Written evidence from the North East Wales
Institute of Higher Education
INTRODUCTION
The North East Wales Institute of Higher Education
(NEWI) based in Wrexham is a modern, post-1992 associate college
of the University of Wales. NEWI's vision is to be a market-led
student-centred university of international significance which
is open to all. As a Higher Education Institution (HEI), it specialises
in the provision of foundation degrees, undergraduate and postgraduate
education and currently has more than 6,000 students. It comprises
of the following academic subject clusters: Technology and Computer
Science, Medical Education, Sport and Exercise Science, Art, Design
and Humanities, Wrexham Business School and the School of Education.
In terms of links with industry, NEWI has:
— Excellent professional and commercial
contacts maintained ensuring students are able to meet the requirements
of industry.
— Employment rates which are amongst
the highest in Britain (98% of last year's business graduates
found full-time employment within six months of leaving NEWI).
— Significant economic impact on local
economy—over £30 million contributed to the local economy
annually.
— Been a founding member of the TCS
Centre for Wales which links business with specific academic expertise.
— Active Research and Development work
sponsored by industrial partners.
NEWI shares the view of the Welsh Assembly Government
and local authorities that the path to a sustainable and wealthy
economy must be based on encouraging and supporting businesses
engaged in high value-added activities. There is also a general
agreement that human capital, innovation and enterprise are central
to increasing productivity and economic growth [A Winning Wales:
Economic Analysis, January 2002].
Currently, Government policy in Wales is directed
towards creating a sustainable knowledge based economy, through
such tools as the Action Plan for Innovation, the Entrepreneurship
Action Plan and Reaching Higher. NEWI's own primary objectives
are designed to contribute to these policy objectives:
— To provide vocational and multivocational
higher education.
— To make a significant impact on the
economic well being on North East Wales.
— To create an ever widening community
of learning.
— To act as an agent for social cohesion.
Therefore, in terms of the scope of this inquiry,
NEWI is undertaking a number of key activities that contribute
to the development of the local economy and helps to build capacity
within industry in North Wales. The remainder of this document
will deal with a number of key themes which we believe are of
direct interest to the Committee.
UK GOVERNMENT AND
EU INVOLVEMENT AND
ASSISTANCE
From a higher education perspective, Government
and EU involvement and assistance in encouraging university-industry
links tends to be seen in the form of "initiatives",
which may or may not involve the direct provision of funds (to
the HEI or to a company or other organisation) to encourage and
support work with business and with communities.
Many such initiatives are highly valued within
the HE sector. In particular, the Knowledge Transfer Partnerships
(KTPs) are seen as an effective and successful form of technology
transfer between industry and academia. This is because at the
heart of KTPs is a relationship between a company and the academic
institution that allows all stakeholders—the universities,
the companies and the graduate associates—to benefit through
the transfer of knowledge to the company, training and experience
for the Associate, staff development for the university and a
very clear project management structure which encourages success
in the project. NEWI currently has two active KTPs in the field
of Chemistry but is developing a range of others across the institution.
In terms of new Assembly initiatives to encourage
greater university-industry interaction, NEWI (like all HEIs in
Wales) is involved with the Knowledge Exploitation Fund (KEF).
This was established to help higher and further education institutions
to create a lasting commercial culture that will enable companies
to access the knowledge resources they need to develop a sustainable
knowledge based economy that will drive future economic prosperity
in Wales. Currently, KEF supports academic/industry collaboration
in its broadest sense, facilitating technology transfer from university
research departments into industry, assisting the commercialisation
of research and boosting the consultancy capabilities of Welsh
institutions. KEF currently provides NEWI with £100,000 per
annum, which covers the post of the "Entrepreneurship Champion"
(who is responsible for embedding entrepreneurship in the institution)
and some of the costs associated with employing two Business Development
Managers (whose role is to develop income generating activities
for science and technology projects).
NEWI is also actively involved in the "Patent
and Proof of Concept" funding steam within the KEF programme
in Wales, which is designed to bridge the gap between initial
research and market entry. The recognition of the need for a fund
such as PPoC arose from Welsh institutions' concerns that they
did not have the necessary funds to protect all ideas with potential
commercial impact. The Patent and Proof of Concept Fund aims to
fill the funding gap between early research and market exploitation.
