for hubs and shared facilities for research, for example Research and

Innovation Campuses,27,28,29,30 Innovation Knowledge Centres31 and Knowledge

Exchange Hubs for the Creative Economy32.

The strengths and weaknesses of business-university collaboration in the UK and the UK’s performance against international comparators.

7. A key strength of the UK’s innovation system is the excellence of its research base. Although the UK represents just 0.9% of the global population, it accounts for 6.4% of research publications and 15.9% of the world’s most highly-cited research. It used to be said that this excellence in science and research was not reflected in the strength of relations between universities and business, but the World Economic Forum has put the UK in the top six countries for the effectiveness of such relations. The UK attracts major investment from overseas companies as a consequence of the excellence of our

science and research, with wide benefits for the economy as a whole.

      

18 Collaborative Awards in Science and Engineering Studentships http://www.stfc.ac.uk/1468.aspx   19

 http://www.epsrc.ac.uk/skills/students/centres/Pages/centres.aspx  

20

 http://www.ahrc.ac.uk/Funding‐Opportunities/Postgraduate‐funding/Pages/Centres‐for‐Doctoral‐  Training.aspx  

21 http://www.esrc.ac.uk/fundingandguidance/postgraduates/dtc/   22  http://www.ktponline.org.uk/faqs/   23 http://www.esrc.ac.uk/collaboration/knowledgeexchange/opportunities/ImpactAccelerationAccounts.aspx   24 http://www.esrc.ac.uk/collaboration/knowledgeexchange/opportunities/ImpactAccelerationAccounts.aspx   25  http://www.bbsrc.ac.uk/business/commercialisation/follow‐on.aspx   26 http://www.rcuk.ac.uk/RCUKprod/assets/documents/impacts/RCUKImpactFAQ.pdf  27 http://www.harwelloxford.com/about   28

 http://www.sci‐techdaresbury.com/about/sci‐tech/  

29

 http://www.bbsrc.ac.uk/organisation/research‐innovation‐campuses/babraham‐research‐campus.aspx ,  http://www.babraham.co.uk/  

30

 http://www.norwichresearchpark.com/home.aspx  

31

 http://www.epsrc.ac.uk/innovation/business/schemes/Pages/ikcs.aspx  

32 http://www.ahrc.ac.uk/WhatWeDo/Strengthenresearchimpact/KnowledgeExchangeand‐ 

Partnerships/Pages/KE‐Hubs‐for‐the‐Creative‐Economy.aspx  

Question 1. What are the key strengths and weaknesses of the UK’s innovation system in relation to business-university collaboration?

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8. The World Economic Forum’s annual ‘Global Competitiveness Report 2013-14’ 33 evaluates a range of indicators to assess different countries. Based on the

‘University-industry collaboration in R&D’ indicator, the UK is ranked 5,34 and it is highlighted as a

‘notable competitive advantage’. 35 Analyses of the UK’s relative global performance

have also been carried out by a number of organisations, including a report by Elsevier

in 2013 at the behest of the Department for Business Innovation and Skills. 36

Effectiveness of Government initiatives to support innovation through business-university collaboration.

9. The Research Councils undertake a range of evaluation exercises to determine the

effectiveness of their policies. Following the recommendations of the Warry report,37

RCUK carries out a biennial survey of user satisfaction from the users and consumers of the Research Councils’ research and facilities. The most recent survey (from 2012) found users broadly positive about their interactions with the Research Councils. Respondents felt that their understanding of RCUK was good. The survey found some enthusiasm for the potential of the Gateway to Research, the need for which was partly

identified in the previous survey. 38 The 2014 survey is currently underway.

10. RCUK has no comment to make at present, although we note that the Catapult Centres are currently being reviewed and RCUK is preparing input for that review.

