Deliberating about bridging the gap between industry and universities in a global knowledge economy

Deliberations about the meanings and uses of higher education continue apace.  The global economic crisis has exasperated the significance of this centuries old debate, in part because of serious fiscal pressures, but also because of the perception that higher education is now becoming the ‘railroad of the 21st century’.

Why is the ‘railroad of the 21st century’ perception emerging, rightly or wrongly? In part because a structural transformation to a ‘knowledge-based economy’ is underway; one dependent upon related shifts, including the emergence of a ‘knowledge society’. And which institutions are critically important to producing a knowledge society? Well, many, but a key one is, undoubtedly, the university.

Now the ‘uses of higher education’ debate is taking place on many levels, only one of which (university-industry linkages) we’ll flag today.  Other debates centre on views that higher education should be considered as an ‘export-earning industry’ (and issue we have discussed in GlobalHigherEd), or the logic of opening new types of higher education institutions (e.g., KAUST and Amsterdam University College, both of which celebrated their openings last week) with unique missions. [Note: we’ll be posting coverage of both openings over the next several days]

Bridging the perceived gap between universities and industry in the UK/Europe

Given the structural pressure to create a knowledge society/economy, and the patently obvious decline of government income per student in most countries, we are witnessing drives in many countries to create and/or deepen university-industry linkages. The logic is to generate (a) more innovation within the economic development process, (b) new streams of revenue for fiscally challenged universities via the commercialization of select forms of knowledge production, and (c) more entrepreneurial students who will become the tangible drivers of the knowledge economy.  I’m being simplistic here, of course, but this is the broad tenor of the argument.

This drive is focused on, albeit unevenly across space and time, bridging the perceived gap between universities (as represented by faculty, researchers, and students) and industry. Bridging activities include patenting, licensing, spinning-off firms, consultancy, contract research, on-demand training, new forms of formal and informal advisory relationships, and so on.

Now the drive to enhance transformation of the mission of universities comes from many quarters. In some countries and city-regions it comes from within the universities themselves, while in other contexts industry is the key driver. In yet other contexts the push comes from national governments, as well as regional (e.g., the European Commission) or international organizations (e.g. the World Bank).  In all cases an ‘innovation’ agenda underlies the push.

An example of a push from ‘industry’ was clearly evident last week in the UK. The industry push came via the UK-based Confederation of British Industry (CBI), under the leadership of Richard Lambert. Lambert is the CBI’s director-general, author of the Lambert Review of Business-University Collaboration (2003), and co-author (with Nick Butler) of The Future of European Universities: Renaissance or Decay? (2006). Lambert has also acted as the University of Warwick’s Chancellor since 2008.

CBIcoverThe CBI’s Higher Education unit stirred up the debate via the release of a major report titled Stronger Together – Businesses and Universities in Turbulent Times. Let me quote, extensively, from the press release, including a lead-off quote from Sam Laidlaw, Chairman of the CBI Higher Education taskforce and CEO of Centrica:

“Effective collaboration between the higher education sector, business and government will be critical to the UK’s economic recovery and sustainable international competitiveness. Business must also make a sustained effort in supporting higher education. To this end, I am pleased that as a Task Force we have made a strong commitment to provide the support needed to help students build the employability and technical skills that are so important.”

The report proposes that more businesses should work with universities to:

  • Sponsor students studying subjects relevant to business, such as science and technology.
  • Provide financial support to new graduates, through bonuses when they sign on with the firm.
  • Offer more opportunities for internships, placements, work experience or projects.
  • View working with universities as part of core innovation activity.

Richard Lambert, CBI director-general, said:

“Maintaining a world-class higher education system is vital to the UK’s future competitiveness, and we should sustain current levels of investment in teaching and research, which are low by international standards. Strong leadership is also needed to minimise the risk of long-term decline.

“Business should engage more with universities, both financially and intellectually. More firms should help design and pay for courses for the benefit of the current and future workforce, and more firms should offer students practical work experience.

“In return for this extra investment of time and money, business will want to see more emphasis given to certain subjects, such as science, technology, engineering and maths. Languages are also seen to be important, and the taskforce argues that more should be done to prepare students for the world of work, and teach them the generic skills that will help smooth their pathway into employment.”

Needless to say, this report has been both praised and criticized over the last week. Some are concerned that the UK government is turning higher education into a training unit for private firms, while others are praising the call for greater focus (the ‘do less better’ mantra) and the report’s recognition that there is a disconnect between society’s ambitions for its universities and the funding base that currently exists.

