Research and the Knowledge Based Society

1Higher Education Authority

An tÚdarás um Ard-Oideachas

HEA

Research and the Knowledge Based Society

Measuring the Link

National University of Ireland, Galway

24 May 2004

Don ThornhillChairpersonHigher Education Authority



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Research and National Development:

Faith, Hope, Concern and Paradox



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FAITH, HOPE and CHARITY !



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FAITH



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Why do Governments fund research?

For National Advantage



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THE CHALLENGE FOR IRELAND



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A knowledge-based economy with world-class infrastructure

At the forefront of technologicalinnovation

A high income and competitive economy

A Vision for IrelandTo be a world-leading society as reflected by:



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A Vision for IrelandTo be a world-leading society as reflected by:

People committed to lifetime learning

Socially inclusive and cohesive society

The highest environmental standards



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Stages of Economic Development

Investment-Driven

Economy

Input Cost Efficiency Unique value

Key Transition

(Paradigm Shift)

Innovation-Driven

Economy

Factor-Driven

Economy



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“Ireland which has been

tremendously successful in

attracting foreign investment for

manufacturing, now faces the

need to justify higher wages and

higher local costs without yet

having developed a world-class

innovation structure.”

Global Competitiveness Report, 2001-2002



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“The hardest transition is from

technology-importing, efficiency

based development, to

innovation-based development.”

Global Competitiveness Report, 2001-2002



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HOPEHOPECOMMITMENT

POLICY MAKERS

ELECTORATE



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CONCERNCONCERN

INDICATORS

DIALOGUE

COMMITMENT

SUSTAINED

INVESTMENT

RESEARCHERS

SOCIETY

CHOICE

USE

STRATEGY



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INDICATORS

. . . an underlying simplistic view of the process of science, its uncertainties and complexities might be reflected in the uncritical use of crude indicators and evaluation methods, to the detriment of the shared goal of advancing Ireland’s national innovation system

. . . evaluation processes themselves involve the use of scarce resources, and so need to be carefully aligned to the goals of policy, and the setting up of incentives for members of the scientific and technological community.

Source : ‘Measuring and Evaluating Research’ Report of the ICSTI Taskforce, 2002



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In our society, in economics, and in finance, we place too much trust in numbers. Numbers are not reality. At best, they’re a pale reflection of reality. At worst, they’re a gross distortion of the truths we seek to measure.

Our optimistic bias leads us to misinterpret the data and give them credence that they rarely merit.

Our best defences against numerical illusions of certainty are the immeasurable, but nonetheless invaluable, qualities of perspective, experience, common sense, and judgement.

From : “Don’t count on it! The perils of numeracy” John Bogle, Founder Vanguard Group, Princeton, October 18, 2002



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EVALUATIONPROCESS

EVALUATIONPROCESS

BUT

RISKS

RISK

MISUNDERSTANDINGS

INNOVATION

POLICY FAILURES

OPPORTUNITY COSTS

NECESSARY

ACCOUNTABILITY

DISCOVERY

NOT NEUTRAL



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INDICATORSINDICATORS

INTERPRETED

PERCEIVEDRELEVANCE

COMPLEXITY

INNOVATION

REALISM

WISELY

DISCOVERY

NOT

ADVOCACYROBUST

REFLECT

DIVERSITY

STAKEHOLDERS



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0% 5%

2%

4%

6%

8%

10% 15% 20% 25% 30%

10%

. . . . . .

NOR

ESP

ITACAN

DNK

FINGER

NLD

FRA

UK

JPN

USA

IRL

SWE

R&D intensity and high-tech exports, selected OECD countries

High-Tech Exp. /Total Exp.

BE

RD

in M

auf.

/ V

alu

e A

dd

ed in

Man

uf.



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0% 5%

2%

4%

6%

8%

10% 15% 20% 25% 30%

10%

. . . . . .

NOR

ESP

ITACAN

DNK

FINGER

NLD

FRA

UK

JPN

USA

IRL

SWE

R&D intensity and high-tech exports, selected OECD countries

High-Tech Exp. /Total Exp.

BE

RD

in M

auf.

/ V

alu

e A

dd

ed in

Man

uf.



