experience of knowledge transfer partnership schemes for smes in the uk - can it be developed in...
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Experience of KnowledgeTransfer Partnership
schemes for SMEs in the UK
- Can it be developed inMacedonia?
Prof Algirdas Paktas
Professor, London Metropolitan University/ School of Computing
+4471004308, [email protected]
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History
Launched as TeachingCompanies Scheme (TCS)
Knowledge TransferPartnerships replaced TCS
and Colleges & BusinessesPartnership scheme (CBP)
Transferred from theDepartment of Trade and
Industry (DTI) to theTechnology Strategy Board
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Sponsors
Department of Trade and Industry
Biotechnology and Biological Sciences Research Council
Invest Northern Ireland
Department of Health Economic and Social Research Council
Engineering and Physical Sciences Research Council
Department for Environment, Food and Rural Affairs
Welsh Assembly Government Natural Environment Research Council
Particle Physics and Astronomy Research Council
Scottish Executive
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Funded by the Technology Strategy Board with 21 other funding organisations:
Funding Organisations
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What is a Knowledge Transfer
Partnership?
A collaboration involving 3 partners with gain for all:
1. A company that would benefit from additional expertise to
aid innovative product, process or market development
2. An academic team with the mix of expertise to fill the
expertise gap
3. At least one graduate - KTP Associate to carryout the
project work in the company over 1-3 years, jointlysupervised by company and academics.
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StrategicCompany-Based
Project
Improve Productivityand Company
Enhances Knowledge BasesRelevance to Business
Enhances GraduateCareer(s)
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Knowledge Transfer Partnerships area Government sponsored initiative
enabling access to knowledge &technology
KTP encourages collaboration betweenuniversities and industry
They are a flexible programme of between 12months to 3 years which address issues
strategic to company development, e.g.- develop new/improved products- enhance business process
- facilitate more effective management systems
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What is KTP?
Give a man a fish andyou feed him for a day.Teach him how to fish
and you feed him fora lifetime
Lao Tzu
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Knowledge Transfer Partnerships
MissionTo strengthen the competitiveness and wealthcreation of the UK by the stimulation ofinnovation in industry through collaborative
partnerships between the science, engineeringand technology base and industry
Extension of the TCS scheme
(formally Teaching Company Scheme)
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KTP Mission
Knowledge Transfer Partnerships
is Europes leading programme helping
businesses to improve their competitiveness,
productivity and performance through the
better use of knowledge, technology and skills
that reside within the UK knowledge base.
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Aims of KTP
Transfer of Knowledge and Skills from
University to Industry
Develop Graduates for Industrial Careers
Increase Industrial Relevance of
Academic Research and Teaching
Encourage Investment by Industry into
Innovation
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Objectives of every
Knowledge Transfer Partnership
facilitate the transfer of knowledge and thespread of technical and business skillsthrough innovation project
provide company-based training forgraduates in order to enhance theirbusiness and specialist skills
stimulate and enhance business relevantresearch and training undertaken by theknowledge base
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Partnership
Structure
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Knowledge Partnership Structure
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Partnership Structure
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The Features: classic KTP
Project length 1-3 years
Associates recruited by KB and Business partners
Employed by KB partner
Project located at business premises
with company supervisor
KB Supervisor spends ~ half day per
week at company premises
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The Features: shorter KTP
Project length 10-40 weeks
Tackling shorter-term, more tactical issues
Employed by KB partner and works at business premises or can
be based at the KB if already employed by the business partners
Partnerships may have more than one 10-40 week KTP
running in parallel or sequentially
Supervision ~ half day per week working
within the project
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Strategic relevance to the business
Stimulating and challenging for the academic team
Intellectually challenging for Associate
Sound business case
Clear knowledge transfer
Clear additionality
Benefits likely to accrue
Project Criteria
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KTP PROJECT LEADTIME
DEVELOP DETAILEDKTP PROPOSAL
SUBMISSION &APPROVAL
ADVERTISEMENT& INTERVIEW
APPOINTMENT& START
IDENTIFYCLIENT
PROJECT
KTP PROJECTAUTHORISATION
PROCESS
Minimum elapsed time for project approval: 4 months
SELLING
PROJECT
DESIGN
SUPERVISION
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Criteria for Projects
Company financially able to complete and exploit the
programme
Programme will create strategically important change forthe company
Academic input essentialfor an innovative result
Associate s t r e t c h e d
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March 2007
17 sponsors (TSB, SE, WAG, Invest NI, Defra, DoH,
EPSRC, ESRC, NERC, BBSRC, PPARC, AHRC, One
North East, SEEDA, SWRDA, EMDA, Northern Way)32.7m Grants committed
81.5m company contributions
1048 live Partnerships (22% increase since 2005)
1157 live Projects
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Project Lifecycle
Idea
Outline approvalProposal
Grant1 to 5years
Grading
Awards