The report’s findings are likely to feed into deliberations about the new proposals (launched last week as well) regarding the UK’s proposed Research Excellence Framework (REF), which will replace the Research Assessment Exercise (RAE).

Two contrarian views in the US

The timing of this push by industry, one largely supported by the UK’s Labour Government, coincided with two broadly critical arguments regarding such a development agenda.

Drew Gilpin Faust, the president of Harvard University, published a widely read 9 September article in the New York Times about the problems with such a development agenda. In her article (‘The University’s Crisis of Purpose’), Gilpin Faust argues that:

Higher education is not about results in the next quarter but about discoveries that may take — and last — decades or even centuries. Neither the abiding questions of humanistic inquiry nor the winding path of scientific research that leads ultimately to innovation and discovery can be neatly fitted within a predictable budget and timetable….Universities are meant to be producers not just of knowledge but also of (often inconvenient) doubt. They are creative and unruly places, homes to a polyphony of voices. But at this moment in our history, universities might well ask if they have in fact done enough to raise the deep and unsettling questions necessary to any society.

As the world indulged in a bubble of false prosperity and excessive materialism, should universities — in their research, teaching and writing — have made greater efforts to expose the patterns of risk and denial? Should universities have presented a firmer counterweight to economic irresponsibility? Have universities become too captive to the immediate and worldly purposes they serve? Has the market model become the fundamental and defining identity of higher education?

Since the 1970s there has been a steep decline in the percentage of students majoring in the liberal arts and sciences, and an accompanying increase in preprofessional undergraduate degrees. Business is now by far the most popular undergraduate major, with twice as many bachelor’s degrees awarded in this area than in any other field of study. In the era of economic constraint before us, the pressure toward vocational pursuits is likely only to intensify.

As a nation, we need to ask more than this from our universities. Higher learning can offer individuals and societies a depth and breadth of vision absent from the inevitably myopic present. Human beings need meaning, understanding and perspective as well as jobs. The question should not be whether we can afford to believe in such purposes in these times, but whether we can afford not to.

Drew Gilpin Faust’s argument complements a full-length piece (‘Dehumanized: When math and science rule the school’) by Mark Slouka in the September 2009 issue of Harper’s Magazine. Slouka’s article focuses on education (versus just higher education) but it reflects the tenor of debates in higher ed in the US. His article, which is worth contrasting with the CBI report noted above, reflects a concern that the linkage agenda needs to be halted for it has already gone far too far, especially with respect to the valorization of select disciplines, specific forms of knowledge, and particular ways of knowing. Thus, the sense of urgency that the CBI constructs (in the UK) is turned upside down, and effectively viewed as an attempt to finish off what has been a long running and lost (or won, from an industry perspective) battle. Slouka’s sense is that:

[I]t’s about the increasing dominance—scratch that, the unqualified triumph—of a certain way of seeing, of reckoning value. It’s about the victory of whatever can be quantified over everything that can’t. It’s about the quiet retooling of American education into an adjunct of business, an instrument of production.

Slouka’s argument is primarily situated in the American context, but resonates with debates going on in many other countries, both on university-industry linkages, but also on the challenges the Humanities are currently facing.

What are universities for?The contributions of both Slouka and Gilpin Faust remind me of elements of the argument of Geoffrey Boulton and Colin Lucas in What are universities for? (League of European Research Universities, September 2008):

It is our contention that slipshod thinking about the roles that universities can play in society is leading to demands that they cannot satisfy, whilst obscuring their most important contributions to society, and, in the process, undermining their potential. It is wrong, in our view, to expect … that universities will be dynamos of growth and huge generators of wealth, leading to economic prosperity and enhanced quality of life on anything like the scale that is implicit in such language. In a European context, where governments are principal funders of universities, the assumption is that they are a lever which, when pulled, will gush forth the tangible effects of economic prosperity into which public money has been transformed. In reality, universities can only be one part of the process of producing a successful knowledge economy. The oft-quoted example of Silicon Valley and Stanford University is far more subtle and complex than a simple reading allows. It is a compound of capitalist enterprise, technical and legal services, skilled labour, a broad range of social provision in the public domain, local and state government policy, the appetites of an historically entrepreneurial culture, and maybe even climate.

Mission creep is to be expected for universities are embedded in a services-dominated knowledge economy (in the Global North, at least): it would be foolish not to expect universities to be asked to play a stronger role in the development and innovation process. But such mission creep needs to be interrogated, debated about, contextualized (as Boulton and Lucas hint at), and viewed in other than simple B&W ways. Broader factors, too, like the largesse Harvard University sits on needs to be flagged, for this multi-billion dollar endowment arguably provides Gilpin Faust with at least some of her desired latitude.

