INTRODUCTION

  The Department of Trade and Industry (DTI) seeks to help UK businesses compete successfully at home and overseas. In 1997, the President of the Board of Trade set out three pillars to a new DTI approach to competitive success: strong markets, modern companies and an enterprising nation. These themes will bind all the activities of the DTI to the pursuit of competitiveness. The support and encouragement of science, engineering and technology is one of the DTI's key activities which contributes to increasing sustainable growth and quality of life in the UK and underlies all three pillars, but particularly "an enterprising nation".

  2.  Through the Office of Science and Technology (OST), the DTI also has transdepartmental responsibilities for funding the UK's science and engineering base and for developing policy on publicly funded science, engineering and technology to meet the country's needs.

SUMMARY

  3.  DTI regards innovation and the development of new products and processes as an essential factor in building a dynamic, technology-based economy that is able to compete effectively in the 21st Century. Innovation is both driven and pushed by markets, by changes in customer expectations and by advances in science, engineering and technology. Interactions and linkages between the creators and users of new knowledge are therefore critically important.

  4.  Shortly after coming into office, the President of the Board of Trade launched "Competitiveness UK"; a partnership initiative to help create the conditions in which modern, innovative, forward-looking businesses can thrive and grow. An important focus for this work is six business-led Competitiveness Working Parties; one of these is looking at how to encourage more firms to be truly innovative in all aspects of their business. The results of these Working Parties will feed into a White Paper on Competitiveness which the Department aims to publish in Autumn 1998.

  5.  For a number of years, the DTI has been studying the broad range of factors which influence innovation and R&D and has been encouraging companies, in all sectors, to regard innovation as essential for their success. This memorandum does not propose to comment on all of these factors; rather it will concentrate on those highlighted by the House of Commons S&T Select Committee ("the Committee") in relation to this enquiry ie particularly those that relate to companies in the engineering and physical sciences field.

PROGRESS SINCE THE COMMITTEE'S 1994 REPORT

  6.  Since May 1997, the President of the Board of Trade has taken fresh steps to encourage and promote investment in R&D, to support innovation, to improve the business support services available through Business Links, and to develop, through Foresight and other means, strong partnerships between all those involved in the creation of new advances and their exploitation. In particular, the Foresight programme is being taken forward with renewed strength and vigour, as it moves towards a second survey. The principles of Foresight are seen as the backbone of DTI S&T activity, influencing and shaping the Department's wider innovation agenda.

  7.  Considerable work on financial investment in R&D has also been done and continues to feature high in the Department's work. Some of this is being taken forward through public-private partnerships, for example:

—  a working party, chaired by the Paymaster General, on the financing of high-tech firms (the McCullagh Group) is looking at the financing of emerging and early stage high-tech firms; and

—  DTI is sponsoring the Tech Stars Steering Group, with the CBI, the Bank of England and Treasury, which is currently considering barriers to growth for technology based SMEs.

  Further DTI activities which address the Committee's 1994 recommendations are described below.

FACTORS INFLUENCING INNOVATION

  8.  The DTI has already undertaken a number of studies into the factors influencing innovation across the economy as a whole. The report "How the best UK companies are Winning", published by the Department's Innovation Unit and the CBI in 1994, identified the broad cultural factors which enabled companies to exploit new ideas successfully; they were (i) being led by visionary, enthusiastic champions of change; (ii) unlocking the potential of their people; (iii) knowing their customers; (iv) constantly introducing new products and services; and (v) exceeding customers' expectations with new products and services. DTI believes that these are as relevant to innovation based on engineering and the physical sciences, as to any other sector of the economy.

  9.  Subsequent work has emphasised the role of people in the success of a company (eg "Competitiveness through Partnerships with People", published in September 1997), and the importance of interaction and understanding between innovative companies and providers of finance (eg the Government response to the House of Lords Select Committee on Science and Technology report "The Innovation-Exploitation Barrier", Cm 3786, October 1997). The latter issue is discussed more fully below. The DTI's Innovation Unit is also now engaged in a project to identify the generic characteristics of successful interactions between universities and industry, following on from two surveys in 1995 and 1996 of industry-university collaboration in research. The current project addresses the full range of their activity, rather than simply science and technology. The results of this work are still being finalised and will be published before Summer 1998.