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X‘Aristocratic’ impatience or contempt for evaluation



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RESEARCHRISKY

UNCERTAIN

NOVEL

UNPREDICTABLE

PARADOXPARADOX

DIFFERENCES INTERESTS

STAKEHOLDERS

MOTIVATIONS

UNDERSTANDINGS

TIME HORIZONS

ELEMENTS COMPLEXITYINNOVATION

PROCESSES



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BUT !



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Paradox, complexity and multiple

stakeholder objectives are central to

much of public policy making – and

indeed explain why public policy is

so interesting !



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ABSTRACT

ANALYSE

SYNTHESISE

RESPONSERESPONSE

IGNORE

WISH AWAYX

RECOGNISE



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PARADOXPARADOXSOURCE

ENERGY

DEVELOPMENT



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Analyse, abstract, synthesise !



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FOCUSFOCUS

EXCHEQUER-FUNDED

R & D



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Funders of GERD 2001

Source : Forfás



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LISBON / BARCELONA



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Why do Governments fund research?

For National Advantage



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Why should Governments fund research?

Market failure



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Sources of market failure

Very uncertain outcomes

“Free rider”

Pay-back periods very long

Research has many characteristics of a “public good”



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RESEARCHIMPORTANT

RESEARCHIMPORTANT

“PURE”

WHY?

SPIRIT OF ENQUIRY

SEARCH FOR UNDERSTANDING

RESEARCH

LINKED

INNOVATION

DEVELOPMENT

“UTILITARIAN”

ECONOMIC

SOCIAL



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ARGUMENTSRELEVANT

ARGUMENTSRELEVANT

SCHOLARSHIP

AREAS

ALL

HUMANITIES

S E & T

SOCIAL SCIENCES

MEDICAL



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Performers of GERD 2001

Source : Forfás



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UNIQUE ROLE FOR

THIRD-LEVEL INSTITUTIONS



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WHY ? - 1

Character and Ethos

Dynamics of Scholarly Communities



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WHY ? - 2

Essential link between R&D

and Education

and Learning



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For a small country, the impact of

research spending on enhancing

human capital may be as important

or more important than the

generation of new knowledge.



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FOCUS OF ENQUIRY / INDICATORS ?



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NATIONALINNOVATION

SYSTEM

NATIONALINNOVATION

SYSTEM

KNOWLEDGE PRODUCTION

KNOWLEDGE

TRANSFER

DEVELOPMENT



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KNOWLEDGEPRODUCTION

KNOWLEDGEPRODUCTION

LEARNING

EDUCATION

BASIC RESEARCH



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PRTLI

NDP

IRCHSS

SFI

IRCSET

HRB

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€600M

2000-2006

€2.5b

NEWINITIATIVES

NEWINITIATIVES

> €600m

ICT + BioTech



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KNOWLEDGETRANSFER

ANDDEVELOPMENT

KNOWLEDGETRANSFER

ANDDEVELOPMENT TECHNOLOGY TRANSFER

DEVELOPMENT

APPLIED RESEARCH

COMMERCIALISATION



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KNOWLEDGE PRODUCTION



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Issues

Structures and strategy for funding

Effectiveness of HEIs

Policy environment and incentives

Quality

Resources



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RESOURCES



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GERD as % GDP/GNP for Ireland and selected countries, 2001*

Source : Forfás*2001 data used or latest available year

0

1

2

3

4

5

Swed

en 4

.3

Finl

and

3.4

Den

mar

k 2.

2

Net

herl

ands

1.9

Uni

ted

Kin

gdom

1.9

Sing

apor

e 1.

9Ir

elan

d 1.