Currently, NEWI has four bids that have been submitted to PPOC
for to explore the commercialisation of a range of ideas from
engineering, E-learning, and chemistry.
With regard to the latter, the Centre for Water
Soluble Polymers—led by Professor Peter Williams—
was established to undertake research, development and training
in the field of water-soluble polymers which have a variety of
roles in industry as viscosity modifiers, gelling agents and stabilisers
in foods, pharmaceuticals, detergents, shampoos, drilling muds,
adhesives and paints. The Centre currently has two bids for PPOC
funding, including innovative new fish bait.
From NEWI's experience, initiatives tend to
be most highly valued within the HE sector when the activity is
structured in a way which recognises the circumstances and needs
of all the actors (eg KTP), or where HEIs have been involved in
the development of the initiative (eg the Wales Spinout Programme).
However, the range of initiatives is such that it isn't easy to
capture a concise picture at any one time of the support available
and how that support may be applied. Anecdotal evidence suggests
that SMEs (the type of company towards which such support is most
often directed) have particular difficulty in understanding how
the make effective use of support available.
Perhaps one of the biggest institutional problems
for NEWI and other Welsh HEIs is that the range of separate initiatives
from which universities can draw down funds to support their interaction
with business certainly creates a heavy administrative burden,
particularly where the funding includes European Social Fund or
European Regional Development Fund money. The administrative burden
concerns both financial administration, and the range of metrics
employed for reporting. As a result, we welcome the moves that
the HEFCW is making towards consolidation of at least some element
of such funding.
THE ROLE
OF R&D IN
JOB AND
WEALTH CREATION
R&D is a component of innovation, as so
is a significant factor in job and wealth creation. One of the
challenges for universities is to help increase R&D activity
not only within its own organisations but also within industry
in general. In particular, SMEs are more likely than larger companies
to require support for their R&D plans and aspirations.
NEWI, like other higher education institutions
is well placed to provide expertise to help companies develop
new products and processes. However, the financial regime in the
HE sector means that the provision of the expertise must be paid
for. SMEs again are less likely in the main to be able to afford
significant R&D expenditure without external intervention,
and the earlier comments about the range of initiatives are pertinent
here.
Despite this constraint, NEWI continues to undertake
a variety of research projects with local and national companies
in a number of key areas. For example, the School of Engineering
works across a range of technologies that can benefit industry
including
— Digital Signal Processing.
— Embedded Systems Design.
— Materials Engineering, Characterisation
and Testing.
— Materials Failure Investigation.
— Examples of Collaboration.
One of the more recent examples of a recent
collaboration with local enterprise is a multimedia system that
was developed for the purpose of training technical staff and
an information management system for the Dinorwig Power Station.
Research has also been carried out into the generation and control
of coils break as encountered at the Prickle Line Stage of Processing
(in collaboration with Corus).
In addition, the team within the Science Centre
has had extensive experience of assisting companies large and
small with projects both within the UK and overseas. Technical
problems can be solved by a variety of tailor made mechanisms
using the Centre's high technology facilities and expertise. Projects
can sometimes be supported by external funding and can range from
short-term consultancy to a long-term research contract. Some
of the companies who have had projects assisted by NEWI's Science
Centre include Akzo Nobel, PJ Colours, Courtaulds Ltd, SC Johnson
Wax, DuPont (UK) Ltd, Maelor Pharmaceuticals, Rhone Poulenc (Switzerland)
and Unilever PLC.
DEVELOPING GRADUATE
SKILLS
NEWI has been an active and enthusiastic participant
in initiatives in Wales designed to introduce graduate skills
into SMEs in Wales, to encourage the retention of graduates in
the Welsh economy, and the creation of new businesses in Wales
by graduates. These are complemented by the "core" work
of ensuring that graduates entering the labour market are as well
prepared as possible in terms of generic skills. This activity
is managed by the Careers Centre which, along with core funding,
attracts Assembly funding from programmes such as GO Wales. GO
Wales is an all-Wales business development and employability programme
that uses graduate skills to enable industry and education to
work more closely. Some of the activities include:
— GO Wales Placements—A scheme
offering 10 week paid placements for students and graduates with
business organisations in Wales. Participating employers receive
a subsidy from the scheme.
