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Contribution of Universities To The Knowledge Capital: A Scenario For Success in 2008
Contribution of Universities To The Knowledge Capital: A Scenario For Success in 2008
Contribution of
Universities to the
Knowledge Capital
A Scenario for
Success in 2008
A report by Luke Georghiou
and Jennifer Cassingena Harper
Foreword
In the front rank of the knowledge society
By Councillor Richard Leese, Leader, Manchester City Council
Manchester has an increasingly bright future. With our excellent infrastructure, including a major international
airport, the expanding Metrolink network and a sequence of highly successful major cultural, commercial and
sporting developments incorporating world-class design, our physical environment is first class.
Looking to our economic future, we are moving rapidly towards becoming a city in the front rank of the knowledge
society – using our brains to drive regeneration. Here too we have the makings of an excellent infrastructure –
three universities with a combined income of £670 million, including the new University of Manchester which will
be an institution that is truly world-class in its breadth and quality of research.
1
In a knowledge-driven economy, relations
between universities and business are a
key issue.
Infrastructure
Human resources
University missions
2
Inward investment
Networking
Ten key actions are proposed to reach success, along with indicators
of success. These in turn can be encapsulated in three headings:
3
The concept of the knowledge-driven economy has brought the
relations between universities and business to the centre of policy
for nations, regions and cities seeking economic regeneration and
growth through innovation.
Manchester, one of Europe’s foremost ‘City-Regions’ secure Manchester’s position as a powerhouse of the
and the economic motor of the Northwest of England knowledge economy.
has undergone a fifteen-year process of transformation
and regeneration away from traditional industries and This report describes the process and outcomes of
towards science-based, creative industries and an exercise in which leading stakeholders in the City-
services. Region developed a ‘success scenario’ for business-
university linkages in the context of the City’s broader
These developments have been strongly influenced by vision of becoming a ‘Knowledge Capital’.
the major asset of Manchester’s four universities. With
the two most research-intensive of these about to The success scenario is not intended to be a prediction
combine to form an institution with world-class or even a plan of action. However, it paints a picture of
aspirations, the opportunity now exists to drive the a future that can really be achieved if sufficient drive
process much further over the next five years and and resources are mobilised by the stakeholders.
Introduction
Business-university links occur in four major dimensions, each with different pay-offs
and barriers to be overcome:
> For most companies the most visible and immediately valued contribution of
universities is Human Resource Development, including the supply of
trained graduates and the knowledge transfer that comes with them. The key in
this area is in maintaining the quality of the intake, especially in science and
engineering, and then in channelling graduates into productive careers.
4
> The fourth dimension of linkage is in the softer but nonetheless vital domain of
Networking and Reach-out. This includes a wide variety of personal and
institutional contacts, formal and informal, many of which represent the only channel
to the vast population of existing firms with knowledge deficits. Providing an interface
for such activities and an incentive for academics to take part, both represent
important challenges.
Business-university linkages have been the focus of a great deal of policy attention in
recent years. During 2003 two major national policy reviews have been addressing this
topic:
At the same time, two important developments in Manchester have brought a further
focus on this issue:
> The emergence of the Knowledge Capital Manchester concept as a unifying theme
1
for capitalising on the knowledge base in the City’s universities .
> Project Unity, creating a new university combining the Victoria University of
Manchester and UMIST as the new University of Manchester, with a consequent
detailed examination of structures and actions in relation to business and the
community.
In the meantime, Manchester Science Park Limited has been examining its own strategy
in relation to improving links between its tenant companies and universities. As part of
2
this appraisal a study was carried out by PREST exploring best-practice in this domain .
One recommendation of this work was to apply foresight techniques to build a shared
vision of the role of the Science Park and other organisations in developing such
linkages. A second recommendation was for the Science Park to increase its
engagement with the strategic discussions of its participating universities, particularly in
the context of Project Unity. This led to the idea that the foresight activity could be
extended to the broader topic of business-university linkages in Manchester and linked
to the articulation of the Knowledge Capital concept. With sponsorship from Manchester
Science Park, the Regional Affairs Directorate of the University of Manchester and
PREST, Institute of Innovation Research, University of Manchester, the concept of the
Success Scenario Workshop was developed.
1 http://www.manchesterknowledge.com/knowledgecapital.html
2 Improving Links Between Tenant Companies and Higher Education Institutions: Exploring Emerging Scenarios
for Manchester Science Park, Jennifer Cassingena Harper, PREST, University of Manchester, 8 April 2003
5
Process
of Workshop
The Success Scenario Workshop used an approach developed by
the Institute of Innovation Research at the University of Manchester
and previously applied in developing national strategies for ICT,
3
biotechnology and nanotechnology .
