Ernest Ofori Asamoah(Prof)
The Critical Nexus of Research and Industry for Economic Transformation
In the modern global economy, the collaboration between universities, industry, and government represents a key driver of innovation, wealth creation, and employment generation. This tripartite partnership is the foundation of various innovation theories, including the National Innovation System (NIS), the Triple Helix Model, and Porter’s Diamond Model.
These frameworks demonstrate that universities are pivotal players in catalyzing economic growth through research and development (R&D) and human capital development. However, the effectiveness of this collaboration is largely dependent on how well universities align their research output with the needs of the industry and national development priorities.
In the context of Ghana, this relationship remains underdeveloped. Universities primarily generate workforce talent and innovative ideas, but their contributions to industry are often stifled by a lack of systematic collaboration. This disconnect results in missed opportunities for leveraging cutting-edge research to drive business innovation, create jobs, and contribute to national wealth.
This research paper seeks to explore the potential for enhanced collaboration between research institutions and industry in Ghana, examining the evidence of success from international examples and outlining key strategies for bridging the gap between academia and industry. The overarching aim is to provide a comprehensive framework for using research-industry collaboration as a tool for wealth creation, employment generation, and sustainable economic development.
Evidence of Research-Industry Collaboration Driving Global Economic Impact
Globally, research-industry collaboration has generated substantial economic benefits, both in terms of wealth creation and job generation. A clear example can be seen in the higher education sector, where universities have emerged as hubs of innovation, spawning new industries and driving economic growth. The global higher education market was valued at USD 736.80 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2024 to 2030. This growth is driven largely by research output and its commercial application.
For instance, the Massachusetts Institute of Technology (MIT) received USD 2.2 billion from sponsored research revenue in 2023, accounting for nearly 50% of Ghana’s total domestic tax revenue for the same period. Similarly, the University of Toronto generated over USD 1.4 billion in external research funding, demonstrating the immense potential of academic research to attract private-sector investment and fuel innovation.
Universities with robust research-industry partnerships see student fees contributing less than 60% of their total revenue, with most of the income derived from industry-sponsored research. In Africa, the University of Cape Town, ranked first on the continent by the Times Higher Education (THE) World University Rankings in 2024, earns 25% of its total revenue from industry collaborations.
Research income is also a key factor in the global ranking of universities. High-ranking institutions, such as those featured in THE World University Rankings, derive a significant portion of their income from industry, which in turn boosts their reputation, attracts top talent, and increases their global competitiveness. The collaboration between research institutions and industry is, therefore, not only a matter of academic achievement but also of economic imperative.
Examples of Industry-Transforming Collaborations:
Research Industry collaboration generates revenue and creates jobs. The table below highlights what collaboration between universities and industry can do.
| Business | University Collaborated with | Revenue (USD$) Billions |
| Harvard University | 84 .9 billion | |
| FedEx | Yale University | 17 bn |
| Dell | University of Texas | 92 bn |
| Standford University | 146.9 bn | |
| Snapchat | Sandford | |
| H20. a.i | University of Memphis | 67 mn |
| Indigo Ag | MIT | 3.5 bn |
| Jokia | U Berkely | 1.2 bn |
Source:
The businesses that have emerged from university-industry collaborations, such as Facebook and Google, have generated enormous employment opportunities. Google, for instance, employs over 183,000 people, and Facebook employs more than 67,000. Collectively, just five companies originating from research-industry partnerships have created over 1.2 million sustainable jobs.
In Ghana, where unemployment remains a significant challenge, the potential for job creation through research-industry collaboration cannot be overstated. If Ghana’s 68 universities could each partner with industry to create even one company that employs 100,000 people, the economic and social impact would be transformative.
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 commercialize 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.
