Creative Connexions brief and budget

John Robertson made this Freedom of Information request to Higher Education Funding Council for England

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Dear Sir or Madam,
What is the HEFC grant to for Creative Connexions?

What is Creative Connexions total budget?

What budget headings have they provided to justify it and their other government funding?

What safeguards prevent money intended to promote export of design skills being used in fact to promote out-sourcing of production from the UK and democratic countries to autocratic countries and China?


John Robertson

James BUTTON [7220], Higher Education Funding Council for England

Dear John

Thank you for your request for information under the Freedom of Information Act 2000. We will respond to your request as soon as possible and no later than 20 working days as required by the Act.

Best wishes

James Button
Higher Education Funding Council for England (HEFCE)
Tel: 0117 931 7220

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James BUTTON [7220], Higher Education Funding Council for England

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[1]Final scanned response (F2009 3530).PDF
Dear John

Please find attached our response to your request for information
under the terms of the Freedom of Information Act.

Best wishes

James Button
Higher Education Funding Council for England (HEFCE)
Tel: 0117 931 7220

Anything in this message which does not clearly relate to the official
work of the sender's organisation shall be understood as neither given nor
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John Robertson left an annotation ()

The Creative Connexions project (originally called "Creative Capital-World City") recieved £5 million of funding from HEFCE via the third round of the Higher Education Innovation Fund bidding process ("HEIF 3"). This funding was allocated to the University of Arts in London which was the lead higher education in the project bid. This represented just under 80% of the total project budget which was £6.275 million.

More information about the HEIF is available on our website via the following link:

Submitted documentation relating to the project is available via the following link:

The table below outlines the budget headings from the original Creative London - World City Project bid:

Year 1 / Year 2 cost / Total thousands of pounds

£ 478 £ 480 Project Management Centre £958 total
£ 745 £ 756 Funded Partners £1501 total
£ 550 £ 753 Creative Business Centres £1303 total
£ 615 £ 575 Creative Industry Observatory £1190 total
£ 440 £ 133 Technology and Facilities £573 total
£ 025 £ 025 Project Evaluation £50 total (in thousands)
£ 150 £ 150 Travel and subsistence £300 total
£ 200 £ 200 Contingency £400 total
£3203£3072 Totals £6,275,000

The Financial Memorandum between HEFCE and higher education institutions (University of Arts London in this case as the lead institution) sets out the terms and conditions for HEFCE grants and the accountability framework for public funding. This document is available via the following link:

A search of our records has found that no information is held which refers specifically to:

"What safeguards prevent money intended to promote export of design skills being used in fact to promote out-sourcing of production from the UK and democratic countries, to autocratic countries and China".

yours sincerely
James Button

slight changes made to James Button's text to transcribe to plain text

Thank you

John Robertson left an annotation ()

This is an unsympathetic transcript of University of the Arts grant proposal. No words have been changed but tables and graphics in the original may not convert. Basically there is no safeguard against some creative accountant setting up a seminar called "making it ethically in China", encouraging people to use Chinese manufacturers, and taking tax money of UK manufacturers. The thing seems to be built on a momentum of name dropping and hot air by people who believe nonsense like "the knowledge economy" to justify the world they see rather than look at the human rights record of the Chinese government or the exchange rate manipulation of UK and Chinese governments against the interests of people in the UK. The courtier-ship and grant-artistry starts here.

HEIF 3 Competition Stage 2 Application Form Creative Capital – World City
Part A The case for the project
Creative Capital – World City will provide the specialist business, economic, technical, creative and cultural expertise required to support the UK creative industries expansion into key world markets. The partner universities, which are leaders in these complementary fields, together with the Centre for Creative Business, will deliver this through the Creative Industries Observatory in London and 5 international business hubs in China and India.

