Innovation in microenterprises via Knowledge Transfer Partnerships KTPs Reflections on the Challenge

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Innovation in micro-enterprises via Knowledge
Transfer Partnerships (KTPs) Reflections on the
Challenges and Opportunities

• Dr. John Davies
• Freeman Centre Seminar
• Brighton
• 19 October 2007

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DR. JOHN DAVIES PhD, MSc, BSc (Hons),
FCQI, FHEA, MISBE SENIOR LECTURER IN QUALITY
MANAGEMENT

• 13 years in Manufacturing Industry (Technology
  Management)
• 15 years at the University of Salford
• Research Centre Director (COrE)
• Associate Member of the Research Centre for
  Enterprise and Innovation
• Head of School from 1998 to 2002
• Fellow of the Chartered Quality Institute
• Member of the Institute for Small Business and
  Entrepreneurship
• ISBE Conference Track Adviser (Innovation,
  Technology Transfer and Knowledge Networks)

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Where I come from
Salford is 200 miles North of London
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Manchester United Football Stadium (Im not a
fan!)
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Salford (alias Weatherfield)
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Salford is a city in its own right, next to
Manchester (1 mile from UoS)
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University of Salford
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The University of Salford

• 18,000 students
• Founded in 1896
• 12 Schools within 4
• Faculties-
• Business, Law and the Built Environment
• Health Social Care
• Science, Engineering Environment
• Arts, Media Social Sciences

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111 year history working with industry
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Where do our activities fit?

Æ
RESEARCH

TEACHING
Salford Business School
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26 PhD Students
COrE
Business Organisations
Academic Organisations
10 Academics
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Seminar Overview

• What are KTPs?
• My experience of KTPs (Direct/Indirect)
• Objectives of KTPs (4 perspectives)
• Successes (?) in delivering objectives
• Challenges (4 perspectives)
• Opportunities (4 perspectives)
• Road Map guidance?

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What are KTPs?

• Knowledge Transfer Partnerships is Europes
  leading programme helping businesses to improve
  their competitiveness and productivity through
  the better use of knowledge, technology and
  skills that reside within the UK knowledge base
  (KTPonline, 2007)

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KTPs

• Funded by Government organisations led by the
  Technology Strategy Board, Knowledge Transfer
  Partnerships involve the forming of a partnership
  between a company (known as the company partner)
  and an academic institute (known as the knowledge
  base partner). The Partnership also involves one
  or more recently qualified people (known as KTP
  Associates) to facilitate this transfer of skills
  and expertise.
• KTP Adviser role

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My experience of KTPs (Direct/Indirect)

• Direct (all in micro enterprises organisational
  innovations) staff numbers in brackets
• One year KTS (3)
• Two year TCS (7)
• Two year KTP (current) (15)
• One KTP bid not concluded (10)
• Indirect
• Facilitated and encouraged 12 further KTPs (about
  half in micro enterprises) as HoS
• Promotion of KTPs to other academics

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Objectives of KTPs (Academic)

• Apply your wealth of knowledge and expertise to
  important business problems
• Develop business-relevant teaching materials
• Gain a relevant and improved understanding of
  business requirements and operations
• Identify new research themes and undergraduate
  and postgraduate projects
• Publish high quality research papers
• Contribution towards the Research Assessment
  Exercise

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Objectives of KTPs (Firm)

• Innovative solutions to help businesses grow
• Increase competitive advantage
• Access recently qualified people to spearhead new
  projects
• Access experts who can help take the business
  forward

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KTP Objectives (Associate)

• The right platform to launch your career
• A professional qualification
• The ability to earn your value in the market
  place
• The chance to be mentored in your job
• Ownership
• A way to apply your qualification to your job

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KTP Objectives (Funder)

• Enable innovation in business
• Provide resources and expertise to thriving
  organisations who wish to innovate, expand or
  improve their performance
• Build an enterprise society in which small firms
  of all kinds thrive and achieve their potential
  with an improvement in the overall productivity
  of small firms, and more enterprise in
  disadvantaged communities

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Successes (?) in delivering objectives (Academic)

• Making a difference jobs, profit,
  improvements
• Real world applications of management models
• Research in SME context
• Academic papers (one prize winner)
• Funding for conference attendance ( PhD
  students)
• Practical examples for teaching
• RAE returnable income

