Policy Context
The Government’s long term vision, set out in the Ten Year Science & Innovation Investment Framework, is to make Britain one of the best places in the world for science, research and innovation - the successful exploitation of new ideas incorporating new technologies, design and best practice.

Our challenges to achieve that vision include sustaining and developing the UK’s world-class research base, strengthening its links with business and other users, enabling knowledge transfer, and promoting innovation in products, services and processes.

The Public Service Agreement (PSA)1 framework is central to the Government's strategy for delivering high quality public services. Knowledge Transfer Partnerships contributes to delivery of the following DTI PSA targets:

PSA 1: in relation to “raising the rate of UK Productivity growth over the economic cycle” as a result of participating companies increasing turnover and profitability arising from new markets, increased sales, improved quality and improved operations, acquiring new knowledge, skills and expertise and better trained employees;

PSA 2: improving the “exploitation of the science base, and the overall innovation performance of the UK economy” through the application in UK businesses of the wealth of knowledge that resides within the higher education sector and the resulting feedback into research and teaching that will enhance its business relevance and the encouragement of continued collaboration between companies and the science base that has been fostered by the supported collaborations and the resulting stimulation of innovation capability.

PSA 6: contributing towards the building of “an enterprise society in which small firms of all kinds thrive and achieve their potential … with an improvement in the overall productivity of small firms, and … more enterprise in disadvantaged communities” through increased turnover and investment in new plant, machinery and equipment, staff training and creating new jobs.

The National Agenda
A decade on from the first Comprehensive Spending Review, the 2007 CSR will represent a long-term and fundamental review of government expenditure. It will cover departmental allocations for 2008-09, 2009-10 and 2010-11. To lay the groundwork for the CSR, the Government is taking forward a programme of work involving an examination of the key long-term trends and challenges that will shape the next decade - including demographic and socio-economic change, globalisation, climate and environmental change, global uncertainty and technological change (Innovation).

The Government has acted to ensure that the promotion of technology innovation in business is led by business itself. The establishment of a business-led Technology Strategy Board in 2004 provided business with the opportunity to directly influence Government and to work together on common agendas where both Government and business stand to benefit.

2007 will see a new Technology Strategy Board established as an executive arm's length body to build on the success of the current board and to ensure that the programme of technology support continues to be delivered efficiently and effectively. The aim will be to achieve increased innovation in sectors where the UK economy is strong; the development of new sectors, through the creation and growth of research and development, of intensive small and medium-sized enterprises; and support for the use of technology in areas important to the future of existing and emerging sectors in the UK.

The new body will have executive responsibility for delivering programmes of government financial support to encourage business investment in and use of technology across all sectors of the UK economy. The Technology Strategy Board will take policy responsibility for Knowledge Transfer Partnerships alongside other Innovation products previously led by the DTI.

The Regional Agenda
The DTI, working in partnership with the RDAs and other Government Departments, coordinated the development of the RDA Tasking Framework, which came into effect from April 2005. The objective of this the framework is to help Departments and the RDAs to work on regional priorities in a way that also serves national interests more effectively.

The Regional Development Agencies now play a pivotal role in the strategy for Knowledge Transfer Partnerships and are supporting the growing demand from the business and academic community. Knowledge Transfer Partnerships will continue to work closely with the English Regional Development Agencies and Devolved Administrations to meet the needs of Regional priority sectors.

The International Agenda
For the UK to maintain its international competitiveness it must apply its science, technology and knowledge to address economic social, cultural and technological challenges identified by consumers; regionally, nationally and internationally.

Knowledge Transfer Partnerships will continue to push the boundaries and offer an international dimension. The programme is already beginning to work with overseas organisations such as Westlink and the Ontario Centres of Excellence in Canada, and we will aim to establish a pilot initiative to identify or make businesses aware of International links and facilitate collaboration prior to, during and after KTP projects.

1. http://www.dti.gov.uk/about/strategy-objectives/PSA-Targets/page25006.html

Knowledge Transfer Partnerships
Accelerating business innovation; a Technology Strategy Board programme