It is intended to develop a shared vision among senior their own participation and contributions – a situation
stakeholders of what success in this area would look far removed from the receipt of a consultant’s report.
like in five years time and to begin the process of
developing a road map to get there. During April and May 2003 a list was compiled of key
individuals who could be seen as shaping and driving
The purpose of having such a vision of success is to the future of business-university links in Manchester.
set a ‘stretch target’ for all the stakeholders. The five- These came from business and commerce, national,
year horizon has been chosen to get beyond short-term regional and local government, intermediary
considerations and to allow immediate actions to organisations and the City’s four universities (see List
follow. It also marks the halfway point in the ten-year of Attendees on page 20). These were invited to the
vision of Knowledge Capital. Scenario Workshop taking place on the evening of
June 12th and all the next day.
A key element of the method is that those who take
part are in a position to implement the outcomes, which Participants were sent a briefing document setting
at least in part they have already bought into through out the objectives of the Workshop and several
background documents:
> The Science Park Review – the output of the review which examined the
success factors involved in a science park developing active links with its
academic hinterland.
6
The Workshop began with a dinner which
included a basic briefing and a keynote
speech by Dr John Beacham which set six
challenges to the delegates for the future
of Manchester as an innovation capital:
1. The opportunity presented by Project Unity in terms
of critical mass and international focus;
On the following day an introductory plenary session set out some of the issues and recent research findings in
the field of business-university links. Following this the Workshop proceeded with three plenary and two parallel
sessions (see Structure Diagram overleaf). The first set of parallel sessions aimed to identify the main driving
forces for alternative futures (Drivers and Shapers) under the headings:
The results from these provided the basis for the first elements of the Success Scenario.
A second round of parallel sessions then examined necessary developments in the four
main areas of business-university interaction that were outlined above:
In the final plenary session key actions and indicators of success were identified.
The results from the day’s deliberations are presented in this report.
7
Briefing pack sent out in advance
Land,
National, regional
Universities and infrastructure
Business needs and city policies
their mission and human
and strategies
resources
Networking and
Human resource Research
Commercialisation business
development collaboration
development
Structure of Workshop
8
Scenario for
Success in 2008
The outputs of the Workshop are summarised in this section in the form
of a scenario for success in 2008. This brings together the key drivers and
shapers identified by the participants and highlights the different but
related dimensions of this successful outcome:
3.1 3.2
Human
Infrastructure Resources
3.5
Networking
3.3 3.4
University Inward
Missions Investment
9
Café Culture attracts entrepreneurs
A new integrated approach to the use of land was first
set in motion with the sale of land resulting from Project
Unity. This highlighted the fact that the borderlines
between the cultural and social infrastructure, knowledge
infrastructure and leisure facilities could be further
reduced with the development of the Oxford Road
Corridor.
10
3.2 Human resources: Success in 2008 Makes
Manchester a Net Importer of Graduates
At one time Manchester’s universities effectively operated a successful business exporting graduates to
the Southeast of England. Some of the intake would come from there in the first place, but many of them
(and even many graduates born in the Northwest) would be forced to seek employment in the South
because the quality and quantity of job opportunities to absorb them did not exist in Manchester. In five
years that situation has turned around.
The economic drivers of the knowledge-based sectors, and the quality of life and cultural buzz of the city,
have encouraged a high and growing proportion of Manchester graduates to stay in the region. Most of
the new jobs are in small entrepreneurial firms and in services for these companies. Training of graduates
in entrepreneurship and intrapreneurship has helped to enable this shift. The proportion of graduates in
Manchester’s workforce has increased substantially.
Proactive approaches to
careers advice and guidance services
The excellent support facilities, already available at the Manchester
universities to help graduates to embark on the right careers, have been
further extended to promote a wider human resource strategy across the
City-Region. Employers and graduates are encouraged to develop closer
links at all levels of the education and training chain.
11
Attracting highly qualified and entrepreneurial immigrants
The first class airport and cultural diversity of the city, the excellent reputation of the schools and universities,
and the pro-graduate mentality of leading firms, encourage Manchester as the destination of choice for highly
qualified and entrepreneurial immigrants - a bureau of the City Council exists to facilitate their arrival and
integration - the universities benefit in attracting world-class academics.
The bureau moves quickly to forge links with immigrant entrepreneurs, sometimes before they arrive. The private
sector benefits from the business and research links which the immigrants can facilitate with their home country.
Salford University reiterates its philosophy that collaboration with business and the
community reaches to every corner of the University and that all staff have something
to offer the outside world in return for interesting and challenging problems to study.
All three universities treat reach-out as an integral activity in the same way as research
and teaching but as with the other two activities, they approach it in their own
distinctive and complementary styles. Complementarity provides the best basis for
working together and so joint approaches to firms become more frequent and
collaboration between universities is the norm.