I’ll close off by noting that the UK’s CBI is being remarkably open about their objectives.  This is to be welcomed and it contrasts sharply with what happens in many other countries. The CBI (via the CBI Higher Education taskforce) seems ready for a debate, and they are systematic and strategic about their agenda. Yet the critics of the CBI agenda seem to primarily gripe from the edges, at least as perceived from my distanced perspective. We await a more formal and systematic critique to emerge in the UK; one that is equally formed, as coherently put together, and as openly circulated, as is the CBI viewpoint. The unruly process of innovation depends upon it.

Kris Olds

Science and the US university: video lecture series by editor-in-chief of Science and former (1980-92) Stanford University president

The Center for Studies in Higher Education at the University of California, Berkeley, is one of the more active centres of its type in North America. They sponsor an excellent working paper series (e.g., see ‘Universities, the US High Tech Advantage, and the Process of Globalization’ by John Aubrey Douglass. CSHE.8.2008 (May 2008)), workshops, seminars, and so on.

This newly posted lecture series, that the CSHE organized, should be of interest to GlobalHigherEd‘s audience. The speaker is Donald Kennedy (pictured to the left), the current editor-in-chief of Science, and former president (1980-1992) of Stanford University, amongst many other titles and responsibilities. The Clark Kerr Lecture Series on the Role of Higher Education in Society has been running since 2001.

I will paste in the CSHE summary of the Kennedy lectures below. The first two lectures were given in November 2007, while the third (and final) lecture was given in March 2008. If you click on any of the three titles you will be brought through to the UCTV site where the recorded videos can be accessed. Kris Olds

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Clark Kerr Lecture Series on the Role of Higher Education in Society sponsored by the Carnegie Corporation and the Center for Studies in Higher Education

Donald Kennedy, Editor-in-Chief, Science Magazine

Science and the University: An Evolutionary Tale, Part 1: The Endless Frontier

In which President Roosevelt asks Vannevar Bush and others,-including may helpers and some revisionists, to transplant the federal governments apparatus for wartime science into the infrastructure for growth of research in the nation’s universities. The result is not what Bush originally hopes — a single Foundation responsible for all of the nation’s science — but it ushers in a period of extraordinary growth and transformation. Universities deal with the challenges of allocating and rebalancing new resources of unexpected scope, but the twenty days after war’s end resource growth flattens and new challenges appear: federal support brings more control, and a new generation has new questions about the value of science.


Science and the University: An Evolutionary Tale, Part 2: Bayh-Dole and Enclosing the Frontier

In which universities, having been partly weaned from federal support, are recognizing new sources of help. Their quest is assisted by a new concern from the government: the money being spent on basic research is producing more prizes then patents. Congress finds a solution: in the Bayh-Dole Amendments of 1980 it forswears collection on intellectual property rights resulting from university research it supports. The result is a dramatic growth in academic centers devoted to patenting and licensing faculty inventions. This brings in new money, accompanied by new challenges: should the university go into business with its faculty? Can it retain equity of treatment across disciplines. Perhaps most significant, had the enclosure of the Endless Frontier created economic property rights that will change the character not only of science but of academic life?

Science and the University: An Evolutionary Tale, Part 3: Science, Security, and Control

In which science and its university proprietors confront a new set of questions. Whether in the later phases of the Cold War or in the early phases of the Terror War, universities find themselves witnessing a replay of the old battle between science, which would prefer to have everything open, and security, which would like to have some of it secret. Struggles in the early 1980’s regarding application of arms control regulations to basic data resulted in some solutions that some hoped would be permanent. But after 9/11 a host of new issues surfaced. Not limited to arms control considerations, the new concerns included the publication of data or methods that might fall into the wrong hands. At the same time, science was confronting a different kind of security problem: instead of being employed to decide policy, science was being manipulated or kept secure in order to justify preferred policy outcomes.

Splicing hedge funds to universities to funnel ‘brain power’

Today’s Financial Times has a follow-up story to the one we profiled in our About page when GlobalHigherEd was first set up last September. The story, ‘A fierce battle for brain power’, examines the intense competition between hedge fund firms for highly skilled workers with advanced degrees.