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Successes (?) in delivering objectives (Firm)

• Improved profitability
• More effective operations
• Achieved strategic goals that were outside the
  original capability of the firm
• Good ROI
• But some fail to achieve, sometimes on a grand
  scale! (the partnership breaks down before the
  end of the project)
• Financial implications of non-completion

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Successes (?) in delivering objectives (Associate)

• In a micro enterprise the impacts of innovations
  can be easily seen
• Real World applications
• Personal development qualifications
• Jobs (one at Director level)
• Some associates struggle in the dynamic
  environment of small business
• Mucking in (pros and cons)
• Combination of project, NVQ and research degree
  too much for some

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Successes (?) in delivering objectives (Funder)

• No specific monitoring at the end of the KTP
  against original targets/objectives in the
  proposal
• During 2005/06, companies involved in KTP
  reported an average one-off increase in profit
  before tax of 78,000 and an average increase in
  annual profit before tax after the project had
  completed of 291,000. Average investment in
  plant and machinery was 223,000

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Challenges of KTPs in micro enterprises
(Academic)

• Convincing the firm of the practical benefits of
  theories (building trust)
• Firms focused on doing rather than measuring (
  money isnt the only measure!)
• Ensuring Academic Outputs
• Working with Robust entrepreneurs (not for the
  faint hearted!)
• Entrepreneurs moving the goalposts
• Managing the team of academics (herding cats)
• Multiple roles (manager, contributor, supervisor)
• Managing relationships/egos
• Ensuring balance in the partnership
• The Technical bit is the
  easy bit!

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Challenges of KTPs in micro enterprises (Firm)

• Unused to working with academics
• Learning to be patient for outputs
• Formality of project management
• Keeping the Associate on the project (not a
  dogsbody)
• Balance between objectives of the various
  partners
• Time from concept to project start
• Entrepreneur no longer knowledge dominant

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Challenges of KTPs in micro enterprises
(Associate)

• Working with Robust entrepreneurs and employees
• Working with Academic Experts
• Pressure to produce outputs whilst still
  developing
• Finding time for Research Masters
• Fixed term contract (with the University) job
  at the end? When to look for alternatives?

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Challenges of KTPs in micro enterprises (Funder)

• ROI achieved? How to measure this?
• Effective/Efficient management of projects
• Strategic Goals which ones? Limited funds
• Referee between the other 3 partners if there
  is conflict (expectation management?)
• Entrepreneur directly involved in the project

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Opportunities from KTPs in micro enterprises
(Academic)

• Reduced bureaucracy is heavenly!
• Quick decisions and results are possible
• Personal recommendations from the entrepreneur to
  other entrepreneurs for future KTPs
• Development of staff in the academic team who can
  then lead other KTPs

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Opportunities from KTPs in micro enterprises
(Firm)

• Kudos of association with a university (Golf
  Course Effect)
• Strategic step change innovations
• Highly qualified Associate and possible future
  member of senior staff on trial

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Opportunities from KTPs in micro enterprises
(Associate)

• Engagement in all aspects of the business
• Major impact on the firm
• Becoming invaluable to the firm
• Senior job

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Opportunities from KTPs in micro enterprises
(Funder)

• Job safeguarding
• Job creation
• Economic impact
• Easier to measure the impact of the project than
  in a large firm

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Road Map before the partnership

• Academic leader with KTP experience
• Select the right academic team (skills and
  personalities)
• Ensure good technical fit
• Include the KTP Adviser at an early stage
• Check that you get on as people, especially with
  the entrepreneur dont bother with a proposal
  if it doesnt feel right (Youll be working
  together for 3 years)
• Manage the expectations of the entrepreneur
• Balance objectives/benefits at the proposal stage
• Robust Associate is crucial ensure you
  recruit for this (technical expertise is more
  easily developed)

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Road Map during the partnership

• Quick wins
• Educate the entrepreneur in the benefits of
  measurement, data and project management
• Continue to manage expectations
• Benefits Log (maintains motivations)
• Relationship management
• Project Management
• Keep close to the KTP Adviser

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• Thank You
• Questions and/or comments?