The end of 2009 has brought with it a range of lively debates and issues likely to impact on businesses in the year ahead. This includes global issues, as well as events closer to home such as the HM Treasury's Pre-Budget Report.

Autumn last year also saw the release of the national framework for higher education, Higher Ambitions: The Future of Universities in a Knowledge Economy (HE). This outlined proposals to align higher education with the prosperity of the UK's economy. Within this framework the government emphasises the importance of knowledge exchange and innovative collaboration between HE and business sectors.

This link was also echoed by Chancellor Alistair Darling, who recently highlighted that, as host to four of the world's top ten universities, the UK must find ways to effectively translate innovation and invention into economic growth.

Within Knowledge Transfer Partnerships (KTP) we have been encouraged to find evidence that SMEs have continued to invest in collaboration and innovation, despite the recession. These positive results were announced in our latest annual report, which revealed that during 2008/09, a time in which the recession had firmly taken hold, 24% more new KTP projects were approved than during the previous year - contributing to a portfolio of just under 1000 ‘live' KTP projects.

The findings revealed that SMEs continue to make up the largest proportion of KTPs, accounting for around 300 projects, illustrating that smaller firms are increasingly seeing the value of collaboration by helping to boost innovation, improve staff training and increase profits.

Part of the success of the programme lies in its flexibility and responsiveness to the changing economic environment. Several new initiatives, such as shorter KTPs and an increase in grant funding for SMEs, have meant that, despite a very challenging year, hundreds of businesses have been able to start their innovation journey.

As businesses start to adapt to the prospect of economic recovery, it is those core business processes founded in innovation that will prove to be the vital ingredients in speeding future growth. For example, we have seen an increase in the number of IT-related projects taking place over the last year.

One example is an IT project in Wales undertaken to develop and implement a new software system to enhance a company's
farming wholesale and retail network. The project saw the company upgrade its communications system, which successfully enabled easier and more secure correspondence between its 17 branches. Graduate Associate Daniel Davies was responsible for the selection
and implementation of the innovative new software system and following the project's completion was appointed as the organisation's IT Manager.

The latest information available shows that, on average, the business benefits that can be expected from a single KTP project are an increase of over £270,000 in annual profits before tax, the creation of three genuine new jobs and the additional training of 14 existing employees. Such impressive results are evidence that whatever 2010 holds in store, a curiosity and a commitment to knowledge transfer is a resolution that all businesses should be making this year.

For more information please visit www.ktponline.org.uk [1]or ring 0870 190 2829.