Picking their brains

In 2006, e2v technologies won a £6 million-plus contract from MOD for its electronic tubes business for the development and evaluation of a high-power, high-bandwidth microwave transmitter. It became the prime contractor in a consortium of the University of Strathclyde and TMD Technologies and the win directly resulted from the industrial partners' close collaboration with the university's applied research group. "Vacuum tubes are generally regarded as old fashioned, but there are things Strathclyde can do that no-one else on the planet has done," explains Dr Trevor Cross, e2v's group chief technology officer. At the other end of the scale, when the Sittingbourne site of Wire Belt needed independent proof that its products for the food industry were hygienically superior to competitors' cheaper plastic versions, it tapped into the technical expertise of London South Bank University (LSBU), through a Knowledge Transfer Programme (KTP) that funded over two-thirds of the costs. KTPs are probably the least recognised and most valuable of all government-initiated industrial support schemes. Both these stories highlight the wealth of scientific and technical knowledge inside UK universities and colleges. Companies that knock on the door are opening the way to innovation, competitive advantage and stronger performances. With recession looming, that can mean the difference between survival, stagnation or surrender. According to EEF's recently published Innovation Monitor, efforts to address the age-old problem of getting companies and universities together are now starting to bear fruit. Around half of companies are working with universities by accessing specialist technology, collaborating on projects and sharing R&D. Relatively few report problems in protecting intellectual property, finding the right partner, and managing costs. Most, however, have difficulty finding the right partners for collaboration and relationships take careful management. So, first of all, how do the companies that have been partnering academia for years make it work for them? Back to e2v: this specialist developer and manufacturer of high technology components and sub-systems lives by its innovation. In Trevor Cross's view, changes in industry now make academic collaboration crucial across the board. "Twenty years ago all the big corporations had their own research centres but a lot have been lost. The government also used to put research funds into companies [which is how Cross himself joined] but that doesn't happen anymore. So if they want to take advantage of government support and the bright ideas of the best young researchers, they have to engage more with the academic base." Cross acknowledges that over the years, e2v probably swallowed an over-large dose of its own medicine, with many projects across multiple universities. "They were all good but - with a lot of small investments of time and effort - it's difficult to get a proper return." So Cross has recently been refocusing resources to get concentrations of activities with key partners, notably Strathclyde, Brunel, Liverpool and Nottingham universities. "Unless there is something really beneficial for both parties, why allocate bright people's time and thinking to the relationship? You have to be quite realistic; take a step back and say 'what are we really doing this for?'" says Cross. The partnership with Nottingham illustrates the best basis for any collaboration - mutual opportunity. They have just announced a new research centre for industrial microwave processing to take cutting-edge technologies from lab to marketplace. This hits current market needs square-on because it is likely to result in practical, saleable ways of reducing energy consumption. For instance, up to 5% of the world's electrical energy output is currently used to grind rocks to liberate metals. Microwave technology can stress and fracture the rock prior to grinding, achieving the same results for a fraction of the energy consumption. "Gone are the days when researchers would stay in the lab, industry bosses would talk business and never the twain shall meet," explains Nottingham's professor Chris Rudd. Today, university research is having real impact in the commercial marketplace. Such relationships come at a price, however. E2v has committed £200,000 per year for five years to this partnership. It's manageable for a 2,000-strong company like this, especially with the prospects of a very good return for them both. It's a lot tougher for smaller organisations. So what other options are there? If you're in the right region, the West Midlands Technology Network (WMTN) has a lot to offer. The core of the WMTN is formed from institutions like the universities of Wolverhampton, Birmingham City, Coventry, Staffordshire, Walsall College and Coventry City Council, working hands-on with businesses to make innovation happen. It aims to create opportunities for SMEs - including many who would not normally have considered university partnerships - to take advantage of their knowledge, facilities and expertise. Typically, knowledge transfer is around a market-led project aimed at a new product or improved operating processes. Part-funded by the European Regional Development Fund, WMTN provides free access to resources usually available only to larger organisations. So far it has resulted in over 1,100 projects and £86m of new and protected sales. This month, WMTN is publishing 'Knowledge for Growth', describing its impact and providing a range of case studies, downloadable from www.wm-technet.co.uk. Probably the most universally accessible route, however, is the KTP. The most surprising thing is that they have been around in one incarnation or another for upwards of 20 years, yet few manufacturers have heard of them. It's hard to see why - they bring industry something it sorely needs at a price out of all proportion to the rewards. KTP is a UK-wide programme funded by 18 organisations headed by the Technology Strategy Board (TSB). Nearly two-thirds of the budget for a KTP project is met by TSB. This means companies pay an average of £20k annually