Universities earn record amount from working with industry

Universities saw a dramatic rise in earnings from working with industry last year, reaching a record total of £2.6bn.

That represents a 17% increase in business funding compared with the previous year, according to a survey published today by the Higher education funding council for England and the Department for Innovation, Universities and Skills.

Universities earned nearly £670m from collaborative research with industry in 2006-07, a 12% rise on the previous year. Income from consultancy rose by 19% to £288m in the same period.

But there are concerns that the current economic downturn could mean businesses rein in their spending on research and innovation, which would have a serious impact on universities that now rely heavily on such income.

Ian Pearson, the science minister, said: "Universities are shifting up a gear when it comes to working with business and making an economic impact. In percentage growth terms, collaborative research with industry in the UK is growing at a fast rate than the chinese economy.

"Over the next 10 years, the UK will increasingly compete with other countries in terms of the ability of to universities to work with businesses to provide a global edge."

In response to the report, richard lambert, director general of the confederation of british industry (cbi), said: "A strong relationship between the sectors is critical to helping the UK maintain competitiveness.

"And both sides can benefit: businesses from new thinking and high quality graduates, universities from practical insights that enrich their teaching and research, as well as much needed funding. "Of course, there is scope for even greater interaction between academia and business in the UK, and the government must continue its efforts to bring down any remaining barriers to making this happen."

Tim bradshaw, head of science and innovation at the cbi, told Education Guardian that while the economic downturn might encourage companies to consider whether they were getting value for money from universities, he did not think there would be severe reductions.

"I accept that companies might begin to look again to see if things are on track, and if they are getting what they want, but this is not to say that suddenly there is going to be a massive cutback," he said.

"Companies understand that they have to innovate at all points in the economic cycle. In fact, the best time to invest in innovation is in a downturn, so that you have some new products and services ready for when the market picks up again.".

A spokesman from Universities UK, the vice-chancellors group, said it was difficult to guess if the credit crunch would affect universities, but there were "no indications at the moment that this happening".

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Thursday, July 10, 2008 |

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