Universities and Innovation - Dr Mark Bacon, Lancaster University

Case study: Exploiting the value of university science & technology expertise to

underpin local growth

Dr Mark A. BaconDirector of Business Partnerships & Enterprise

Science & TechnologyLancaster University

Lancaster University

• University founded in 1964

• 2500 staff, >12,000 students + c.3000 overseas

• £185m turnover in 12/13

• £450m capital investment in 10 years

• London-based Work Foundation part of LU

• Science & Tech >70% of research income

• >60% of research in collaboration with users

• Business engagement is not a third mission

• Strong focus on SME engagement

• Significant use of EU structural funding

Co-location of SMEsThe Lancaster Environment Centre• Co-located research council research (NERC)• Laboratory, equipment & field site access • 25 resident businesses (cited in Witty Review)• £3.5m business facility funded by ERDF and NWDA

InfoLab21 – Computing & Communications• £14m regional investment from NWDA and ERDF• 2000+ new jobs and 250+ start-ups since 2005• 25 resident businesses within department• EPSRC/GCHQ Centre of Excellence in Cyber-Security

Physical Sciences – Engineering, Physics & Chemistry• New £12m building investment for Engineering• Top UK Physics department for research quality• First new chemistry department in UK for 50 years• £10m planned regional investment SME access

SME access to graduate talent

Graduate-staffed consultancy teams• Transformational ICT support for companies• Design, rapid and additive manufacturing services• Eco-innovative product development

Business-based projects as part of schemes of study• Business-led modules at under/postgraduate levels• ‘Open-top’ sandwich programmes (4th year in industry)• Industry led PhD projects (20) and training centres (4)

Business internship programme• Summer vacation placements • ERDF and Santander (Bank) financial support• University manage company employment process

• SME-led Centre for Collaborative R&D

• Focus on eco-innovative product development

• Universities of Lancaster and Liverpool & Inventya Ltd

• 50, 3-year collaborative PhD projects with SMEs

• Graduate researcher works in university and SME

• Strong export and international focus

• Wider programme of business support to 200+ SMEs

• £4.8m in ERDF investment in a £9.8m project

• Advisory board of LEPs chaired by Sir David King FRS

Centre for Global Eco-Innovation

• Delivered a total of 46 ERDF revenue projects • Total combined regional investment of >£73m • Project income in 1998 was £250k • Currently £30m, £21m in Science & Technology• 3 major capital investment projects (+£30m)• 5500 in-depth SME collaborations • 250 start-ups (including spin-outs)• 4375 new jobs created• 4805 jobs safeguarded

Regional investment to work with SMEs

ERDF Projects 1999-2014

Project Dep Project Value New Jobs Created Increased Sales SMEs Assisted

Knowledge Economy Initiative 1

Computin

g

£1.57m 123 £13.59m 200Knowledge Economy Initiative £2.07m 80 £5.76m 144InfoLab21 Graduate Academy £2.35m 120 £4.51m 161ISTEP £2.42m 39 NA NAISIS £3.47m 144.8 NA NAISIS Extension £5.90m 201 NA 304

Virtual PrototypingEngineeri

ng

£1.70m 131 £20.06m 162Rapid Manufacturing £1.33m 184 £22.15m 131Cas:Cade £2.13m 80 £6.26m 132SusDRaM £1.96m 22.5 NA NASusDRaM Design Academy £1.71m 43 NA 128

Learning Tourism

Environment

£1.03m 78 £2.63m 110Desire 3 £1.33m 50 £11.96m 88Learning Tourism Plus £0.99m 0 NA 95NW Eco-Innovation Programme £3.30m 125.9 NA NADesire £0.47m 65 £6.38m 61Centre for Global Eco-Innovation £9.87m NA NA NA

Totals for Science & Technology £43.60m 1487 £93.32m 1716Totals for rest of University £12.61m 795 £59.94m 424

Total £56.21m 2,282 £153.26m 2,140

‟ [our] survey of companies provided a comprehensively positive feedback on their experience of dealing with Lancaster University. 98% of companies stated that they anticipate seeking support from Lancaster University again in future should a need arise” “If we take into account the [SME] projected GVA for every £1 invested (in the projects), £15.80 is generated in the Northwest economy. A comparative analysis against similar interventions within the thematic areas of ‘sector/cluster support’ and ‘Science, R&D and innovation infrastructure’, identifies these similar interventions deliver a return on investment of £8.3-8.7 for every £1 invested. Therefore, the [Lancaster] projects deliver a greater return on investment to the Northwest economy”.

Our economic impact

• Long-standing engagement with Local Authority and LEP

• Rebalance from consultancy support to collaborative R&D

• Investment proposals in world-class research areas

• Collaborate (HEIs, public and corporate)

• Address national technology and sector priorities

• Grow corporate partnerships

• Focus on technology-based SMEs

• Join up innovation support and skills development

• Think big – but realistically: £90m of investment

• E.g. Cyber Security & Quantum Technology

LEP engagement in ESIF and growth deal investment

• Lancaster Physics ranked number 1 in UK for research

• Quantum Technology Partnership in 2009

• Borne from a strategic partnership with QinetiQ

• Lancaster Quantum Technology Centre est. in 2009

• Historic cluster of companies in the Northwest

• Co-location of first US company into facilities in 2013

• £270m available nationally to support a hub network

• Launch of our first new facilities in May 2014

• Higher level skills training and facilities (LEP focus)

• Requirement for manufacturing facilities (LEP focus)

Quantum Technology

• Academic Centre of Excellence in cyber security research

• Run annual SME cyber business growth conference

• Tier 1 national security threat with major skills shortage

• High growth market: £3.4b by 2017 growing at 5.7%

• Support to high value/vulnerable sectors

• Secure high-tech facilities for new product development

• Shared academic/SME/corporate/HMG facilities

• Creation of new businesses

• Priority in proposed growth deal allocation

Cyber Security

The futureInnovation Campus• Land purchased and owned by local authority• 11 ha site with planning permission• Partnership with Lancashire County and City Council• Feasibility studies in progress• Significant focus for new structural fund programme• Development of an integrated ‘innovation campus’

Wave 2 City Deal Growth Hubs• Management of £32m Regional Growth Fund• 15 Business Growth Hubs across England• Led by Lancaster University Management School• Partnership with BIS and Cabinet Office• August 2013 – June 2015• A national innovation network on which to build

Leverage of our global reach

• HEFCE Catalyst fund bid for £3.5m in 2013

• R&D partnerships with UK and Chinese businesses

• £5.1m programme with £720k from UK SMEs

• £ support also from Lancashire County Council

• Guangdong Dept of Science & Technology co-fund

• Dedicated managements teams in UK and China

• Postgraduate teams to support R&D partnerships

• MSc programmes: technology, design, management

• Run-up to proposed Lancaster-Guangwei University

Thank you

Dr Mark A. BaconDirector of Business Partnerships & Enterprise in Science & TechnologyLancaster University

[email protected] @MarkABacon