Annual Report 2005

Annual Statistics 2005: figures to year end 2004
(Please note that this download is in the Microsoft PowerPoint Format)

Research confirms that science parks play a positive role in supporting the growth of technology-related businesses, and hence wealth creation in the UK. Science parks are a valuable national asset as demonstrated by the annual statistics:

• Companies on science parks are on average, increasing in size, measured by the number of employees and the floor area allocated to them. This is achieved whilst maintaining their level of investment in R&D.
• Companies based on science parks demonstrate enhanced growth in employment compared with similar companies at other locations
• Companies based on science parks employ a higher proportion of qualified scientists and engineers compared with similar companies at other locations
• The overall commercial performance of science park tenants is a significantly better than that of similar businesses located elsewhere

Our research shows that there is significant potential for the UK science park movement to play an enhanced role in the UK knowledge economy in the future, and encouraged UKSPA to work more closely with central government and the Regional Development Agencies to support the delivery of the innovation agenda. Ironically, at a time when the Association has developed new initiatives across a number of strategic, and potentially nationally import projects, the DTI decided not to renew our annual grant, leaving the Association with some difficult decisions to make regarding future direction.

Over the past 12 months much has been written on the increase in investment from the government to fund science and technology, research, and commercialisation processes, with the aim to increase innovation and product and service development in the UK. It is against this background that the UKSPA Board met in May 2005 to review our strategic direction for 2005 – 2008. Our conclusions were that to ensure long-term survival and growth of the Association the executive needed to focus on the regional and international projects, and seek to generate revenues from commercial opportunities that are consistent with delivering our strategy.

Core UKSPA activity
Over the course of 12 months UKSPA performs a number of key services for members in return for a subscription fee of £840. Our operational activity includes:

• Representation, lobbying and consultation vis-à-vis regional and national government
• UKSPA Members’ Meetings
• Seminars, training and conferences
• Continuing Professional Development (CPD) opportunities
• UKSPA periodical
• UKSPA website
• UKSPA directory
• Best practice guides
• Annual statistics collection and analysis
• Research programmes
• Networking and initiative development with knowledge-based industry stakeholders
• Value-adding propositions for science park tenants
• International project development
• LabspaceUK property service

Three strategic development areas
Our strategy identifies three key areas for the Association to address over the next three years which will serve to improve the impact of the science park movement on the innovation sector, nationally and internationally – thus increasing the movements contribution to the prosperity of the sector. The three areas of development are:

• Branding of the Association and science park brand values
• Delivery of quality services to science park tenants
• Measuring and analysing innovation performance in the UK

As well as carrying out all expected Association operational duties, the three strategic development areas will continue to be the focus of our attention over the next year. They are the areas of development where UKSPA will be seeking support to develop programmes and initiatives over the next three years. Support from our members to achieve our objectives in these areas remains crucial, as does accessing funding and generating revenue streams to deliver a programme of meaningful services to the growing membership.

I am pleased to report that despite the inherent turbulence of a small organisation undergoing staff changes and increasing business activity levels, we have managed to add significant funds to our modest reserves during the year. The Board believe it is prudent to retain a reasonable level of cash reserves for times when cash flow is more erratic and in the light of funding from central government ceasing. The Association’s reliance on funds from membership subscriptions is 50% of total income. Other revenues have arisen from increased sales of UKSPA publications, income from international assignments and conference income. Whilst we believe this is a healthy balance to try to maintain, the Association does continue to operate on tight margins, with little financial flexibility.

The sponsorship we receive from NatWest is very welcome, and we are also grateful to other occasional sponsors – too numerous to mention here – who have continued to give us financial support for publications and to support the costs of our members’ meetings.

Acknowledement
For the past 12 months UKSPA members, the Board and our many Business Affiliates have worked with us to support meetings and project developments, and I am grateful for their commitment to the Association. In particular, I would like to extend my thanks to NatWest for their continued sponsorship.

Paul Wright
September 2005