      

33 http://www.weforum.org/issues/globalcompetitiveness   34

 The Global Competitiveness Report 2013‐2014, Klaus Schwab (ed.), World Economic Forum, p.537  http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013‐14.pdf  

35 http://reports.weforum.org/theglobalcompetitivenessreport20132014/#=   36

 https://www.gov.uk/government/publications/performance‐of‐the‐uk‐research‐base‐international‐ comparison‐2013  

37 http://www.berr.gov.uk/files/file32802.pdf  

38 http://www.rcuk.ac.uk/publications/reports/uss2012/  

Question 2. How competitive is business-university collaboration in the UK against relevant international comparators?

Question 3. What are the strengths and weaknesses of the Catapult Centre model of business-university collaboration? What areas of research should future Catapult Centres focus on?

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11. All Research Councils are partners in the national Knowledge Transfer Partnerships scheme. In 2012 RCUK and the Technology Strategy Board commissioned the then Council for Industry and Higher Education (now the National Centre for Universities and Business) to undertake a study of the key attributes for successful knowledge transfer

partnerships.39 As a follow-up to this study a number of short pamphlets have recently

been published to highlight for different audiences how they can get involved in KTPs

and the benefits of participating in this scheme.40

Funding

12. Research Councils, often in partnership with other public funders of research, are increasingly working in collaboration with those companies who do recognise the potential of a sustained, long-term pattern of investment. We seek to deepen those existing relationships and encourage more businesses to take that approach.

13. RCUK believe that HEIF can provide funding for the ‘core infrastructure’ within universities that helps underpin knowledge exchange (KE) activities funded by the Research Councils. This allows universities to use the Research Councils’ KE funds synergistically to support specific projects associated with SMEs. For example, applicants are encouraged to apply for specific funding to support the Pathways to

Impact components of their research projects 41, and SMEs are likely user partners for

project research outcomes. Impact Acceleration Accounts, pioneered by EPSRC42 and

being trialled and rolled out by several councils, take the form of a block grant allocated to universities for KE activities. These allow funds for KE to be applied by universities in flexible and responsive ways which are more conducive to businesses requirements       

39 http://www.ncub.co.uk/reports/keyattributesforsuccessfulknowledgetransferpartnerships.html   40

 http://www.ncub.co.uk/reports/knowledge‐transfer‐partnerships‐a‐best‐practice‐approach‐to‐open‐ innovation.html  

41 http://www.rcuk.ac.uk/RCUKprod/assets/documents/impacts/RCUKImpactFAQ.pdf  (page 6)  42 http://www.epsrc.ac.uk/newsevents/news/2012/Pages/60millionboostforscienceinnovation.aspx  

Question 4. What steps can be taken to improve the uptake of Knowledge Transfer Partnerships (KTPs), particularly among SMEs?

Question 5. Recent BIS analysis found that the UK exhibits “a sustained, long-term pattern of under-investment in public and private research and

development and publicly funded innovation”. How does this affect business-university collaboration in the UK?

Question 6. Will the proposed changes to Higher Education Innovation Funding (HEIF), proposed in the Witty Review, be successful in increasing university engagement with innovative SMEs?

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(e.g. timeframes), particularly SMEs. The Research Councils expect universities to use such flexible funding streams to lever and add value to existing funds like HEIF.

14. There is a recognition that there are a many different ways in which research-related knowledge and skills deliver economic benefit for individuals, organisations and nations. These ‘impacts’ are not derived purely from commercial activity and include increasing the effectiveness of public services and policy, and enhancing quality of life and health of the nation. These may become manifest at any stage in the research life cycle and beyond, so disciplines where lead times for research to reach impact are long, eg in biomedical research, may require proxies for economic activity to be considered. 15. Including the appraisal of both economic and societal impact within the current REF

assessment does appear to be driving a cultural change within universities. The most visible signs are a greater understanding of the importance of impact and an increased focus on the credible articulation of the benefits of public research. These, plus the incentive for researchers to become involved in impact related activities in future, are likely to sustain this welcome cultural shift. A weighting increase to 25% for economic and societal impact would most likely enhance the momentum of change.

