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[July 2006] What happens when you match high-calibre specialists from the academic world with business? Productivity, innovation and profits go up, as the DTI’s pioneering Knowledge Transfer Partnership scheme demonstrates.
About Knowledge Transfer Partnerships
Competition and productivity are uppermost in the minds of many organisations, especially as the economies of India and China forge ahead. But through the DTI-led Knowledge Transfer Partnership programme (KTP), companies are ensuring that new ventures succeed in a global marketplace. Created in March 1975 and co-funded by the Government, KTP is Europe’s leading programme for helping companies to improve competitiveness and productivity. By using individual skills and knowledge transfer, KTP enables companies to deliver comprehensive business change, increase their competitive position and helps them to become innovative market leaders.
KTP achieves this through utilising the knowledge, technology and skills that reside within the UK Knowledge Bases (academic or research bases). A partnership is created between a company, and the Knowledge Base in response to a specific and strategic project within the company. Each Partnership employs one or more high calibre Associates (recently qualified people) to work in the company on the project, which can last from one to three years. The Associates are supported by the Knowledge Base that has relevant experience to the project. Each Partnership is part funded by the Government with the balance of the costs coming from the company partner.
"The genius of a KTP is that it takes the germ of an idea, develops that idea through the Associate and their Supervisor, and at the end, the company for whom they are working, sees the direct benefit on their bottom line. The highest one-off increase in profit before tax as a result of a KTP was £1.7m." says KTP Programme Director, Debbie Buckley-Golder.
Benefits for the Company Partner
KTP offers companies the opportunities to develop competitive advantage by linking with academia.
“Our customers are interested and impressed that we are doing this KTP with a prestigious University. It demonstrates that we are not just talking about being an innovative organisation - we are doing it”,
Eamonn Swanton, Managing Director of Heales Medical
Business performance outputs vary considerably from case to case, given the rich variety of projects. Latest information shows that, on average, the business benefits that can be expected from a single KTP project are:
- An increase of over £220,000 in annual profits before tax
- The creation of three genuine new jobs
- An increase in the skills of existing staff
“Overall, the KTP programme has strengthened our competitive position regarding the licensing and collaborative research of our technology and enabled us to demonstrate the technology for exploitation and commercialisation.”
Keith Rawson, Technical Director at Cambridge Life Sciences Ltd
KTP enables companies to develop long-term, strategic relationships with the Knowledge Base partners. KTP also ensures that companies recruit the “right person” for the right job as well as embedding an innovation culture within the company.
“Working with KTP has been such a valuable exercise. The development achieved and the methods involved were such a fantastic step forward for the company that we are now looking to a bright future.”
Peter Salt, Finance Director, Salts Healthcare Ltd
For every £1 million of Government investment in Knowledge Transfer Partnerships, the benefits achieved by UK businesses amount to:
- £3.3 million increase in annual profits before tax
- The creation of 77 genuine new jobs
- 263 company staff trained
In a DTI review carried out a year ago, Knowledge Transfer Partnerships emerged as one of the most successful knowledge transfer mechanisms that the Government offers to UK businesses. Each Partnership brings business benefits, skills and knowledge to industry, graduates and academics across the UK.
Key Facts
- During the course of 2004/5 over £32 million of grant support was committed to new Knowledge Transfer Partnerships (KTP), augmented by over £53 million from participating companies.
- During the 2004/5, grants were offered on behalf of Sponsors to 425 new Partnerships and, at the close of the year, there were 858 active Partnerships with places for 958 Associates.
- Main areas of technology/knowledge for KTP during 2004/5:
- Social science and marketing: 13%
- Management science: 10%
- Science: 16%
- Engineering (including design) 40%
- IT: 21%
- Distribution of company size of the 858 Partnerships (as at March 2005):
- Micro-businesses (fewer than 10 employees): 14%
- Small enterprises (10-49 employees): 45%
- Medium-sized enterprises (50-249 employees): 28%
- Large enterprises (250 or more employees): 13%
Case Study: Kirton Healthcare Ltd
Kirton Healthcare Ltd, based in Haverhill, collaborated with Anglia Ruskin University’s Bioengineering Research Group in a Knowledge Transfer Partnership (KTP), which aimed to embed biomechanical engineering principles into the product development system for existing products and produce a new range of Back Care Chairs for the retail market (Figure 1).
With over 25 years experience, Kirton Healthcare Ltd design, manufacture and sell specialist chairs for the frail, elderly and disabled. The vast majority of Kirton’s specialist seating sales is derived from the ‘healthcare’ market, in particular, occupational therapists and physiotherapists who are the primary referral source for the specialist seating products. The main customers are hospitals, nursing homes, charities, social services and private clients.
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Figure 1. Development of a new chair |
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Kirton’s strategic objective was to increase the company’s competitiveness and enable Kirton to expand its scope and enter the specialist retail market for back pain sufferers, through the development of the new Back Care Chair.
Benefits of the KTP to Kirton include the transfer of knowledge from the biomechanical engineering department at Anglia Ruskin University to the general design and development capabilities of the company. The research will be embedded within some existing products within the Kirton portfolio but, more importantly, drive future developments and thinking within the organisation.
The launch of a new product into a new market has extended Kirton’s reach and opportunities for manufacturing, distribution and profitability. As a result of the KTP, the introduction of new supply chains, manufacturing techniques and materials are available and used for both areas of Kirton’s business activity – the healthcare market and the retail sector.
Through the development of the new chair and associated products, the company anticipate profit-before-tax of £98,000. The KTP also opened up new distribution channels and has facilitated research to drive future product developments
If you would like further information on the benefits Knowledge Transfer Partnerships can offer, visit the website, call 0870 190 2829 or e-mail companies@ktponline.org.uk
You can also obtain information about Knowledge Transfer Partnerships from the following business support organisation: Business Link network www.businesslink.gov.uk Tel: 0845 600 9006.
Knowledge Transfer Partnerships is one of the DTI’s business support products.
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