As the global marketplace grows increasingly competitive, small businesses in the UK are continually looking to find new ways to progress and expand by adopting innovative practices. However, ambitions to innovate are too often hindered by real or perceived barriers relating to finance, skills or resources. Yet the government acknowledged in its Innovation Nation white paper, published earlier this year, that innovation is a crucial driver for raising productivity and boosting long-term economic prosperity.
The most effective innovative practice extends beyond what can be seen as more tangible sources, and looks at harnessing skills and knowledge, both within a company's existing workforce and beyond. This area - known as knowledge transfer, or exchange - is one through which many UK businesses could achieve a significant return.
Knowledge transfer is the process by which companies can access the expertise that exists within the UK knowledge base: that is universities, colleges and public and private sector research and technology organisations.
The process of knowledge transfer is often interpreted as the exploitation of intellectual property through joint ventures, licence agreements, patents, spin-outs etc. However, businesses should not ignore the very real opportunity for knowledge transfer to take place through the development of strategic, collaborative relationships between organisations and the individuals within them.
The Knowledge Transfer Partnership Programme (KTP) has been developed as a model to deliver effective partnerships between individual companies and academia, helping businesses improve their competitiveness, performance and productivity. More than 1,000 businesses have benefited from KTP in the last year alone.
Driven by the specific needs of each participating business, the scheme takes a structured but flexible approach. Each partnership employs one or more high calibre associates (recently qualified graduates) on a specific, strategic project. The associate works within the company for the lifetime of the project - normally between one to three years - and from the start is charged with the ownership and delivery of the project.
The knowledge base partner (academic institution) develops a relevant and improved understanding of the challenges companies' encounter which, in turn, stimulates business-relevant teaching material and new research themes.
The benefits to a company are wide-ranging. As a result of the government money committed to KTP during 2006/07, for example, UK companies stand to benefit from an overall increase in annual profit before tax of some £100m, with over 1,400 new jobs created and more than 6,200 company staff trained.
KTP in practice: Caledonian Aerotech
One company
that has grown significantly as a direct result of the knowledge transfer
achieved through its KTP project is Caledonian Aerotech Limited.
The company has carved a lucrative niche in the multi-billion dollar global aerospace market by recycling the special alloys used in the production of aircraft engines, land-based turbines and in the petrochemical industries. A core process is recovering the metal left after machining, which is then cleaned, graded and prepared to be returned to specialist melters for re-use.
Through the KTP project, Caledonian Aerotech was able to work with knowledge base Heriot-Watt University to identify and implement a means of reducing the environmental impact of this cleaning process, while improving the effectiveness of the process and realising large cost savings.
The KTP also led to the company's enhanced credibility among large multi-national companies and opened opportunities in a previously closed market in the USA. Following the success of the KTP project 19 new staff have been employed.
"The KTP provided the company with a focus for research, development and innovation," said Hugh Stewart, chairman of the company. "We got clarity and projects started to happen. Getting involved with KTP had the effect of broadening our horizons and I have no doubt it will help us enter new markets."
Dr Debbie Buckley-Golder is programme director at Knowledge Transfer Partnerships. For further information on the benefits Knowledge Transfer Partnerships can offer, visit www.ktponline.org.uk, call 0870 190 2829 or email companies@ktponline.org.uk