— GO Wales Work Tasters—this
providesing undergraduates and new graduates with support for
short-term unpaid placements with employers in Wales.
— GO Wales Work-Shop was formerly known
as Graduate Wales. It is our vacancy advertising and selection
service and is free to students, graduates and employers. Students
and graduates can register their personal details and search for
matching vacancies. Employers can input vacancies, which will
be published on the website, or can search for candidates who
match their requirements.
— Training subsidies for SMEs—The
scheme also provides support towards training for graduate staff
within small firms. The firms receive advice and guidance to analyse
specific training and development needs; the right training package
to suit the business and financial help towards costs.
NEWI's work with students and graduates is consistent
with the initial findings of the 2003 Future Skills Wales survey,
which suggests that the greatest relative growth in employers'
skills requirements are in such areas as IT, management, learning
and development and entrepreneurship.
LINKS BETWEEN
UNIVERSITIES AND
THE PRODUCTIVE
ECONOMY
Links between Universities and the productive
economy are part of what is becoming known as "Third Mission"
activity. Third Mission activities in universities "stimulate
and direct the application and exploitation of knowledge to the
benefit of the social, cultural and economic development of our
society" (HEFCW Circular W04/11HE). In NEWI, current third
mission activities include:
— activities that benefit society (Services
to the community, Civic role of the HEI, Enhancing social capital—resulting,
for example, in increased participation in HE, informed citizens,
healthier communities, sharing of amenities, better integrated
planning decisions); and
— activities that benefit the economy
(Services to business, Developing a skilled workforce, Knowledge
exploitation—resulting, for example, in skilled people,
able managers, more entrepreneurs, new businesses, increased R&D
activity, graduate retention, specialist equipment and facilities).
NEWI's primary objectives described earlier
enable "Third Mission" to be regarded as a core activity,
as opposed to an add-on. As will be discussed in greater detail
later, some examples of our work include:
— A wide ranging portfolio of part-time
professional and postgraduate courses.
— Programmes designed to increase the
rate of business start-ups by students and graduates.
— The NEWI Innovation Centre which
provides a supportive incubator for new businesses in digital
media sectors.
— Knowledge transfer through consultancy
and applied research activity.
— Partnerships with commercial, voluntary
and public sector organisations enabling them to draw upon expertise
and resources in such fields as sport, motor sport technologies,
sound and broadcasting technologies, science and education.
— Work with schools and colleges to
raise aspiration levels.
Where the philosophy of a university is based
upon openness and interaction with the communities it serves,
much "Third Mission" activity is in reality the core
business of the institution. However it is difficult for smaller
institutions, without significant economies of scale, to develop
structures and career paths to attract and sustain staff to manage
the interaction with industry. This is one area in which the Welsh
Assembly Government, through HEFCW or another agency such as the
WDA, could do more to support institutions.
Despite this, much is being done within NEWI
to address some of the key issues related to the development of
a "third mission" agenda which is intended to form as
important a part of NEWI's mission as research or teaching. It
is therefore important to note that entrepreneurship and innovation
are clearly embedded throughout the NEWI Strategic plan. This
is aimed at:
— Ensuring a cultural change towards
entrepreneurship and innovation through activities designed to
create, value and promote innovations with a view to commercialisation.
— Raising innovation skill levels,
confidence and ability of both staff and students.
— Accelerating the successful application
of knowledge and the commercialisation of ideas and products.
As well as the specific objectives mentioned
below, many of the strategic aims related directly or indirectly
to entrepreneurship and/or innovation:
— Promoting entrepreneurship culture
and innovation within staff and students. This will meet the changing
needs of students, employers, communities and other stakeholders.
To achieve this, NEWI is developing, reviewing and adjusting its
portfolio of curriculum and research in collaboration with Industry,
Health, Public and Voluntary sectors and other HEIs and FEIs.