4Po

rtug

al 0

.83



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QUALITYQUALITY

ITs

UNIVERSITIES

IUQB / HEA

NATIONAL PANEL

EUA

NQAI

DIT

HETAC



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Investigator/Scholar (IRCSET, IRCHSS)

MissionOrientatedStrategicStrategic

SFIEI

HRB

PeopleSkills

Knowledge

(HumanCapital)

NATIONALINNOVATION SYSTEM

Institutional strategy (HEA/PRTLI)

HEA Block Grant

MissionOrientatedFunctionFunctionalal

MarineInstitute

EPA

Teagasc



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SYNERGISTIC

COMPLEMENTARY

SYSTEM

FUNDING AGENCIES

SPECIALISED OBJECTIVES

POTENTIALPOTENTIAL



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DIVERSITYFUNDING

AGENCIES

DIVERSITYFUNDING

AGENCIES

AGENCIES

CLEAR

MANDATES

ACCOUNTABILITY

REQUIRED

TASKSMANY

COMPLEX

WE NEED



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“….. support for basic research should be diverse in its funding sources, resisting efforts for central control or concentration in one mission area. The diverse mode is …… best suited for the unpredictable nature of basic research outcomes.”

US Committee for Economic Development, 1998



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CONCENTRATION

OR

DIVERSITY ?



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STRATEGICALLYINFORMEDDIVERSITY

STRATEGICALLYINFORMEDDIVERSITY

KEY

‘FUTURE PROOFING’



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STRATEGICALLY INFORMED DIVERSITY

SizePotential impact

Vulnerability

Flexibility/ response capacity



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CHALLENGECHALLENGE

OPTIMUMBALANCE

CRITICAL MASS / PRESENCE

KEY TECHNOLOGIES

CAPACITY

FLEXIBILITY



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POLICYSTRUCTURE

POLICYSTRUCTURE

INDIVIDUAL RESEARCHERS

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‘NATIONAL’STRATEGIC

PRIORITIES

STRATEGIC

CAPACITIES

PRIORITIES



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Parallel with evolution of industrial policy ?

Stage 1 :

Stage 2 :

Stage 3 :

Backing losers

Picking winners (or losers?)

Focus on framework and conditions and provisionof public goods



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SFIEI

HRB

PeopleSkills

Knowledge

(HumanCapital)



HEA Block Grant


MarineInstitute

EPA

Teagasc



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PRTLI and SFI: Synergies

• SFI Programmes • Relate to PRTLI investments

CSET

Walton

Principal Investigators

Fellows

60%

~ 50%

~50%

~85%



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SFIEI

HRB

PeopleSkills

Knowledge

(HumanCapital)



HEA Block Grant


MarineInstitute

EPA

Teagasc

REVIEW AND OVERSIGHT



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Issues




Quality



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Quantum of research and teaching

Quality of research and teaching

Links between research and teaching

ISSUES

Governance

Management and leadership

Personnel and remuneration policies

IP

Finance

Openness – to society and business

Accountability

Outcomes !

Research intensity



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Benchmark indicators for Irish and selected EU HEIs - 1

Total research income per academic and research staff member - €

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Leiden

Utrecht

Helsinki

Edinburgh

UCL

Uppsala

UCD

TCD

UCC 24,463

22,440

11,390

67,521

61,401

55,856

47,049

46,889

33,580



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Benchmark indicators for Irish and selected EU HEIs - 2

Total research income per student - €

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Leiden

Helsinki

Utrecht

Edinburgh

UCL

UCD

TCD

UCC 2,556

2,541

1,375

13,218

5,801

5,338

4,378

4,093



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ISSUES

Consistency, economic, social

and fiscal policies

‘Rewards’ and their distribution



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Tánaiste announces €22m IBM investment for Dublin11/05/2004

IBM is to invest €22m in its research and development facility in Santry, Dublin



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“This lab will play a key role in the future of the company.” – Elaine Stephen, IBM

She said that the strong pipeline of talent as well as good support from state agencies like the Irish Research Council for Science, Engineering and Technology (IRCSET) and Science Foundation Ireland (SFI) were factors IBM considered when it looked to make the investment.



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“ . . . Scientific knowledge is not freely available

to all, but only to those with appropriate

educational backgrounds and to members of the

scientific and technological networks.

Information itself is abundant; it is the capacity to

absorb it which is scarce. Hence, investment in

research has a large human resources element,

involving the training of skilled researchers able

to link into global knowledge networks and

absorb global developments.”

Source : Measuring and Evaluating Research- Report of the ICSTI Task Force, 2002



HEA

For a small country, the impact of

research spending on enhancing

human capital may be as important

or more important than the

generation of new knowledge.

Documents

Research and the Knowledge Based Society