B4 INTERVIEW
Oxford University is renowned worldwide as a centre of research excellence. What is less well publicised is how the oldest university in the English-speaking world has transformed itself from a centre of learning into a centre of earning. Simon Sayce talks to Joe Barclay
BUSINESS EDUCATION The average undergraduate spends only 6.3 hours awake each day, of which two will still be in bed and three will be at a pub. Nevertheless, Oxford University has honed the productive use of the remaining 1.3 hours into an art form. Oxford inspires ongoing generations to devote themselves to learning, teaching and philosophical thought at the highest level. Teaching has existed here since 1096 but in 1231 the masters of teaching were recognised as a universitas or corporation. The university developed rather quickly after 1167 when Henry II banned students from attending the University of Paris, which is the sought of protectionist policy that George Bush only dreams of. Oxford has been at the heart of political controversy, scientific discovery and religious revival ever since. In the last century it has become a world renowned centre for the research and development of natural and applied sciences. But the university realises that there are lessons and skills that cannot be easily mastered or taught from within. Some talents have to be found elsewhere. After nine centuries of existence Oxford is getting to grips with the world of business – and we are not talking about 2 minute pitches on Dragon’s Den. Joe Barclay, a commercial banker by trade, overseas this ‘Third stream’ of university activity. The first and second streams will always be research and teaching. ‘I am employed directly by the university itself. My role is to oil the cogs of the wealth creation agenda for the university’ says Barclay with the typical directness of a banker ‘The university is a very
powerful force in the local economy in four key areas: what it spends, the research it conducts, the training and professional development via the Said Business School and last, but by no means least, the creation of businesses through the commercialisation of technology’. In simple but large figures the collegiate University injects an estimated £482 million into the local economy every year and adds £274 million to local disposable income. But while the figures are impressive and talk of the commercialisation of technology or the ‘oiling of cogs’ makes the process sound straightforward, the reality is that it takes an elaborate and complex corporate infrastructure to turn research into fiscal success. Barclay explains ‘An academic working within university research will spend maybe 80% of available time on research and 20% on administration. This does not work in the corporate sector. As a company spins out from the university it needs expertise in finance, accounting, sales, marketing and management. The science remains important but it’s a lesser proportion. Often, if you talk to a scientist about cash flow his eyes glaze over and he nods off. So, on the whole, Managing Directors are found from outside the University’. To make the process happen Oxford University has developed a system which is second to none. It is called Isis Innovation Limited. Isis is a wholly owned subsidiary of the university. Its role is to exploit technology transfer through licensing or the creation of spin out companies. Isis files on average one new patent application a week and spins out a new company from University research every two
months. These spin out companies have already reached a collective value of £2 billion. This activity has a secondary impact on the area as Barclay explains ‘Apart from companies being created locally, another part of the phenomenon is that companies are coming to this part of the world because there is expertise both in terms of personnel and the research capabilities on offer. For instance Sharp Laboratories are here so that they can be close to the University facilities and interact’. The biggest problem is getting good management for the various companies combined, as always, with the funding problem. Here is where the Said Business School, part of the University, plays an increasingly important role. The business school has specialists in entrepreneurship and has a science enterprise centre to help scientists in particular understand business (see: ‘eyes glazing over’). It has had tremendous success in educating scientists with business, management, managing cash flow and setting up companies. The school can even draw on different faculties within the university to bring in experts in areas such as political risk and economics – sometimes critical in the modern global economy. Of course, as any businessman knows, there is always an element of risk and the first two years are critical with any new company. Barclay closes with a fitting analogy ‘These companies are like children. They start off very close to the university and they need careful nurturing in the early days, but eventually they grow up and look after themselves. The bigger ones then `fly the nest’. He pauses before adding ‘Inevitably we have also had a few troublesome teenagers too. That’s life and everyone is human after all’.
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