and get around £62k worth of services in return. Basically, a KTP project is a three-way partnership between a company, an academic or research institution with the relevant skills (otherwise known, in KTP-speak, as the Knowledge Base), and an associate, usually a high-calibre, recently-qualified graduate. They join forces in an important, strategic project which normally runs for one to three years. Although employed by the university, the business and the institution jointly supervise associates so they can apply their specialist knowledge to the company's project while learning new business skills themselves. London South Bank University (LSBU) is one of the largest providers of manufacturing KTPs in the UK. KTP manager Nathan Burgess says there are around 1,000 projects live in the UK at the moment. TSB has, however, approved a funding increase for the next three years to bring numbers up to 1,700. There are also plans to introduce sharply focused 'mini-KTPs' in 2009. Will companies want to spend out on new projects with a recession looming? In his view, it's a no-brainer: "It's something the company wants to do anyway. If they are just chasing a grant, it's pointless. But if it's important to their company, here is a great way of doing it." The criteria for a grant are that the project has to be strategically important, moving the business forward; it has to have a good business case, showing how the company will make money out of it; and there has to be clear evidence of knowledge gaps where LSBU's expertise will complement what they already have. "Provided they meet those three criteria, what company hasn't got a project? What is more, the majority of the associates stay with the company afterwards - somewhere around 70%. These tend to be bright, go-ahead people that companies need." He hasn't yet seen any reluctance to invest: "Realistically the businesses that come out of recession stronger are the ones who use it to get a bit smarter." So how tough is it to get started? Burgess says many companies come with an outline idea or just knowing they need help: "They many have found that universities are not always easy to engage with - they don't know who to ring. This gives them a single contact, the KTP manager - it is cleaner and easier. If it's not in the first university's ambit, it will refer it on; we have a good programme for that. They can also go directly to the KTP regional office." Some applicants will undoubtedly fall at the first hurdle; KTP is not the right vehicle for everyone. "They have to be financially sound which can make it difficult for younger companies; we don't want a project to stop halfway through. And we won't support micro businesses - it needs to have at least five or six employees." In fact, although KTPs are mainly taken up by SMEs, some large companies are also involved although they do get a smaller grant. In 2006, for example, Cranfield School of Management and Rolls-Royce at Derby were awarded a large KTP. Three associates - Dr Thomas Thron, Ina Nikonova and Joanna Krawcyzk - were hired to help improve service levels and to reduce supply chain costs. Halfway through the two-year project, the associates have helped to solve tough planning and control problems. Thron has implemented visual control systems in two production cells and is now developing WIP visualisation and production planning tools, and Nikonova and Krawcyzk have developed shopfloor control systems for specific cells. There have been tangible improvements in plant performance as a result. Regardless of size, the actual application is a formal, two-stage process. The first step is a three-page executive summary to gain acceptance in principle. It also serves to pick up who, from a basket of funders, will actually pay for the project. The next, more comprehensive proposal includes a detailed work-plan for the associate over the life of the project. "A lot of companies struggle with this because they don't typically plan over that long a period," explains Burgess. "We help them out - we can polish up the rough copies and point out the gaps. We act as a kind of sponsor - it's a joint submission between the university and the company after all." The guidance extends to drawing up an IP (intellectual property) agreement - often something that worries first-time participants. "Our standard one lets the company retain anything that is created in the project although that varies from university to university," explains Burgess. "If we already have some IP, it may be slightly different. But, with an agreement up front, there is rarely an issue." Applications may be approved as they stand or subject to amendment. If they are actually bounced, the reasons are given which often allows them to be changed and resubmitted. Burgess says that three to five months is a realistic period to get a project through. "For a government scheme, it's not too bad. We get a 90%-plus success rate because all the weeding out is done upfront. If a company is not eligible we don't waste either their time or ours." The Wire Belt project is typical of those that fit the KTP 'envelope'. With acknowledged expertise in food technology, LSBU drew on another of its KTPs running in a food processing plant: "We were able to use its premises to test the belting. Having established the benefits in the material, we were then able to help reconfigure the product to reduce food traps, making it even more hygienic." Manufacturers across the UK are using KTPs to advance a product, to take out cost through new processes, or even to investigate and develop new services and markets. The results are unarguably worthwhile; the KTP Annual Report for 07/08 shows that completed projects generated an average increase of £222,000 before tax. We all recognise we face straitened times. Those manufacturers, however, who allow recession to put a brake on innovation and improvement will be the ones who really suffer. Academic collaboration offers a sure, cost-effective route to keeping businesses of virtually any size refreshed, vigorous and competitive. n Call the KTP helpline on 0870 190 2829 or see www.ktponline.org.uk