16. The identification and selection of the Eight Great Technologies was informed by work carried out by the Research Councils, along with TSB and GO-Science; including the

RCUK Strategic Framework for Capital Investment.43 The Strategic Framework sets out

how the Research Councils will plan future investment in the UK’s capital infrastructure for research. It was developed in consultation with universities, research organisations and the wider research and business communities, and was informed by the strategic plans of the Research Councils and input from a range of agencies. The priorities identified fed into the selection of the Eight Great Technologies, with the result that both are well aligned, although the Research Councils continue to fund an extremely broad portfolio of research and are committed to supporting impact and innovation across the full range of funded research. Research Councils support a great deal of activity underpinning future growth in strategic industrial sectors, and many have more than 50% of their spend aligned to the industrial strategy sectors.

17. There is evidence that the funding for synthetic biology (one of the Eight Great Technologies) is attracting international attention, in particular from venture capital funds. In addition, UK research commitment from international companies involved in       

43 

http://www.rcuk.ac.uk/RCUK-prod/assets/documents/publications/RCUKFrameworkforCapitalInvestment2012.pdf  

Question 7. What has been the effect of including commercial impact criteria in REF assessments and should the weighting increase to 25% as suggested in the Witty review?

Question 8. Will the Government’s focus on the ‘eight great technologies’, as described in the industrial strategy, help to attract inward investment?

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agritechnology has been encouraged by the combination of the industrial strategy and the Eight Great Technologies.

18. The European Strategy for Key Enabling Technologies aligns with the eight great technologies in a number of areas (e.g. advanced materials) and with Research Council priorities more generally (e.g. advanced manufacturing, biotechnology). This alignment should enable synergies to be more readily developed and will enhance the overall research programme funded in the UK and elsewhere in Europe.

Local Growth Agenda

No response

19. The Research Councils allocate research funding to universities and research institutes on the basis of research excellence, which in turn, has an influence on regional

investment and economic growth. While the Councils do not specifically fund research to drive regional growth, research excellence can be an important driver of local

economies. As a consequence, the Research Councils possess a view of the strengths of different universities across the country. The Research Councils know which

universities are carrying out excellent research in different fields, and they can therefore help identify a region’s comparative advantages in research. As such, the Research Councils have the potential to serve as a facilitator for university-led regional growth.

20. The Gateway to Research44 provides a mechanism for those outside the research

system to track the research funded by the Research Councils and identify potential partners based on the existing research strengths of local universities. RCUK has made a programming interface for the Gateway to Research available for use by other

developers in innovative systems. The JISC supported G4HE project makes use of this

information to present data on research and collaborations,45 enabling users to track the

research carried out at different universities and identify new industrial and academic partners.

      

44 http://gtr.rcuk.ac.uk/  

45 http://g4he.cottagelabs.com/  

Question 9. To what extent is this focus compatible with and complementary to the European Strategy for Key Enabling Technologies?

Question 10. Are Local Enterprise Partnerships (LEPs) (and their counterparts in the rest of the UK) investing as much as they could in innovation and R&D?

Question 11. How can LEPs, universities and Government encourage greater regional R&D investment?

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21. The Research Councils also support and run a number of research institutes and large scale facilities, which have significant potential to support economic growth and

development in their surrounding regions. These sites can serve as anchors around which clusters of research and development can emerge, boosting R&D investment in the area. These hubs attract businesses wishing to access the reservoir of research expertise and advanced facilities available at the sites. Large facilities like the ISIS

neutron and muon source46 and Diamond Light Source,47 located at the Harwell Oxford

Campus, are generally too expensive for individual companies or universities to build. They are accessed by both academic and industrial users, often working in

collaboration, with the sites providing a valuable venue for business-university interaction.

22. The National Research and Innovation Campuses at Babraham,48 Daresbury,49

Harwell50 and Norwich51 are based around major, internationally leading and long-term

investments in research capability developed and sponsored by STFC, BBSRC and other Research Councils. There is already significant business and commercial activity at these locations, attracted by the substantial research capabilities on the campus, with extraordinary potential to develop as national focal points for innovation in their fields. These four research and innovation campuses represent a major opportunity within the UK to deliver impact from research, leading to the growth of new and emerging

companies and encouraging global businesses to invest.