“Our economic future lies in high-value, knowledge intensive industries. Put simply, to make the UK the world’s creative hub”

In keeping with UK Government priorities (most recently expressed in the 2006 Budget) and regional policy for London, the purpose of this innovative project is to increase the competitive advantage of UK creative companies doing business, or wishing to do business in India and China, thereby developing the world market for the UK creative industries. Creative Capital – World City will directly support UK companies in identifying and siezing new opportunities, understanding the regional social, cultural, economic and business contexts, preparing their business plans and strategies, and identifying and successfully engaging in business development opportunities in these countries.

Building on proven and successful research and HEIF knowledge transfer (KT) activities e.g. Centre for Creative Business, Enterprise Centre for the Creative Arts and Own IT (Creative London IP advisory service), a new London based centre for expert knowledge in the creative industries will be established. The project will also work with UK-wide creative companies and key creative networks to research creative activity / opportunities and succesfully penetrate and expand demand in the target markets through dedicated staff at five Creative Business Centres overseas. The essence of knowledge transfer in this international context relies upon creating and supporting unique partnerships and collaboration etc to enable particular projects (such as fashion or design projects) to be accomplished. Staff at the Centres will be a critical resource to assist creative companies in sustaining key business relationships in India and China. The project will provide:

The Creative Industries Observatory (CIO), a facility for UK creative businesses which will gather, interpret and deliver high quality relevant intelligence on the target markets and Creative Industry trends in the UK, China and India
5 internationally located business Creative Business Centres - hubs – operated by dedicated business development specialists through which opportunity/ creative business activity and market intelligence can be channelled between Chinese, Indian and London/UK businesses
Networking opportunities in the emerging markets
Liaison with local knowledge and expertise in the target markets
New, carefully targeted, KT activities to assist international development of creative businesses and, through structured training, build their confidence to engage with Indian and Chinese businesses
Support to business in exploiting new creative business opportunities in these emerging markets
Additional direct foreign investment into London and the UK Development of 3rd stream income from KT related to the creative industries for a range of UK HEIs

(A i) Description of the Innovative nature of the project

The innovative nature of the project lies in
Its international ambition i.e. the distinctive UK - China - India dimension which responds to ambitious UK government plans for the creative industries
Its key role for the UK economy in establishing a Creative Industries Observatory, the centre of expert knowledge for understanding and supporting UK creative companies either already engaged in or wishing to enter the emerging markets of China and India
The establishment of international Creative Industries benchmarks based on CIO data
The development of international business/knowledge transfer hubs, the Creative Business Centres
Combining leading edge technology, economic and international studies and applied research with world class creative art and design and business management
A strategic and innovative alliance with highly appropriate corporate partners, HEIs and their networks
The use of international HEI partners with established geographical presence and contact networks in the target regions which will be of immediate help to the project
The innovative use of existing KT networks in London/UK including Centres for Knowledge Exchange networks
Targeting of international KT for the creative industries, with a specific focus on strategic areas of opportunity for UK plc such as digital media and design e.g. Fashion, communications and product.

(A ii) Articulation of need

There are numerous statistics confirming the importance of the creative industries to the UK economy and the need for them to internationalise:
In 2001, creative industries accounted for 8.2% of UK GDP and contributed £54.8 billion to UK Gross Value Added, £112 billion in annual revenue and £11.5 billion in exports.
From 1997-2001 UK creative industries grew by an average of 8% per annum, compared to an average of 2.6% for the whole of the economy.
Creative industries contribute £21 billion to London’s output, a considerable amount juxtaposed with the City’s £35 billion. In terms of jobs growth creative industries are London’s most important sector
From 1997-2002, employment in the UK’s creative industries grew at three times the rate of the economy as a whole. In June 2003 creative employment totalled 1.9m jobs.
The global market value of the creative industries has increased from $831 billion in 2000 to $1.3 trillion in 2005; more than 7% of global GDP

These are vital statistics that need to be kept up to date. The Creative Industries Observatory will liaise with DCMS and other agencies to design and develop an effective programme of ongoing statistical data research.

