Select Committee on Education and Skills Written Evidence


Memorandum submitted by the Association of the British Pharmaceutical Industry (ABPI)

  The Association of the British Pharmaceutical Industry (ABPI), the trade association for the pharmaceutical and biopharmaceutical industry in the UK, welcomes the Education and Skills Select Committee Inquiry into the future sustainability of the higher education sector.

  Pharmaceutical companies employ 73,000 people directly and invest around £9 million every day in the UK, amounting to 25% of all private sector R&D investment. This figure is substantially greater than pharmaceutical company investments in any other European country. The pharmaceutical sector is also a significant supporter of academic research, hosting over 650 PhD students in laboratories and funding over 300 separate collaborative research projects. This equates to funding over £70 million on collaborative research (excluding contract and clinical research) and provides access to new compounds, technologies and resources students and universities would not otherwise have. However research carried out by ABPI amongst its member companies indicates that, in the last two years, the numbers of both studentships and grants supported in the UK have decreased; the latter by nearly 25%. The reasons for this include the move towards full economic costing in UK universities, and the high quality of research in countries such as India and China.

  The chemical and biological sciences are core disciplines in drug discovery and development. A number of research based pharmaceutical companies have major facilities in the UK in order to interact with the excellent academic research base and to recruit well trained graduates, postgraduates and post docs from its Higher Education Institutions.

  Over the last fifteen years there has been a fundamental shift in the sector—mergers and organic growth have led to truly multi-national companies that invest in R&D and manufacturing on a global basis. Today there are no global R&D headquarters for any of the major companies in the UK.

  The creation of a strong emerging biopharmaceutical sector in the UK and the strength of the contract research sector have created a hotbed of new companies and technologies. Yet these companies also operate on a global stage. The Government can no longer assume even those companies with shares listed in the UK, or emerging biotechnology enterprises, will continue to invest here—it is up to Government to sustain and enhance a competitive environment for pharmaceutical R&D.

  Four factors are critical to the success of the UK in retaining R&D investment: access to skills and knowledge; a good regulatory climate; competitive cost base for collaborative research and a market that supports innovation. Unless the UK is able to sustain and improve the environment in relation to these four issues it is difficult to see how the Government vision of a science and innovation-led economy can be realised.

KEY POINTS

Higher Education must be aligned to the strategic needs of the UK.

    —  Enhancing excellence in teaching and learning is vital, but may not be compatible with an intake comprising 50% of young people and a sustainable higher education system. High quality teaching for undergraduate science degrees must be maintained. A pool of quality science talent should be created not just to enter industry, but to sustain academe and provide the science teachers who can encourage pupils to pursue science in Higher Education.

    —  Further enhancing the internationally-competitive research capacity is a worthwhile goal; however it should be noted that University science departments with world class research teams do not always produce graduates with the skills industry needs, or high numbers of graduates who wish to pursue a career in science. Industry is most likely to value the skills and knowledge developed during a four year MChem/MSci "sandwich" course.

    —  Companies which support collaborative research with universities are interested in collaborating with departments that deliver quality science and show evidence of a leadership position in the field of interest. These are not necessarily those with the highest RAE ratings.

    —  The contribution of Higher Education to the economy and society needs a clear steer from Government. ABPI members are finding it increasingly difficult to source certain types of graduates and skills within the UK—especially those with good quality chemistry degrees and in vivo pharmacologists. Many graduates have not had the opportunity to develop the excellent basic practical skills that industry seeks and may not have studied a single subject in depth, but instead have taken a science course in which the science has been diluted by study of other subjects.

Subjects of strategic importance to the UK economy must be supported more generously.

    —  Whilst the recent focus on, and Government support for the physical sciences, particularly chemistry, are welcomed, we have equal concern over the state of core biological science provision in the UK. Whilst the top level HESA statistics show biological science undergraduate numbers to be increasing, this is due to substantial increases in the number of students studying psychology and sports science; those studying the core biological subjects are decreasing or increasing only marginally, as Table 1 shows.

Table 1

SUBJECT OF HE QUALIFICATIONS OBTAINED 2000-01 TO 2004-05—TOTAL NUMBER OF FIRST DEGREES


2000-01
2001-02
2002-03
2003-04
2004-05

Biological sciences (total)
18,890
18,495
23,725
25,955
27,200
Broadly based programmes within biological sciences
680
520
240
230
200
Biology
4,405
3,915
4,430
4,485
4,585
Botany
85
80
55
80
60
Zoology
890
910
825
895
895
Genetics
500
510
575
580
550
Microbiology
610
610
850
800
820
Sports science
3,745
4,975
5,630
Molecular biology, biophysics, biochemistry
1,910
1,905
1,960
1,785
1,830
Psychology
6,000
6,085
8,900
10,405
11,435
Others in biological sciences
3,810
3,965
2,145
1,725
1,195


  Source: HESA. Information taken from table 13 (2000-01 and 2001-02) and table 13a (2002-03 onwards) of "Students in Higher Education Institutions" statistics.

    —  Changes made by HEFCE to subject weightings in 2004 have made laboratory based courses of importance to the economy, less viable. The reduction in the qualifier for laboratory based courses, from its previous level of 2 to 1.7, has resulted in the increase in funding for these courses being much less than that for clinical and lecture based courses. It is vital that universities are funded to invest in high quality facilities and provide incentives, such as tuition fee waivers and bursaries, to attract students onto these courses. The future productivity of the UK depends on an increase in practical science and technical skills and increased numeracy.

    —  Regional provision of strategically important subjects is likely to become even more important as increased tuition fees impact on the number of students who can afford to study away from home.

    —  An overall strategic plan for support of teaching and research in the UK is required

  Many of the points made above are expanded in our November 2005 report, Sustaining the Skills Pipeline in the pharmaceutical and biopharmaceutical industries.

December 2006





 
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