Strengthening Research-Industry Collaboration For Wealth And Job Creation In Ghana -Part 1

1.0. THE NEXUS OF RESEARCH- INDUSTRY COLLABORATION

University, industry and government have been identified as the main pillars of many innovations that drive wealth and job creation. Innovation Systems theories such as NIS, Triple Helix and Porter’s Diamond Model all attest to this.

In the traditional sense, Universities serve the industry in two ways; they provide the workforce necessary to run industry and also furnish innovative ideas to start new business ventures or expand existing businesses through teaching and research.

Universities desire to contribute to theory. On the other hand, the industry is restrained by profitability so may not devote much time and financial resources to research but want to know new technologies, knowledge, innovations and models towards maximising profit. Therefore, research and industry are analogous to two sides of a river that must flow independently.

There is a lack of incentives for private companies to participate in research and development (R&D) activities since research to commercialization takes some time and only few companies can invest and wait for that return even if they have the capacity in terms of human resource and capital.

However, private firms conducting R&D activities have difficulties in fully appropriating the returns on their investment since that knowledge will spill over to other firms.

Additionally, it is difficult for private companies to have access to external funding for R&D since R&D outcomes are risky and uncertain (OECD, 2016).

A new type of global academia is emerging, embodied by what we call the “fifth-generation” university. Such universities integrate research, teaching and knowledge exchange for widespread societal benefit, underpinned by cross-sector strategic alliances.

2.0. EVIDENCE OF RESEARCH -INDUSTRY OUTPUT

The global higher education market size was estimated to be around USD 736.80 billion in 2023 which is 10 times the size of Ghana’s economy and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2024 to 2030.

For instance, the University of Toronto’s total revenue for 2023 alone was $4.3 billion made up of $2.2 billion in student fees (53% of total revenue) and $1.2 billion in government funding (29% of total revenue). Over USD$ 1.4 billion was received in external research funding last year.

Around the world, improved collaboration between research and industry has resulted in a countless number of companies being created, generating millions of employment and creating wealth for current and future generations.

2.1. Revenue to the University
For instance, MIT received over USD$ 2.2 billion from Sponsored research revenue in 2023 which is almost 50% of the total domestic Tax revenue for Ghana in 2023.

Universities with strong research and industry collaboration have student fees constituting less than 60% of total revenue.

In Africa, the University of Cape Town, the number one ranked university in Africa in 2024 by THE, has 25% of its total revenue from research paid by industry.

Research income from industry, which comes largely through research-industry collaboration affect the ranking of the universities. It is insightful to note that, most high-ranked universities by all reputable ranking agencies have good revenue from industry.

For instance, THE World University Rankings, published once a year, assess institutions worldwide across 13 performance indicators in five areas: teaching (30%), research (30%), citations (30%), international outlook (7.5%) and industry income (2.5%). This means that the ability of the university to attract income through research -industry also boost the ranking of the institution.

2.2. Business Creation and Job Creation

Research Industry collaboration generates revenue and creates jobs.The table below highlight what collaboration between universities and industry can do.

Just imagine the number of people these companies resulting largely from research and industry have created. Facebook has over 67,000 employees and Google has 183,000.

FedEx's total number of employees in 2023 was 529,000, a 112.45% increase from 2022, Dell, approximately 133,000 and H20 a.i, about 300 employees.

Just choosing five of the many companies, more than 1.2 million sustainable jobs have been created.

Imagine the number of jobs the sixty -eight (68) or so universities in Ghana partnering with industry to commercialise research output to create 1 company such as Facebook, Google, etc,. that employs 100,000 Ghanaians. This was unimaginable for Harvard University in 2003 but is now a reality. For instance, University of Toronto entrepreneurs have secured more than $2.5 billion in investment and created 600+ venture-backed companies, along with 9,000+ jobs over the past decade.

Ernest Ofori Asamoah (Prof)
Email: eoforiasamoah@gmail.com

   Comments0