H.M. Government, via the DCMS and other departments/ agencies, has targeted the creative industries as an important economic sector for UK plc. The London Development Agency has taken a strong lead in setting the regional economic agenda for London with respect to the creative industries. Through its Creative London agency, it has delivered crucial intervention and support to London-based creative businesses.

At the London Business School in November 2005 Creative Industries Minister James Purnell announced the Creative Economy Programme. This seven-step programme will ensure that cultural institutions, policy makers and funding organisations work together to support the growth and productivity of the creative industries. Concurrently the DCMS announced a new measure to promote UK creativity globally. DCMS and UK Trade & Investment, with other partners in government, are supporting the work of three industry led export groups helping to develop the Government strategy for the export of goods and services from the Creative Industries sector:

● Creative Exports Group (CEG) ● Performing Arts International Development (PAID) ● Design Partners

In February 2006 the Creative Industries Minister announced that 7 experts have been appointed to lead the Creative Economy Programme and its drive to make Britain the world’s creative hub

Government recognises the tremendous growth in importance of trade with India and China to the UK, e.g. UK-India Education and Research Initiative (UKIERI) pump primed by £10M of UK government funding which was announced by the Prime Minister in November 2005, the agreement to grant 1,000 working visas a year for Chinese graduates to gain work experience in the UK, the proposed Phase 2 of the Prime Minister’s Initiative to support HEI international activities (April 2006) and the expansion of the Scholarships for Excellence programme - aimed at building links between Chinese business community and UK HE – to all of which University of the Arts London (UAL) will contribute.

A prime source of help for UK companies to improve their international trade is the government agency UK Trade and Investment. Following a recent announcement by Gordon Brown, ‘a revamped UK Trade and Investment will set new targets for expanding trade with China and India and other emerging economies’.
The issue for UK HEIs and for the creative industries, typified by small business, is how do they engage with these international opportunities in a realistic and effective way?

The Creative Capital – World City project has been designed to give direct support to the Government’s Creative Economy Programme. It will work with the DCMS/ UKTI and other agencies to deliver the Government strategy for the export of goods and services from the Creative Industries sector. Creative industries companies will benefit through specialist KT support from universities with relevant expertise, offered in liaison with UKTI support.

London/ UK creative businesses intending to begin trading in India/China need help. There is a key need in China and India to ensure their international developments are sustainably structured for the long-term. They need market intelligence, local contacts, access to Indian and Chinese business networks, showcasing, B2B introductions and local knowledge. They also need assistance with understanding and addressing cultural requirements and specific training in how to best exploit international business opportunities. Partner HEIs need to seize the opportunity for growing 3rd stream income for KT services involving UK creative exports, the demand for which is high in India and China.

“The project looks exceptional and will make a major contribution to the innovation challenge that the UK faces”. Jonathan Kestenbaum CEO of NESTA

“This is a strategically important project for London which will provide clear opportunities to work collaboratively in various ways including staging international events showcasing UK creativity, e.g. internationalising the London Design Festival and the London Film Festival” Tom Campbell - Creative London - a committed delivery partner that welcomes the alignment of the project objectives and intentions with its own creative industries internationalisation programme.

Luke Johnson Chairman of C4 TV has given the project his support. Andrew Summers chairman of Design Partners, the government body (supported by UK Trade & Investment and DCMS) promoting international trade and investment for UK design businesses supports the project and is keen to work with it.

“British Design Innovation very much welcomes it and are keen to loan any support we can and get directly involved where appropriate”. Maxine Horn CEO of British Design Innovation, (which has 4,500 commercial design practices registered with it - representing 95% of the UK commercial design market).

"Creative Capital - World City is an important and timely initiative which is likely to provide invaluable support and intelligence to creative companies looking to do business in China and India”.
Frances Sorrell - The Sorrell Foundation"

The requested £5 million of HEIF 3 funding is crucial to the project. Given their teaching, research and other third stream commitments, the partner HEIs would not be able to undertake the Creative Capital –World City project without this necessary additional funding.