23. A similar role is also being played at the NERC Research Centres52: NERC is funding

the creation of new innovation hubs at campuses where they are co-located with universities and business enterprise (Edinburgh, Cambridge and Southampton). 24. The Research Councils also have a leadership role in the development of new,

specialised hubs and clusters, bringing together both business and university partners. AHRC has committed funds to support four Knowledge Exchange Hubs for the creative

economy.53 The hubs offer brokerage and develop collaborations, investing in projects

connecting arts and humanities researchers with creative and cultural businesses, large and small (including micro-enterprises), across the UK, to accelerate growth and

innovation.

25. The Research Councils invest to support impact from these hubs, providing the infrastructure necessary for business and academic use of the facilities. This includes early stage business incubation in the form of office and lab space, access to expertise        46 http://www.isis.stfc.ac.uk/   47  http://www.diamond.ac.uk/Home.html   48 http://www.babraham.ac.uk/   49 http://www.scitechdaresbury.com/   50  http://www.stfc.ac.uk/743.aspx   51

 http://www.bbsrc.ac.uk/organisation/research‐innovation‐campuses/norwich‐research‐park.aspx  

52 British Geological Survey, National Oceanographic Centre (including the autonomous vehicles centre), 

Centre for Ecology and Hydrology, British Antarctic Survey, and the Heriot‐Watt centre for subsurface research  and business. 

53 http://www.ahrc.ac.uk/WhatWeDo/Strengthenresearchimpact/KnowledgeExchangeand

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and business support. Examples of these include the Innovations Technology Access

Centre,54 and the ESA55 and CERN Business Incubation Centres56 based at the Harwell

and Daresbury Campuses respectively. The Research Councils also support business incubation through dedicated technology transfer companies like STFC Innovations

Ltd57 and MRC Technology,58 and through the Rainbow Seed Fund59 to invest in early

stage start-ups and spinouts.

26. Established in 2002, the Rainbow Seed Fund is a proven vehicle for accelerating the economic impact of research from Public Sector Research Establishments such as the John Innes Centre and Rutherford Appleton Laboratory. Through independent,

experienced management and strong governance structures it leverages crucial advice, resources and funding at an early stage. It has already delivered considerable benefits, having brought 33 spin-outs to life and enabled them to attract over £160m of additional private investment, which represents a multiple of well over 15 times RSF’s own

investment60 .

27. The hubs have been successful at attracting external partners to invest and participate in R&D activities. Sci-Tech Daresbury, for example, is the venue for an extensive collaboration between Unilever, the University of Liverpool and STFC’s Hartree

Centre.61 The Harwell Oxford Campus is home to the TSB Satellite Applications

Catapult,62 and will be joined by a new ESA centre and other companies in the space

sector. It forms part of a growing ‘Space Cluster’ built around existing investments in space research by TSB, STFC, NERC and other public and private sector partners.

28. The Research Councils are working hard to build strong relationships with Local Enterprise Partnerships where appropriate, particularly those covering Research Council sites and facilities. The Research Councils support the ‘federation’ approach that has been seen emerging where LEPs have grouped together around common goals and work streams. The Research Councils are aware that LEPs may not naturally appreciate all the opportunities offered by the UK Research Base, and that the

Research Councils have a role to play in assisting them. Providing a bridging or

brokering role can help provide the university sector with greater strategic influence. The Research Councils, in conjunction with the Higher Education Funding Council for

England (HEFCE) and Universities UK have written to all UK universities and funding        54 https://www.stfc.ac.uk/2590.aspx   55 http://www.esabic.org.uk/default.aspx   56  http://www.stfc‐cern‐bic.org.uk/default.aspx   57  http://www.stfc.ac.uk/1244.aspx   58 http://www.mrctechnology.org/   59

 http://www.bbsrc.ac.uk/business/commercialisation/rainbow‐seed‐fund.aspx  

60

 http://midven.co.uk/funds/rainbow‐seed‐fund/     updated April 2014 

61 https://www.stfc.ac.uk/2744.aspx   62 https://sa.catapult.org.uk/  

Question 12. How should LEPS direct their allocation of European Structural and Investment Funds in order to maximise increases in R&D output?

