Examples and Case Studies

Examples and case studies showing the value created by the knowledge ecosystem of the universities

Applied science dries up quickly unless we maintain the sources of discovery in pure science.
Former US President Herbert Hoover (1954)

Advances in knowledge and technology drove more than half of US economic growth during the first half of the 20th century.
Robert Solow, Nobel Prize-winning economist

Mixing research, education and the outside world

For IARU institutions, high-impact research – whether it is fundamental or applied – is an integral part of the university's mission to advance the boundaries of knowledge and contribute to the betterment of society. Fundamental research is of value in its own right and can lead to transformative, early stage technology development. Also, through the dissemination of intellectual capital to the community by publication and the in-depth education of skilled graduates, value is created and expanded.

In these cases, the intertwining of applies research, fundamental research, companies engaging with the university to create research and even employing students or researchers from the university is what creates the full value – not the mere fundamental or applied research in itself.

The IARU knowledge ecosystem

Knowledge never exists in isolation, and the discoveries made at research-intensive universities frequently pave the way for new research to emerge. Through collaborations, different individuals and organizations come together in an ecosystem of learning and knowledge, each adding its own value to the larger perspective and aiding in uncovering significant new knowledge, coming together to increase the flow of knowledge.

Within IARU, the various institutions have come together to work on a series of research projects, drawing on the different strengths and expertise of the parties involved to attain even more knowledge on the relevant research topics. Two examples of such projects are the "Aging, Longevity and Health" initiative and the "Sustainable Cities" research project. The former leverages on the research done at respective IARU universities and integrates them in a multidisciplinary manner, so that various factors such as epidemiology and cultural traits can be taken into account in identifying biomarkers and planning interventions. The latter project combines interlinked sub-projects led by different IARU partners in order to derive a better, cross-disciplinary understanding of how to achieve sustainability in cities through a range of different approaches such as food flow, carbon use and land use.

Major advancement in sciences and technology are drawn from many other disciplines

Research in the sciences and technology has traditionally received greater attention, again due to assumptions about practical worth, but the complex nature of research advances usually does not allow for any innovation to be tracked back to a single source, study or even discipline. Research frequently builds upon the new knowledge discovered by previous research in many areas.

Lord Krebs, in his evidence to the House of Commons Innovation, Universities, Science and Skills Committee (2008-9), pointed to a study by Sir William Paten described in his book, "Man and Mouse", in which ten key advances in cardiovascular medicine were traced back to about 600 papers from 400 different disciplines. Over 40% of them had nothing to do with cardiovascular medicine and many of them were not carried out in medical departments but in departments of chemistry, engineering, physics, botany, agriculture, zoology etc.

Similar examples can be found at IARU institutions. For instance, the National University of Singapore is currently undertaking a research project "Biology of Decision Making under Risk", a project combining the fields of psychology and economics, and involving methodology employed in the neurosciences, psychology, experimental economics and human genetics.

Direct contact with research and researchers will impart greater depth of knowledge to students

In a speech on "Undergraduate Education and the Research University" former Yale President Richard Levin shared the many "special advantages" that come with education at a research-intensive university. Most notably, he highlighted the opportunities for students to be mentored by, and work alongside, leading professors in the fields of history, art, geology and evolutionary biology, among other areas, drawing directly from rich resources available at the university museums – Yale Art Gallery, Centre for British Art and Peabody Museum of Natural History. There are countless other examples of pioneering research and ground breaking solutions developed in laboratories by researchers who also mentor and teach.

Research-led education emphasizes how knowledge constantly grows and new discoveries are made, spurring students on to learn actively and through experience, rather than be passive recipients of existing knowledge. At Yale and many other research-universities, students follow professors on research trips, which will then be further analyzed at the university's laboratories. For example, in a biology forest expedition, Yale students found organisms which effectively degrade plastic and are looking into their potential for practical use in the biodegradation of plastics.

Education through research delivers not only knowledge but also skills of questioning and inquiry

Research invigorates young minds with the fundamental skills of questioning and inquiry. A critical mind is key to conducting quality research, but the ability to view things from an analytical standpoint extends itself far beyond the immediate and even beyond academia.