This is intended to contribute to cultural change within NEWI,
consistent with changing external circumstances and imperatives.
— Raising Entrepreneurship and Innovation
skills levels. This will enhance the leadership and management
capacity within the Institute to deliver the key corporate objectives
more effectively and efficiently and will provide staff with the
skills, knowledge and confidence required for NEWI to enhance
its economic development impact. In the last academic year, 23
separate staff development skills enhancing workshops (each lasting
at least two hours, including topics such as Venturing, Intellectual
Property, Project Management and Negotiating and Influencing)
have been developed. To date, nine courses have been delivered
to more than 30 staff.
— Embedding entrepreneurship in the
curriculum and deliver training for staff. This activity enhances
NEWI's capacity and performance in respect of the preparation
of individuals able to succeed in an adaptable, sustainable knowledge-based
economy. This links with a range of programmes in Careers (eg,
GO Wales, G2E, Young Enterprise). Staff development will increase
NEWI's capacity to deliver a curriculum relevant to the requirements
of an adaptable, sustainable knowledge-based economy.
— Creating new business networks. In
the last 12 months, two business networker clubs have been established
which provide regular opportunities for "meetings of minds"
between the business community and NEWI. This activity enhances
NEWI's longer term capacity to understand and meet the changing
needs of different SME sectors.
— Recruiting, developing and retaining
the talent necessary to build capacity in teaching, research,
scholarship and interaction with business and community across
all subject areas. This activity enhances NEWI's academic capacity
to understand and meet the demand of enterprise, research and
scholarly activity. Staff development will increase NEWI's capacity
to deliver a curriculum relevant to the requirements of an adaptable,
sustainable knowledge based economy.
— Increasing income from research,
consultancy and other knowledge transfer. NEWI Innovation Ltd.
has been established as a wholly owned subsidiary to assist NEWI
to exploit its income generation potential to the greatest extent.
NEWI Innovation Ltd. enables certain commercial activities to
be undertaken without detriment to NEWI's status as an education
charity. This activity will increase the extent and impact of
NEWI's contribution to the economy, in terms of service delivery
and support growing companies in a knowledge-based economy. Increased
income from consultancy and other knowledge transfer activities
will provide future investment funds and will decrease NEWI's
reliance on HEFCW funding.
— Developing new business start-ups.
Increasing the number of spin-offs is a key target for the Assembly
Government and NEWI believes its activities in this area, using
NEWI's intellectual and physical capital will increase its potential
contribution to local and regional economic growth. NEWI therefore
provides support, entrepreneurship training, business commission
opportunities and work placements for students and graduates intending
to set up their own enterprises. This is achieved through a variety
of different funded programmes including Portfolio Worker, Graduating
to Enterprise, Entrepreneurship Scholarships, and the Wales Spinout
Programme. In addition, as incubation enables business start-ups
to have a much greater chance of survival and success, the NEWI
Innovation Centre has been developed to provide fledgling business
incubator space for up to seven businesses.
— Delivering professional development
short courses. This activity will enhance NEWI's capacity to help
SMEs overcome barriers to training. One of the key examples of
this programme is the £315,000 KEF Funded North Wales e-Training
Partnership. Working with 10 other partners in HE and FE across
North Wales, the aim of this project is to develop high quality
on-line training materials in English and Welsh which accurately
address the needs of SMEs, identified by sectoral consortia for
training, and are designed to be delivered using on-line pedagogies
optimised for the companies involved. The training solutions created
for SMEs will be validated as nationally recognised qualifications.
CONCLUDING COMMENTS
This document has highlighted some of the ways
in which NEWI is interacting with industry within the region.
However, perhaps the most important comment for NEWI's role with
respect to industry is how it has/is reacting to the Lambert Review
was published at the end of 2003. The review was intended to meet
three objectives namely to:
(a) illustrate the opportunities that are
being created by changes both in the way that business is undertaking
research and development (R&D), and in the way that universities
are opening their doors to new forms of collaboration with business
partners;
(b) celebrate the success of those businesses
which are already collaborating successfully with university research
departments, to their benefit and to the benefit of the economy
more broadly; and
(c) offer a wide range of ideas to stimulate
debate and recommendations to help shape policy.
