Higher Ambitions

8/6/2019 Higher Ambitions

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HIGHER AMBITIONS | Contents


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ContentsForeword

Executive Summary

1. Wider and fairer access to higher education

2. Equipping Britains workforce for a global economy

3. Research, innovation and knowledge exchange

4. The student experience of higher education

5. Engaging with our communities and the wider world

6. Supporting a world class system

Annex A: Timeline of key developments

Annex B: Recommendations from Unleashing Aspiration: The Final Report of the Panel on Fair Access to the Professio


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HIGHER AMBITIONS | Foreword

ForewordIn the last ten years our higher education policy has comnew public investment with reform, both of the level of scontribution and the way in which universities engage weconomy.This has been a great success. We no longer fe indeed our research universities are competing succesbest in the world. No British Government especially noGovernment will allow that asset to be devalued or de

We have also successeducational opportunit has ever previouslywithout affecting its qwider opportunity is texcellence: the last dethem wrong. The poshave confounded themany justifiably able excellence for what thin widening routes toproviding a new focuand urban economic as a society that aspiropportunity to all irre

background, we still nmore to make access education wider and f


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The question we face now is how wecontinue to widen access and sustainand improve standards of university

excellence in an increasingly pressuredinternational context and in a moreconstrained public spendingenvironment. Some will argue we willhave to choose between excellenceand opportunity. This Governmentrejects the need to make this choice.Higher Ambitions The future ofuniversities in a knowledge economysets out how we can continue to deliverwider participation and drive upexcellence even in a time of risingcompetition and tighter public fundingconstraints.

This framework makes it clear that theGovernment will not relent on itscommitment to wider participation andfair access to our universities. Highereducation equips people with the skillsthat globalisation and a knowledgeeconomy demand, and thereby givesaccess to many of this countrys bestjobs. Everyone, irrespective ofbackground, has a right to a fair chanceto gain those advantages. This is vitalnot just as a question of social justiceand social mobility but also for meeting

So we need stronger opportunity through vwork-based routes in

Degrees, including adapprenticeships and qualifications. We neepartnerships betweenand universities, wheidentify pupils with thaptitude to reach for tGCSEs, with proper stheir sights on univerabout social engineeensuring that there acaps on talent in Brita

This framework also consolidating the glo

research in our univealso ensure that we band exploit the ways can make greater ecoimpact. As a developoperating at the knowWe no longer have thglobalised world to cwages and low skills.knowledge its creatand its transformatiocommercially succesuniversities have a m


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HIGHER AMBITIONS | Foreword

We will need to focus on resourceswhere they can have the greatest returnin excellence and social and economic

benefit. In all likelihood that will meanmore research concentration whereinstitutions are strongest. It should alsodrive a greater insistence on the valueof diversity in the mission statementsof our universities. It is a key premiseof this framework that a healthy highereducation sector places as much stresson institutions capable of excellentservice to their local and regionalcommunities as it does on institutionscapable of recruiting the worlds bestresearch talent.

The framework also sets out how we

will strengthen both general teachingexcellence and the teachingprogrammes that will best preparestudents for the jobs of the future.That means focusing on the keysubjects essential to our economicgrowth, and boosting the generalemployability skills expected of allgraduates. We will enable universitiesto compete for funds to provide coursesin subjects relevant to Britainseconomic future, working in partnershipwith business. Institutions unable to

These are big ambitiouniversity sector. Thehow we pay for them

proposes some simp

First, business and emto contribute more. Tthrough joint researcvocationally orientedpart-fund, sponsorshmuch greater use of umanagement and leaUniversities will needcapacity to provide thdomestically, and in aglobal market for higdistance learning thro

Second, universities thave to be more efficUniversities already nin withdrawing from priority and value, soinvest more in higherprogrammes. That wilBy requiring course coutcomes to be morestudents and employto make informed chocompetition betweenNo student should ev


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Finally, it is necessary to look afresh atthe contribution who benefit fromhigher education taxpayers, students,

and the private sector. Followingthe launch of these proposals, theGovernment will commission anindependent review into this question.The review will explicitly weigh the costof education to the individual againstthe priorities set out in this framework,including the need to ensure that thecost of a university education remainsno bar to the widest possible access tohigher learning for all those with thetalent and motivation to benefit.

At the centre of this framework is avision of higher education for the future.

It is based around autonomousinstitutions with diverse missionsall delivered to excellent standards,backed by a mixture of state and privatefunding. Not all institutions are thesame, and the test for the future is notto ensure that they become the same.What unites all our universities is theneed to continue to equip this countryto prosper in a rapidly changing world.


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HIGHER AMBITIONS | Executive Summary

Executive SummaryBritish higher education is a success story. Over the last we have pursued the twin objectives of supporting exceand widening access, and these have proved to be compand mutually reinforcing.

The UK is home to a disproportionateshare of the worlds leading researchuniversities.With one per cent of theworlds population the UK achieved12 per cent of the worlds scientificcitations in 2007/08.The UK arts andhumanities community published33 per cent of the worlds output inthe period 2006 to 2008.

This research excellence has beenaccompanied by a sustained increase

in student numbers. In 1997 921,000students in all categories entered highereducation. In the current year that figurehas risen to over 1.1 million. Within thattotal there has been a particularlynoticeable increase in the number ofmature students, most of whom have

had the chance to experience highereducation for the first time.

This progress has been supportedby a sustained increase in investment.By 2010-11, total funding for institutions

of the economy, in wcompetitive advantagand developing natiorecent estimate is thaeconomic output is and amounts to 2.3 pGDP2. The sector is exa provider of educatioworld market consistof millions of new leato study in English.

The success of the lassimply the achievemeinstitutions and the lecentres. Many of the developments have ctransformed institutiopursuing excellence i

and building creativecommunities and busthe country.

Our success in higherooted in a commitm


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The challenge is to maintainthe progress we have made. In aknowledge economy, universities

are the most important mechanismwe have for generating and preserving,disseminating, and transformingknowledge into wider social andeconomic benefits.

They are crucial, too, as the providersof life chances for individuals in anenvironment where skills and theability to apply those skills are essentialpreconditions for employment.

The demand for higher educationcontinues to grow but our participationrate, though improved over the last

decade is still below that of manyother developed economies. Access tohigher education remains significantlycorrelated with parental income andwealth. Too many people with theability to benefit from higher educationare still not entering the system.

Meeting these challenges is madeall the more important by the currenteconomic circumstances and theneed to renew our economic base.Universities have a vital role to play

This is by no means tcircumstances which Demography, advanc

the increasing importand intellectual propeincreasingly internatimany activities includitself are all altering tof higher education. Uthe UK are already paEuropean and global have much to gain frodevelopment of such

That is the cowhich shapes

proposals conin Higher Am


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Our proposals

In this document we set out our strategy for sustaining

strength of higher education in this increasingly demandand competitive environment.

We set out proposals in six main areas.

How we will ensure that all

those who have the abilityto benefit can get access tohigher education

This challenge was framed by AlanMilburns recent report3, and HigherAmbitions is an important part of theGovernments response. Because higher

skills significantly influence life chancesand earning potential, wider and faireraccess to higher education is a questionof basic social justice. It is in theinterests of our society that thereare no caps on talent in Britain.Our universities have succeeded in

widening access to poorer studentsover the last decade, but this progresshas been uneven across the system,with our most selective institutionsseeing only modest increases.Fairer access for educationally

Since 1998 the UK pahigher education hasin the OECD to 15th. Talthough we have gro

grown faster4. The Gocommitted to the goaof young people shoueducation. However, meant that 50 per censhould enter higher efrom school to study

three year degree proto widen participationexpansion of the numuniversity and by prorange of course modethree year degree. Thproblem in the past: tstudents on sandwich

example, has fallen bsince the middle of thduring a period whennumbers have increaper cent, an outcomel t i t t


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This goal reflects some basic realitiesabout the UKs demographic and labourmarket profile. Around three quarters of

the UK workforce of 2020 have alreadyleft compulsory education5. The UKretains a large pool of just under sixmillion workers with qualifications atlevel three (equivalent to A-levels instandard) but no experience of highereducation6. Raising the potential of ourworkforce must involve drawing moreof these people into higher education,while also strengthening the skillspipeline that helps young people andadults gain skills and qualifications atevery level. Widening access meansbuilding new stronger ladders ofopportunity from apprenticeships

to advanced apprenticeships andnew technician qualifications intofoundation degrees and othervocational higher educationprogrammes. There should be morebridges between further and highereducation.