The process of research involves multiple skill sets, from the ability to identify and ask important questions in the earliest phases of research, to analytical skills involved in examining and understanding the data derived, to drawing a conclusion based on the 'bigger picture'. Eventually, a deeper understanding of the real-world significance of research findings is required in drawing up further studies and coming up with applications that build upon the knowledge created through such research.

The development of these skill sets ensures that the process of research delivers not just new knowledge, but also the ability to seek even higher learning and apply oneself beyond the immediate context. For instance, Dr. Saravanan Kuppan at the National University of Singapore developed a novel-architectured mesoporous titanium dioxide (TiO2) in his PhD thesis for the Department of Chemistry, and set about applying it in the area of environmental sustainability, through usage in lithium-ion batteries to aid in more efficient energy storage.

Research-led education produces high-quality graduates that are attractive to employers and organizations

Graduates of research-intensive universities are not just trained academic minds; they are assets to potential employers and the economy. The qualities that they pick up are prized by organizations and corporate entities, with such recognition manifesting itself in terms of employment, status and opportunities in life.

Here are some examples from IARU institutions:

• The average Cambridge graduate receives £4,100 more in Government teaching grant support than the average UK graduate but contributes a net present value (NPV) of approximately £61,100 more in income tax during their working life. This additional teaching grant support produces a return on investment, measured in income tax paid, of approximately 13.9 times.
• In 2008, a study by BusinessWeek.com placed Yale alumni at the top of the list in terms of midcareer salaries, with top earners from Yale bringing home US$326,000 per annum, compared to a public university whose highest earners were paid US$124,000 per annum. Starting salaries at Yale were also among the highest in the nation at US$59,100 per annum.

Graduates of research-led education are community-minded and contribute positively to society

Beyond academics and economics, research-intensive universities seek to nurture well-rounded individuals with community-minded values, with an eye on giving back to society. Environmental friendliness is a key objective of the Berkeley PowerSave Green Campus program – a student-driven effort towards sustainability. The program utilizes innovative methods such as energy-saving contests between residential halls ("Blackout Battles"), fraternity houses ("Green Cup") and laboratories ("Shut the Sash") to raise interest and awareness in combating environmental issues. At the Yale School of Architecture, service to the community takes the form of The Vlock Building Project, which aids the community in New Haven through designing and building low-cost residences in the area. Every first-year architecture student participates in the project, with the resultant housing helping to provide home ownership and stability to the city. More than 7,700 University of Cambridge students and staff take part in voluntary work, in which student societies take an active role, contributing the equivalent of £3m worth of time to help nearly half a million people annually.

Applicable research leading to patent / licensing / spin-off companies

Building on foundational knowledge gained through basic research in research-intensive universities, applied research can be conducted with an eye on economic benefits. Many innovations have resulted from such research work, leading to new corporate entities that function on bringing the applications and associated benefits of research to the world at large.

At the University of Cambridge, more than 50 companies have spun-out directly, with the university investing in internal organizations and policies designed to manage intellectual property, generate contracts, and support licensing and spin-outs.

Within the University of Oxford, commercialization of intellectual property is undertaken through ISIS Innovation, which has established 50 spin-out companies over the last five years.

At ETH Zurich, researchers and students have set up 110 spin-off companies in the period 2010-2014. According to an internal survey of ETH spin-offs, they generated sales of CHF 585 million in 2013. The survey also found that the start-ups had created around 2,500 jobs by 2013. Non-directly quantifiable benefits include the formation of innovation clusters and the attraction of highly qualified students and faculty to ETH Zurich. ETH spin-offs also have significantly higher survival rates, create more jobs, attract more venture capital and Angel investments and provide higher returns on equity than the average of all Swiss start-up companies created over a similar time period.

