<strong>Creat<strong>in</strong>g</strong> <strong>Prosperity</strong>: <strong>the</strong> <strong>role</strong> <strong>of</strong> <strong>higher</strong> <strong>education</strong><strong>in</strong> driv<strong>in</strong>g <strong>the</strong> <strong>UK</strong>’s creative economy244.27 The new landscape for economic development <strong>in</strong> England is start<strong>in</strong>g to take shape through <strong>the</strong>submission <strong>of</strong> bids for new Local Enterprise Partnerships (LEPs) and <strong>the</strong> planned centralisation<strong>of</strong> functions such as <strong>in</strong>novation. While <strong>the</strong> details are still to be clarified <strong>in</strong> <strong>the</strong> Government’s WhitePaper (imm<strong>in</strong>ent at <strong>the</strong> time <strong>of</strong> writ<strong>in</strong>g), it is important that <strong>the</strong> <strong>role</strong> <strong>of</strong> universities is recognisedand supported with<strong>in</strong> this new <strong>in</strong>frastructure.4.28 It is clear, <strong>the</strong>n, that <strong>higher</strong> <strong>education</strong> research <strong>in</strong> areas relat<strong>in</strong>g to <strong>the</strong> creative economy is<strong>in</strong>creas<strong>in</strong>gly multi-discipl<strong>in</strong>ary <strong>in</strong> its focus. This shift is well aligned with <strong>the</strong> direction <strong>of</strong> travel <strong>in</strong> <strong>the</strong>creative <strong>in</strong>dustries and <strong>the</strong>ir markets, particularly as digital technology cont<strong>in</strong>ues to blur <strong>the</strong> dividebetween creativity and science. It is also <strong>in</strong>creas<strong>in</strong>gly important as <strong>the</strong> application <strong>of</strong> creativity extendsfur<strong>the</strong>r beyond <strong>the</strong> creative <strong>in</strong>dustries <strong>the</strong>mselves <strong>in</strong>to wider markets such as defence, healthcareand learn<strong>in</strong>g.4.29 However, <strong>the</strong> case study evidence also suggests that much <strong>of</strong> this activity takes place <strong>in</strong> spite <strong>of</strong>sometimes <strong>in</strong>flexible faculty structures <strong>in</strong> universities and <strong>the</strong> subject-based nature <strong>of</strong> fund<strong>in</strong>gpolicy and research assessment. That <strong>the</strong>se k<strong>in</strong>ds <strong>of</strong> barriers persist at a time when <strong>the</strong>re is a clear<strong>in</strong>dustry rationale for multidiscipl<strong>in</strong>ary work<strong>in</strong>g argues for an approach that is more flexible, andmore sensitive to <strong>the</strong> needs <strong>of</strong> <strong>the</strong> creative economy.4.30 Industry engagement and collaboration was also a common feature <strong>of</strong> <strong>the</strong>se multidiscipl<strong>in</strong>aryresearch <strong>in</strong>itiatives. New models <strong>of</strong> <strong>in</strong>dustry engagement with research are evolv<strong>in</strong>g, particularlywith <strong>in</strong>dustry partners <strong>in</strong>volved at <strong>the</strong> outset <strong>in</strong> sett<strong>in</strong>g research agendas and shar<strong>in</strong>g resources. Thischange is not exclusive to <strong>the</strong> creative economy; ra<strong>the</strong>r, it is a pattern that is reflected <strong>in</strong> <strong>in</strong>novationpractice more generally. However, evidence from our research, especially <strong>the</strong> case studies, suggeststhat <strong>the</strong> creative <strong>in</strong>dustries are at <strong>the</strong> forefront <strong>of</strong> this th<strong>in</strong>k<strong>in</strong>g, despite <strong>the</strong> fact that <strong>the</strong>se activitiesare not always well resourced, and <strong>in</strong>centives <strong>of</strong>ten work aga<strong>in</strong>st, ra<strong>the</strong>r than for, engagementwith <strong>the</strong> creative economy.4.31 The degree <strong>of</strong> reliance on funds such as HEIF and <strong>the</strong> RDA S<strong>in</strong>gle Programme budget <strong>in</strong> England, andenterprise and knowledge exchange fund<strong>in</strong>g <strong>in</strong> <strong>the</strong> devolved nations, must also be a concern as publicf<strong>in</strong>ance comes under grow<strong>in</strong>g pressure. In <strong>the</strong> CSR, <strong>the</strong> Government announced plans to review andreform HEIF, and enterprise fund<strong>in</strong>g will be significantly reduced. One solution would be to f<strong>in</strong>d morecommercially susta<strong>in</strong>able models through deeper and wider <strong>in</strong>dustry engagement. In <strong>the</strong> creativeeconomy, where companies tend to be small and f<strong>in</strong>ancially constra<strong>in</strong>ed, <strong>the</strong> key to this may be toaggregate demand <strong>in</strong> ways that share out <strong>the</strong> costs while still support<strong>in</strong>g valuable academic <strong>in</strong>putto <strong>the</strong> <strong>in</strong>dustry.4.32 Although <strong>the</strong> <strong>in</strong>vestments <strong>of</strong> <strong>the</strong> research councils are substantial, an unknown proportion <strong>of</strong> thiswill be <strong>in</strong> areas that impact on <strong>the</strong> creative economy. In fact, given <strong>the</strong> diverse range <strong>of</strong> discipl<strong>in</strong>esthat