  10.  DTI's views on the factors highlighted by the Committee in relation to this enquiry, which influence companies' decisions when deciding on developing new products and processes, are dealt with more fully below.

"The role of the Foresight programme in fostering networks and identifying priorities"

  11.  The Foresight Programme is central to the DTI's policy on competitiveness, with its emphasis on forward looking networks to generate visions for business and to identify threats and opportunities. It is widely acknowledged that the Programme has broken down many barriers and improved communication between industry and the science and engineering base and has helped provide a higher profile for S&T in a modern industrial society. DTI agrees that one of the most valued and enduring achievements of Foresight, so far, has been the creation of new networks of people drawn from sectors in business, academia, and Government that would not normally have entered into dialogue. The further development of these networks, and in particular a greater level of engagement with small and medium sized firms, will be an explicit objective of the next phase of the programme.

  12.  Independent evaluations of Foresight (such as the one published in June 1997 by the Parliamentary Office of Science and Technology) and the results of the Whitehall Audit of Government Foresight activity (published in October 1997) has found that many organisations have responded vigorously to the Foresight priorities. The first Foresight survey identified a number of new areas of activities, often crossing traditional sectoral boundaries; for example bringing together defence, financial services and retailing to explore new ways of combating fraud and exploring new opportunities for using IT to deliver health care. DTI has pursued a vigorous agenda in taking forward the Foresight priorities; but Foresight influence extends beyond that. For example:

—  £10 million of DTI and Research Council funding has been made available to provide fresh stimulus to public/private sector partnerships through the Foresight LINK Awards; the results are expected in October 1998;

—  19 new LINK Programmes have been announced, worth some £170 million (in terms of public and private sector support), for example:

a £20 million Foresight Vehicle programme to develop the vehicle of the future; one that is environmentally friendly, makes the best use of limited fuel resources, is safer and able to avoid collisions and can communicate with other vehicles and the transport infrastructure;

a £10 million Broadcast Technology programme, aimed at stimulating pre-competitive, collaborative research in advanced broadcast technologies, focusing on content creation, service delivery and user interaction;

a £5 million Sustainable Arable Production programme, aimed at generating innovative systems and technologies which will contribute to sustainable development in the UK arable industry;

—  in Scotland, the Scottish Higher Education Funding Council has made £7.5 million available for Foresight projects, including a new centre for research into the social aspect of dementia and a new laboratory for "bio-chips" which will develop miniaturised equipment for forensic science and environmental analysis;

—  a Foresight Challenge competition awarded £30 million, in 1996, to 24 consortia from business and the science base and attracted a further £62 million from the private sector. Projects include research into deep-sea fish farming, research into the prevention of Alzheimer's disease and the design of advanced materials for use in faster aeroplanes;

—  the Sector Challenge competition supported a number of other projects through DTI and DfEE in Foresight priority areas—not in R&D but in technology transfer and training. One which exemplifies the new networks arising from Foresight brings together environmental scientists and insurance companies to improve the competitiveness of the UK insurance industry, particularly in the market for catastrophe insurance. Other projects address skills and training in areas ranging from multimedia to clothing, from estate agency to information technology.

  13.  The Whitehall Foresight Audit also demonstrated that much more needed to be done. For example, business participation remained focused on the R&D and technical functions in firms; overall awareness was too low; the involvement of Government Departments and the wider public sector was patchy; and arrangements for co-ordination within Government left room for improvement. During the last 6 months the Government has begun to address these issues.

  14.  A Ministerial Foresight Group has been established under the chairmanship of John Battle, the Minister for Science, Energy and Industry. The Ministerial Group, which provides top-level co-ordination of the Foresight Programme across Government, will receive regular progress reports of Government activity on Foresight. The Whitehall Group of Officials has been revitalised and given a fresh agenda to drive forward the findings from the Foresight Audit. The Steering Group has been strengthened under the chairmanship of Sir Robert May, Chief Scientific Adviser to the Government. The new Steering Group will play a leading part in refocusing the Programme and planning its future strategy.

  15.  In a dynamic economy and changing society, Foresight must be continually evolving process. The OST are therefore currently preparing for a second Foresight exercise to begin in 1999, five years after the first. The OST has been drawing together initial ideas over the last few months from discussions with professional institutions, trade associations and others, with the aim of publishing a national consultation document in March 1998. A blueprint for the next exercise should appear in Autumn 1998, allowing good time for Foresight panels to be appointed and briefed before the next exercise begins in Spring 1999. The findings might well appear in a steady stream throughout the next exercise but consolidated reports should be anticipated towards the end of the year 2000.

