Universities and SMEs 'driving innovation and employment'

Universities have developed valuable ties with small and medium-sized enterprises (SMEs) that are driving forward innovation and employment, according to a new report.

The study by the Institute of Directors and Universities UK, the umbrella group for vice-chancellors and principals, found that 74 per cent of SMEs have worked with a university or higher education institution (HEI) in the past 12 months.

Over a quarter (27 per cent) had recruited recent or post-graduates, while 18 per cent had offered students work experience or sandwich placements and 14 per cent provided formal internships. A further ten per cent had offered work on a live business project as part of a course.

Elsewhere, the study found that 12 per cent of SMEs had taken part in collaborative research with a university and almost one in ten had contracted an HEI to conduct research on their behalf.

Many businesses also took advantage of the 3.7 million days of continuing professional development courses offered by universities each year, with 37 per cent attending lectures, conferences or public events, 12 per cent undertaking personal professional development and seven per cent sending staff on bespoke training programmes.

Some 58 per cent of respondents said the results of their relationship with universities and HEIs were either positive or very positive and 48 per cent felt that universities had changed over the past decade to become more "business-facing".

However, 47 per cent wanted the higher education sector to do more to promote its services to companies.

Universities UK chief executive Nicola Dandridge said: "We know that universities are often the lifeblood of their local economy and are UK-wide worth over £59bn annually. But as higher education enters a new era, it is crucial that universities work even harder to cement their position as vital parts of their local, as well as national, economy. Working with SMEs will be key to this."