Press release

Issued 9 December for immediate release

Study shows strong growth in links between higher education and industry

A report issued today reveals continuing strong growth recently in the scale, number and variety of joint activities between industry and higher education in the UK. Universities and colleges are working with industry to conduct research, to exploit the results of that research, and to provide consultancy, education and training.

The study was commissioned by the higher education funding councils for England, Wales and Scotland, and undertaken by researchers at the University of Manchester. The research team examined direct and indirect interactions between industry and higher education for the academic years 1995-96 and 1996-97. Their report identifies trends, and provides information that universities and colleges can use to benchmark their activities in this area.

Funding and exploiting research

One trend is an increase in research funding by industry in higher education institutions (HEIs). This totalled £183 million in the academic year 1996-97, an increase of 11 per cent over the previous year, and 30 per cent up over three years. However, funds were concentrated in relatively few institutions: seven universities accounted for one-third of the total.

Income from exploiting intellectual property rights is also growing. This totalled £11.1 million in 31 institutions in 1996-97, representing an increase of 58 per cent over two years. More than 60 universities and colleges own or partly own 'spin-out' companies, set up to exploit their research commercially. There were 223 such companies in 1997.

Education and training

The report shows that universities and colleges are increasing their efforts to meet the demand for people with higher degrees relevant to the needs of industry. Of the 123 higher education institutions that responded to the survey, 86 per cent had work and project placements for postgraduate students, and more than half had industrial sponsorship for their masters and PhD students. Over half of respondents also had masters courses specifically tailored to meet the needs of a particular company or group of companies.

In providing continuing education and training for people in the workplace, universities and colleges are in competition with each other and with private sector providers. The study found that the keys to success in this area were flexible delivery, close relationships with clients, and strategies to target niche markets.

Closer collaboration

The report identifies a clear trend towards closer collaboration between the two sectors. Many institutions are forming consortia to identify, co-ordinate and deliver research and training services to industry. HEI-industry partnerships are also developing more widely, and evolving from one-off contracts to long-term strategic partnerships.

The study found that small and medium-sized enterprises tended to forge links with HEIs in their locality; while larger firms were more likely to seek partnerships at national level. There were also differences between countries: Welsh universities and colleges depended primarily on research income from large UK firms, whereas one-third of industrial income for Scottish institutions came from SMEs.

ENDS

For further information contact Helen Buttery 0117 931 7125 or Roger Grinyer 0117 931 7307 at the HEFCE or Luke Georghiou at PREST on 0161 275 5921.

Notes to editors

‘Industry-academic links in the UK’ was commissioned jointly by the Higher Education Funding Council for England (HEFCE), the Higher Education Funding Council for Wales (HEFCW) and the Scottish Higher Education Funding Council (SHEFC). It is based on a study by researchers at PREST (Policy Research in Science Engineering and Technology) at the University of Manchester.
Copies of the report are available from the HEFCE, ref 98/70, price £10, or on the Council's web site.
The report was based on questionnaires and interviews with industrial liaison officers, continuing education officers and senior staff in universities and colleges; analysis of existing statistics; and the findings of two previous surveys by the Department of Trade and Industry.

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