"The industrial application of Government-funded research"

  16.  DTI funding for research covers two distinct areas:

—  funding for the science and engineering base through the £1.3 billion annual Science Budget; and

—  support for industrial-orientated research, technology transfer and standards through a wide range of programmes totalling over £350 million.

  17.  One of the central themes of the 1993 S&T White Paper, entitled "Realising our Potential" (Cmnd 2250) was the harnessing of our strengths in science, engineering and technology to the creation of wealth and quality of life. This is now reflected in the missions and operations of the individual Research Councils, of which EPSRC, PPARC and part of NERC are all involved in the physical and engineering sciences. The Councils have industrial users as their part-time Chairmen. EPSRC has established a "Technical Opportunities Panel" and "User panel" to advise the Council, and its peer review panel membership includes a number of industrialists. As a consequence the views of industry are influencing Council business at all levels. Although the nature of research funded by PPARC means that there are few potential commercial applications, the Council has been actively seeking links, for example through its industrial Programme Support Scheme (PIPSS).

  18.  Since the White Paper, further new initiatives have been taken in the same direction by OST and the Research Councils. ROPAs (Realising Our Potential Award) have progressed from a pilot to becoming an established scheme operated by all Research Councils, rewarding academic researchers who have undertaken basic and strategic research funded by industry; Faraday Partnerships should strengthen connections to SMEs; Research Masters (MRes) courses are filling a gap in the training provision by providing a qualification addressing needs identified by certain employers; and the President's Partnership Prizes, which superseded the OST Industry-Academe Collaboration Prizes, are designed to highlight the importance which the Government attaches to partnership between users and the UK's Science and Engineering Base.

  19.  DTI's support for S&T in business covers general innovation and technology transfer activities across a broad range of industrial sectors and also sector-specific areas such as aeronautics, space, nuclear and non-nuclear energy. Most of this support goes to companies, who have to contribute at least matching funding. It is therefore their responsibility, and in their interest, to apply and exploit the results of the work. As a safeguard, DTI insists that there must be, as a pre-requisite to funding, clear mechanisms and objectives for exploitation. This applies equally to national schemes and those involving European or international partners. In a LINK programme, for example, project work is disseminated to other members of the programme and to a wider audience, with the aim of promoting technology transfer and encouraging companies to work towards the application of project outputs.

  20.  The National Measurement System (NMS) is an example of DTI-funded research with wide-spread industrial application. The NMS provides wide benefits to industry and commerce, including giving confidence in the business environment, promoting quality and facilitating free and open trade. However the NMS also serves to encourage innovation and the spread of new technology. Measurement standards and associated measurement methods and techniques are of considerable importance in the innovatory process. In areas such as electronic materials, optics and opto-electronics for high speed communications, and ultra-high precision machining (nanotechnology) where measurements of unprecedented accuracy are required, the absence of adequate measurement standards and methods can pose a significant barrier to innovation.

  21.  DTI believes that when organisations are seeking to apply the results of government-funded R&D successfully, the cultural factors which differentiate academia and industry need to be kept in mind. Difficulties can arise where differences in language and values are not recognised. There is therefore a role for "translators" working with the two sides, particularly if the companies involved are not experienced in working with academia. The industrial and academic secondees in DTI's Innovation Unit (of which there are currently 22) are able to bring their wider knowledge and experience to such problems, as part of their wide ranging role in improving the overall climate for innovation. Those secondees based in the regions are currently involved in assessing the competencies these "translators" should have and in building the structures to integrate them with existing DTI schemes. Work on the generic characteristics of the interaction referred to above should also be helpful in building these links.

"The respective role of Government laboratories and independent research and technology organisations"

  22.  The last few years have seen a dramatic change in the role of Public Sector Research Establishments (PSREs) and independent Research and Technology Organisations (RTOs), resulting in their distinction becoming blurred. Many PSREs have been allowed to take on more private-funded work or been moved completely into the private sector, although their primary role is still to provide research in support of Government's statutory and regulatory obligations. RTOs have become more pro-active and customer-orientated in their interaction with industry, taking on more contract work specific to a company or sector and becoming less reliant on DTI support. The Department is currently examining its arrangements for approving research associations for tax exemption (under Section 508 of the Income and Corporation Taxes Act 1988), to ensure that the benefits of approval are reaching the right targets.

