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The Role of Academics in the Innovation Ecosystem - Michael Kitson
Transcript of The Role of Academics in the Innovation Ecosystem - Michael Kitson
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The Myth of the Ivory
Tower: The Role of
Academics in the
Innovation Ecosystem
Michael Kitson
University of Cambridge
Innovation Policy Lab
Munk School of Global Affairs
University of Toronto
1 November 2012
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Structure • Preamble
• Context: the innovation process
• University-business links in the UK
• Research methods
• Some results
• Policy Implications
• Future work
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Acknowledgements • Centre for Business Research (CBR) Project (ESRC-HEFCE HEFCW
SFC and DEL funded) on University Industry Knowledge Exchange
– Principal Investigators: Alan Hughes and Michael Kitson
– Research Fellows: Maria Abreu and Vadim Grinevich
– CBR Survey and Database Team Anna Bullock, Isobel Milner
• Qualitative case study work with Philip Ternouth of CIHE on
successful university-industry links published as Abreu et al 2008
“Universities, Business and Knowledge Exchange”
(www.cbr.cam.ac.uk/pdf/University Business Knowledge Exchange
v7.pdf).
• CBR UK-wide surveys of enterprises and academics to characterise
university-industry links:
• 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.
• 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.
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Innovation: the Narrow View
• Focus on R&D
• High Technology Manufacturing
• The Role of Universities:
– Focus on Technology Transfer
– Mechanisms: Patents, Licenses, Spin-outs
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Innovation: the Wider View • Innovation beyond R&D
– Products, Processes and Business Practices
• Beyond High-technology Manufacturing – Traditional sectors
– Services
– Public Sector
– ‘Third’ Sector
• University Technology Transfer – Potential financial 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
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The evolution of university-business
links 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
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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
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Mode 2: technology transfer - the
entrepreneurial university
• Focus on Technology Transfer
• Mechanisms: Patents, Licenses, Spin-outs
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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
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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 )
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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’
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Project on University-Business
Knowledge Exchange • Multi-methodology approach
• In a first stage, scoping case studies of
businesses and academics to help in the
development of two survey instruments
• In the second stage, two large-scale surveys of
businesses and academics, with matched
questions
• Finally, a number of in-depth case studies to
follow up on findings from the surveys
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Survey of Academics
• Online survey sent to individual e-mail addresses
• Results based on 22,170 observations
• Total population surveyed: 125,900
• Response rate: 17.6%
• Survey sent twice to individual email addresses (one reminder)
• Software: Qualtrics
• Each response use a unique URL to prevent multiple responses
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Conduct of the Survey
• Two complaints
• One anonymous post on a website accusing
us of ‘unsolicited bulk email’
• One complaint from a departmental
webmaster.......
• The University of Cambridge Engineering
Department
• Threats to close down the entire Business
School website
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Consequence
• Considerable project delay
• Protracted email dialogue with University
of Cambridge Computing Services
• Meeting after 3 months delay
• Where the Computing Service concluded
that the survey was.......
• Best Practice!
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What is ‘best practice’?
• Check with relevant legal authorities
• Manual collection of email addresses (VITAL!)
• Description of purpose use and funders
• Opt-out option (no reminders)
• Contact email for any queries (and complaints)
• Respond quickly to any queries
• FAQ available on Departmental website
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Analysis of the survey: A
Representative Sample?
• Questionnaire design – stressed that the
survey was for all academics
• Response by discipline and position
consistent with population
• Comparison of responses between those
that did and those that did not need a
prompt.
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Survey of businesses
• Postal Survey
– Main survey plus two prompts
• Results based on 2,537 responses
• Total sample surveyed: 21,000
– Sample structured by sector, size and region
• Responses rate:11.1%
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Analysis of the survey: A
Representative Sample?
• Comparison with D&B database:
representative by size, sector and region
• Comparisons by response waves: no bias
apparent
• Comparison with UK Community
Innovation Survey 4: innovative firms may
be over-represented
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Survey of
2,500
Businesses
Survey of
22,000
Academics
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Research Activities
Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution
The Republic of Science
Pure basic
research
Use-inspired basic
research
The Realm of Technology
Pure applied
research
Qu
es
t fo
r fu
nd
am
en
tal u
nd
ers
tan
din
g?
NO
Y
ES
NO YES
Considerations of use?
