Sainsbury cash talk cheers up scientists

Alan Thomson reports from the Labour Party conference in Bournemouth this week

Gordon Brown: 'The new economy of the next decade will need more competition, more entrepreneurship, more flexibility, more long-term investment.'

Tony Blair: 'We know what a 21st century needs. A knowledge-based economy.

A strong civic society. A confident place in the world.'

Science minister David Sainsbury has signalled continued high investment in university research through fairer funding policies that recognise diversity.

Lord Sainsbury has given the clearest indication yet that university research in science and technology and its commercial development through industry links, will remain a top government funding priority up to and, assuming a Labour victory, beyond the next election.

Universities hope that this means science will get another boost from the second comprehensive spending review just announced by the government. Lord Sainsbury was unable to say whether future funding would be similar to the Pounds 1.4 billion pumped into the university science base through the existing CSR.

But he said: "The government is very committed to the knowledge-driven economy and a key part of that is science and technology. The government has shown that it takes a strategic view of these issues. We are not into boom-and-bust policies."

The knowledge-based economy emerged at this week's Labour Party conference as one of the key policies in the government's bid to win a second term of office. Speeches by both Tony Blair and chancellor Gordon Brown stressed the importance of science and innovation.

Lord Sainsbury, who spoke at a Committee of Vice-Chancellors and Principals fringe meeting on higher education's links with business, said that a third leg of funding was need to reward research and its development through industry links in those universities that win the least.

He said that the third leg could be developed from the Reach Out fund worth Pounds 11 million to universities this year. He said the fund was far too small at present. "We have got to work out how to take Reach Out forward. For instance, how do we allocate it? It could be allocated like the research assessment exercise or teaching quality assessment but that's quite a difficult thing to get right," he said.

"I do not see all universities having the same strategy. Some may want to focus on research, others may want a more vocational approach."

Vice-chancellors welcomed Lord Sainsbury's comments. Howard Newby, president of the CVCP, said he wanted to see a "step change" in the commercialisation of research. Speaking at Monday's fringe meeting, Professor Newby said:

"Universities' contribution is pivotal. Companies look to universities not just for highly skilled people and research, but as a source of innovation. Universities are affecting company performance, as well as spinning out companies."

Professor Newby said that the Pounds 1.4 billion three-year CSR allocation had been essential for the university science base.

He said: "Sustaining this level of investment is vital."

The Reach Out fund will make Pounds 21 million available to universities in the academic year 2000-01 and Pounds 33 million in 2001-02.