  23.  PSREs make a valuable contribution to the national economy and Government is keen that they should develop highly modernised, high quality, customer-focused delivery of S&T services and develop new and better approaches to managing scientific staff.

  24.  The R&D undertaken by PSREs remains primarily in support of Government policy, to provide intelligent customer status to Departments, or to supply a public good. However the Government believes that these organisations should be encouraged to more directly help improve national competitiveness and is therefore supportive of industry's use of the technology developed in PSREs. A prime example of this is the consultative Green Paper, published on 5 March by MoD in consultation with DTI, setting out the Government's views on how best to achieve defence diversification. A core element in the Green Paper is the establishment of a Defence Diversification Agency (DDA) based in the Defence Evaluation and Research Agency (DERA). The remit of the DDA will be to raise industrial awareness of relevant technology that was initially developed for defence needs.

  25.  DTI's former research establishments, the National Physical Laboratory (NPL), the Laboratory of the Government Chemist (LGC), the National Engineering Laboratory (NEL) and Warren Spring Laboratory (WSL), are all now in the private sector. The operations of WSL merged with AEA Technology in 1994 and AEA Technology was subsequently privatised. NEL and LGC passed into the private sector in 1995 and 1996 respectively. Though still Government-owned, NPL has been operated by a private sector contractor since October 1995. NPL, LGC and NEL are still the main contractors for DTI-funded work in support of the National Measurement System. LGC and NEL still perform some of the functions they did as PSREs but with increasing emphasis on consultancy work for industry, although NPL's mission has changed less.

  26.  Independent RTOs undertake innovative R&D across a span of activities extending from fundamental research, through design and development of new products and processes, to testing and certification. Typically, an RTO provides scientific services primarily to a single industrial sector or a number of closely related sectors (which may be dependent on a suite of related technologies). DTI maintains a dialogue with a large number of RTOs through the Association of Independent Research & Technology Organisations (AIRTO). AIRTO members make a significant and growing contribution to the UK's industrial performance. Some of the recently privatised establishments that were previously PSREs are now members of AIRTO, although, for the present, their activities more closely resemble the work of PSREs than RTOs.

  27.  Many RTOs participate in DTI-sponsored schemes to promote technology diffusion and adaptation. DTI's Focus Technical programme, for example, encourages RTOs and Higher Education Institutions (HEIs) to develop commercially-based, technology transfer activities to match the needs of small firms, in terms of technology, accessibility and cost. Initially, 35 Products and Services Reviews were carried out in RTOs—with DTI support—to identify appropriate, often cross-sectoral, commercial opportunities. Many of the RTOs are now carrying out projects to exploit those opportunities, some with DTI assistance and some alone.

"The operation of Government schemes designed to promote collaboration in industrial application of research."

  28.  DTI innovation support is intended to act as a stimulus, encouraging industry to undertake its own research and to widen the exploitation and transfer of technology generally. The transfer of technology, particularly through the transfer of people, is seen as particularly important. Most DTI innovation schemes are initially accessed by industry through the national network of Business Links. The Business Links, and their counterparts in Wales and Scotland, provide around 170 specialist advisers on innovation, technology and design, across the full technological range of industrial sectors. These advisers are proactive ambassadors of technological innovation, dealing directly with the smaller SMEs to help them access technology and introduce innovative practices in their business operations.

  29.  To promote technology transfer, most DTI-funded innovation schemes are collaborative, usually involving at least one industrial partner and one science and engineering base partner, (the exception being Smart which is for single SMEs and individuals). Key programmes like LINK and TCS (the Teaching Company Scheme) have been very successful in breaking down the barriers between the traditional roles played by industry and the science base. DTI and five Research Councils remain the main Government sponsors of LINK, and together with six other Departments provide some £33 million (in 1996-97) for the support of pre-competitive collaborative projects. This support is more than matched by participating companies. LINK research projects have so far resulted in more than 200 patents and 2,000 published papers and have led on to significant commercial benefit for collaborating companies. More than 1,300 such companies (over 50 per cent of which are SMEs) have now been involved in LINK projects, together with 195 members of the research base. Over half of the 58 LINK programmes so far announced, within which the projects are managed, are in the engineering and physical sciences.

