the role of universities in the current economy 2 reid.pdf · 1980 rank gdp at ppp* 2009 rank gdp...

The Role of Universities in the

Current Economy

Dr Graeme Reid

KE Scotland Conference 5 October 2012

Global Average GDP per Capita

0

1000

2000

3000

4000

5000

6000

7000

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Years

Inte

rnat

ion

al D

olla

rs (

PP

P)

Source: J. Bradford De Long Estimates of World GDP, One Million B.C. – Present (1998)

Global Average GDP per Capita

0

1000

2000

3000

4000

5000

6000

7000

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Years

Inte

rnat

ion

al D

olla

rs (

PP

P)

Source: J. Bradford De Long Estimates of World GDP, One Million B.C. – Present (1998)

Recessions

Source: National Institute of Economic and Social Research, 2012

Increasing competition

Source: World Bank, PWC model estimates for 2050

1980 rank GDP at PPP* 2009 rank GDP at PPP* 2050 rank

Projected

GDP at

PPP*

1 US $5,796bn 1 US $14,256bn 1 China $59,475bn

2 Japan $2,193bn 2 China $8,888bn 2 India $43,180bn

3 Germany $1,633bn 3 Japan $4,138bn 3 US $37,876bn

4 France $1,118bn 4 India $3,752bn 4 Brazil $9,762bn

5 Italy $1,062bn 5 Germany $2,984bn 5 Japan $7,664bn

6 UK $979bn 6 Russia $2,687bn 6 Russia $7,559bn

7 Brazil $921bn 7 UK $2,257bn 7 Mexico $6,682bn

8 Mexico $704bn 8 France $2,172bn 8 Indonesia $6,205bn

9 India $615bn 9 Brazil $2,020bn 9 Germany $5,707bn

10 Spain $575bn 10 Italy $1,922bn 10 UK $5,628bn

11 Canada $567bn 11 Mexico $1,540bn 11 France $5,344bn

12 China $514bn 12 Spain $1,496bn 12 Turkey $5,298bn

“In the future we will not be able to compete on the world stage with low labour costs or by exploiting vast reserves of mineral resources. We will have to compete with our brains and with our science.”

Sir Paul Nurse ‘The New Enlightenment’

Richard Dimbleby Lecture

February 2012

The role of science and innovation

“because it's not always profitable for companies to invest in basic research, throughout history our government has provided cutting-edge scientists and inventors with the support that they need…..Just think of all the good jobs – from manufacturing to retail that have come from those breakthroughs”

President Barack Obama

State of the Union address

2011

The role of science and innovation

“Globally, science and

technology are also crucial for

overcoming the financial crisis

and ensuring stable, balanced

and sustainable economic

development.’’

Wen Jiabao Premier of the People's Republic of China

Royal Society, June 2011

“Nowadays universities are invested with more

significance in generating growth than ever before

in our history”

George Osborne

Imperial College

May 2012

HM Treasury

Institute for Fiscal Studies

Returns to public investment in science are high, but UK

investment in R&D is well behind international competitors.

World Economic Forum

The UK is now ranked 2nd in the world,

ahead of the US, for university-industry

collaboration in R&D

WEF: The Global

Competitiveness

Report 2012–2013

ESA Harwell Centre

Business Incubation Centre opened

December 2010

CERN-STFC Business Incubation Centre

• Enables businesses to translate technologies developed

at CERN into companies in the UK

Fraunhofer Centre for Applied Photonics

Abertay Centre for Computer Games

• industry-designed postgraduate courses

• video game development competition

Scottish Carbon Capture and Storage

Largest carbon capture

and storage research

grouping in the UK.

Partnership of the

British Geological Survey,

Edinburgh and Heriot-Watt

Universities.

Aberdeen KTP Centre

KTP to develop Aberdeen Harbour Board’s environmental

management into a digital system.

Challenges for the KE community

• What do the REF and Research Council Impact

agenda mean for the future of KE?

• What is the role of university KE in local

economies?

• What are the best incentives and rewards for KE

professionals? Who should set them?