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recipients, encouraging them to work with their LEPs to bid for European Structural Funds.

No response

Question 13. To what extent will the new University Enterprise Zones encourage business university collaboration?

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Annex 1 – Examples of Research Council Programmes to Support Business-University Collaboration.

Brokerage, Advice and Networking

29. The nature of the Research Councils’ work means that RCUK is almost unique in having an overall national picture of the excellent research being carried out across the UK in universities and research centres. It can therefore play a brokering role, helping companies engage with research carried out in universities and providing guidance on good practice.

Gateway to Research

30. Business desire for a single point of contact to search for and access Council-funded

research has led to the creation of the Gateway to Research,63 a web-portal and search

tool which provides access to Research Council and TSB funded research and

information. This should help enable business-university connections which may lead to future collaborations, and keep business users up to date about developments in their field. The portal has been well received by users, and had around 4,800 visitors a month

between its ‘beta’ release in November 2012 and its official launch in December 2013.64

RCUK has made a programming interface (API) for the Gateway to Research available, for use by external software developers, allowing them to use the underlying information in new ways. The JISC supported G4HE project makes use of this information to

present data on research and collaborations,65 enabling users to track the various

research projects undertaken by different universities. National Centre for Universities and Business

31. RCUK has also agreed, with TSB and other funding bodies, to provide funding support

for two years to the National Centre for Universities and Business (NCUB)66. The NCUB

was established to develop, promote and support collaboration between universities and

business. Through NCUB, RCUK and TSB commissioned the report Best Practice

Strategies for Successful Innovation Through University-Business Collaboration.67 Networking

32. RCUK provides advice and support to business on working with universities, advertising the benefits of collaboration for innovation through publications and supporting

networks. The RCUK booklet Innovation and The Research Councils68 was launched at

TSB’s ‘Innovate UK 2013’ conference, attended by over 3,000 people from UK and international business and academia. The case studies within advertise the myriad

      

63 http://gtr.rcuk.ac.uk/   64

 RCUK Impact Report 2013 p.5, http://www.rcuk.ac.uk/ke/impacts/   

65

 http://g4he.cottagelabs.com/  

66 http://www.ncub.co.uk/  

http://www.ncub.co.uk/funders‐and‐partners/funders‐and‐partners.html  

67

 http://www.ncub.co.uk/reports/best‐practice‐strategies‐for‐successful‐innovation‐through‐university‐ business‐collaboration.html  

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possibilities of collaboration with the UK’s research base.69 A new booklet on the benefits of collaboration with the research base is planned for later in 2014.

33. STFC runs an Innovations Club,70 bringing together industry and academia to form new

collaborative partnerships through a series of technology focussed events and through a monthly newsletter.

34. Ultimately, RCUK hopes to build on its work in the area of brokerage between business and academia, working with NCUB to link Gateway to Research to a ‘National Brokerage Platform’, alongside the TSB, linking world class academics and innovative businesses. Research into Innovation

35. The Research Councils also fund and support a range of research into innovation itself.

ESRC supports the work of the UK-Innovation Research Centre,71 (in conjunction with

TSB, Nesta and the Department for Business Innovation and Skills) based at Imperial College and the University of Cambridge. It seeks to understand the process of innovation and improve the application of research to the wider economy.

36. The AHRC-funded Brighton Fuse project72 at the Universities of Brighton and Sussex, in

collaboration with the National Council for Universities and Business and Wired Sussex, has provided empirical evidence on the emergence of a new sector of business fusing skills in the arts, humanities, and design with digital technology to achieve growth, as well as significantly higher levels of innovation, within the Brighton creative, digital and IT business cluster.