  30.  TCS, on the other hand, supports technology transfer from universities and research organisations into industry through managed projects in the firm itself. Projects last at least two years and involve one or more graduates. TCS now involves 11 Government Departments and Research Councils who "sponsor" projects in topics of relevance to their remits. At any one time, around 700 projects are in progress, involving over 1,000 graduates and 100 universities. A recent review of TCS found that every £1 million of Government grant (about 18 individual projects) generated 58 jobs, £3.6 million of value added, £3 million exports, £13.3 million turnover, £1.5 million capital expenditure and £0.2 million R&D expenditure. Consistently similar data are found from routine project evaluations.

  31.  Technology transfer and collaboration are not just seen on a UK scale. DTI actively helps to encourage British firms to collaborate with European partners through the EC Framework Programme and to seek out ideas and best practice from overseas. Through expert missions, lengthy secondments of individuals into overseas firms (especially in the Far East), better information and "hand-holding" firms seeking new technological markets and opportunities, the Department helps to reduce barriers to accepting the benefits of learning from others.

  32.  In recognition of the importance of engineering, DTI maintains a dynamic dialogue with a wide range of engineering institutions and organisations. The Engineering Council is, however, the principal channel through which the engineering profession speaks to Government. This key relationship has been formalised with the signing of a Memorandum of Understanding between the two parties which will form the basis for future collaboration.

  33.  DTI continues to provide financial support for projects developed under the Action for Engineering initiative, notably, SETNET (Science Engineering Technology Mathematics Network). SETNET is a joint venture company which was established to tackle the lack of co-ordination in efforts to enhance the teaching and learning of engineering related subjects in schools. Following on from Action for Engineering, 1997 was designated as the Year of Engineering Success (YES), for which DTI has provided funding.

"Intellectual property rights and patenting"

  34.  Management of intellectual assets is a key part of overall company strategy, linked to business and marketing plans. This will help to determine whether formal protection of their intellectual property is the appropriate strategy, or whether, for example, a strategy based on free distribution of enabling technologies, one of "find and exploit"—moving rapidly into the market—or one based on confidentiality agreements is more appropriate. Typically, this will depend on the nature of the sector and product, the level of R&D input needed to produce a viable product or service and the extent to which they wish to collaborate with other companies or organisations. The appropriate strategy is therefore likely to be radically different for the pharmaceuticals sector or for the producer of fast-moving consumer goods. However, each must understand fully the range of options available if they are to adopt the correct approach to match their corporate strategy.

  35.  There is evidence that amongst some businesses, particularly SMEs, a number of difficulties are experienced with the formal protection IPR. These include: a lack of understanding of how the system operates; difficulties or an unwillingness to meet the costs of protection; and uncertainties that any IPR secured can successfully be defended. To address some of these difficulties and to encourage use of the system, official fees for filing and processing applications up to grant of rights are kept very low and also the Patent Office provides advice on protecting IPR. Administration costs are recouped from fees payable to renew rights for a period of up to 20 years; this way, only the owners of commercially successful patents are called upon to contribute to maintenance of the system. However, since intellectual property consists of exclusive or monopoly rights, procedures for their grant and enforcement are necessarily detailed and depend upon legal precedents. This has some deterrent effect on those who are unfamilar with the system. To help overcome this, the Patent Office produces comprehensive explanatory literature, maintains a web-site and runs training sessions on the value that intellectual property can add to a company's business, for intermediaries such as Business Advisers in Business Links, bankers, solicitors. The Patent Office is also working with AURIL—the organisation representing university industrial liaison officers—to produce training material for academic researchers and a web site. However, the Department realises that some organisations still find difficulty with the current system and is therefore always prepared to listen to the comments of users and to try to meet their needs as far as possible.

"The provision of finance to support enterprises involved in the application of research and innovation"

  36.  It is widely recognised that the quality and quantity of investment in innovation, including R&D, plays a key role in the longer term success of companies of all sizes. With markets becoming ever more global, and product life-cycles decreasing, investment in innovation is key to maintaining a competitive edge.

  37.  How to finance this investment is a matter which varies by sector, by firm size and by the stage of development of the firm. Small firms, in particular often need to look for external sources of finance. For many start-up firms, money is made available from (a mixture of) own funds, family and friends and local banks. For those developing or using high-technology products or services, however, the costs are often much higher, while the associated risks mean that equity finance can be as appropriate, or more so, than debt finance. This is especially the case for many start-up firms that may not have the assets to offer as security against a loan.