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Research Activities
Source: Adapted from D. Stokes (1997) Pasteur’s Quadrant Washington Brookings Institution
The Republic of Science
Pure basic
research
(Bohr)
Use-inspired basic
research
(Pasteur)
The Realm of Technology
Pure applied
research
(Edison)
Qu
es
t fo
r fu
nd
am
en
tal u
nd
ers
tan
din
g?
NO
Y
ES
NO YES
Considerations of use?
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Basic Research (% of respondents)
0 20 40 60 80
Physics, Mathematics
Biology, Chemistry, Veterinary science
Arts and Humanities
Social sciences
Engineering, Materials science
Health sciences
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.
.
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Applied research (% of
respondents)
0 20 40 60 80
Physics, Mathematics
Biology, Chemistry, Veterinary science
Arts and Humanities
Social sciences
Engineering, Materials science
Health sciences
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.
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User-inspired basic research
(% of respondents)
0 20 40 60 80
Physics, Mathematics
Biology, Chemistry, Veterinary science
Arts and Humanities
Social sciences
Engineering, Materials science
Health sciences
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.
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Commercialisation Activities
• Patents (7% of academics)
• Licenses (5% of academics)
• Spin- outs (4% of academics)
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Taken out a patent in the last 3 years (%
of respondents)
0 5 10 15 20 25 30
Applied research
User-inspired basic research
Basic research
Female
Male
Other position
Reader/Senior lecturer/Lecturer
Professor
Arts and Humanities
Social sciences
Physics, Mathematics
Health sciences
Biology, Chemistry, Veterinary science
Engineering, Materials science
All
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.
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Licensed research outputs to a company in
the last 3 years (% of respondents)
0 5 10 15 20 25 30
Applied research
User-inspired basic research
Basic research
Female
Male
Other position
Reader/Senior lecturer/Lecturer
Professor
Arts and Humanities
Social sciences
Physics, Mathematics
Health sciences
Biology, Chemistry, Veterinary science
Engineering, Materials science
All
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.
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Formed a spin out company in the last 3
years (% of respondents)
0 5 10 15 20 25 30
Applied research
User-inspired basic research
Basic research
Female
Male
Other position
Reader/Senior lecturer/Lecturer
Professor
Arts and Humanities
Social sciences
Physics, Mathematics
Health sciences
Biology, Chemistry, Veterinary science
Engineering, Materials science
All
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.
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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
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5
7
4 14
Licensed research
Patenting
Spun-out company
Formed/run consultancy
Commercialisation activities
Community- based activities
Lectures for the community
Schools project
Community-based sports
Public exhibitions
People-based activities
Giving invited lectures
Student placements
Participating in networks
Standard-setting forums
Enterprise education
Curriculum development
Attending conferences
Sitting on advisory boards
Employee training
Format adapted from Ulrichsen (2009)
Academic Interactions with External Organisations
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.
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65
67
87
38
33 28
31
33
6
38
30
3
15
5
7
4 14
57
49
43 35
46
10 10
27
37
9
Setting of physical facilities
Contract research
Consultancy services
External secondment
Joint Publications
Prototyping and testing
Informal advice
Research consortia
Hosting personnel
Joint research
Problem-solving activities
Licensed research
Patenting
Spun-out company
Formed/run consultancy
Commercialisation activities
Community- based activities
Lectures for the community
Schools project
Community-based sports
Public exhibitions
People-based activities
Giving invited lectures
Student placements
Participating in networks
Standard-setting forums
Enterprise education
Curriculum development
Attending conferences
Sitting on advisory boards
Employee training
Format adapted from Ulrichsen (2009)
Academic Interactions with External Organisations
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.
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Partners
• Private sector companies across a range
of sectors (40% of academics)
• Public sector - UK and abroad (53% of
academics)
• Third sector – including charities, non-
profit organisations and social enterprises
(44% of academics)
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0 20 40 60 80
Arts and Humanities
Health sciences
Social sciences
Physics, Mathematics
Biology, Chemistry, Veterinary science
Engineering, Materials science
All
Interactions with private sector
companies (% of respondents)
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.
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0 20 40 60 80
Biology, Chemistry, Veterinary science
Physics, Mathematics
Arts and Humanities
Engineering, Materials science
Social sciences
Health sciences
All
Interactions with public sector
organisations (% of respondents)
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.
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Interactions with the third sector
organisations (% of respondents)
0 10 20 30 40 50 60 70 80
Physics, Mathematics
Engineering, Materials science
Biology, Chemistry, Veterinary science
Arts and Humanities
Social sciences
Health sciences
All
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.
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Why businesses interact with
universities?