Advice on Collaboration Agreements

37. The Research Councils provide advice and support to researchers on how to manage and coordinate their collaboration with industry: for example, MRC encourages and supports collaborative research between industry and academia through the use of standardised collaborative research agreements. The ‘model Industry Collaborative

Research Agreement (mICRA)73 was developed in collaboration with the Department of

Health, to enable research across academia, industry and the NHS, and has

cross-sector endorsement.74 In other circumstances MRC Industry Collaboration Agreements

(MICA) are often used, providing a standardised mechanism for establishing an

agreement between academic and industrial research partners which can be applied to

most MRC funding schemes.75 Similarly, EPSRC provides advice to universities that

want to collaborate with industry,76 primarily based on the model Research Collaboration

       69 http://www.rcuk.ac.uk/RCUKprod/assets/documents/publications/Innovationbookletfinalweb.pdf   70  http://www.stfc.ac.uk/1462.aspx   71  http://ukirc.ac.uk/   72 http://www.brightonfuse.com/   73  http://www.nihr.ac.uk/infrastructure/Pages/micra.aspx   74  http://www.nihr.ac.uk/industry/Pages/model_clinical_trials_agreement.aspx   75 http://www.mrc.ac.uk/Fundingopportunities/Grants/MICA/Specification/MRC005438   76 http://www.epsrc.ac.uk/funding/guidance/managing/Pages/collabagreements.aspx  

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Agreements drawn up by the Lambert Working Group on Intellectual Property as part of

the Lambert review on business-university collaborations.77

Direct Collaboration between Research Councils and Industry Strategic Partnerships

38. EPSRC and NERC have formed a number of strategic partnerships with industrial partners in order to more closely align research and innovation priorities and

collaboratively fund calls for research.78 These formal agreements enable both parties to

share information and strategy and jointly support each other’s objectives, and jointly

fund research, training and other innovation activities in UK universities.79

Catalyst Funding

39. To support the development and commercialisation of research in specific technology areas, the Research Councils and TSB have collaborated to create ‘Catalyst’ schemes, large scale targeted funding competitions in pursuit of a set of related scientific

objectives. Three Catalysts have been set up so far: The Biomedical Catalyst (TSB and MRC), Agricultural Technology Catalyst (TSB, BBSRC & DFID), Industrial Biotechnology (BBSRC, TSB and EPSRC), the first round of the new Energy Catalyst scheme (EPSRC,

TSB and DECC) will open in May 2014 with £25m available.80 The Catalysts support

businesses and academics to develop solutions to a range of specified challenges. Each offers a range of funding streams targeted at different stages of the innovation and commercialisation process, starting with the translation of research from academic

settings, up to the experimental development of commercial scale operations.81,82,83 The

funding streams are specifically designed to support business-university collaboration and engagement, and in the case of the Biomedical Catalyst, targeted at SMEs. Consortia

40. Consortia of Research Councils, other funding bodies and industrial partners have been formed in a number of specific research areas to create funding pots for carrying out research in collaboration with industry. These include seven Chemical Biology Networks

(Joint BBSRC, MRC, EPSRC)84, the BBSRC Networks in Industrial Biotechnology

(BBSRC with EPSRC), 85 the Horticulture and Potato Initiative,86 and a number of

Research and Industry Clubs, including the recently launched Sustainable Agriculture

Research and Innovation Club (SARIC), jointly funded by NERC and BBSRC.87 Through

these consortia, Research Councils collaborate with industry to fund industrially relevant

research and link together academia and business.88

       77  http://www.ipo.gov.uk/whyuse/research/lambert/lambert‐intro.htm   78 http://www.epsrc.ac.uk/about/partner/Pages/strategic.aspx   79 http://www.epsrc.ac.uk/innovation/business/resources/Pages/strategicpartnerships.aspx   80  https://www.innovateuk.org/energy‐catalyst  