As the story notes, firms like Renaissance Technologies in Long Island New York are quantitative hothouses, loaded up as they are with PhDs in mathematics and theoretical physics: a veritable brain trust on a densely wired floorplate. Across the Atlantic, hedge funds such as AHL, Winton Capital, Aspect Capital and BlueCrest’s BlueTrend – all based in London – have sought to create a unique space for knowledge production; part university, part firm, part clubhouse. They’ve done this to create a conducive context for the highly sought after people who create and manage complex financial instruments. This is not surprising in many ways, but the FT story is also worth reading as it explains how hedge funds are now splicing their DNA to select higher education institutions where the best and brightest of these PhDs are trained up.

oxman.jpgThe splicing process is happening via the establishment of joint ventures with universities such as Oxford (the Oxford Man Institute for Quantitative Finance; the Nomura Centre for Mathematical Finance), and to a lesser degree via endowed chairs (e.g., the Winton Professor of the Public Understanding of Risk, Cambridge University).

From the perspective of firms the main logic of deepening linkages with select universities is to enhance their capacity to survey and then court high quality graduate students. Joint venture institutes, in particular, raise the “profile” of these hedge funds while simultaneously enabling them to acquire information about prospective employees. The insertion of parts of a hedge fund’s institutional infrastructure within a university, and the consequent blurring of institutional boundaries, places it three steps ahead of other hedge funds who have weaker ties with professors and contract researchers, and who typically advertise via word of mouth, recruitment fairs at universities, in the FT, or in relevant magazines like Chess Monthly.

Needless to say there are few universities that will turn down this type of arrangement given the prospects for the injection of external resources. Yet it is really only select universities that appear on this highly capitalized joint venture map. Prospective universities typically need to be within the orbit of global cities, the interdependent skein of the world-economy. And they obviously need to be universities that offer a high quality advanced education, while simultaneously providing appropriate social and cultural capital. And, of course, alumni dynamics often come into play. If such conditions exist the hedge funds move in in search of human resources, their lifeblood. As Tim Wong, head of the Man Group‘s AHL, puts it in the story: “People are the key…. That’s why we have done the Oxford institute, because we need the people for the future.”

Kris Olds

Producing the global knowledge economy: the World Bank and the KAM

What it means to either talk about, or indeed ‘produce’, a knowledge-based economy (KBE) is a bit like nailing jelly to the wall; it is dam slippery stuff! Part of the problem, of course, is that like all powerful metaphors, the KBE has a lot of political work to do, and it is powerful precisely because it can do that political work. It has something in it for everyone, whatever one’s politics.

Over 2008, GlobalHigherEd will run a series of analytical pieces making sense of the various players, projects and politics who seem to be involved in the production of a knowledge-based economy–from programs being developed by the World Bank, OECD and World Economic Forum, to knowledge spaces that include knowledge incubators such as Futurelab, local art spaces and cyberspace. Contributions to this theme from fellow bloggers out there, as always, are more than welcome.

We begin this series with the World Bank who, since 1998, have been busy undergoing a major ‘makeover’ – re-representing itself not as a ‘development bank’ but a ‘knowledge bank’. This move, under the leadership of Bank President James Wolfensohn, took seriously the idea that how we managed knowledge was important, and that knowledge was a key factor in technological creation, adoption and communication.

One outcome of the Bank’s move was the Knowledge For Development (or K4D) Program aimed at helping developing countries capitalize on the ‘knowledge revolution’. Specifically, developing (and also developed) countries are challenged to plan appropriate investments in human capital, effective institutions, relevant technologies, and innovative and competitive enterprises.

These challenges are then translated into the four pillars of a knowledge-based economy comprising:

  • an ‘economic and institutional regime’ which values efficiency and entrepreneurship
  • an ‘educated’ population
  • an efficient ‘innovation’ system
  • an ‘information and communication technology’ infrastructure

The four pillars feed into the Bank’s Knowledge Assessment Methodology – or KAM – an interactive benchmarking tool which now consists of 83 structural and qualitative variables for 140 countries around the globe to measure performance on the KE pillars against an imagined perfect score.

A Knowledge Economy Index (KEI) is generated giving an overall score, though scores can be broken down around each of the four pillars. Development advice is then fed out around a series of ‘product lines’.

The simplest ‘product line’ is a ‘do-it-yourself’ assessment of your economy in relation to either; all countries, others in the region, income, and so on. The user is also able to either generate a Basic Scorecard using around 14 key variables, or move to more complex representations that are based on respectively combinations of the 81 variables, the performance scores of all countries, comparisons over time, cross country comparisons, and so on. us-china-india.jpg

Other ‘product lines’ include the Bank doing policy reports for specific countries (for example, El Salvador, Turkey, Morocco), comprehensive assessments (for example India, China, Korea, Chile, the African region), and running learning events to exchange best practice. GlobalHigherEd’s blog on the reform of the Malaysian higher education system following a World Bank’s 2007  review is a good example of how the KAM is being used to reshape higher education policy and practice.