This requires a majorculture of our higher where the focus of ex

hitherto been in threedegree courses. Reflefrom learners and emcourses will continuepart. However, the neexpansion in higher ehinge on providing odifferent types of peowider range of ways tThe focus will therefodiversity of models otime, work-based, fouand studying whilst a


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We propose four key changes inthis area:

1) We will improve the advice andencouragement that students receiveearlier in their education with respectto setting their sights on university.

Universities are increasingly involvedin shaping the ambition and personalperformance of young people who have

had no family experience of highereducation, and in improving the way inwhich schools themselves bring out thebest in their pupils. Good advice iscrucial: the availability of study andtraining options and the choices pupilsmake can affect their later courseoptions and life chances. We willstrengthen our partnership with theDepartment for Children, Schools andFamilies, (DCSF) building on thestrategy published by DCSFin October 2009 to guarantee thatall young people get advice thatencourages them to strive for

challenging goals, and that teachershave ambitious expectations for them.

We announced in the NewOpportunities White Paper a guaranteethat high performing pupils from low

Student by mode and

BC

D

E

F

A First degree full-time

B First degree part-time

C Other undergraduate fu

D Other undergraduate p

E Postgraduate full-time

F Postgraduate part-time

2) Many universities aways to use contextua

admissions procedureaptitude and potentiaof those from poor baWe believe this is a vaand hope that all univconsider it


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3) We are asking Sir Martin Harris, theDirector of Fair Access, to consult ViceChancellors and advise the Government

by Spring 2010 on further action thatcould be taken to widen access to highlyselective universities for those fromunder privileged backgrounds and toensure that measures for wider accessare prioritised most effectively and donot suffer in a time of greater fiscalconstraints. His report will be availablein time to influence the conclusions ofthe Fees Review.

Working with universities, he will lookat how best individual universities canset and achieve targets for themselves.He will advise on how best to promotethe partnership of schools anduniversities to identify and mentorthe most talented young people froman early age. He will also advise onwhether the money currently used byuniversities under access agreements,mainly spent on bursaries for theirstudents, can be better targeted in

order to give more effective supportto fair access.

4) We will expand neweducation programmopportunities for flex

young people and adreality of the modern

We will give priority tdiverse range of modeducation. These inclas part-time and worcourses aimed partic

students or those fromconventional backgroalso encourage the fuof the successful founa vocational qualificain two years designedemployers and highemore opportunities toApprenticeship progrvocational qualificatiolevel into higher educbe an important role education colleges asuniversities in such pthat will be set out in

forthcoming Skills Stcommitted to the enhlocally accessible higthat can create new oindividuals and their This will be achieved


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How we will support universitiesin making an even biggercontribution to economic

recovery and future growth

Alongside its social and cultural role,higher education is, and will continueto be, central to this countrys economicperformance in the twenty first century.It is the key mechanism through which

knowledge is generated, preserved andpassed on. It equips people for theincreasingly complex challenges of themodern workplace by teaching skillsand instilling intellectual curiosity andself-confidence.

This process of knowledge generation

and stewardship is a public trust andimportant in its own right. However it isvital that universities use it to contributeto economic growth, both throughthe commercial application of theknowledge they generate and throughpreparing our people for the world of

modern work. Building newpartnerships with business and industrywill provide an important channel forgenerating the financial resourcesuniversities need to fund furtherinvestment. And greater use of cutting

We propose four key this area:

5) We will ask the HigFunding Council for Eto devise new fundindevelop higher educathat deliver the higher

We will give new prioprogrammes that me

high level skills, espesectors including thoNew Industries New JApril. This will mean for the STEM subjecsciences, technology,mathematics and otunderwrite this countadvantages. There wielement of competitiouniversities for fundinwinners being those can best respond to teconomic challengesthe Funding Council t

these changes shouldWe accept that the efchanges in HEFCEs acontestable funding wuniversities: increasinsome and reducing it


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6) We will bring together universities,employers, HEFCE and the UKCommission for Employment and Skills

(UKCES) to identify and tackle specificareas where university supply is notmeeting demand for key skills, and willexpect all universities to describe howthey enhance students employability

There can be no room in the system forvocational programmes that do not

constantly evolve to meet changingbusiness needs. There will be a newcentral role for the UK Commission forEmployment and Skills to advise onareas where there is an insufficientsupply of graduates in particulardisciplines, and also cases whereuniversity programmes are failing toreflect changed business requirementsor the priorities articulated by employer-led bodies such as Sector Skills Councils(SSCs) and Regional DevelopmentAgencies (RDAs).

We will ask all universtatement on how theemployability. Univer

to define what works in different courses ainstitutions. But it is abusiness that studentuniversity better equiwider range of emploAll universities shoulto demonstrate how t

prepares its studentsincluding through traworkplace skills suchbusiness awareness, communication skillsshould help students that offer the greatest

of graduate opportun


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7) Our expectations of business willcontinue to rise: they need to be activepartners with universities, not passive

customers.As the key definers of the skills needs ofour economy and the key beneficiariesof the skilled workers produced byhigher education, businesses have acrucial role in the funding and designof programmes, in the sponsorship of

students, and in offering workplacements and practical experiencefor students. The majority of businessesthat invest in high level skills do notmake enough use of higher education.This should change: businesses shouldtap the resources available inuniversities more effectively, anduniversities should become moreflexible in providing for businessdemand. We welcome the commitmentsmade by business in the CBIs recentreport on higher education8. The rolethat business people play as membersof University Boards of Governors,

as members of University AdvisoryCouncils and in influencing courseprovision through employer led SectorSkills Councils is of great importanceand will become greater in future.

8) We will conclude afuture of postgraduat

Postgraduate qualifictaught and research cincreasingly a necessthe public and privateAs part of our New Instrategy, we need to flow of skills at the hikey sectors of the eco

postgraduates are alsleading academics. Inincome from overseastudents is of crucial financial planning of as well as enriching onetworks. All of this mpostgraduate provisiostrategic issue for thecountry. Professor Adworking with leadingsector to review posthigher education, to emeets both the sectoeconomys needs for s

levels. The independestudent fees will havereviews findings befoown conclusions.


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How we will strengthen theresearch capacity of ouruniversities, and its translation

into economic impact

After a decade of unprecedentedinvestment, our universities are amongthe best in the world for research.Since 1997, the Government has doubledinvestment in the research base, with theScience and Research budget due torise to unprecedented levels of almost4 billion by 2010/11. Ring fencing ofthe Science and Research budget hascreated a climate of confidence in ourresearch base. Our challenge now is toreinforce this strength and to developfurther our capacity to translate this

scientific excellence into economicbenefits. There will be no question ofcompromising our position in pureresearch, and we recognise that the wayin which research drives commercialdevelopment is often unpredictable.

We make three key proposals in this

area:

9) In a more challenging climate forresearch, with tighter fiscal constraintsand increased competition from othercountries, we will need to carefully

centres with world-clThis will include furthof multidisciplinary ce

together many areas building relationshipsin universities and ind

We must use scarce reIn future this should mconcentration, not lesthe high cost scientific

In a diverse higher ednot every institution smaximising its succesassessment exercise odoctoral students is ceThere are pockets of racross a very wide nu

institutions, but a mormodel for the future mforms of collaborationuniversities so that thecan cooperate rather tagainst each other for

10) We are establishin

incentives to increaseand social impact of r

The new Research ExFramework9, which wallocation of the rese


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11) We will support stronger longterm relationships between businessand universities.

Interaction between universities andbusiness has increased significantlyover the last decade. We will buildon this with continued investment incollaborative research via the ResearchCouncils and the Technology StrategyBoard. We will also build on the success

of the HEFCE Higher Education

Innovation Fund whicthe development of libusiness and univers

motivation for suppocommercialisation anexchange is to generasocial benefits for the to raise revenue for inWe will encourage unseek greater use of shmanaging and comm

intellectual property.


