Welcome slide

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Welcome slide
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The Higher Education Innovation FundIn England
International Symposium on university costs and
compacts 14-15 July Canberra
Steve Egan Deputy Chief Executive
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• History
• Current funding approach
• Results so far

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• History

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Third stream - definition

• trend among many universities toward a third
  function, which has been described using a range
  of terms such as knowledge transfer, community
  service, community engagement and the third
  stream.
• Third Stream is about the interactions between
  universities and the rest of society. (SPRU,
  2002)

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UK third stream story so far

• 1970s technology transfer from US
• 1970/80s constraints on public funding
  entrepreneurial university diversified
  funding streams
• 1980/90s UK Conservative Govt no near market
• 1990s/2000s UK New Labour focus on HE in
  economic and social development

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Transition from Tech Transfer to Knowledge
Exchange
Where we are going to
Where we have come from
STEM focus All disciplines Simple
transmission model of knowledge Dynamic
exchange model Wealth creation Innovation,
productivity, quality of life, cultural
enrichment, civic dev, community
regeneration etc. Large, multi-national
businesses Spectrum from global to
local/ regional and all users
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BC interaction or third stream Scope
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Evolution of third stream funding
IMPACT
OUTCOME
OUTPUT
CAPACITY
CAPABILITY
CULTURE
HEIs - and their activities - will be at
different stages on this trajectory...
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HEFCE third stream funding
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HEFCEs Role

• HEFCE is institutional funder
• Provide infrastructure for research, teaching
  and now third stream

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Historical Funding View
Years
1999
02
00
01
03
04
05
06
07
08
2009
3rd stream formula funding
HEROBC
HEROBC
HEIF 1
HEIF 2
HEIF 3
KTCF
Smaller scale projects
HEACF
HEACF
BUSINESS FELLOWS
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HEIF 4 Funding available

• 2008-09 112 million
• 2009-10 134 million
• 2010-11 150 million
• (HEIF 3 2007-08 111 million)

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HEIF 4 All Formula

• Formula
• First component (40)
• Capacity building and potential
• Academic staff numbers (FTE)
• Second component (60)
• Performance
• Value/impact of BC services
• (SME income double weighted)
• Based on basket of income metrics

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Second component- metrics

• Contract Research
• Consultancy income
• Income from business and community use of
  Equipment facilities
• Income for local and regional development and
  Regeneration (eg local regional govt, European
  Union)
• Intellectual Property Income
• External Income for Continuing Professional
  Development courses
• Knowledge Transfer Partnerships (KTPs)
  specialised KT scheme run by Govt for students
  working on company projects
• Income from SMEs double-weighted throughout

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HEIF 4 Purpose of funds

• To support a broad range of third stream
  (knowledge transfer/exchange, enterprise etc)
  activities and infrastructure, resulting in
  economic and social benefit
• Not only with private sector also public sector
  and charities, community groups etc
• Synergy with research and teaching

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Focus of third stream

• HEIs with a focus on each group (HEIF 4
  strategies)
• SMEs 85
• Public sector orgs 74
• Large corporations 51
• Charities/voluntary 38
• Other private sector 24
• Freelance workers 14

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Institutional strategies

• All HEIs have been requested to submit an
  institutional strategy
• Acceptance of strategy by HEFCE necessary for
  funding allocation to be confirmed and released
• Strategy rather than plan
• Not just plan for spending HEIF 4
• Need to know about HEIs overall strategic
  approach to third stream

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Institutional Strategies Analysis and
dissemination

• Strategies approved to release funding
  (individual HEI feedback)
• Expert consultants to carry out analysis of
  strategies at sector level
• To inform policy makers, funders and stakeholders
• To support sharing of good practice around the
  sector
• Publication of overview report
• Publication of all approved strategies
• Expected to approve all strategies and release
  funding and Commend some

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Evaluation

• to evaluate what has been achieved by
  HEFCE/Government 3rd stream funding to achieve
  culture change and embed capacity toward
  optimising the direct and indirect economic
  impact of HE assumed baseline 1999"
• Key Aspects
• Internal Culture Change
• External Impact
• Method
• Survey
• Case Study

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• Successes and lessons learnt

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Selected HE-BCI Indicators
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Initial HEIF 4 Analysis Results

• 77 HEIs third stream clearly integrated in
  mission
• 23 loosely
• 0 not integrated

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Initial HEIF 4 Analysis Results

• Top KT activities (by no. of HEIs)
• CPD (77 HEIs)
• entrepreneurship education (60)
• consultancy (58)

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Initial HEIF 4 Analysis Results

• Top targeted user sectors
• Creative cultural (81 HEIs)
• Energy Environment (38)
• Public and Third Sectors (36)

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Initial HEIF 4 Analysis Results

• Spatial focii to KT
• 82 regional
• 66 local
• 52 national
• 51 international

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Initial HEIF 4 Analysis Results - More

• Top methods of engaging academics
• 63 incentive schemes
• 59 incorporating KT into promotions etc
• 56 training, workshops etc

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Initial HEIF 4 Analysis Results - More

• Academic engagement range of HEIs from c.20 of
  academics doing 3rd stream, to 100

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Initial HEIF 4 Analysis Results - More

• Breakdown of use of HEIF funding (total HE
  sector)
• 52 dedicated KT staff
• 15 direct academic engagement
• 5.5 PofC funds

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Initial HEIF 4 Analysis Results - More

• Importance of HEIF funding to the HEI
• 55 critically important
• 35 very important
• 10 moderately important

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Other reflections

• Value of large scale collaborative projects for
  innovation but issue of sustainability
• Diversity of economic and social needs fits with
  a bottom-up approach to engagement
• Formula funding enabling HEIs to build their own
  strategic approaches and helps embedding
• Opportunity costs with Teaching but especially
  Research

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A Word on Missions

• Embedding third stream
• Strategic Development Fund institutional
  transformation
• Eg 3rd as 2nd projects
• Employer engagement/workforce development

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• Thank you

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Welcome slide
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Glossary of terms

• Main programme
• HEROBC HE Reach Out to Business and the
  Community initial HEFCE programme (inclusive but
  small scale)
• HEIF HE Innovation Fund developed out of
  HEROBC working with Science Budget funders
  larger scale but narrower focus to start
• Smaller initiatives rolled into HEIF 3
• HEACF HE Active Community Fund Home Office
  funding for voluntering
• Business Fellows
• KTCF Knowledge Transfer Capability Fund
  exploratory of T intensive HEIs responsibilities