Blue-sky research is the basis for the successful development of future technologies. The evidence that UK universities are global leaders in this is clear – the Australian Strategic Policy Institute (ASPI) ranks the UK university system as third in the world on this basis.
Yet it has often been said the UK has not capitalised enough on its world-leading research to drive economic growth. Now though, the UK has, at last, a coherent and comprehensive industrial strategy that can realise the huge potential of this global advantage.
Previous industrial strategies identified some of the right industries, but the new strategy has a far more comprehensive approach. It recognises the breadth of sectors that are likely to be at the forefront of global technology-led growth, not just the fashionable few like AI or pharmaceuticals. Crucially, place has now taken a central role. A myriad of global growth “hot spots” show us that this is key to understanding the detailed collaborations that will deliver growth in different UK regions, cities and innovation districts.
In that sense this industrial strategy is the welcome and long needed economic policy that the UK economy has been lacking. Universities and their research are an essential core component, but all stakeholders across higher education, industry and government need to engage in a step-change in joined-up working if the UK is to translate the real advantage its research system has into a new level of growth and prosperity. There will need to be effective partnerships and collective momentum between universities, industry and government at both national and local levels.
Yet risks remain in successfully translating this strategy into the growth the government wants – particularly in the persistence of certain myths about university research.
Busting myths
A key myth is that blue sky research only equates to growth in the long term, when the government wants growth sooner. In fact, it does not work like that. Blue sky research delivers growth both now and later. Long term gains may be greater overall, but even in the short term research brings in highly skilled global scientists, attracts leading global firms, and is a draw to medium-sized firms who want to be at the forefront of the next innovation wave.
Research also builds place-based specialised skills that are essential for other industries and sectors, as can be seen in the Oxbridge Arc, Imperial’s White City innovation district, Manchester’s Sister district or Glasgow City Innovation District. Fostering research excellence across the UK’s places is an effective short and long-term growth strategy.
A second myth is about the breadth of impact of university research on growth. It is natural for policymakers to focus on university spin-outs and commercialisation, but in many ways these are a small, if important, part of the story. The lesson from successful university-based growth ecosystems around the world is that the role of large global firms and their relationship with university research and innovation is much more important.
There is understandable and laudable excitement at the prospect of nurturing UK-born unicorns, but in a globally competitive economy around future technologies it is large global firms that very often have substantial research and innovation capability. They employ global leading talent, have great market reach and also can absorb some of the risk necessary for success in future technology-based growth. They also have the interest in, and capacity and capability to partner with universities around research – as we see with Microsoft in Cambridge, Novartis in Imperial’s White City campus, Cranfield’s industry research with Airbus, AstraZeneca in Glasgow or Legal & General’s partnerships with Edinburgh and Newcastle.
In my own university, Brunel, we have long standing research relationships with Jaguar Land Rover and Constellium, one of Europe’s largest aluminium alloy firms. Yet there needs to be much more focus on increasing the number and deepening these relationships. These are near and long term relationships that will lock in longer term growth.
Third, is the misconception that university research exists in any freestanding way in just a small number of universities. It is certainly true that the UK’s leading research universities are absolutely key, but the research system operates in a much more complex, distributed and symbiotic way. Different types of universities play different but equally important roles, and they can and will contribute to the industrial strategy. Whether that is applied research, skills development in the workforce or building entrepreneurial capacity in a region, the university research and innovation system as a whole is key to making sure the benefits of cutting edge technology research are realised for the UK.
The government must not underestimate the centrality of university research and its contribution to future technology-led growth to any industrial strategy worldwide, let alone the UK’s. The industrial strategy is bold and ambitious, and UK universities are well positioned to propel its implementation. However, global competition in the development of future technologies is fierce. The UK cannot afford to underplay or misapply one of its core strategic assets. The opportunity with this strategy is greater than at any time for decades, but it is not going to succeed without harnessing the power of university research.