Sources of finance for UK universities and colleges 200708


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How we will promote excellentteaching for all students in highereducation, with universities

competing to attract students onthe basis of the excellent servicethey provide

The quality of the higher educationprovided by our universities standscomparison with the best in the world.

However, there are a number of waysin which it could be further improvedto ensure the best possible studentexperience, particularly throughmaintaining high quality teaching.The Governments proposals were set outin our October 2009 response to the reportfrom the Innovation, Universities, Scienceand Skills Select Committee, Students andUniversities. Excellence in teaching shouldbe recognised and rewarded. Alongsideexcellence in research, we welcomethe trend in increasing numbers ofuniversities of recognising excellencein teaching for instance through the

appointment of teaching professors.

We take very seriously any public concernover the quality of the student experiencein higher education. A poor qualityservice to students by any institution

We propose two key this area:

12) All universities shstandard set of informwhat students can exnature and quality of

This should set out hostudents will learn, whwill qualify them to do

have access to externor experience, how mthere will be with acatheir own study respowhat facilities they wiand any opportunitiesexperience. It should information about whindividual courses havgraduation. The Unistcontinue to bring togea comparable way so make well-informed inbased on an understaof the teaching progra

expect, and the long-tprospects it offers. Wethe Quality AssuranceEducation (QAA) and with the sector and adgoals should be achie


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How we will further strengthenthe role of universities at theheart of our communities and

shared intellectual life, and as oneof the key ways in which weengage with the wider world

Universities have a vital role in ourcollective life, both shaping ourcommunities and how we engage with

the rest of Europe and the wider world.They play a huge role in ourcommunities through the provision ofcultural and sporting amenities and inpassing on and preserving a set ofshared societal values, includingtolerance, freedom of expressionand civic engagement. They havethe capacity to provide intellectualleadership in our society, in areassuch as the transition to a low carboneconomy.

14) We will build on tthat universities havepartnership with Reg

Agencies and local bueconomic developme

To sustain the role ofurban renewal and reGovernment will protthat higher educationcurrently enjoy, withi

of existing capital andapproval processes, town business plans acommercially to funddevelopments. The Gsupports the role thatDevelopment Agencicapital for university

judge to be of high ecthe locality and regioalso believes that RDto play in working witand regional level to transfer activities andlinks with local and re

this is crucial to improf management in Brfuture success as an in


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All universities are major contributorsto the regions where they are located.They are large employers and the

students they attract bring revenue tolocal businesses. Many universitiesalso see themselves as important civicinstitutions in their city and region:this role is to be praised and should beenhanced. The Government welcomesthe role that universities play inengaging their local business

community and strengthening thequality of local civic leadership.They are usually active contributors tothe economic development strategiesof Regional Development Agenciesand local authorities, supporting thecreation and growth of local businesses.

Their building programmes can beintegral to wider regenerationprogrammes. The projects supportedby HEFCEs Economic ChallengeInvestment Fund illustrate the manyways that universities can help theirareas get through the economicdownturn.

Local engagement is also crucial to theuniversity function of extending accessto higher education among socialgroups and in areas where it is

Universities are one owhich people from ouengage with us, and t

engage with the worlneed to be strongly cinternationalism; attrfrom abroad; collaboinstitutions overseas;expertise to bear on gThey should instil a sinternationalism in st

European and global encouraging languagstudy abroad.

15) We will championstanding of our unive

UK higher education

internationally. We atstudents, researchersstaff from around thethere are 340,000 forethe UK from 239 diffeUK is second only to destination for such s

of our academic staffthe UK, and 90 per ceuniversities have intelinks. The net annual UKs national incomeinternational (non EU


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Individual institutions have built strongpartnerships with China, India, andother countries. However, the strength

of the international market for highereducation means that many othercountries are competing with us.To retain their position, our universitiesneed to demonstrate strengths inresearch and knowledge transfer aswell as student recruitment, growinglong-term strategic partnerships in

key countries.

Different institutions will pursue theirown priorities, but the Government canhelp communicate a strong UK HigherEducation brand, and align it with theGovernments diplomatic and cultural

agenda, and with our internationaltrade strategy led by UKTI. We havejust established a new InternationalEducation Research Advisory Forum,chaired by the Minister of State forHigher Education, to bring togetherGovernment departments and agencies,the UKs devolved administrations, and

universities. Its purpose is to strengthenlinks between the British Council, UKTI,the Research Councils, and BIS ownScience and Innovation Network, so thatthe UK presents its strongest possible

16) We will empowerbe world leaders in thin transnational educ

e-learningWe will support the nby Lynne Brindley, Chthe British Library, to education remain a wonline learning, and gshare by 2015. The ta

identify opportunitiesand innovation withinuniversities and colleprivate sector, in the online learning, incluof critical mass. Throwill be prepared to prfunding on a competi

university-private secwhich will strengthen

We believe that in a rglobal market, instituhave a unique opporteducation in many di

The UKs advantagesand teaching are supestablished strengthsaccreditation and edupublishing. The poteninternational educatio


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How we will ensure that ouruniversities continue to maintainexcellence, even under tighter

public financial constraints

Our challenge is to nurture a highereducation system, responsive to thedemands of both undergraduate andpostgraduate training, embedded andintegrated in a wider education andskills framework and capable ofequipping all students with thecapabilities and confidence to prosper.

We must achieve these goals in aneconomic environment that has beentransformed by the banking crisis andthe downturn. Britain must rebuild its

economic growth and invest in the skillsand competitive strengths that willunderwrite a sustainable recovery anda balanced future economy with astrong mix of services and modernmanufacturing. It will have to do thisin an environment of fiscal constraint.

Universities have enjfinancial climate overGrowth based so hea

funding cannot continconfronts governmenwith a series of challeexcellence in both tearesearch is key. We recapita funding is impin the current circumsmaintaining that leve

expenditure alone widifficult. That is why tof a diverse set of funis important if the queducation is to be maimproved.

Our universities needbenchmark themselvbest in the world, andexpectations of their regional economies. universities are uniquand must be recogniswith this recognition

responsibilities. We nworld class institutionare, and the institutioneed to recognise theto UK undergraduate


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The rest of the sector contains manyexamples of excellence of a differentkind. Sustaining a diversity of

excellence through a period ofincreased competition and publicspending constraint will require eachinstitution to develop its own distinctivemission, and for funding to be focusedon investing in and nurturingexcellence. Universities may need towithdraw from activities in which they

cannot achieve excellence in order tofocus on the areas where they can.The Government will need to directfunding more strategically if theresources provided are to achievepublic policy goals. In future, newpriorities will be chiefly supported

by redistribution of existing funds andleverage of private investment ratherthan provision of new money.We acknowledge HEFCEs role inactively monitoring the financialhealth of institutions and offeringsupport where necessary.

The universities that succeed best arelikely to be those with strong leadershipthat has the confidence to challengevested interests. Universities will needto control costs, including pay. They will

Universities will needsources of funding, frsources as well as do

The experience of thesuggests there is conto do this: public fundeducation increased breal terms, while totahas increased by ovenew money has comegreater economic ben

knowledge they geneteaching expertise thfrom philanthropic soand increased internaIt is also the result of decision to introducewhich has generated

1.3bn of income intowithout any apparenton access11.

In future the burden oeducations diversity will need to be more between employers, t

individuals.

17) Following the pubproposals we will lauof the fees structure i


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Conclusion: The heart of a knowledge ecoand a civilised society

Britains universities are fundamental to our character asand to our standing in the world.

A strong university system is essentialto a countrys economic success andthe vibrancy and depth of its intellectualand cultural life. Universities embody

both our values and our aspirations.They play a huge role in ourcommunities through the provisionof cultural and sporting amenities andin passing on and preserving a set ofshared societal values, includingtolerance, freedom of expression andcivic engagement. They shape how weengage with the rest of Europe and thewider world. At a time when publicinstitutions are under intense criticism,universities have an important role inrestoring the standards of our publiclife and in the renewal of trust in theworkings of a democratic society.

