Welcome slide

Welcome slide

The Higher Education Innovation FundIn England

International Symposium on university costs and

compacts

14-15 July Canberra

Steve EganDeputy Chief Executive

• History• Current funding approach• Results so far

History

Third stream - definition

• ‘trend among many universities toward a third function, which has been described using a range of terms such as knowledge transfer, community service, community engagement and the third stream.’– ‘Third Stream is about the interactions between

universities and the rest of society.’ (SPRU, 2002)’

UK third stream story so far

• 1970s – technology transfer from US• 1970/80s – constraints on public funding;

‘entrepreneurial’ university – diversified funding streams

• 1980/90s – UK Conservative Govt ‘no near market’

• 1990s/2000s – UK New Labour focus on HE in economic and social development

Transition from Tech Transfer to Knowledge Exchange

Where we have come from… Where we are going to…

STEM focus All disciplines

Simple ‘transmission’ model of knowledge Dynamic exchange model

Wealth creation Innovation, productivity, quality of life, cultural enrichment, civic dev,community regeneration etc.

Large, multi-national businesses Spectrum from global to local/regional and all users

B&C interaction or ‘third stream’: Scope

COMMUNITY

PUBLIC SECTOR

CULTURAL LANDSCAPE

BUSINESS

Competitiveness, Growth

Efficiency,Cohesion

Cultural Enrichment & Quality of Life

Resources & Opportunities

PRIVATE SECTOR

SOCIAL & CIVIC ARENA

Refresh, refine and review

Evolution of third stream funding

CULTURECAPABILITY

CAPACITYOUTPUT

OUTCOMEIMPACT

HEIs - and their activities - will be at different stages on this trajectory…...

Sustainable Strategy

HEFCE third stream funding

HEFCE’s Role

• HEFCE is institutional funder• Provide infrastructure for research, teaching –

and now third stream

Historical Funding View1999 0200 01 03 04 05 06 07

HEROBC

HEROBC

HEIF 1

HEIF 2

HEACF

BUSINESS FELLOWS

HEACF

KTCF

08 2009

‘HEIF 3’

3rd s

trea

m fo

rmul

a fu

ndin

g

Years

Smaller scale projects

HEIF 4 – Funding available

2008-09 £112 million*2009-10 £134 million2010-11 £150 million

(HEIF 3 2007-08 £111 million)

HEIF 4 – All Formula

Formula:• First component (40%)

• Capacity building and potential• Academic staff numbers (FTE)

• Second component (60%)• Performance• Value/impact of B&C services• (SME income double weighted)• Based on basket of income metrics

Second component- metrics

– Contract Research– Consultancy income– Income from business and community use of Equipment &

facilities– Income for local and regional development and

Regeneration (eg local & regional govt, European Union)– Intellectual Property Income– External Income for Continuing Professional Development

courses– Knowledge Transfer Partnerships (KTPs) [specialised KT

scheme run by Govt for students working on company projects]

• Income from SMEs double-weighted throughout

Relative proportions of HEFCE's Teaching, Research and Third Stream Funding

0%

1%

2%

3%

4%

5%

6%

7%

8%

1 11 21 31 41 51 61 71 81 91 101 111 121

Number of HEIs

% o

f HEF

CE f

undi

ng

HEIF4 Teaching Research

Note: data displayed show the relative distribution of funding; generally any individual HEI will appear at different points on the x axis for the different funding

HEIF 4 – Purpose of funds

• To support a broad range of third stream (knowledge transfer/exchange, enterprise etc) activities and infrastructure, resulting in economic and social benefit– Not only with private sector – also public sector

and charities, community groups etc– Synergy with research and teaching

Focus of third stream

% HEIs with a focus on each group (HEIF 4 strategies)

• SMEs 85• Public sector orgs 74• Large corporations 51• Charities/voluntary 38• Other private sector 24• Freelance workers 14