Carry out the work
Final Report
Post-project plans
Recruit graduate/s
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Benefits to Company
Highly Skilled Graduate to Work on aSpecific Project
Access to Academic Consultant and
University Facilities (via the projects academicsupervisors & KTP Associate)
Financial Benefits from CompletedProjects
Improved Competitiveness
Workforce Enhance Through Transfer ofKnowledge and Skills
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Benefits per KTP project:
Annual profit up >227k (highest 20m)
Invest. in plant & machinery >106k (highest 7m)New jobs created ~ 4
IP applied commercially > 65%
New research projects initiated ~ 3
Company
benefits
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Business Benefits
Recruitmentof the right
people
Long-term,strategicrelationship with
KB partner
Transferofknowledge/
expertise
Embeddingof innovation
culture
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Size of Enterprise
250 Employees(25%)
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Benefits to Academic
Set-up Collaborations with InnovativeBusinesses
Develop Business-relevant Teaching
MaterialsPublish High Quality Research Papers
Supervise Postgraduate Degree
CandidatesIdentify Opportunities for Postgraduate
and Undergraduate Projects
Research Income and RAE
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Knowledge Base Benefits
IncomePublished papers
Teaching materials, case studies and projects (87%)
New research themes - commercial relevance (89%)Staff development commercial awareness (91%)
Higher degree registrations
Graduate career opportunitiesIP negotiated with the company (20% expect commercialbenefits)
Strategic relationship with company (76%)
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University benefits
Understanding of industrial requirements and
commercial imperatives
Opportunities to put ideas into action
Development of relationships for other research projects
Staff development
Framework ideal for younger academics to build relationships
with industry in safe environment supported by senior
academics & KTP consultants and to develop and hone new
skills
Student placements
Student projects
Publishing academic papers
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Top 25 KB Partners
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KTPs by Academic Department
Engineering(36%)
Management(18%)Computing
(17%)
Sciences(15%)
Design(7%) Other(8%)
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RAE Rating of Department
5&5* (33%)
4 (24%)
3(33%)
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Benefits to Associate
Opportunity to Work on a Project Centralto the Companys Strategic Development
Competitive Salary
Opportunity to Register for HigherDegree and Study for a Dip inManagement level 5
Financial Support for Business RelatedTraining
Mentoring from Experienced Universityand Company Staff
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The Associate
Part of countrys largest graduate recruitment schemeCompetitive salary
Fast-track career development
51% registered for higher degree during project
74% offered employment by host company
Training & development with qualification in Management to
National Standard
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Recently qualified with:
First degree ~ 77% hold 1st or 2(i)
Higher degree ~ 38%
Average age 28 years
All disciplines
The Associate
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Suitable areas for programmes could includeProduct design/developmentManufacturing ProcessTechnology Transfer
MarketingInstallation of systems
Management,Quality,
ICTEnvironmental
KTPs are not sector specific
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What Next?Consider whether existing links with companies have
potential for KTP:Guest Speakers
Consultancy
Contract research
Recruiters/Previous employersSuppliers
Consider research applications and suggest Companies
We can help identify Companies
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Knowledge Transfer Partnerships fEC Budget Example
(Note: for Large Company funding is 50% Government & 50% Company contribution)
Cost eligible for support per year 1 2 3
DIRECTLY INCURRED COSTS Partnership
Budget,
Government Budget
(67%)
Companys Budget
(33%)
a. Associate(s) Employment costs 27,000 18,090 8,910
b. Associate(s) Development 2,000 1,340 660
c. Travel and Subsistence 2,250 1,508 742
d. Consumables 1,500 1,005 495
DIRECTLY ALLOCATED COSTS
e. Knowledge Based Supervisor (+
indirect costs)
12,000 8,040 3,960
f. Associate(s) Estate Costs
(dependent on time in University)
-------- ---------- ----------
g. Mentoring Support (if applicable) N/A N/A N/A
INDIRECT COSTS
h. Additional Associate Support
(learning resources, personnel
department etc.,)
18,632 12,483 6,149
TOTAL 63,382 42,466 20,916
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Live Partnerships
0
200
400
600
800
1000
1200
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
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Commercial benefits from application of IP ~26%
New research projects initiated 3
Company staff trained 14
New jobs created 3
Investment in plant and machinery ~ 165,905k
Increase in annual profit before tax ~ 270,000k
Example of Business Benefits
Benefits per Associate project:
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KTPs at the UoG
Since 2003, UoG has undertaken 44 KTPprojects
29 have been related to informationsystems or software development
10 were based on new sales and marketingdevelopments
4 focused on new product development
1 delivered general efficiencyimprovements in a local authority
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KTPs at the UoGOf the 44 projects:
40 have been with SMEs and 4 with large organisations (2 public sector, 2 private
sector)
SMEs have come from many industry sectors: software houses construction companies office supplies company assembly and distribution (for equipment for disabled) pharmaceuticals packaging contract packaging environmental services landscape architects project management services electronic funds collection agricultural feeds manufacture