The recommendations of the review are broadly
consistent with NEWI's existing approach to effective engagement
with business, with NEWI's submissions to relevant reviews (eg
the review of research assessment and the review of HEED funding
in Wales) and with the approach of the WDA and other Welsh bodies
in seeking to increase the transfer of knowledge and technology
from HEIs into the Welsh economy. The review identified a number
of challenges, for government, HEIs and the business sector. A
summary of such challenges follows in the table below, together
with comments in respect of NEWI's current approach to working
with industry:
— Increase R&D activity in general
(especially on the part of SMEs) and R&D supported by HEIs
in particular. NEWI aims to increase the number of research active
staff in an increasing number of subjects, and there is encouragement
within NEWI to focus on applied research. There is a continuing
emphasis on the Knowledge Transfer Partnerships scheme to extent
NEWI's links with business.
— Increase opportunities for academics
and individuals from business to interact with colleagues in the
other sector. Inviting visiting lecturers from business and
the professions is already common practice at NEWI and there are
plans to extend the practice. Engagement with alumni in the business
community also currently being developed.
— Improve mutual understanding of intellectual
property (IP) issues and the ways in which each party can make
productive use of IP without harming the other's interests. NEWI
has a range of contract templates available which provide a consistent
approach to contract negotiation which recognises the need for
mutual benefit to be evident. There is a currently an action plan
being drawn up to offer more regular staff development opportunities
so that all relevant staff become more aware of the issues.
— Provide funding to develop and support
Third Mission activity on a more secure ad predictable basis.
NEWI supports representations to HEFCW to provide Third Mission
(HEED) funds on a longer term basis. It should be noted that a
recent comparison between HEFCW and HEFCE funding to support Third
Mission activity indicated that HEIs in England receive significantly
more funding than counterparts in Wales.
— Develop HEI management structures
which facilitate executive decision making based on strategies
linked to key performance indicators and which can effectively
respond to external markets. NEWI's current arrangements for governance
and executive management do facilitate executive decision making
based on strategies linked to key performance indicators and which
can effectively respond to external markets. It is the only institution
in Wales to have a Director of Entrepreneurship at executive level
with responsibility for the third mission role in the institution.
— Ensure that all HEIs have access
to sufficient and appropriate resources in terms of "technology
transfer" staff, whether within one HEI or through the provision
of shared services. All of NEWI's third mission activities—including
Enterprise, Venturing, Business Development, Careers and Customer
Services—have been reorganised into a new corporate body—NEWI
Innovation—that is managed by the Director of Entrepreneurship.
This will enable better co-ordination internally and also in linking
with key external stakeholders within industry.
— Review the balance between spinout
and licensing as routes to the commercialisation of IP. NEWI has
established a Technology Transfer Group to consider and recommend
the most appropriate route(s) to market for NEWI owned IP.
— Encourage regional development agencies
to give priority to value added programmes including support for
business—university collaboration. The WAG and the WDA already
support business—university collaboration through such initiatives
as CETICs (Centres for Excellence in Technology and Industrial
Collaboration), the Technology Commercialisation Centre, the Wales
Spinout Programme and Know How Wales—and NEWI is actively
involved in these programmes.
— Review the balance between the different
streams of funding for research, to ensure that research of real
value to business received sufficient support. NEWI's submission
to the review of research assessment indicated a preference for
a system which does not tend to further concentrate research funding.
It should be noted that a recent letter to HEIs from the [UK Government]
Ministers for Science and Innovation and Lifelong Learning makes
reference to the Government's commitment to continuation of the
dual system of support for research.
— Ensure that employers have opportunities
to influence university curricula to reflect skill requirements.
NEWI's current Work Experience and Employability Plan includes
provision for the introduction of Subject Consultative Boards
in all subject areas and there will be positive engagement with
Sector Skills Councils—NEWI is also in discussion with Skill
Set Cymru (which represents the TV and media industry) on how
the North Wales School of Art and Design can help design courses
of relevant to its members.
Greg Howard
Head of Enterprise Development
May 2004
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