#IGResearch16. Professor Paul Nightingale Deputy Director, Science Policy Research Unit University of Sussex

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1 #IGResearch16 Professor Paul Nightingale Deputy Director, Science Policy Research Unit University of Sussex

2 Case Study: Transforming Research into Innovative Business Prof. Paul Nightingale Science Policy Research Unit

3 New thinking on the value of research Increased concern about impact defined as 'the demonstrable contribution that excellent research makes to society and the economy Even more important in the post-brexit, new Industrial Strategy context In the next 20 minutes I want to contrast old and new ways of thinking about how research adds value. OLD: Research generates discoveries that spin-out industry-disrupting firms NEW: Research generates talent and tool-boxes that are distinct from, but can enhance, the process of industrial innovation.

4 Old model Outputs of university research is readily applicable discoveries Discoveries give new firms an advantage leading to industrial disruption Market failures in financial markets can mean firms struggle to get funding Policy - intervention for SMEs, TTOs, spin-outs etc But - only 3% of UK economy high-tech manufacturing - TTO-spin-out model has had less success than hoped - Limited evidence of entrepreneurial firms acting as disruptors - Old problem of high-performing research system and weak productivity, still with us

5 New model Scientific research & technology development largely distinct (dancing partners) University researchers typically lack understanding of market needs Invention is an event and discoveries typically in very primitive form innovation a long, costly, experimental process of commercialisation (value capture and value creation) Research produces talent and toolboxes - make industrial problem-solving easier, cheaper & less risky. Requires two-way co-ordination to encourage knowledge flows downstream and upstream Hence Requires two-way co-ordination to encourage downstream and upstream knowledge-flows From current TTO and spin-out model to national specialisation and Sussex s spin-in model However, requires active management to ensure it is aligned and effective

6 Transforming Innovation Science Policy Research Unit links research to local economy We have used old model Science Policy Consulting Ltd, etc But greater impact from embedding research into local innovation Brighton Fuse project (AHRC: Sussex, Brighton, NCUB, Wired-Sussex) Mapped Brighton s creative digital cluster Fostered partnership between HE, arts and digital technology sector Industry provides problems for academics (i.e. philosophy of creativity) Rigorous analysis underpinned 170m City Deal Local Growth Strategy S3 mapping local industry and its needs Working with local actors to develop strategic responses Universities playing their role in supporting local economy

7 Transforming Innovation 2 Building two way flows upstream and downstream Sussex s spin-in model TAGS social media analysis platforms closing the loop between academic research and industry Drug Discovery bringing in industrial projects that need de-risking, drawing on interdisciplinary links (talent, and tools) between medical school and Genome Damage Centre Sussex Innovation Centre expanding from the campus to Brighton and Croydon Bringing industrial needs to the design of data analysis courses addressing a significant local skills gap. Working with wider policy nexus SME finance with Brighton & BEIS, Projects with the IPA

8 Conclusion Increased emphasis on Value capture (not just value creation), Downstream to upstream knowledge flows: spin-ins not just spin-outs, Indirect support (not discoveries), Productivity in the long tail (not just media friendly firms), Cross-university working with implications for TTOs, Much greater emphasis on working on a) user defined problems, b) co-producing research with users, c) making engagement an ongoing process, and d) moving away from traditional outputs like papers. This change is slow and requires cultural and organisational changes within HE institutions as HE, Govt and industry build capacity.