could contribute to <strong>the</strong> creative economy, mapp<strong>in</strong>g <strong>the</strong> totality <strong>of</strong> this activity would be nosmall undertak<strong>in</strong>g.4.33 However, <strong>the</strong>re can be no doubt that <strong>in</strong>vestment <strong>in</strong> creative economy-related research, evenaccount<strong>in</strong>g for <strong>the</strong> DEP (which arguably extends beyond <strong>the</strong> creative economy), is dwarfed by<strong>in</strong>vestment <strong>in</strong> science. This is re<strong>in</strong>forced by <strong>the</strong> recent protection afforded <strong>the</strong> science budget <strong>in</strong><strong>the</strong> CSR. Given <strong>the</strong> importance <strong>of</strong> <strong>the</strong> creative <strong>in</strong>dustries to <strong>the</strong> <strong>UK</strong>’s economic future and <strong>the</strong> <strong>role</strong><strong>of</strong> arts and humanities research, particularly with<strong>in</strong> multidiscipl<strong>in</strong>ary approaches, this may bean unsusta<strong>in</strong>able position.4.0 Higher <strong>education</strong>’s contribution
<strong>Creat<strong>in</strong>g</strong> <strong>Prosperity</strong>: <strong>the</strong> <strong>role</strong> <strong>of</strong> <strong>higher</strong> <strong>education</strong><strong>in</strong> driv<strong>in</strong>g <strong>the</strong> <strong>UK</strong>’s creative economy25p The Human Centred Design Institute at Brunel University is work<strong>in</strong>gwith partners such as MIRA Ltd, TRW Automotive and <strong>the</strong> Institute <strong>of</strong>Advanced Motorists to design an <strong>in</strong>-car <strong>in</strong>terface to encourage safe andeco-friendly driv<strong>in</strong>g without overload<strong>in</strong>g or distract<strong>in</strong>g <strong>the</strong> driver. Sucha f<strong>in</strong>e balance can only be achieved through human-centred design.Proposition 2.Higher <strong>education</strong> is adapt<strong>in</strong>g new models <strong>of</strong> <strong>in</strong>teraction with <strong>the</strong> creative economy.• Knowledge exchange between <strong>higher</strong> <strong>education</strong> and <strong>the</strong> creative economy is both extensive andvaried <strong>in</strong> its form, reflect<strong>in</strong>g <strong>the</strong> diversity <strong>of</strong> both <strong>higher</strong> <strong>education</strong> and <strong>the</strong> creative <strong>in</strong>dustries.• Interaction is more <strong>of</strong>ten based on collaboration, consultancy, CPD and access to facilities thanresearch commercialisation, aga<strong>in</strong> <strong>in</strong> l<strong>in</strong>e with <strong>in</strong>dustry needs.• There are real challenges for <strong>higher</strong> <strong>education</strong> <strong>in</strong> <strong>in</strong>teract<strong>in</strong>g with a fragmented <strong>in</strong>dustry base,although universities are f<strong>in</strong>d<strong>in</strong>g ways <strong>of</strong> do<strong>in</strong>g this which deliver benefits to bus<strong>in</strong>esses andto <strong>the</strong> <strong>in</strong>stitutions <strong>the</strong>mselves.• Many <strong>of</strong> <strong>the</strong>se <strong>in</strong>itiatives are supported by fund<strong>in</strong>g streams that are now under real pressure.4.34 Research activity on its own is necessary but not sufficient for <strong>in</strong>dustry growth. It is <strong>the</strong> application<strong>of</strong> research outputs that will drive <strong>the</strong> impacts <strong>of</strong> <strong>higher</strong> <strong>education</strong> research activity with<strong>in</strong> <strong>the</strong>creative economy – <strong>the</strong> knowledge exchange agenda.4.35 Knowledge exchange activity between <strong>higher</strong> <strong>education</strong> and <strong>the</strong> creative economy is multifaceted andwidespread. It <strong>in</strong>volves all k<strong>in</strong>ds <strong>of</strong> <strong>in</strong>stitutions and discipl<strong>in</strong>es, <strong>in</strong>clud<strong>in</strong>g Russell Group <strong>in</strong>stitutionsand <strong>the</strong> less research <strong>in</strong>tensive universities (PACEC, 2010).4.36 Knowledge exchange activities <strong>in</strong> <strong>the</strong> creative economy do not conform to science-based, l<strong>in</strong>earmodels (as discussed earlier). Instead, activity is typically more focused on collaboration, consultancy,CPD and enterprise development than contract research, prototyp<strong>in</strong>g or jo<strong>in</strong>t research. As a result,traditional measures such as patents, licences and university sp<strong>in</strong>-outs have less relevance, yet<strong>the</strong>se measures still carry some weight for universities and fund<strong>in</strong>g bodies.4.37 The creative <strong>in</strong>dustries are also strongly focused on <strong>the</strong> creation and subsequent exploitation <strong>of</strong><strong>in</strong>tellectual property (IP), an issue that can be a barrier to successful research collaboration. Notonly can contractual negotiations over <strong>in</strong>tellectual property ownership create delays <strong>in</strong> <strong>the</strong> researchprocess, but <strong>the</strong>re is a reported tendency for <strong>higher</strong> <strong>education</strong> to over-value its <strong>in</strong>tellectual property.4.0 Higher <strong>education</strong>’s contribution