Written evidence submitted by the University
of Lancaster (TIC 23)
1. Thank you for the opportunity to respond to
your enquiry regarding the development of Technology Innovation
Centres (TICs). Lancaster recognises that TICs, should they be
developed, would play an important translational role between
universities and industry from research to application and production,
and that the Fraunhofer model is certainly one model by which
this could be achieved. Lancaster, however, would like to suggest
to the committee that it is not an exclusive model and that a
more distributive variation, taking greater countenance of the
pivotal role played by small and medium sized enterprises (SMEs),
could and should be given equal time for exploration.
What is the Fraunhofer model and would it be applicable
to the UK?
2. The particular structural and organisational
arrangements for Fraunhofer are well known. There are, however,
benefits and challenges of the model considering the external
environmental context in which TICs would find themselves and
their internal organisation and governance. TICs provide a strong
means by which business and the economy may harness scientific
and industrial capabilities. The very traditional model would
see "blue skies" research being undertaken in universities
and industry working primarily to further known technology driven
wholly by the profit margin such exploitation might engender.
In this model, Fraunhofer TICs could provide the translational
skills to bring these two elements together.
3. In bringing people together on the scales
suggested by the Fraunhofer model, TICs would provide the critical
mass missing in universities and industrial research facilities;
and with the closure of a significant number of large company
laboratories (for example Bell Labs, IBM, Philips and EMI), TICs
are potentially a well timed positive response to the changing
industrial landscape.
4. By separating TICs from both universities
and corporations this provides TICs with an autonomy which allows
them to define their own projects within their own areas of technological
competence. As a consequence of this independence budgets become
internally driven, success motivated and clarity of purpose understood.
It allows for branding of the TICs and greater potential for commercialisation.
The longer term funding arrangements also provide the financial
assurance that allows focus to be squarely on development rather
than on the constant administration of drafting and submitting
funding bids.
5. However, there are challenges both external
and inherent which need to be considered. Fraunhofer Gesellschaft
in Germany have typically been developed around quite narrow technological
foci, often associated with very large industrial partners. This
is ideal for the German economic situation, but is less clear
how this would translate to the UK with its broader spread industrial
environment (for example Rolls Royce had an annual turnover of
approximately £10 billion in 2009 while for BMW the figure
for the same period was over £45 billion). This greater diversity
of UK industrialisation is both a strength and a challenge. There
are huge benefits in the adaptability of smaller scale economic
arrangements (it should not be forgotten that the majority of
the UK's economic output comes from SMEs), however, the challenge
for TICs would be to identify which elements of technological
growth are best positioned within the UK for translation to industrial
output. In your own recent publication "Technology and Innovation
Futures: UK Growth Opportunities for the 2020s" you identify
no less than 55 technologies in 28 clusters. Given the scales
necessary for success in the Fraunhofer model there is no feasibility
in establishing 28 TICs, let alone 55, and it is not clear on
what criteria such selection of the smaller number to be supported
would be based.
6. The second challenge would also stem from
the macrostructure of the UK economy. As already stated above,
the majority of economic output in the UK comes through SMEs.
Research and development in SMEs is critical to future success
and has previously been supported through endeavours such as the
Small Business Research Initiative (SBRI). It is difficult to
envisage how a physically located TIC would be in a position to
continue the strong work of SBRI and other similar schemes and
given the economic portion SMEs represent this would seem an unaffordable
lost opportunity.
7. There is also a challenge in working with
the larger corporations in securing long term research funding.
This has been a considerable issue for the Fraunhofer Gesellschaft
and cannot be underestimated in this period of austerity.
8. Where it would be possible to identify a large
corporation and a university in sufficient geographical congruence
so as to locate a TIC somewhere between them, the diversity of
UK universities are such that it is highly unlikely that the full
necessary suite of research expertise would be present. This would
require external expertise to be brought in from across the sector.
This can be done but needs very specific attention.
9. The final external challenge for TICs is the
recent history of government investment, and its focus on regional
development. While is cannot be the case that activities are carried
forward simply because they have been in previous receipt of funding,
by the same token, where public funding is so squeezed currently,
to consider how best to evolve from the current landscape and
to avoid, wherever possible even an impression of waste, would
be politically astute.
10. The single largest inherent challenge, as
Lancaster sees it, is the expectation of linear technology transfer.
The idea that academics have the ideas, these are carried by TICs
and then corporations commercialise and exploit in a linear three
step process is one that Lancaster's own experience on knowledge
transfer and commercialisation does not support. The process is
far more organic with each piece working in collaboration and
support of the others in cyclical processes which collectively
create an environment in which the possibility of success is heightened
and the means to success enhanced. It is mutually interdependent
and more akin to an ecosystem than a production line. TICs are
in positions to play a key role in this ecosystem, but only if
their internal governance is such that they enhance engagement,
provide real support in real time and become an enabler within
an environment and not a barrier on a road.