The aim of these propa new national conseindividuals, governmas to how our higher

should be supported,expanded. We can onthis through effectiveuniversities themselvwe have pointed to a that Government canor working with the furesponsibility for sucwith higher educationthemselves. The chief is to empower them to


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1

HIGHER AMBITIONS | Wider and Fairer Access to Higher Education

1. Wider and fairer acchigher education

This chapter argues that because higher education is band valuable preparation for life and work, and, as such

this countrys resilience, adaptability and competitive the decades ahead, the question of access to higher edone of both social justice and economic success.This cout the Governments commitment to:

Raising the participation rates in higher education of young ppoorer backgrounds and those facing disadvantages. This inc

recognising that the advice and guidance that young people rthe choices they make at age 14 to 16 are critical to their subsexperience in higher education;

Raising aspirations so that those with the potential to succeedlevels are encouraged to aim high, whatever their backgroun

Continuing to increase the range of routes into higher educatpart time study and workplace-based courses to ensure that hcan be accessed at a wide range of points during a working li

Why focus on access to highereducation?

The challenge here was framed byAlan Milburns recent report12, andHigher Ambitions is an importantpart of the Governments response.Because higher skills significantly

2 A university educentry ticket to the

employment anda globalised worlThose with highequalifications arebe in work and leunemployed than


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3 As this implies, educationalattainment is strongly linked tosocial mobility. Work done by the

Centre for Market and PublicOrganisation (CMPO),14 and otheracademics, has concluded that theimbalance of access to highereducation was a powerful driverof the decline in intergenerationalmobility that occurred for the birthcohorts from 1958 to 1970. This

makes access to higher educationfor those from less privilegedbackgrounds a question ofelementary fairness in our society.Those who go to university aremuch less likely to be poor inadulthood: so wider access to

higher education is an effective wayof breaking intergenerational cyclesof poverty.

4 But the wider accanother rationaleraise the levels of

UK economy as achallenges us to cpathways into higthroughout profea way that reflectstudying alongsidwork. We cannot global economic c

do not develop thour people.

Fig 1: Employment rates and unemployment rates according to hi


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5 Other countries are investingstrongly in higher education.Since 1998 the UK participation ratefor higher education has slippedfrom 7th in the OECD to 15th.This is because although we havegrown, others have grown faster15.For this reason, we remaincommitted to our goal that at least50 per cent of young people (aged18 to 30) should enter higher

education, and we will continue towork towards this over the periodcovered by Higher Ambitions.

6 It is important to recognise that thisambition does not imply that half ofall school-leavers should continue

immediately to university to studyon a conventional three year degreeprogramme. The traditional patternof three year, campus-basedhonours degrees is not the onlyroute to higher skills, nor the onlyway to prepare successfully formodern economic life.

7 We already recognise that, if we areto achieve the ambition set out inthe 2006 Leitch report for morethan 40 per cent of the adult

higher educationaccess to higher eroutes other thandirectly from schoaddition, demogran ageing populareduce the size ofcohort. So growinpeople with high mean drawing mstudents into the

8 We therefore aimparticipation throof the number of and by promotingof course modelsthree year degree

problem in the pastudents on sandexample, has fallsince the middle during a period wstudent numbers around 32 per ceis not in the long-

either students oIn order to attractof students, moremore vocationallydegrees, more wo


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Wider and fairer access to highereducation: the recent experience

9 Although the UK is far from achievingsocial balance in access to thebenefits that higher education offers,significant progress has nonethelessbeen made. Higher education in thiscountry is no longer the preserve ofa small minority. Since the 1950s theopportunities to go to higher

education institutions have grownenormously. In the 1950s, the HigherEducation Initial Participation Rate inBritain was 5 per cent. For the samegroup now, the equivalent participationrate is 34 per cent.17

10 Over the last 10 ymade progress oparticipation indiof students goinglower socio-econrising, with a reco2007/08 almost young people froeconomic groupseducation than infigures indicate th

numbers of younthe poorest hometo university in 20ever before.

Fig 2: Higher education participation rates over time


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Fig 3: Performance indicators on progress in widening participation to

Source: Performance Indicators in Higher Education, HESA (200

http://www.hesa.ac.uk/index.php/content/category/2/32/141/

11 The percentage of UK domiciledyoung entrants to full-time first

(Fig 3)18. The diffethe first time high



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Fig 4: Trends in Participation by Socio-Economic

Source: Full-time Young Participation by Socio-Economic Class 2

BIS (2009)

12 There is a wealth of data collectedin this whole area, but the overall

13 Universities haverecruitment from



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14 Universities themselves alsoundertake outreach to recruit youngpeople from non-traditionalbackgrounds, supported throughan allocation within the main HEFCEteaching grant. Additionally, thisyear universities have been requiredby HEFCE to produce WideningParticipation Strategic Assessments.These Assessments will includeeach universitys Access Agreement

with the Office for Fair Access; itsadmissions policy; and the broadlevel of resources that institutionswill commit to widening participationand the measures and targets bywhich they will judge success.

15 In response to thenew routes into hfor mature studenhave developed astudy models. Pacontinuing to chathan 60 per cent otraditional studestraight from schand studying full-people are choos

time and combinand more provisidelivered outsidecampus setting, iemployer premis

16 Foundation degreprogrammes, desemployers haveyear increase in ewe introduced thewith approximateenrolled by Decemare now an estabhigher education

Some foundationprogrammes, in psupporting workffeature flexible andelivery. Many un


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Fair Access

17 But despite this improvingperformance the difference acrosssocial classes in participation inhigher education still remains toolarge. The higher social classeshave almost twice the participationrate of lower social classes. As AlanMilburns report observed. It is notability that is unevenly distributed in

our society. It is opportunity.Of those in the top 20 per cent ofperformers at age 11, young peopleamongst the 20 per cent mostmaterially deprived were aroundtwo thirds as likely to attenduniversity by age 19 as the 80 percent leastmaterially deprived.20

18 In addition, our universities havesucceeded in widening access topoorer students over the lastdecade, but this progress is notequally reflected in all parts of thehigher education sector, especially

in our most selective institutions21.Fairer access for educationallydisadvantaged but able UK pupilshas to remain a key part of how ourworld class universities see their

i i Thi i h d

19 We now need to mobility in this cothe benefits of higopen to all who hand motivation, wbackground. We wwidening participby all those with This includes: schin relation to raisehigher rates of pr

16 and post 19; pin respect of theirparticipation andcommitments; unall students gain possible diversitywider groups wheducational or cosuch as museumthe third sector.

Helping students son university

20 We know that pe

school continuesindicator of entryeducation. Our lois to reduce the lagap in achieveme



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21 It is not just a matter of performancebut of ambition and aspiration.We will improve the advice andencouragement that students receiveearlier in their education with respectto setting their sights on university.DCSF have recently published theirstrategy for young peoplesinformation, advice and guidance(IAG) Quality, Choice andAspiration23. This has been developed

in alliance with BIS, anddemonstrates the Governmentsrecognition of the importance of highquality and impartial IAG inencouraging progression, including tohigher education. A cross-departmental ministerial group willoversee the implementation of thestrategy. The strategy:

introduces a new IAG guarantee forpupils and their parents, setting outwhat all young people have a rightto expect from their schools andcolleges, and from wider IAG services;

stresses raising aspiration amongstyoung people with the talent toachieve at the highest levels butwho, because of their background,lack the opportunities;

sets out plans to champion from theducation sector,business champidrive for more me

strengthens the aarrangements forthe School Reporenhanced role fo

22 We expect all thocareers educationadvice, and guidaimpartially. We hstatutory guidancreinforce their stagive impartial carand we are ensur

workforce has guopportunities avapeople, includingeducation, througsupport programfrom the TrainingAgency for SchooQualifications anDevelopment Agewe are reaching dschool system to advice and guidaabout higher edu


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23 The National Council for EducationalExcellence has made a number ofrecommendations, to Governmentand the education sector, to raiseaspiration and awareness, as part oflong term, sustained partnershipsbetween schools, colleges, anduniversities. These are now beingimplemented. We will continue toencourage strong structural linksbetween universities and schools,

particularly those where pupils faceparticular disadvantage, to helpraise the attainment and aspirationof those young people. In additionthe two Departments will buildstronger links between the DCSFprogrammes supportingprogression by disadvantagedgifted learners to competitive highereducation; and the BIS programmesto strengthen the support thatuniversities provide for those learners.