12
Reaching out beyond Well-trained professional managers and
Science and Technology inspired leadership a key to success
Universities redefine their missions to incorporate the The chance for success of these companies is
Knowledge Capital vision and to make reach-out an bolstered by the active engagement of the new
integral activity in the same way as research and University’s School of Business and Management –
teaching reach-out is no longer seen as the preserve the largest full-service school in the UK.
of science and engineering. An equal number of new
business and public service ideas emerge from the One particularly successful idea is to bring in world-
increasing interaction and synergy with the arts, class leaders to act as mentors for rising stars in the
humanities and social sciences departments. City-Region – the master class held by Bill Clinton on
growing the new economy was an early success. At a
Some of the most exciting businesses find their slightly lower level but with high commitment, part of
markets on the sharp edge between content and the route to success has been the identification and
technology – smart clothing threatens to revive the emulation of ‘heroes’ in HEI-Business links and efforts
golden days of the textile industry since the potential to learn systematically from these role models.
of nanotechnology was harnessed with the ingenuity
of fashion designers, while massive computer power, Centres of excellence
combined with the knowledge of social services in - a beacon for reach-out
social science departments, has led to a series of The universities’ consistent and targeted efforts to
start-up companies offering solutions in public service develop closer links with the city and regional
productivity, benefiting consumers and workers alike. government, private industry and charities to share
resources and know-how to meet local needs and
opportunities, have paid off.
13
3.4 Inward investment: Success in 2008 Sees
Integrated Policies Attracting Massive Investment
from Multinationals and Entrepreneurs
The pro-MNC culture has attracted huge technology investments in the region which have resulted in a
virtuous circle whereby the revenue generated has partly been re-invested in maintaining and improving
the packages. As a result, improvements in the infrastructure and massive regeneration projects have
been possible, transforming the City into a secure and attractive location for business and community.
Benefits are not confined to large firms and their employees - the newly attracted multinationals act as a
natural market and pole for science-based start-up firms.
Policy challenges
It is recognised that serious challenges remain for regional policy. Manchester will encounter
pressures from developments in the next five years, including the lapsing of Objective 1 funding
for Merseyside and the resource demands of Liverpool Capital of Culture. Resources will also
need to be found to build networks which do not correspond to RDA boundaries, notably the
Trans-Pennine Corridor.
14
3.5 Networking: Success in 2008 Sees Firms of All Sizes
and Ages in Manchester Sourcing Knowledge and People
and Meeting Development Needs from the Universities
15
Ten Key Actions
to Reach Success
Participants in the Workshop identified ten key
actions necessary to achieve the Success Scenario:
2 Bring business and HEI cultures closer by ensuring that business and academic
leaders network and that this is matched by networking at middle rank;
3
Universities to develop a concerted strategy for interacting with business networks and
helping to create new ones where they do not exist – also be prepared to drop those
that have outlived their purpose;
6 Engage locally based business education in developing leaders and managers equipped
to work in networked Knowledge Capital;
16
Indicators of Success
Indicators of success are set out to
tell us when we are achieving the Scenario:
Dynamic infrastructure
17
Net importers of high-quality brains
> A high and growing proportion of Manchester graduates staying in the region.
> The proportion of graduates in Manchester’s workforce increased substantially.
> Quality of students and teaching is rising in universities and schools.
> Graduates better equipped to work in an entrepreneurial context.
> Opportunities for lifelong learning have increased.
> Proactive approaches to careers advice and guidance services.
> Dynamic infrastructure and excellent reputation of universities attracting high-quality
brains from abroad.
World-class universities
> The new University developed by Project Unity as the science driver of the region
and as a peer of world-class universities.
> The other universities also offering world-class technical training and services
for local industry.
> High level of reach-out beyond science and technology to tap new opportunities
opening up through synergies with the arts, humanities and social sciences.
> World-class leaders attracted to act as mentors/role models for inspired leadership.
> The success of the early centres of excellence leads to a steady growth through
the attraction of additional national and EU funding.
18
Massive inward investment
Intelligent networking
> Strong linkage between changing business needs and skills and content
of lifelong learning.
> Closer university-business interfaces support innovators and entrepreneurs
and increase number of sustainable start-ups.
> City-business links and networks encourage new forms of cooperative governance.
19
List of Attendees
20
Professor Luke Georghiou
Director,
PREST/IOIR,
University of Manchester,
Oxford Road,
Manchester M13 9PL
Jane Davies,
Chief Executive,
Manchester Science Park Limited,
Kilburn House,
Lloyd Street North,
Manchester M15 6SE
ISBN 0 946007 09 8 2003 Designed and produced by de Winter Marketing. Tel: 01244 320677 www.mdew.co.uk
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