81 http://www.bbsrc.ac.uk/business/collaborativeresearch/tsbcompetitions/ibcatalyst.aspx   82 https://www.innovateuk.org/biomedicalcatalyst 

83

 http://www.bbsrc.ac.uk/business/collaborative‐research/tsb‐competitions/agri‐tech‐catalyst.aspx 

84

 http://www.bbsrc.ac.uk/business/collaborative‐research/programmes/chemical‐biology‐networks.aspx  

85 http://www.bbsrc.ac.uk/ibnetworks   86

 http://www.bbsrc.ac.uk/business/collaborative‐research/programmes/horticulture‐potato/horticulture‐ potato‐index.aspx  

87 http://www.bbsrc.ac.uk/news/events/1310sustainableagclubworkshop.aspx  

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41. MRC has encouraged the formation of a number of ‘disease focussed consortia to stratify disease’, these consortia incorporate universities and large companies, and enable collaboration and targeting of specific medical research problems. The diabetes

focussed MASTERMIND Consortium89 has over 20 partners, including the University of

Exeter, healthcare providers and major pharmaceutical companies.

42. AHRC has also partnered with Nesta and Arts Councils in England, Wales and Scotland

on digital R&D investments in the creative and cultural sectors. 90

43. EPSRC and BBSRC, with TSB, fund Innovation and Knowledge Centres (IKCs) to support and coordinate the development and commercialisation of emerging and disruptive technologies. Based within a university, but drawing in multiple collaborators nationwide from academia and industry, IKCs are led by small entrepreneurial teams. The Research Councils have supported IKCs in a range of fields, including Synthetic

Biology and Medical Devices.91

Specialised Funding for Collaborative Research

44. Industrial Partnership Awards (BBSRC)92 provide funding for research in which at least

10% of full economic cost (FEC) is funded by an industrial partner. Stand-Alone LINK

(BBSRC)93 funding covers pre-competitive research projects which are 50:50 funded

with industrial partners.

45. STFC’s Innovations Partnership Scheme (IPS) provides funding for joint projects with an industrial partner, designed to commercialise technology developed through STFC’s

research programme.94

46. NERC’s Innovation Projects provide funding to translate research outputs into user applicable outcomes, requiring direct business-university collaboration as integral to the process.

Flexible Funding for Translation

47. More flexible forms of funding for collaboration between business and universities is provided via a range of schemes. Impact Acceleration Accounts (IAA) are block grants of innovation funding, awarded to universities and research centres which allow their own knowledge exchange teams to allocate funds flexibly and creatively to opportunities for

translation.95 Each university is expected to make effective use of its IAA funding and

engagement with business is one of the major approaches for doing so. IAAs and their       

89

 http://gtr.rcuk.ac.uk/project/7AD73733‐F78C‐4759‐A36C‐93219E469AD1  

90 http://www.artscouncil.org.uk/funding/applyfunding/fundingprogrammes/digitalrdfundarts/  

91  Advanced Manufacturing Technology for Photonics and Electrons; Ultra Precision and Structured Surfaces; 

Centre for Secure Information Technologies; Medical Technologies; Sustainable Product Engineering Centre for  Innovative Functional Industrial Coatings; Centre for Smart Infrastructure and Construction; Synthetic Biology  Innovation and Commercialisation Industrial Translation Engine.   

92

  http://www.bbsrc.ac.uk/business/collaborative‐research/industrial‐partnership‐awards.aspx 

93

 http://www.bbsrc.ac.uk/business/collaborative‐research/stand‐alone‐link.aspx  

94 http://www.stfc.ac.uk/712.aspx  

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EPSRC pioneered predecessors ‘Knowledge Transfer Accounts’ were designed to enable universities to pursue impact. EPSRC has funded IAAs since 2012, ESRC is in the process of introducing IAAs and STFC, BBSRC and NERC are currently running pilot schemes.

48. The NERC Knowledge Exchange Fellowship96 scheme provides funds to academics to

enable them to spend up to 80% of their time over up to three years engaging with research users, particularly businesses, developing and brokering relationships between users and their host institution, accelerating access and uptake of research outputs and generating long-lasting business-university collaborations.

