One way to exploit business growth opportunities is through the national Knowledge Transfer Partnerships (KTP) programme, which has helped UK businesses benefit from over £126m annual profit before tax, as well as the creation of some 1,120 new jobs and over 6,500 business staff trained.
The programme, which is overseen and funded by the Technology Strategy Board, supports business innovation by facilitating collaborative partnerships with further and higher education institutions and insists that now is an ideal time for businesses to increase their competitiveness and create growth opportunities.
"The most successful companies are those to which innovation is an ongoing process, and which recognise that embedding the right capabilities in the business is vital," says Paul Naylor, KTP Adviser.
"The higher education sector boasts a wealth of specialist knowledge and expertise that is available for businesses to exploit. In my experience, once a business has engaged with the higher education sector, the partnership extends beyond the lifespan of the project, therefore enabling a genuinely innovative long-term approach."
KTP works with businesses of all sizes across all sectors of the UK economy and provides businesses with access to the knowledge and skills of academics within UK universities and colleges. Put simply, a project is set up between an academic institution, known as the knowledge base, and a business in order to deliver an innovative project to improve the business' performance.
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The partnership employs one or more high calibre Associates (recently qualified graduates) to work in the business, on the project and - with support and guidance from the academic team - the Associate is charged with the project's ownership and delivery. Types of projects vary according to the business need: the idea behind KTP is to support the UK to compete in a global marketplace, which means individual challenges for individual businesses.
In a move to encourage SMEs that have had little or no experience of innovation, the government has launched a new range of KTP projects that last approximately ten to 40 weeks. These shorter projects mean that organisations can drive forward business transformation and stimulate growth within a short time frame.
Having tasted innovation through shorter KTPs, companies often wish to participate in longer, more strategic projects. KTP projects lasting from 12 months to three years aim to provide organisations with a richer experience of innovation. It is here that the culture can begin to shift significantly, as innovation as a way of thinking is fully anchored within the business. Results show that on average each business taking part in a KTP at this level benefits from an additional £270,000 in annual profits before tax and the creation of three genuine new jobs - results that can make the difference between being a leader or a follower.
KTP projects are part-funded by the government with the balance of the costs coming from the business partner. An SME can expect to contribute a third of the project costs while a large organisation would contribute a half. Bearing in mind the dedicated resource of experts the business is supported by, the investment the business makes to a KTP project is significantly lower than the cost of raising external finance. Additionally, the collaboration actually helps to lower the risk of innovation, as a much wider range of research can be undertaken and captured, thereby increasing the chances of a successful technological and commercial outcome.
KTP projects are also extremely flexible. For instance, there are opportunities for firms to collaborate on KTPs with other businesses in their supply chain or with trade associations. A typical collaborative KTP is a partnership following the structure of a classic KTP, but where the business is also acting on behalf of a number of other companies. It may be a trade association acting on behalf of a number of their members, or a single business acting as business partner but ensuring the knowledge transferred is embedded in both their own and other organisations.
Alternatively, a supply chain KTP is formed when a group of businesses are trying to address issues in the supply chain, for example, to improve efficiency. Here, the members of the supply chain are involved in a single project and a multiple member collaboration agreement is required to ensure mutually beneficial and successful outcomes are achieved.
It is clear that in the still challenging economic climate one way to exploit business growth opportunities for companies of all sizes is through KTP's range of programmes.
If you would like to take advantage of the skills and funding available through KTP please visit www.ktponline.org.uk or call the KTP helpline on 0870 190 2829