The Urgent Need for Research-Industry Collaboration in Ghana
Despite having strong research capacities, Ghanaian universities have yet to fully integrate their research output with the needs of the industry. This disconnect results in underutilized research, missed opportunities for innovation, and a lack of industry-aligned research that could address pressing national challenges. A strengthened research-industry collaboration in Ghana is not only necessary but urgent for the following reasons:
Addressing the Research-Industry Mismatch
One of the fundamental issues is the lack of alignment between research output and industry needs. While universities in Ghana conduct research, much of it is driven by academic goals, such as promotions or foreign donor funding, rather than industry demand or societal needs.
This results in research that may be valuable academically but lacks direct application to the economic challenges facing Ghana. A realignment of research priorities to focus on global trends and national needs—such as sustainability, artificial intelligence (AI), and gender equity—could dramatically improve the value of research to industry.
3.2 Tackling Dwindling Funding for Public Tertiary Institutions
Public universities in Ghana are facing significant financial challenges due to decreasing government funding. Research collaborations with industry present an untapped revenue stream that can alleviate these financial pressures.
Universities need to strategically target multinational companies operating within their geographic and sectoral domains for partnerships. For instance, research institutes at universities like Takoradi Technical University (TTU) could align their work with the needs of oil and gas companies, while Sunyani Technical University (STU) could focus on micro, small, and medium enterprises (MSMEs) and gender equity and social inclusion (GESI).
3.3 Unemployment and Youth Vulnerability
Ghana’s unemployment rate stood at 14.7% in 2023, with youth unemployment reaching over 1.3 million. Research-industry collaborations have the potential to create millions of jobs, just as companies like Facebook and Google have done. By fostering a closer relationship between research institutions and industry, Ghana can tap into its untapped innovation potential, creating sustainable employment for its growing youth population.
3.4 The Role of Fifth-Generation Universities
The emergence of fifth-generation universities, which integrate research, teaching, and knowledge exchange, highlights the importance of cross-sector collaboration in driving societal benefits and economic growth. Ghanaian universities must evolve to adopt this model, with a focus on maximizing the economic value of research through strategic alliances with industry.
4.0 Strategic Recommendations for Enhanced Collaboration
For Ghana to fully realize the potential of research-industry collaboration, several key stakeholders must take proactive steps:
4.1 Government Support
- Funding and Tax Incentives:
The government should introduce tax incentives to encourage industry investment in research. For example, companies that fund research in priority areas could benefit from reduced corporate tax rates (e.g., from 25% to 20%). This would mitigate the risk for private companies investing in uncertain R&D outcomes.
- R&D and Innovation Grants:
Financial support for infrastructure development, spin-offs, and the recruitment of PhDs and postdoctoral students should be prioritized to enhance research output and commercial applicability.
- Regulatory Support:
Implement intellectual property (IP) frameworks, sabbatical schemes for researchers, and regulations that support the creation of spin-offs to encourage knowledge transfer between academia and industry.
Higher Education Institutions (HEIs)
Policy Briefs and Innovation Days: Research institutions should distill their findings into policy briefs for industry leaders. Hosting industry open days where research outputs are showcased can also bridge the gap between academia and industry, fostering collaboration.
- Action-Oriented Research:
Universities should focus on action research, with researchers spending time within industries to better understand their needs. This will help produce research that is not only theoretical but also practical and relevant to the local economy.
- Incentive Mechanisms for IP Management:
Universities should implement fair IP-sharing arrangements to motivate researchers to engage in commercialization efforts. Additionally, appraisals of academic staff should incorporate metrics related to the societal and industrial impact of their research.
Conclusion: The Path Forward for Ghana
Strengthening research-industry collaboration is essential for Ghana’s economic transformation. By leveraging the potential of academic research, Ghanaian universities can create new businesses, foster innovation, and generate sustainable employment. The commercialization of research output, as seen with COVID-19 vaccine development at Afe Babalola University in Nigeria, demonstrates the immense financial and social benefits of such partnerships.
Increased collaboration between universities and industry will improve Ghana’s global competitiveness, boost university rankings, and attract greater investments. As universities evolve into fifth-generation institutions, the collaboration between research, industry, and government will become the cornerstone of economic development and job creation, paving the way for a prosperous future.
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