49. Follow-on-Funds, as run by BBSRC, 97 NERC,98 AHRC,99 and STFC,100 allow the

development of ideas towards commercial application. This helps ensure that research ideas are matured and ‘fit for purpose’ before they are exposed to application in a commercial setting.

Collaborative Funding for Researchers, Training and Personnel Exchange

50. The Research Councils collaborate extensively with industry through funding individual researchers and academics to work across and between sectors in order to facilitate the transfer of knowledge and expertise. Knowledge Transfer Partnerships, supported by the Research Councils and TSB, enable collaboration between a university and a business on a specific project, led and coordinated by an ‘associate’, a recent graduate drawn from the knowledge base.

51. Research Councils fund around 25% of the UK’s PhD students. Doctoral training represents an avenue for further business-university collaboration and all Councils encourage collaboration and placements with businesses. CASE Studentships are PhDs which are attached to collaborative projects between academia and industry. These are allocated to companies with a track record in postgraduate development who join an

Industrial CASE Partnership.101 CASE doctoral awards account for 21% of all Research

Council funded studentships.102 EPSRC, NERC and other Research Councils have set

up a number of Centres for Doctoral Training, all of which have business support and carry out research in collaboration with business. Many operate on a highly collaborative model, where, students spend around 75% of their time working directly with a company

(EngD centres).103 Research Councils also support funded internships for PhD students

receiving funding, providing them with the opportunity to gain experience working with non-academic organisations as part of their PhD training.

       96 http://www.nerc.ac.uk/funding/available/schemes/kefellows/   97 http://www.bbsrc.ac.uk/business/commercialisation/followon.aspx   98  http://www.nerc.ac.uk/funding/available/schemes/followon/   99

 http://www.ahrc.ac.uk/Funding‐Opportunities/Pages/Follow‐on‐Funding.aspx  

100 https://www.stfc.ac.uk/1474.aspx   101

 http://www.mrc.ac.uk/Fundingopportunities/Studentships/IndustrialCASE/index.htm  http://www.epsrc.ac.uk/skills/students/coll/icase/Pages/intro.aspx 

102 RCUK Impact Report 2013 p.3, http://www.rcuk.ac.uk/ke/impacts/    103 http://www.epsrc.ac.uk/skills/students/centres/current/Pages/indd.aspx  

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52. Other schemes which support interchange and exchange between academic and industrial communities include: Royal Society Industry Fellowships (Co-Funded with EPSRC, NERC, BBSRC, Rolls-Royce plc and BP plc) provide funding for academics to

build links with industry,104 BBSRC Flexible Interchange Programme,105 EPSRC

Knowledge Transfer Secondments,106 Knowledge Exchange Fellowships, Innovation

Internships, Royal Society of Edinburgh Enterprise Fellowships107 and the Young

Entrepreneurs Schemes.108 New schemes include the recent EPSRC pilot of a scheme

providing mid-career academics with industrial mentors. Many of the skilled people supported through these activities go on to have a greater appreciation and

understanding of the challenges and rewards of business-university collaboration and enhance the overall strength of the relationship between universities and business in general.

      

104 Funded by EPSRC, BBSRC, NERC, Rolls‐Royce plc and BP plc 

http://royalsociety.org/grants/schemes/industry‐fellowship/  

105

 http://www.bbsrc.ac.uk/business/people‐information/flexible‐interchange‐programme.aspx  

106 http://www.epsrc.ac.uk/innovation/business/schemes/Pages/knowledgetransfersecondments.aspx   107  https://www.stfc.ac.uk/1905.aspx  http://www.bbsrc.ac.uk/business/commercialisation/enterprise‐ fellowships.aspx   108 http://www.nerc.ac.uk/funding/available/postgrad/advanced/yes/  http://www.bbsrc.ac.uk/business/commercialisation/biotechnology‐yes.aspx  

References

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