Scotland Universities to Direct Nearly 11 Percent of Funding on Pursuing Innovation

The Scottish Government announced last month a funding plan for the university system that directs more than 10 percent of current funding into a new Horizon Fund created to make targeted investments in research, technology transfer, and entrepreneurial development.

The funding proposal is part of an overall plan to expand the role of universities in helping the country recover from the current economic downturn. The plan was based on recommendations from a joint university taskforce established last year by the Cabinet Secretary for Education and Lifelong Learning. The Future Thinking Taskforce set forth challenges for both the Scottish Government and Universities Scotland, which represents the country’s 20 institutions of higher education.

Specifically, universities must demonstrate the funds they receive from the government support activities that are aligned with the Scottish Government’s goals for sustainable economic growth. In return, Universities Scotland challenges the government to move into the top quartile of OECD countries for percentage of GDP invested in universities for national investment in R&D and innovation by 2028.

The plan does not include new funds for innovation. Instead, it redirects existing allocations, creating a funding arrangement that reflects the new roles of the government and university system, according to a report released by the taskforce. Based on the Scottish Funding Council’s 2008-09 budget, the General Fund for Universities would consist of GBP 965m (approximately $1.4 billion U.S.) and GBP 122m (approximately $182.2 million U.S.) for the Horizon Fund for Universities. Priorities outlined by the Scottish Government for the Horizon Fund include:

* Working with employers to develop an entrepreneurial capacity in which the skills of graduates are best aligned with workforce needs;
* Providing the necessary resources to develop world class research institutions;
* Increasing knowledge transfer and innovation to promote additional wealth for Scotland’s economy; and
* Diversifying and specializing university strategies.

The Scottish Government additionally accepted the recommendation of the taskforce to add universities as the seventh sector of the Scottish economy. This group of sectors is recognized by the Scottish Government as key to economic prosperity and includes creative industries, energy, life sciences, financial and business services, tourism, and food and drink.

All documents relating to the Joint Future Thinking Taskforce on Universities are available at: http://www.scotland.gov.uk/Topics/Education/UniversitiesColleges/16640/hetaskforce.

***

Copyright State Science & Technology Institute 2008. Redistribution to all others interested in tech-based economic development is strongly encouraged. Please cite the State Science & Technology Institute whenever portions are reproduced or redirected.