  38.  For small growth firms looking to finance innovation and R&D, other sources of finance include Business Angels. These are usually experienced business people who invest between £10,000 and £100,000 as equity (informal venture capital) in small growth firms. In this way, they fill an important gap in the funding cycle, as many formal venture capital companies will generally not consider providing less than around £100,000 due to the costs of appraising the proposal and the long lead times relative to other forms of investment.

  39.  More importantly, however, Business Angels can benefit the small firms through their experience of management and marketing. It is often a lack of expertise in business skills that prevents small firms from securing finance, including equity finance, on acceptable terms. Indeed, while a lack of finance is often quoted as one of the principal problems faced by small firms, many of them lack the entrepreneurial and business skills that would make them attractive investment propositions, and lack the knowledge of many of the potential sources of appropriate finance.

  40.  DTI is committed to helping small firms realise their growth potential and is keen to ensure these firms can access appropriate forms of finance at the right time and cost. As well as providing funding for innovation and R&D through schemes such as Smart, or more generally through the Small Firms Loan Guarantee Scheme, the DTI is seeking to improve the climate for investment in small firms. This includes:

—  improving the regulatory climate for investors to encourage high-quality longer-term investment;

—  helping companies through advice on accessing appropriate finance packages;

—  helping companies to improve their management and marketing skills, which makes them more attractive to investors; and

—  improving the quality and quantity of financing opportunities for high growth small firms requiring early-stage "hands-on" finance.

"The role of the Engineering and Physical Sciences Research Council in fostering technology transfer"

  41.  The Engineering and Physical Sciences Research Council (EPSRC) has promoted the transfer of technology for many years. Its approach is to encourage partnerships between those who generate knowledge and train skilled people and those who use knowledge and employ skilled people in industry. These partnerships can be for collaborative research and industrially relevant postgraduate training, or can involve the flow of people and ideas between academia and industry.

  42.  The Council has played a leading part in establishing and/or running a number of schemes which have knowledge transfer as a key objective, though not necessarily the only objective. EPSRC's industrially-focused PhD programmes, CASE and Industrial CASE scheme, where PhD students have an industrial as well as an academic partner, are amongst the primary mechanisms for this. The Engineering Doctorates, Postgraduate Training Partnerships (PTP) and the Teaching Company Scheme are also used. Firms are required to make a financial contribution in cash and kind in most of these schemes.

  43.  EPSRC also participates in schemes focusing on collaborative research, particularly LINK and IMI (Innovative Manufacturing Initiative). Additionally, it supports many HEI-based collaborative research projects where a company is contributing either financially or in kind to research which is generally further from application than that addressed by LINK; for example, in 1997 every project awarded under the Engineering for Manufacturing Programme required some sort of industrial support. At present there are more than a thousand such projects underway, across the whole of the EPSRC portfolio, attracting over £20 million from industry as well as "in kind" support.

  44.  Recently EPSRC has piloted two new initiatives, both aimed at improving academe-industry links and the exploitation of research results. The first four Faraday Partnerships were announced in July 1997, and a "Year in Industry" scheme, whereby research assistants that had been directly supported on EPSRC collaborative projects are given the opportunity to spend a year in industry transferring the technology and knowledge on completion of the project, was piloted in the Engineering for Manufacturing Programme. Faraday Partnerships are intended to improve the exploitation of research, particularly that which is Foresight-related, and to strengthen connections between the science and engineering base and firms, especially SMEs. An existing centre of excellence, such as a sectoral RTO, is used as the partnership hub. The "Year in Industry" has proved to be very popular and, following a review at a recent Council meeting, looks set to be made available on a Council-wide basis.

  45.  EPSRC has played a leading role in the ROPA (Realising Our Potential Awards) scheme, since its inception in 1994. Although the research conducted with ROPA funding is not collaborative, eligibility depends on prior collaboration with industry and one objective of the scheme is to encourage and reward knowledge transfer activities.

  46.  EPSRC takes an active interest in the way research and knowledge in academia can be effectively exploited. In 1997 the Council undertook an exploitation audit study covering four universities, focusing on exploitation of research that it had funded. A number of generally applicable recommendations are being developed for dissemination.

March 1998