24 The Department for Children,Schools and Families is currently

developing pilots of two types ofinnovative 14-19 institutions, StudioSchools and University TechnicalColleges (UTCs), which will enableyoung people to develop specialist

25 The involvement would ensure accteaching skills anfacilities, and buifor progression ineducation. We wiuniversities to bebuilding on their involvement in spacademies. Astonalready actively e

sponsoring the Bpilot which will pengineering provof the city.

26 Strong and sustabetween schoolsuniversities are cthat young peoplthe full range of ofully develop theiThere are many lalready in existenthose funded by Aimhigher partne

those supported themselves. HEFCbrokerage systemschools with univthe Aimhigher pa



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Case Study:

The University of Plymouth

Aiming HigherScheme

An innovative model of higher education/schools liaison was deveopportunities for disadvantaged pupils. It involves providing inforguidance direct to pupils, and the development of the whole schothrough close links between the Faculty of Education and schools

The major aspect the University of Plymouth tested was an innovastudents as buddies for children aged 11 and 14 in Plymouth schwere specially trained, committed to maximising opportunities anattached to individual classes and buddying individual pupils one

The effects were dramatic with a substantial increase in the expecpupils involved. In response to the question I think most pupils in

their education will last until they finish University there was a nepoint rise in those answering yes (from 24.4 46.2%) for the yourise from 13.6 to 23.5% for the older pupils.

27 In support of this, HEFCE haveinvited universities to undertake

research that will provide evidenceof effective practice in models ofthese links. Eleven projects havebeen awarded funding to researchand evaluate models of linksb t hi h d ti

28 As part of The NeWhite Paper publ

2009, we announthat high performlow income backga structured packto help them prog

d ti S h


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29 Social mobility is not simply aquestion for the educational sector.There need to be stronger linksbetween the professions,universities, colleges and schools,through which the professionsthemselves help to raise theaspirations of bright butdisadvantaged students andencourage them to set their sightson university. The Government will

work with the Gateways to theProfessions Collaborative Forumand the higher education sector topromote this involvement.

Recognising capability

30 We will continue to support andencourage all universities to seekout those with the potential tosucceed on their courses no matterwhat their background, taking intoaccount the educational and socialcontext of pupils achievements intheir admissions process.

Admissions decisions are a matterfor each university but it is in everyuniversitys best interest to attractstudents with the greatest potential.There is much good practice and

id i hi i

31 Many universitiesnew ways to use in their admissionassess the aptituto succeed of thobackgrounds.Wevalid approach anall universities wIn assessing candalready expect towhat individuals

particularly througrades, but also aand potential to sprinciple of univemeans that Govenot interfere withadmissions procethat the use of apcontextual criterito ensure that higcandidates are nothe system.



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Case Study:

The use of contextual data:

Nadia, an applicant to the University of

Nadia applied through the Universitys special admissions schemeand received special consideration from the School of English. Shthe scheme as she was in the first generation of her family to entein receipt of Education Maintenance Allowance (EMA) and had attwhere fewer than 60% of pupils achieved five A to C GCSE passes

Her studies had been severely disrupted by events in her life, and responsibilities at home her only higher education option was to auniversity. As she was only taking two A2 qualifications due to disshe was offered entry grades of AB at A2 (with the A specified in EAS instead of the standard offer of AAB at A2.

The school was willing to make this offer because they were impreoverall application. Her performance in the assignment was such tshone through and even after missing the offer she was acceptedto achieve an upper second class degree. She says she has benefiuniversity experience: Incredibly, I am not the same awkward, unyoung person I used to be.

Widening access to our mostselective universities

32 We are asking Sir Martin Harris, theDirector of Fair Access to consult

33 Working with unilook at how indivcan best set and athemselves.He will advise on


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38 The 2009 Grant LHEFCE to considemodels for differeprovision are nee

compromising brwidening participneed to rise to theopening up new rthrough this sort working more cloand industry to ta

teaching. As univto the needs of stemployers, proviincreasingly becothroughout the yeexample, the curryear degree progdemonstrating. Wdistinctions betwand full-time labeincreasingly irrele

Case Study:

Foundation Degrees for the Nuclear SecThe National Skills Academy for Nuclear is working with the UniveLancashire (UCLan) and Portsmouth University to jointly develop Foundation Degrees that are needed by the nuclear sector to addr


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39 Following the recommendationsof the Burgess Group28, the sectorhas produced a credit frameworkfor higher education in England.

The use of academic credit supportsflexibility in access to highereducation, including portability the ability of students to move on toa new institution to study newmodules with formal recognition ofwhat they have already achieved.

The Government would like to seeits adoption continue to grow inresponse to demand. Universitiescan already claim funding for credit-bearing courses, and the HigherEducation Credit Framework forEngland highlights the potentialroles for credit in supporting

progression into and within highereducation, and transfer betweenprogrammes29. Short, credit-basedcourses are already popular withemployers. It may take longer forbusinesses to adapt recruitmentprocesses to take credit into

account, but this can only bebolstered by examples of goodpractice such as the approach takenby the Open University, which is inthe vanguard of the credit system.

Conclusion

40 The investment tin widening parti

last ten years hasplatform on whicAs autonomous iuniversities haveand enterprise in question of widerHowever, progres

the Governmentshighly uneven aceducation sector,most selective insstill falling far shoeducation systemaccess to all on thtalent and potent

education sector greater responsiband supporting thand potential andaccess higher eduschool leavers butheir working life.

a loss of talent ancountry cannot afor socially.

HIGHER AMBITIONS | Equipping Britains workforce for a global economy


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2. Equipping Britainsworkforce for a globaleconomy

This chapter argues that in a globalised knowledge ecoas Britains, the university system plays a critical role inpeople with the skills they need to prosper. In such an there is a premium on sophisticated skills, intellectual and employability, so these must be among the key rethigher education.This chapter sets out the Governmen

to a number of important challenges:

Ensuring that individuals and businesses recognise the premby higher skills and invest accordingly. Prospective students ainformation so they can reflect on how different learning chotheir career prospects;

Ensuring that the higher education system develops program

the higher skills that the economy needs, especially in key areshortages of skilled workers are putting growth at risk;

Ensuring that businesses work more closely with universitiescommunicate their skills needs, and to fund programmes frombenefit in the form of more specialist staff;

Raising the level of employability of our graduates by ensurinimportant generic skills in team-working, reasoning and comare required for many modern careers;

Addressing the specific challenges facing postgraduate educa


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The skills for a knowledgeeconomy

1 Britain is a knowledge economy.

Its competitive advantages in theglobal economy are all built onsophisticated skills, high levelsof creativity and intellectualconfidence. This is true for sectorsas diverse as financial services, thecreative industries and advanced

manufacturing. Tertiary educationdirectly contributes to productivityin such economies. An OECD studyin 2003 found that a 1 per centincrease in tertiary human capitalstock is associated with a 1.1 percent rise in GDP growth rates30. A2006 Department of Trade andIndustry (DTI) study found thatenterprises classed as innovativelyactive have roughly twice theshare of employees educated atdegree level than non-innovativelyactive companies31.

2 This is the background to thecreation of the new Departmentfor Business, Innovation and Skills(BIS) in June 2009. The creationof BIS signals the central role that

and important in Research and leauniversities haveaside from any ec

consideration. Buwe are determineshould be left untmaximising the eof higher educati

3 Our universities a

excellent job of hdevelop skills andBusinesses reporof satisfaction witOver their workinearn, on average,100,000 more thwhose highest qu

or more A-levels (todays valuationhas been maintaiperiod of substanoverall number o

4 Higher education

better attuned to employers over tFrom a standing the number of enfoundation degre



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5 But although their general view ofthe quality of our graduates is apositive one, employers continue toreport skills shortages, particularlyin science, technology, engineering,

mathematics and other key skillsthat underwrite some of our mostcompetitive sectors. They alsoreport a lack of employabilityskills in graduates such as businessawareness and self-management33.Both of these deficits are holding

back our economic prospects.

