Executive summary
Purpose
1. Funding under the fourth round of the Higher Education Innovation Fund (HEIF 4) is designed to support and develop a broad range of knowledge transfer activities which result in economic and social benefit to the UK. The fund builds capacity and provides incentives for higher education institutions (HEIs) to work with business, public sector bodies and third sector1 partners, with a view to transferring knowledge and thereby improving products, goods and services. This document sets out how funding distributed under HEIF 4 will be allocated on the basis of formula calculations and invites HEFCE-funded HEIs to submit institutional strategies to release their funds.
Key points
2. HEIF 4 is a joint initiative from HEFCE and the Department for Innovation, Universities and Skills (DIUS), and will provide funding to HEIs in England from August 2008 to July 2011.
3. We consulted extensively in 2005, with HEIs and other interested parties, on the method for allocating funds under HEIF round 3 (for 2006-07 and 2007-08), including considering in detail the approach to allocating funds through a formula. A review of science and innovation policies was undertaken last year for the Government by Lord Sainsbury. The Sainsbury Review was published in October 2007 and recommended that a formula allocation method be used for HEIF 4 funding, based on the HEIF 3 model. The recommendations were accepted by the Government and key features of HEIF 4 were announced by HEFCE. This document sets out final and full details of this HEIF 4 formula method, in the context of the policies of the newly-formed DIUS on science and innovation.
4. HEIF 4 funding is provided for the three academic years 2008-11. For 2008-09 £112 million is available, £134 million in 2009-10 and £150 million in 2010-11. Funds are being provided through a formula allocation to all eligible HEIs. In addition, a fifth and final allocation of £8 million is made available for existing Centres for Knowledge Exchange (CKE) for academic year 2008-09.
5. We expect to announce final HEIF 4 allocations, calculated using 2006-07 data, in March 2008.
6. We invite HEIs to submit institutional strategies, in line with the guidance in this document, to release this funding. In order to assist HEIs in preparing their strategies, we have provided indicative modelling of formula allocations, based on historic 2005-06 data, on our web-site at www.hefce.ac.uk/reachout/heif/.
Action required
7. Institutional strategies should be sent, by e-mail only, to businessandcommunity@hefce.ac.uk by 12.00 noon on 14 April 2008.
Table 1: Timetable for HEIF 4 funding allocations
| October 2007 | Sainsbury Review, Government Spending Review decisions and Science Budget allocations published. Communication by HEFCE to HE sector on key elements of HEIF 4 method following from the Sainsbury Review |
| November 2007 | Notification to HE sector of final decisions on HEIF 4 formula from HEFCE. Publication on HEFCE web-site of the modelling for indicative allocations (based on historic 2005-06 data) for HEIs' planning purposes only |
| 14 January 2008 | Deadline for return of data for the HE-BCI 2006-07 survey |
| January 2008 | This document invites HEIs to submit strategies |
| Early March 2008 | HEFCE announcement of final formula allocations for individual HEIs (based on 2006-07 data) |
| 14 April 2008 | Deadline for HEIs to submit strategies to HEFCE |
| 14 April - May 2008 | HEFCE assesses strategies (with HEIs informed on a rolling basis when strategies are approved and funds released) |
| June 2008 | Final decisions taken by HEFCE on:
|
| July 2008 | HEFCE publication of HEIF 4 outcomes, including final allocations to all HEIs, and overview of strategies |
| August 2008 | HEIF 4 funding begins |
Note
1. The 'third sector' is defined by the Cabinet Office on its web-site as follows: 'The third sector is a diverse, active and passionate sector. Organisations in the sector share the common characteristics of being non-governmental organisations which are driven by their values and which principally reinvest any financial surpluses to further social, environmental or cultural objectives. It encompasses voluntary and community organisations, charities, social enterprises, cooperatives and mutuals both large and small.'