How the Berkeley knowledge ecosystem creates everyday value

For residents living near research-intensive universities, they are likely to have benefitted from such an ecosystem – whether they know it or not! For example we follow Jill, living in Berkeley, California, on her morning run:

1. Gets up, has a couple of Cutie Oranges (UC Riverside)
2. Plots her route on an internet map (UC Irvine, HTTP development)
3. Turns on her iPod (UCLA)
4. Heads to Fort Point National Park (UC Berkeley Alumnus, Horace Albright, Conservationist)
5. Runs on her repaired knee (UCSF Medical Centre)
6. Past the clean lakes maintained by UC San Diego, Clean Water Initiative

Providing thought leadership, consultation and expertise for industry, government and society

Corporate organizations often rely on the foundational knowledge generated by research within universities for their own industrial advances. Likewise, government bodies and the society at large also draw upon the expertise of these institutes in strategic planning and policy-making. Key decisions can be made confidently based on the strength of such knowledge.

The University of Copenhagen, for instance, provided value to industry partners, increasing their productivity per employee by a yearly average of 6.5 %. The positive causal link to increasing productivity corresponds to an annual net gain of €7,000 per employee on the bottom line for each company as an effect of collaborating with the university. On average, this corresponds to a yearly €2.43 million improvement of the bottom line of each industry partner, as the average company size is about 350 employees.

The University of Oxford employs a dedicated consultancy staff serving an international clientele. One such partnership was established in September 2007 with hedge fund provider Man Group, resulting in the set-up of the Oxford Man Institute of Quantitative Finance. The organization provides investment for the university, while the university provides research access and expertise to its partner.

Knowledge Bank

Documenting the value of research-intensive universities.

The value of research-intensive universities has been documented in quite a few reports both from IARU institutions and from other institutions and organizations. The following lists some of the many reports on the different aspects of the value of research-intensive universities.

Reports from IARU members

• Innovation at ETH Zurich
• Success stories of Peking University
• The University of California's Economic Contribution to the State of California (University of California, Berkeley, 2011)
• Research impact case studies of University of Cambridge
• Measuring the Economic Effects of Companies Collaborating with the University of Copenhagen (University of Copenhagen, 2012)
• Research impact case studies of University of Oxford
• Economic Growth and Fiscal Impact of Yale University (Yale University, 2013)

 HEFEI Statement

• HEFEI Statement on the Ten Characteristics of Contemporary Research Universities (2013)
  

 Association of American Universities (AAU)

• Reassessing the Value of Research Universities (2009)
• Research Universities: Their Value to Society Extends Well Beyond Research (2009)

League of European Research Universities (LERU)

• Opinion piece: Economic growth will come  from Europe's research universities (2012)
• Research universities and research assessment (2012)

Russell Group

• The economic impact of research conducted in Russell Group universities (2010)
• Juwels in the crown: The importance and characteristics of the UK's world-class universities (2012)

Universities UK

• Driving Economic Growth (2011)

European Commission

• Assessing Europe’s University-Based Research (2010)

Group of Eight

• Measuring the impact of research – the context for metric development (2011)
• Discussion paper: The role and importance of research intensive universities in the contemporary world (2013)

Related articles

• The future of research universities. Is the model of research-intensive universities still valid at the beginning of the twenty-first century? (2007)
• The Advantage of the Research-Intensive University: The University of the 21st Century (1998)

The Knowledge Ecosystem

The main value streams of universities are interrelated and interact in a way that creates value far beyond the simple sum.

The fundamental contribution to society by universities lies in creating and passing on knowledge for its own sake and engaging with society in its application.

Universities today are an integral part of society, actively participating in fulfilling “a third mission” for universities, namely involvement in socio-economic development, thus becoming the third element of what has been described as the “triple helix” – the collaboration between Government, Industry and Universities in order to create innovation and economic growth.

Today there is a clear tendency that universities contribute more and more to solving the grand challenges of society. This also leads to an increasing demand (for instance from foundations) for more holistic solutions, involving interdisciplinary research in order to solve these challenges, which continues to grow in complexity. Thus there is not only a greater focus on the triple helix model, mixing Government, University and Industry, but also a demand for universities to mix disciplines in order to come up with sustainable solutions to the challenges societies are facing.

This means that the way of looking at the value of a university should change.