6 The point is not that universitieshave become weaker performers,or that graduates are less able than

The premium on h

7 We believe it is vand employers ha

understanding ofhigher educationin their careers ansuccess respectivinevitably and rigof considerationswhen choosing th

education provisincreasingly impoconsider how theof study will affecemployment pros

8 Employers need tpotential student

importance for thprospects of acquskills. As recommMilburns report, prospective studeabout what sorts opportunities are

particular sector, to get those jobs,skills might be gaalso need to ensuopportunities for

i h


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9 It is sometimes suggested that anumber of popular subjects are oflittle value. Stereotypes about whatcourses offer the best employment

prospects are often wrong.Graduates in some subjects,popularly thought to confer pooremployment prospects, are actuallyfound to have good rates ofemployability. For example, sixmonths after graduating 74 per cent

of those qualifying in Media Studiesin 2007/08 were in employment.And for Marketing and Sociologygraduates it was 76 per cent and 70per cent respectively, comparedwith an overall average of 70 percent. Furthermore, the data onemployment and further study

outcomes at six months show aspectrum of performance in each ofthe university mission groups, withnew universities such as Edge Hill(95 per cent) and Nottingham Trent(93 per cent) demonstrating thatexcellence is not the preserve of a

select group of institutions34

.

Supplying the righgrowth industries

10 We need skilled p

those industries wpotential to driveour economy. Thsectors and markcompanies exercadvantage such aservices, bioscien

manufacturing, locreative industriehigher educationgraduates, as weworkforce, need tdeliver the resouwill need to undepractices to achie

sustainability.

Case Study:



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11 We want higher education capacityto grow quickly in these priorityareas. This has been a prominentmessage from the various

consultations which theGovernment has conducted withbusiness, including through HigherEducation at Work35 and businesspanels convened by Ministers.While the normal operation of themarket will produce the incentives

to develop many of these skills,we know from Sector Skills Councils(SSCs) and others that there arealso areas where the skills market isunderperforming.

12 There can be no room in the systemfor vocational programmes that do

not constantly evolve to meetchanging business needs. Therewill be a new central role for the UKCommission for Employment andSkills (UKCES) to advise on areaswhere there is an insufficient supplyof graduates in particular

disciplines, and also cases whereuniversity programmes are failingto reflect changed businessrequirementsor the priorities articulated by

including the fortCentre for WorkfoResponsibility foraction will contin

universities and b

13 Working with emeducation and fusectors, and othewill also produceaudit. This will an

and longer-term tare critical to the development of kand public serviceconomic growthas well as settingskills requiremenon the RDAs new

determining a regStrategy as part oSingle Regional Saspect of the RDAis to determine ecespecially in the kmarkets identified

Industries, New Jpaper; and the mneed and supply,across regions. Tbe factual and tak


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14 Where demand-led pressures fromemployers and students do notstimulate the provision of importantskills in a timely and appropriate

way, funding levers will be used toensure supply can meet demand.We will ask the Higher EducationFunding Council for England(HEFCE) to devise new fundingincentives to develop highereducation programmes

that deliver the higher level skillsneeded. We will give new priority tothe programmes that meet the needfor high level skills, especially forkey sectors including thoseidentified in the New Industries,New Jobsstrategy of April. Thiswill mean enhanced support for

the STEM subjects degrees in thesciences, technology, engineering,and mathematics and other skillsthat underwrite this countryscompetitive advantages. This willbe in addition to the 20m nationalhigher education STEM programme

HEFCE have developed which aimsto deliver a sustained increase inSTEM graduates, focussedspecifically on under-representedgroups.

15 There will be a grcompetition betwfor funding, with those universities

respond to these challenges. We wFunding Council how these changimplemented. Weeffect of these chapproach to cont

will vary betweenincreasing fundinreducing it for othfunds to be divertmeet strategic skbe diverted awaywhose courses fastandards of qua

16 In this process weHEFCE to act on tfrom UKCES and short- and long-teand their analysispriorities. We also

to work very closSSC which can destrong employer

17 We recognise and



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18 The supply of high-quality STEMgraduates depends not just onuniversity provision, but also on thepipeline from schools and colleges

through universities and on intoemployment. We will seek tosupport work already underwayby the Department for Children,Schools and Families in raisingSTEM participation. With aroundhalf of STEM graduates going into

non-STEM employment36

employersalso have a role to play, ensuringthat their businesses offer careerprospects that are attractive to theskilled individuals the systemalready produces.

19 There are a number of other

funding levers which we will useto ensure the supply of qualitygraduates in areas of highesteconomic impact, including STEM:

We will ask HEFCE to ensure thatthe funding system does not createdisincentives for universities to offer

STEM provision. This will involve areview of the HEFCE feeassumption37, with a view tomaking it more equitable forsubjects which attract higher

mismatch betweedemand, and subnot yet vulnerablebecoming so. We

balance betweendemand in stratesubjects, to maxiin the system to pqualified applican

A stronger partner

universities and b

20 The relationship buniversities and efor both parties aprosperity of our The capacity of thsystem to equip p

modern world of this relationship band based on muunderstanding. Wuniversities and btogether to anticirespond to dema

economy. This stplaying a role in tforecasting systeand supported bysectoral and bilat


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Case Study:

University of York in partnership with hi

business at the York JEOL Nanocentre

The York JEOL Nanocentre represents a major long-term collaboraUniversity of York, Yorkshire Forward, the European Union, and JEleaders in electron optics. The centre is a world-class research facmass of nanoscience workers with specialised facilities in electronnanolithography, coupled to the existing activities in surface analy

materials and devices. The Nanocentre is an open access, industryindustry first facility.

The Nanocentre will offer a range of short courses which will formand part time higher degree programme as well as providing handscientists in industry.

21 We welcome the recentConfederation of British Industry(CBI) report on higher educationwhich committed British business toa higher level of engagement withuniversities38. Our expectation that

businesses should play an activerole in the higher educationsystem will continue to rise. AsAlan Milburn suggested, they need tobe active partners with universities,

t i t 12 A th k

22 The majority of binvest in high levmake enough useeducation. This sbusinesses shoulavailable in unive

effectively, and ubecome more flexfor business dembusiness people of University Boa

b f U



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23 Employers need to ensure thatprospective students understandwhat employers skills requirementsare, including the numbers of

graduates they are likely to needand the specific skills thosegraduates should have. One waythey can do this is to work withSector Skills Councils so that they

24 We will ask HEFCfunding to incentwork between higinstitutions and S

Councils to develprogrammes, newdelivery, and newexpertise aroundfor priority sectorFor example, we see the results of

Technology ManaBusiness programjointly with e-skilthe participation If evidence demothis kind of progremployer needs isustainable, cost-

we will extend thimportant sectorsas those identifieNew Jobs. The Rhere through thesupporting busininfrastructure, wh

maximise the direbenefits of such c

25 We will focus somintervention by H


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26 The Government has alreadyinvested 148 million since 2008 insupporting partnerships betweeninstitutions and business to grow

the market for workforcedevelopment in high levelskills co-funded by employers.This investment is targeted ontransforming the way universitiesengage with employers.

27 In strategically important sectors,we will bring together highereducation institutions, employers,Sector Skills Councils and sectoralexperts in High-Level Skills MarketTeams to focus customer demand,and to accelerate the response fromuniversities to meet that demand.