0 10 20 30 40
Firm infrastructure
Human Resource Management
Technology development
Procurement
Introduction of new product and/or new process
Service
Marketing and sales
Outbound logistics
Operations
Inbound logistics
%
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.
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Why businesses interact with Universities (all
collaborating interacting firms)
Logistics,
procurement
and operations
Innovation
activities
Marketing, sales
and support
services
Human
resource
management
All firms with interactions 24 43 49 38
STEM interaction only 18 64 36 19
Social sciences interaction only 34 17 50 50
Interaction with STEM and any other 26 47 59 45
Any interaction except with STEM 27 24 53 50
** ** ** **
Source: Hughes and Kitson (2012)
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Who do businesses interact
with?
0 5 10 15 20 25 30 35
Other Humanities
Language Studies
Veterinary/ Agricultural Studies
Biological Science
Chemistry
Physics/ Astronomy/ Earth Science
Medicine/Dentistry
Creative Arts
Economics and Social Science
Education
Materials Science
Architecture/ Building/ Planning and Urban Design
Mathematics/ Computing
Business and Financial Studies
Engineering/ Technology
% 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.
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Constraints on interactions with external
organisations (% of respondents – All and
Engineering)
0 10 20 30 40 50 60 70
Other
Cultural differences
Reaching agreement on terms (incl IP)
Poor marketing/technical/negotiation skills in univ
Lack of experience in external organisation
Lack of external interest
Differences in timescale
Identifying partners
Lack of interaction resources in external organisation
Unwillingness in external org to meet full cost
Insufficient resources
Insufficient rewards
Bureaucracy /inflexibility of univ admin
Lack of time
All 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
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Academic and business perceptions of
constraints on interactions
0
5
10
15
20
25
30
35
40
45Cultural differences
Reaching agreement on terms(incl IP)
Lack of experience in dealingwith academics
Lack of external interest
Differences in timescaleIdentifying partners
Insufficient resources internally
Insufficient rewards
Bureaucracy /inflexibility ofuniv admin
Academics
Business
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.
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Reasons for not interacting (% of
non collaborating firms)
0 10 20 30 40 50 60 70 80
Tried in the past and it did not work
Considered too expensive
Considered too complicated
Considered too time consuming
No information on how to go about it
No information on potential benefits
Not considered relevant
%
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.
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How are interactions with
universities initiated?
0 10 20 30 40 50
University knowledge/technology transfer office or otheruniversity administrative office
Mutual actions following up contact at a formal conferenceor meeting
Mutual actions following up informal contacts (includingthose through your employees)
A third party organisation
Individual academics
Firms actions in approaching academics and/or HEIs directly
%
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.
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Businesses (%) employing someone
to liaise with universities
0
10
20
30
40
50
60
70
80
0
10
20
30
40
50
60
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.
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Businesses (%) interacting with
universities
0
10
20
30
40
50
60
70
80
90
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.
.
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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
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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
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The connectivity of universities:
a wider perspective
• Focus on university-business links
• Ignores the many and varied
interactions with the public and third
sectors
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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
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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
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Implications for policy • Academia is importance source of knowledge for wider
innovation
• Importance of demand-side limitations
– Lack of competences and relevant skills in business
• The size problem
– Difficult for SMEs to connect with universities
– The aggregation problem for KE projects
• The information problem – lack of knowledge about what
academia can offer and how to access it
• The reality problem – there are 120,000 academics in
the UK and 4.8 million businesses
• The short-termism problem – focus on research with an
‘economic impact’
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Implications for policy
• The need for ‘boundary spanners’ to initiate and
manage interactions
• May require the development of new institutions
– In or outside the university?
– eg Fraunhofers in Germany, ‘Catapults’ in the
UK (technology and innovation centres)
• Need to develop new skills
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Next steps • Continued analysis of the data
– Project funded by the Arts and Humanities
Research Council on the role of arts and the
development of creative places
• Link to other datasets
– Patents, funding and research assessment
data
– The anti-intellectual black hole of ‘Common
Method Bias’
• Future surveys (to create a panel)
• Cross-country surveys
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THE ACADEMIC
IVORY TOWER IS
A MYTH
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References
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.
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.
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.
Hughes, A. and Kitson, M. (2012) ‘ Pathways to impact and the strategic role of
universities: new evidence on the breadth and depth of university knowledge exchange in
the UK and the factors constraining its development’, Cambridge Journal of
Economics,36(3): 723-750
Stokes, D. (1997) Pasteur’s Quadrant Washington Brookings Institution