IARU argues that the output of research intensive universities today can be divided into three main value streams:

• Research (production and distribution of new knowledge through articles, publication and access to research)
• Education (the knowledge and “soft skills” of candidates)
• Technology transfer (collaboration with the outside world, hiring of graduates by industry, consultancy, patent/licensing/spinoff companies)

Besides these quantifiable indicators, it is also both useful and necessary to show the value of these streams by using cases, showing the concrete examples of how education, research and technology transfer constitute value for the universities, companies and for society as a whole.

A new way of describing the special value of research intensive universities: The knowledge ecosystem

While it can make sense to measure the value streams separately, IARU argues that the crux of the specific value of research intensive universities is that the three main value flows of universities are interrelated and interact in a way that creates value far beyond the simple sum.

The fact that the three flows are gathered in one university, in the same organisational and physical space, is a key to understanding the special value of research intensive universities. Research, education and exchange of knowledge with the outside world fertilize each other: Challenges met by industry and society may inspire new basic (= not yet applied) and applied research, contact with students inspires the researcher, researchers include students in their work on research projects, companies exchange knowledge with graduates when they employ them or through internships, student projects etc.

This means that research intensive universities are able to simultaneously perform fundamental research with a sufficiently broad scope and adequate cost-effectiveness, be the pacemaker for the creation of new products and technologies, a think-tank for governmental strategies and regulations, a provider of skilled manpower to industry and society and provide valuable input to society and the way we think about life, culture, history – i.e. research that expands intellectual breadth and develops ideas and discourses about human experiences which will prepare us more effectively for an increasingly global and cosmopolitan world: Things which are not only giving us something to live from, but also to live for.

Another valuable consequence of this inseparable link between education, research and knowledge exchange is that research intensive universities always will be sure of creating value for society : By definition the outcome of research must be unknown from the outset. But at the end of a failed experiment, a university has at least educated a researcher. This is an important part of the value that universities create.

A way to describe this special value of research intensive universities caused by intertwined value streams – and thus painting a fuller picture of the value of universities – could be to show the vitality of this “knowledge ecosystem”.

In the ecosystem we include the interaction between the three value streams, taking place at a research intensive university and in relation to the outside world: The special value produced in the space between research and education. Between knowledge exchange with the surrounding world and research. And between education and knowledge exchange.

This cannot be done by using numbers. It has to be done by using words, describing the cases from real life to show how the ecosystem creates value. IARU thus believes, that much more emphasis should be put on telling the many stories of how research, education and knowledge exchange at the research intensive universities creates value far beyond a mere input/output point of view.

As IARU members we will strive to tell the stories of how the knowledge ecosystem works and we will, when possible, urge politicians and other opinion makers to apply this perspective and not only the quantifiable a perspective when discussing the value of universities in the future.

Value of Research-Intensive Universities

Research-intensive universities are among the best assets that a society can invest in because they are the key to ensure the future of a nation, especially in the increasingly vulnerable and unpredictable global environment when "bodies of knowledge" become rapidly outdated and irrelevant and the ability to adapt to rapid change and formulate new approaches is vital.

Research generates new value

For decades, the IARU Universities and their partners have fostered excellence in research, education and service. Yet in most, or all, of our respective countries there is an increasing demand to justify the expenditure on research, education and universities generally in terms of economic benefit.

It is clear to us that research-intensive universities bring substantial economic benefit to society in multiple ways, direct and indirect. They also bring much more. Through their research, academics make new discoveries and create new understanding. These are essential for advancement and progress in almost any field of human endeavour.

The Knowledge Ecosystem

Applying standard metrics do not adequately show what IARU considers to be the special value of research-intensive universities: The fact that research, education and technology transfer, are concentrated in the same physical space and constitute a critical mass of excellent researchers and students, state-of-the-art infrastructure and innovative spirit. This is only indirectly encompassed in simple in- and out-put metrics.

The key to understanding how research-intensive universities create value lies in what happens when the elements co-exist and form what could be described as a “Knowledge Ecosystem”.

IARU suggests that a comprehensive way to describe the overall value creation of research-intensive universities should include this knowledge ecosystem.

As such, we must describe what – in addition to metrics for isolated research, education and technology transfer flows – can document the effects of the synergy created by the co-existence of research, education and technology transfer. On this website we will try to do just that.

IARU Position Paper on the special value of research-intensive universities