Institutional strategies

• All HEIs have been requested to submit an institutional strategy

• Acceptance of strategy by HEFCE – necessary for funding allocation to be confirmed and released

• ‘Strategy’ rather than ‘plan’ • Not just plan for spending HEIF 4• Need to know about HEI’s overall strategic approach to third

stream

Institutional Strategies – Analysis and dissemination

• Strategies approved to release funding (individual HEI feedback)

• Expert consultants to carry out analysis of strategies at sector level• To inform policy makers, funders and stakeholders• To support sharing of good practice around the sector

• Publication of overview report

• Publication of all approved strategies

• Expected to approve all strategies and release funding; and Commend some

Evaluation

“to evaluate what has been achieved by HEFCE/Government 3rd stream funding to achieve culture change and embed capacity toward optimising the direct and indirect economic impact of HE [assumed baseline 1999]"

Key Aspects• Internal Culture Change• External Impact

Method• Survey• Case Study

Successes and lessons learnt

Selected HE-BCI Indicators

Income from HEFCE funded HEIs/ £ Millions (real terms) 2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Collaborative research 374 407 398 432 432 454 488 n/a

Consultancy 96 107 140 180 203 208 239 n/a

Equipment services 24 33 40 64 68 72 72 n/a

Regeneration 110 114 124 178 166 177 183 n/a

CPD n/a n/a n/a 276 334 346 402 n/a

Contract research n/a n/a n/a 537 558 571 664 n/a

IP (including sale of shares) n/a n/a n/a 30 49 47 41 n/a

% HEFCE funded HEIs which provide:

Distance learning for businesses 52% 53% n/a n/a 66% 68% 70% 68%

Short bespoke courses on client's premises 65% 68% n/a n/a 79% 82% 86% 84%

Enquiry point for SMEs 82% 85% n/a n/a 89% 90% 92% 92%

Required contracting system for all consultancy 54% 62% n/a n/a 63% 66% 73% 73%

Initial HEIF 4 Analysis Results

• 77% HEIs third stream clearly integrated in mission– 23% loosely– 0% not integrated


• Top KT activities (by no. of HEIs)– CPD (77% HEIs)– entrepreneurship education (60%)– consultancy (58%)


• Top targeted user sectors:– Creative & cultural (81% HEIs)– Energy & Environment (38%)– Public and Third Sectors (36%)


• Spatial focii to KT– 82 % regional– 66% local– 52% national– 51% international

Initial HEIF 4 Analysis Results - More

• Top methods of engaging academics– 63% incentive schemes– 59% incorporating KT into promotions etc– 56% training, workshops etc


• Academic engagement – range of HEIs from c.20% of academics doing 3rd stream, to 100%


• Breakdown of use of HEIF funding (total HE sector)– 52% dedicated KT staff– 15% direct academic engagement– 5.5% PofC funds


• Importance of HEIF funding to the HEI• 55% critically important• 35% very important• 10% moderately important

Other reflections

• Value of large scale collaborative projects for innovation; but issue of sustainability

• Diversity of economic and social needs; fits with a bottom-up approach to engagement

• Formula funding enabling HEIs to build their own strategic approaches; and helps embedding

• Opportunity costs with Teaching but especially Research

A Word on Missions

• Embedding third stream• Strategic Development Fund: institutional

transformation• Eg ‘3rd as 2nd’ projects• Employer engagement/workforce

development

Thank you

Welcome slide

Glossary of terms

• Main programme:– HEROBC – HE Reach Out to Business and the Community;

initial HEFCE programme (inclusive but small scale)– HEIF – HE Innovation Fund; developed out of HEROBC

working with Science Budget funders; larger scale but narrower focus to start

• Smaller initiatives rolled into HEIF 3:– HEACF – HE Active Community Fund; Home Office funding

for voluntering – Business Fellows– KTCF – Knowledge Transfer Capability Fund: exploratory of

T intensive HEIs responsibilities

Documents

Welcome slide