At one level this is fun. However this is a very serious business – as the benchmarking works like a learning tool. You learn where you are in this imagined perfect knowledge economy, and then strategize as to how to get to your preferred position using the pillars as policy guides and levers. top-ten-country-comparison.jpg

Benchmarking, ranking and other kinds of league tables are becoming more and more popular as tools for promoting particular kinds of learning among institutions, nations and regions. GlobalHigherEd has been profiling some of these – for instance PISA, the Programme for International Student Assessment, the OECD’s Innovation Scoreboard, and University Rankings.

Like all of these systems of ranking and benchmarking, the most interesting issue with the World Bank’s Knowledge Assessment Methodology is what is being measured, why, and with what likely outcomes? Leaving aside the thorny issue of the efficacy of the indicators for the moment (such as the Human Development Index which is one of the 83 indicators making up the KAM), as we run through all 83 indicators, we get a quick sense of the political nature of the project; the production of a world order that values global trade, has few bans on imports and licensing, strong protections in place for intellectual property (IP), a system for ensuring payments for royalties and IP across borders, high levels of adult literacy, landlines and computers to support global connectivity, and so on. Absent in this list of indicators are ways of representing unpaid labor, alternative systems of knowledge production, cultural knowledges, and so on.

The developed Western economies are more likely to be advantaged by this kind of economy – given their interest in extending their services sectors globally and securing greater returns from the high end of the value chain. However, in areas like education, the policy levers are still rather crude. It is difficult to see, for instance, how investments in higher education per se will generate those innovative, creative and entrepreneurial individuals who are regarded as the engines of this new economy.

Susan Robertson

The University of Nottingham’s Vice-Chancellor responds to Agora report

Editor’s note: this official response to the Agora report we briefly profiled on 7 December was submitted to GlobalHigherEd today by Professor Sir Colin Campbell, Vice-Chancellor, The University of Nottingham.

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Higher education news outlets reporting the conclusions of the think tank ‘Agora have mostly given an account of a handful of parochial views. The conclusions attributed to those quoted are at odds with many distinguished colleagues working in science and engineering across British universities, and also with the United Kingdom’s Research Councils.

unningbo.jpgProfessor Ian Gow, who received an OBE in recognition of his considerable efforts to help us establish a world first – the University of Nottingham Ningbo China (pictured to the left) – could have been reported out of context, but his views as published were unwarrantedly defensive. The manner in which they were presented does little justice to his previous achievement as Foundation Provost at our award-winning and successful China campus.

icuk.jpgProfessor Gow, a social scientist, and the other contributors to the Agora think tank paper which you reported unchallenged, can be reassured that individual UK research councils, as well as RCUK, and the European Union, are fostering collaborative research with China across medicine, science and engineering. They regard it as an important development in their thinking and their funding programmes. Recently a consortium of British universities including Nottingham, King’s College London and Southampton, and more than twenty universities in China, agreed to pool their expertise in order to bring joint innovation to the worldwide marketplace. Innovation China-UK is now supporting academic and business partners in funding proof-of-concept research, and in commercialising intellectual property.

The University of Nottingham has, for several years, been undertaking tripartite plant genetics work with two distinguished Chinese institutions, Fudan University and Shanghai Jiao Tong University. Amongst our shared goals are combining the experience of all three universities in plant genetics. Happily, the venture is also promoting joint applications for international funding, and it is providing exciting training and exchange opportunities for research students and staff in both nations. This is just one example from a vast range across the sciences. It is extremely difficult to decipher in it, and countless research projects like it, any kind of ‘threat’ to British scholarship or to the UK economy, and fortunately the UK Research Councils and the British government agree.

Globalisation means that our country cannot “stay at home”. Nor, to quote Professor Michael Shattock (with perhaps the most depressing view to have emerged from Agora’s exercise) can UK universities “stick to their knitting”. Professor Gow, claimed your article, ‘called British institutions “incredibly naïve” for handing over their research in key disciplines to get a foothold in China.’ In fact, he was cautioning ’emerging’ joint ventures, and not those already well established, but little matter. Leading international universities are very carefully managing the risks involved in any overseas venture, in order to expand their sphere of influence. Research, like student exchanges with China, has to be two-way in order to be sustainable. The “win-win” situation we are being urged in undeservedly panicked tones to “engineer” is in fact already underway, on a fair and reciprocal basis, and it is flourishing. We have huge confidence that the world will be better for it.

Professor Sir Colin Campbell is Vice-Chancellor of The University of Nottingham