These teams will look strategicallyat a sector, determining whetherpublicly funded higher educationprovision supplies graduates withthe right skills to work within thatsector; how that provision mayneed to develop in the future to

achieve a better match withemployers skills needs; andidentifying where employers areprepared to meet the extra costs oftailored provision.

their Business Linwhat they can offLink Advisers canbusiness clients b

appropriate emplto higher educati

29 Strong partnershuniversities and bnot only importanrelationships with

already based in also a key factor iinvestment in Bribusinesses reporavailability of higindividuals is a kedecision about wThe creation of th

for Business, InnoSkills means thatpromoting this inthrough UK Trade(UKTI) now rests Department as hipolicy. BIS will be

an active ambassstrengths of our uas a resource for wanting to invest



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31 The CBI/UUK publication Future Fit42

showed how we can build on thegood work already underway acrossthe sector on employability by

spreading the successfulapproaches of a number ofuniversities and businesses inareas such as sandwich coursesand foundation degrees, and bybuilding in employability skillsas a core component of every

undergraduate and post-graduatecourse. The UK Commission forEmployment and Skills has alsopublished a report on employability

as the first stage of the issue acroshigher education

32 Many universitiesemployability skiplacements and pcourses, and fundcurrent HEFCE teAlthough we recoone-size-fits-all a

be inappropriate,examples of excecould be more withroughout the se

Case Study:

Employability skills atLiverpool John Moores University

Liverpool John Moores Universitys World of Work (WoW) initiatthat every student is equipped with the skills they need to successworld of work, either because they possess skills which are highly v

or because they are well equipped to set themselves up in their ow

The programme, developed and delivered collaboratively with empthe need for higher level skills most valued by employers covering Organisational Awareness and Making Things Happen. It also ident


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33 We will therefore ask all universitiesto produce a statement on how theypromote student employability,setting out what they are doing to

prepare their students for the labourmarket, and how they plan to makeinformation about the employmentoutcomes of their provisionavailable to prospective students.Universities must be free to definewhat works best for students in

different courses and differentinstitutions. But it is a top concernfor business that students shouldleave university better equippedwith a wider range of employabilityskills. All universities should beexpected to demonstrate how theyprepare their students for

employment, including throughtraining in modern workplace skillssuch as team working, businessawareness, and communicationskills. This information should helpstudents choose courses thatoffer the greatest returns in

terms of graduate opportunity.These strategies should be inplace in time for applicantsfor 2011/12 to refer to them.

35 We will also workSkills Councils anto ensure that bueffectively comm

opportunities in tregions, and the sstudents will neeopportunities.

36 The skills and consupport entrepre

important subsetskills. Internationshow that the UKto benefit if morego on to set up abusinesses43. As wimportant sourcegrowth, entrepre

be vital to the pubvoluntary sectorsresponsive and pservices. We will National Council Entrepreneurshipincrease the oppo

higher educationdevelop businessand to enhance thof success.



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Postgraduate education

37 Postgraduate qualifications, bothfrom taught and research courses,

are increasingly a necessity forcareers in the public and privatesectors alike. As part of our NewIndustry, New Jobs strategy, weneed to strengthen the flow ofskills at the highest level into keysectors of the economy. Todayspostgraduates are also tomorrowsleading academics. Increasing feeincome from overseas postgraduate students is of crucialimportance to the financial planningof many institutions, as well asenriching our internationalnetworks. All of this makes

postgraduate provision a criticalstrategic issue for the sector andthe country.

38 Postgraduate policy in this countryhas evolved over many years.It is timely to look at developing aclearer strategic direction. In July,the Secretary of State announced44

that he was launched18 a review ofpostgraduate provision to be ledby Professor Adrian Smith, DirectorG l f S i d R h

To assess the comUK institutions in for postgraduate This should cons

which influence tof the UK as a locpostgraduates aninfluence UK studpostgraduate stud

To assess the bepostgraduate stu

relevant stakehol To assess the evi

the needs of busiemployers for powhether taken froresearch-based cof provision by in

discipline will be impact on the effresearch environ


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To examine levels of participation,in terms of who undertakespostgraduate study, and whetherthere are barriers affecting the

diversity of participation andreducing the availability of high-quality entrants. This will include anassessment of the extent to whichpostgraduate (especially taughtMasters) degrees are seen as theminimum qualification for entry tocertain professions, and the extentof co-funding by employers.

39 The review is taking into account theearlier contributions to the debate onthe future of higher education, inparticular the issues identified byNigel Thrift and Paul Wellings . Itsrecommendations need to beconsistent with the current context ofthe public finances in the comingyears. Its findings are likely to forman important part of the evidencetaken by the Fees Review, to enablefuture postgraduate provision todevelop within the longer-term

funding landscape.

39 The review is taking into accountthe earlier contributions to thedebate on the future of higher

Conclusion

41 Alongside its socrole, higher educ

continue to be, cecountrys economin the twenty-firstkey mechanism tknowledge is genand passed on. Itthe increasingly cof the modern woteaching skills anintellectual curiosconfidence.

42 In a globalised ecrequired by both businesses are in

complex and sopAcquiring them, adeploy them quicwill be a determinBritains growth aFor this reason, ittake a strategic aprovision of thesethe gaps in our skensuring that graequipped to entework, both as em

i l l

HIGHER AMBITIONS | Research, Innovation and Knowledge Exchange

3 Research innovatio


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3. Research, innovatio

knowledge exchangeThis chapter argues that the knowledge that universitiand the way that it is harnessed to create practical bento our economic future.The doubling of the UKs Scien

Research budget over the past ten years has cementedposition as a research nation.The challenge over the nfifteen years is to consolidate our world-leading perforfurther deepen its contribution to our wider economic

This chapter sets out the Governments commitment t

Supporting and protecting our strongest, worldleading centrIn the future it is likely that there will need to be a greater foclevels of research excellence, and recognition of the benefits concentration in key subjects;

Ensuring the higher education sector is equipped to demonstexcellence and to innovate across a broad range of disciplinelevel of knowledge exchange between research and users animpact for the wider economy and society;

Maintain and enhance a research base made up of worldclasmultidisciplinary institutions which support the critical mass oresearchers, and state of the art facilities, which in turn will atbest investment and research collaboration;

Establish closer and longerterm partnerships between reseaglobal companies, local and regional business, and public serpolicymakers. Researchers should move more freely betweenand the public, private, and third sectors.


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Britains research base:a world-class asset

1 Investment in science and

innovation is not an intellectualluxury for a developed country.It is an economic and socialnecessity, and an indispensableingredient of economic success.Our universities form the core of theUKs publiclyfunded investment in

science and innovation. They arethe foundation of our knowledgeeconomy46. Research andknowledge exchange47 arefundamental strengths of the UKshigher education sector and providethe essential underpinnings of athriving innovation environment.

2 Since 1997 the Government hasdoubled investment in the researchbase. The Science and Researchbudget will rise to a record level ofalmost 4 billion by 2010/11. Over thesame period, qualityrelated research

funding and research capital fundingfor universities has risen to some1.8 billion. This investment in theresearch base has reinvigorated itsphysical infrastructure through the

3 Despite internatioUK is second onlybroad range of reThe UK has the m

research base in tmore publicationresearcher and pefunding than anycompetitors. We 8 per cent of worand we have incrshare of the most14 per cent48. TheAssessment Exercmuch worldclass universities. Over research submitteworldleading oexcellent49.

4 The number of Ph22 per cent betweIn 2007/08 there wpostgraduates stuuniversities50. Thisavailability of mor

people in a range o

5 Investment in resesignificantly strengability to innovate



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6 The UKs research base is attractingmajor international investments.International companies includingPfizer, Microsoft, Philips, Roche,

Toshiba, and Boeing invest inresearch in the UK. In their InwardInvestment Annual Report, UKTrade and Investment (UKTI) saythat they have used the strength ofthe research base to attract morethan 200 Research andDevelopment (R&D) investmentsto the UK during 2008/09 alone52.

7 This increased investment has alsoprovided resources for the ResearchCouncils and the TechnologyStrategy Board (TSB) to collaborateon an unprecedented scale in

sectors where the UK has worldleading capability. Examples of thisinclude Rolls Royces SAMULET53

programme and Low CarbonVehicles. The Regional DevelopmentAgencies (RDAs) have contributed tothese programmes so as to increasetheir impact on the ground andthrough the supply chain. Moregenerally the RDAs and the TSBwork together at both the strategicand operational levels bringing

which the RDAs athe small and mebusinesses that anational program

to engage with.

8 There has been incommitment in uengaging with bucollaborate in resshare the benefitsand stimulate widthe developmentprocesses, produThrough knowledprogrammes andinnovation netwoand continuing pdevelopment cou

have made the rebase much more business commu

9 Research can insattract new talentadults visit a mus

each year, whereof research into thumanities54. Proto build a 1000mpbreaking the Wor


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10 University research also underpinsour societys ability to address thegreat public policy issues of ourtimes, such as the impact of an

ageing population, the effects ofexponentially faster technologicalchange, and climate change.The ability of universities to bringtogether often diverse scholarlydisciplines is very importantto this. CrossResearch Councilprogrammes such as Living withEnvironmental Change andAgeing are good examples thatwill continue to receive strongbacking from the Government.

