Measuring the Contribution of Higher Education to Innovation Capacity in the EU. Final Report: Revised Version

This current study is part of the actions taken aiming to analyse the links between the operations and effects of higher-education institutions on the capacity to innovate in the economies in Europe. Providing insights into the contribution of higher education to the innovative capacity of the EU economies is crucial for policy making and the direction of policy measures in a fast-changing market environment. Universities contribute to societal development and innovation through their three core missions. Firstly, teaching aims to create human capital in the form of more highly skilled labour, more endowed with competences to boost innovation activities. Secondly, research produces knowledge capital that is transferred into innovating businesses, although it is usually embodied in individuals and thus, it is not easily codified and transferred. Finally, the third mission of higher institutions involves knowledge exchange between universities and society in various ways, including consulting and technical services, providing policy advice or contributing to territorial economic development strategies. There has been a massive expansion of higher education across European countries in recent decades as they attempt to provide their workforces with the skills necessary to successfully compete in the knowledge based economy (KBE). Economic strength in the KBE is being driven by innovation, taking existing resources and assets and using them to do new things better, and increasing overall welfare levels. Whilst the pursuit of innovation is essential for all economic agents, universities are at the heart of policy attempts to increase the overall knowledge capital for innovation, as well as a proving ground for future innovators. Recently however, there have been concerns that universities are failing to adequately respond to these new demands and are continuing to act as "ivory towers" outside of society, rather than driving society forward (Galan-Muros, 2016). There is, in particular, a perception that universities have tended to expand their existing activities rather than create new courses, pedagogies and learning environments that best meet society's needs. Where universities contribute effectively to innovation, they can create whole new industries and sectors, and transform the fortunes of particular places. But at the moment, these conflicting narratives make it hard for policy-makers to determine whether and how universities (and indeed, which kinds of universities) can leverage innovation capacities. A key challenge for European policy-makers is therefore to determine the extent to which universities are realising their innovation potential to meet the needs of the KBE. This study seeks to understand the extent to which universities are supporting innovation. The following are appended: (1) Methodology for the fieldwork; (2) Interview guides; (3) Case Studies; (4) Survey questionnaire; (5) Survey findings; (6) Indicator fiches; (7) The Feasibility Study; and a Glossary. [For "Measuring the Contribution of Higher Education to Innovation Capacity in the EU. Executive Summary of the Final Report," see ED574064.]