11. Inherent in this enabling capacity is the
necessary recognition that the most constructive research development
is, by its very nature, almost always collaborative. By drawing
together the best in a technological field, regardless of location,
or even nationality, ideas are incubated, articulated and then,
ideally through a successful TIC, manifest as economic growth
and regeneration. Similarly, the co-ordination of academic research,
business development and government policy-making, is critical.
There are, however, existing centres that are closely aligned
to universities and these can work if appropriate governance is
put in place.
12. Regardless of whether TICs are direct elements
of universities or located out with, the issue of the management
of intellectual property will be a challenge to any development.
Universities and academics are very open to exploitation of their
intellectual property, but only within properly negotiated and
articulated governance structures.
13. A TIC must have a clear vision of its primary
mission. The needs of technological advancement, industrial market
forces and public authority do not necessarily always wholly align.
A TIC, as the locus for the expectations of all three needs to
have a clear, articulated and agreed position as to how it sets,
prioritises and, as necessary abandons projects. If this is not
done, and understood to be done by all three parties the inherent
tensions between the competing interests could be disruptive.
What other models are there for research centres
oriented towards applications and results?
14. We think a model based on a more distributed
approach is one worth exploring. As stated above, the best research
and development leading to applications and results happen when
the best minds are given over to the tasks. As these are not all
located in either one geographical point nor within one institution,
a model that: (1) distributes to those best capable, (2) maintains
a structure which retains the focus on commercialisation and application
and (3) is held together through strong governance structures
is one that can best place the UK in the fore front of harnessing
scientific capabilities. An ecosystem approach, as partially detailed
above (paragraph 10), is such an approach.
15. By developing collaborative consortia around
technological areas it would be possible to develop both more
of them, thus putting the UK on a position to exploit more of
the 28 cluster areas identified by yourselves, as well as ensuring
that each consortium brought the strongest persons from throughout
the UK, if not physically together then at least connected. Given
that many the new technologies are electronically-based; this
interconnectivity without physical co-location should not be an
inherent barrier. Even if there is to be a central location for
a TIC with capital infrastructure in place, a hub and spoke model
which connects this space with research and development on going
across the UK should be considered.
16. Such a model would be able to tap into regional
developments already in train, as well as enabling the creation
of more. There are a number of already existing TIC-like arrangements
in place across the UK, and while these are currently sub-critical
in terms of their size and ability to both commercialise and influence,
if they could be brought together under large distributed TIC
arrangements then (a) previous investment would be seen not to
be lost, and (b) it would remove the not insubstantial barrier
of requiring persons to move in order to become engaged. Distributed
TICs with potential for regional engagement would also allow them
to continue the positive engagements with SMEs that SBRI and other
schemes have sought to capitalise.
17. TICs can also look beyond UK borders and
build a global reach. The ability to leverage in international
research partnerships is one that can only enhance TICs. Such
action would necessarily require careful consideration and articulation
of legal agreements, particularly around intellectual property.
However, the UK is a global centre of intellectual property law
practice and by integrating this into a distributed TIC it would
activate the added value of this strategic national asset. With
this ability to focus regionally, nationally and internationally,
we think the a distributed model that goes beyond the Fraunhofer
model is the one best placed to grow the UK's technological and
innovative future.
Are there existing Fraunhofer-type research centres
within the UK, and if so, are they effective?
18. As mentioned above (paragraph 16) there are
a number of smaller Fraunhofer-type centres in the UK. However,
not all of them have the critical mass necessary for the type
of success we suppose the government is seeking. Collectively,
however, in a distributed model, this success is achievable.
Whose role should it be to coordinate research
in a UK-wide network of innovation centres?
19. Wherever the role of central coordination
may fall, it is critical to success that it involves direct input
from all parties (government, universities, research councils
and industry). The suggestion of a UKTICs Management Board under
the auspices of the TSB strikes us as sensible.
What effect would the introduction of Fraunhofer-type
institutions have on the work of Public Sector Research Establishments
and other existing research centres that undertake Government
sponsored research?
20. This is difficult to predict. It is likely
to engender competition between work undertaken through TICs and
that undertaken through the Public Sector Research Establishments.
This could be positive as competition drives innovation, or it
could be negative through the restriction of collaboration. Which
happens will largely come down to the governance and management
of both sets of organisations.
Secretariat
Pro-Vice-Chancellor for Research
Lancaster University
1 December 2010
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