11 The focus on economic impact doesnot imply a shift away from

fundamental research towardsapplied research. Indeed, we rejectthe idea that fundamental researchshould be cut to provide extra

support for applieThe outcomes of are often impossany precision and

a long time to geimpact. For examcryptography thatransactions to besecurely has its romathematical restime was pursuedintrinsic interest. to predict whetheadvances in knowto practical applicis that we need topossible econombenefit from resedone and to be fa

of the links betwedecisions and ounational econom

Case Study:

University Research and Sustainable En

The UK Energy Research Centre (UKERC)55, funded through the crC il E P id d l ti l i i ht f th G



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Protecting the excellence of theresearch base

12 In a more challenging climate

for research, with tighter fiscalconstraints and increasedcompetition from other countries,we will need to carefully protectthe excellence of our research base.This will require a greater focuson world-class research andgreater recognition of the potentialbenefits of research concentrationin key areas.

13 Protecting Britains excellentreputation for basic research startswith attracting the best peopleto build research careers in this

country, especially in the face oftough competition from universitiesabroad. Progress has been made inimplementing the Roberts Review56

to improve the attractiveness ofresearch careers, but there is roomfor further improvement.

14 Professor Nigel Thrifts57

contribution to the debate on thefuture of higher education set outa range of recommendations for

and employers ofdeveloped a Conccareer developmeThe Concordat als

the quantity, quaresearch itself. Sumanagement of rwill be inextricabdevelopment of astrategy (see Cha

15 A key asset in attand maintaining tof our research apublic commitmeresearch. Stable Gfunding and suppessential foundatand research bas

The current standresearch base bethe effectiveness funding structureGovernment contways to increase sustainability.59 Tfull economic cosuniversities abilicosts of their resethem further towfinancial sustaina


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capability that has the freedom tosupport universities needs andresearchers curiosity, and theflexibility to respond to the future

needs and challenges of society.Research Councils fund specificworld class research projects andinstitutes, support research training,and ensure UK presence in majorinternational projects.

17 The Government will continueto fund institutions to maintainresearch infrastructure on asustainable basis via the ResearchCapital Investment Fund (RCIF), andwill continue to monitor the capitalneeds of the sector.

18 In the future, in wbe a more challenresearch, we will and protect our w

research centres.remain the definiallocating researcEspecially in areaadvanced sciencemean that public UK must be priorstrengthening reswith worldclass cinclude further demultidisciplinary together many arand building relatteams in universi

19 We must use scaIn future this shoresearch concentespecially in the hdisciplines. In a deducation systeminstitution shouldmaximising its suassessment exercdoctoral studentsmission. There arresearch excellen



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20 The concentration of a significantproportion of our research strengthin a relatively small number ofuniversities has helped to ensure

that we have four of the top sixglobal universities and 18 of the top10061. Excellence is found throughoutthe university system, and mustremain the defining basis forallocating research funding, but thiswill need to be coupled to strategicinvestment in leading researchcentres which will enable them toinvest and develop over time.

21 As an example of this, theEngineering and Physical SciencesResearch Council (EPSRC) focuses alarge part of its training portfolio in

critical mass centres, and in 2009established 45 Centres for DoctoralTraining. These multidisciplinarycentres bring together many areasof expertise, building relationshipsbetween teams in universities andwith industry.

22 We do not, however, intend formallyto designate research and nonresearch institutions. It must remainpossible for wellled institutions to

Increasing the ecosocial impact of re

23 The challenge for

is to continue to ieconomic benefiteconomy of the erepresented by oEncouraging closeUKs growing pooengineering reseindustry and privnow key to ensurable to benefit ecgroundbreaking s

24 With increased pscience and researesponsibility to d

benefits to the taxinvestment. The eof excellent reseathrough many roincreasing the supeople, improvinof businesses andcreating new busimproving publicattracting inwardpublic engagemesocial benefits.


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throughout business and publicservices is a key objective of thenew Department for BusinessInnovation and Skills. University

research has a key role in the UKsinnovation infrastructure. Stronglinks and knowledge exchangebetween researchers and users areoften the key to the transformationof research into innovative productsor services. But although thisresearch is important in its ownright, its benefits cannot beharnessed without strong linksbetween researchers and users.This is why knowledge exchangeis so important.

26 Government support for knowledge

exchange through programmessuch as HEIF has drivena culture change in university business interactions, withincreasing levels of engagementbetween universities, businessand other users. One measureof the level of such interaction isuniversities external income, whichrose to 2.8 billion in 2007/08 a 50per cent increase in real terms since200164. Evidence suggests that both

27 The culture changdemonstrated byquarters of univeknowledge excha

part of their institand more than hacriteria for careerEach Research Coan economic impagainst which thebe monitored. Nesuch as the OfficeCoordination of (OSCHR) have alrthe future impactinitiatives67.

28 BIS will continue HEFCE and the se

range of measuremetrics and qualito evaluate the wknowledge exchaWe will work withsector to benchmperformance andinternationally. Wwith RDAs to findways for them to and nurture the rsubregional know



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Case Study:

University incubated spinout company

helps fight against swine fluSince 2003, the University ofSouthamptons SETsquared BusinessIncubation Centre has established itselfas a vital support mechanism to the localhightech community, providing business

support to university spinouts and otherhightech, highgrowth start upcompanies through a mentorshipprogramme, business planning advice,management team development, andsupport with raising finance as well asoffice space and facilities.

One such venture is PrimerDesign Ltd which was set up by academUniversity of Southampton in 2005 and began operating from the PrimerDesign Ltd develops DNA test kits, and in May 2009 were ththe world to produce test kits for the Mexican H1N1 Swine flu.

The company has benefited from its links with the University Incuthrough access to indepth business review panels which include

Trade and Investment, and mentors from both a large pharmaceutother life science startups, to undertake rigorous reviews of their

29 Universities role in driving Their role in crea


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Universities are increasingly ableeffectively to support their studentsto start their own businesses withalmost 2000 graduate startups

created in 2007/0868

; Universities are also beginning

to create social enterprises, whichoften take innovative approaches totackling social and environmentalchallenges.

30 In order to continue to drive forwardthe economic and social impactagenda, in the future we will wantto do more to incentivise institutionsto think strategically about theimpact they generate, and the waythey organise their researchprogrammes, and their researchers

careers. We also want to encourageinstitutions to go further both tobroaden and deepen their linkswith business and users. Theseambitions will be reflected in thedevelopment of the ResearchExcellence Framework (REF),

which the Government has asked to: Take better account of the impact

research makes on the economyand society;

31 This means that fresearch assessmassess the impacon the economy

Those institutiondemonstrate a tradelivering impactresearch will be rUsers of researchinvolved in this aimpact. The REF wof a broad range example, translatinto new productcollaboration betwand business; anhas supported inservices, such as It will also encou

mobility of reseaacademia and indhelp us understanover time the wayfunding choices aeconomic impact

32 This will complemcontinuing focus Councils in drivinimpact of the reseFor example, gra



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33 HEFCE are currently consulting onproposals for the REF70. They willalso be carrying out a pilot exerciseto test their proposed approach to

the impact assessment. HEFCE planto announce the outcomes of theconsultation in Spring 2010, withthe impact pilot concluding in mid2010. The assessment phase of thefirst REF exercise will take placeduring 2013, but its incentive effectson the higher education sector are

likely to be felt much earlier.

34 Professor Paul Wellingscontribution to the debate onthe future of higher education71

recommended that HEFCE shouldseek annual reports from

universities showing how eachinstitution sets out to maximise theeconomic, social and environmentalbenefits to the UK from theirresearch. HEFCE are piloting thisapproach. 25 higher educationinstitutions have volunteered toparticipate in the pilot. Theywill be producing a publishablestatement of their benefits for awide range of external stakeholders,and providing information on their

The relationship buniversities and thof research

35 Interaction betwebusiness has incrover the last decaon this with contiin collaborative reResearch CounciTechnology StratWe will also buildof the HEFCE HigInnovation Fund wsupported the debetween businesOur primary motsuppor

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