UNIVERSITIES ARE BECOMING BUSINESS-DRIVEN:

According to the most recent annual report on university-based "spin-out" enterprises, universities are establishing a more significant and more effective presence in the commercial sector.

The Higher Education Funding Council for England conducted a survey of 164 higher education institutions and discovered that the sector is becoming more business-oriented, is better at linking its research to the needs of industry, and is more cost-effective in setting up its own businesses than American universities.

During the academic year that ended in 2003, the number of patents awarded to universities grew by 26% over the previous year. Universities now generate £168 million in revenue through consulting work with businesses and industry, and funding for regeneration projects that benefit local communities has climbed by 15 percent in recent years.

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According to the Higher Education - Business and Community Interaction Survey 2002-03, universities in the United Kingdom created one spin-off company based on marketing a discovery from their research for every £17 million they spent on research, compared to a ratio of one for every £60 million spent in the United States.

Universities are being urged to increase their income from business transactions by the government, which, through the funding council, is now providing support and financial advice on starting a business in order to generate "third stream" funding from the private sector to benefit universities. Other sources of funding for universities include public spending on research as well as a combination of government and student tuition fees for instruction.

For the period 2001-2004, the government committed £120 million in financing to assist in the creation of university-linked businesses, with an extra £171 million provided in the expenditure review of 2002 for the purpose of fostering university-business link-ups.

Kim Howells, Minister of Higher Education, made the following statement: "By fostering local enterprise and regenerating regions via their innovative work, universities can play an important role in strengthening the local economy. According to the findings of today's poll, they are continuing to increase productivity in the United Kingdom. With the higher education innovation fund, we are committed to assisting higher education in developing long-lasting, successful linkages with business.