(A iii) Planned impact on UK’s economy and society

This project will not lead to British creativity fuelling Indian/Chinese market ascendancy. It will enable UK companies to compete effectively with other first world players by embedding London/UK creative expertise in business development opportunities in India/China. Leveraging the existing collaborative projects and established networks of the partners, the project will:-
analyse markets in China and India, understand what London/UK creative businesses can offer and through the 5 Creative Business Centres, broker interactions between the market and companies
analyse the needs of UK creative businesses to develop specialist ‘toolkits’ which interpret and contextualise generic support materials from for example, DTI/UKTI, and supplement these with targeted research/trend analysis and training
assist creative businesses to ‘sell’ creativity and innovation, including co-investment and co-development in what are crucial emerging market places whilst safeguarding their IP value/assets
safeguard existing creative industry jobs and create new ones in London and the UK
grow third stream income for a wide range of HEIs in London/UK through innovative KT including business internships, international ‘KTPs’, MA/MBA exchange and new course development, and internationalised academic input
actively identify and feedback intelligence on international business opportunities to London based creative industry companies and key networks
improve knowledge of UK creative industries economic performance and establish international Creative Industry benchmarks to measure performance

(B i) Key Project Partners

The core partnership is strategically complementary and has a track record of designing, managing and delivering on major publicly funded projects including large--scale research projects and knowledge transfer under HEIF 2. It brings together
● University of the Arts London (the lead partner) ● LBS
● School of Oriental and African Studies (SOAS) ● Kings College London
● Centre for Creative Business (a UAL/ LBS joint venture)

The partnership features universities recognised as leading UK institutions with 5/5*research grades, which through well established networks are already very active internationally in student recruitment, course delivery and knowledge transfer. The partners are well known to each other, have very good working relationships and share the ‘big picture’ with respect to their strategic international development. Together they provide a highly competent force, equipped with creative industry related art, design, technical, technological, political, cultural, social, economic and business management expertise to assist UK creative businesses to succeed in India and China. The high quality knowledge transfer, dissemination and business support networks that the partners are already engaged in will be leveraged to drive further business involvement for ‘Creative Cities. These same networks are also adept at monitoring and analysing user involvement to ensure that the project delivers required outcomes. The project has the support of major creative industry organisations, creative clusters and creative companies in each target area.

The project is based at University of the Arts London, the UK University most closely linked to those creative industries. UAL plays a vital role in serving the knowledge transfer needs of the creative industries in London and the UK, in the arts (visual and performing), design and communications. It already provides a wide range of excellent creative industry focused K T services to London/ UK including, Innovation Centre, Design Laboratory, Centre for Fashion Enterprise, Fashion Business Resource Studio, CoVE Retail, CoVE Fashion, Own It Intellectual Property Advice Service (in partnership with Creative London), Artquest, The Intelligent Media Initiative. Exchange - London’s creative Centre for Knowledge Exchange, IP commercialisation (e.g. licensing, start-up and spin-out companies – via UAL Ventures ltd), consultancy and Knowledge Transfer Partnerships.

In collaboration with London Business School, University of the Arts London operates a joint HEIF 2 funded venture - the Centre for Creative Business tasked with driving innovative new forms of UK-based creative business out of LBS and UAL MBA/ MA programmes through its New Creative Ventures programme and assists existing creative businesses to grow significantly through its Building the Creative Ventures programme. CCB has been a major success story. It is often cited by the Creative Industries Minister James Purnell as an excellent example of what can be done when two leading HEIs with strongly complementary disciplines come together.

(B ii) Indicative contribution from each HEFCE funded partner

Partner Relevant Expertise Contribution

King’s College London Evidence Network; School of Social Science and Public Policy; Cities Group;
School of Humanities;
Risk Management Centre Expertise in evidence based policy methodology
Economic impact techniques
London Centre for Arts and Cultural Enterprise (HEIF 2 funded project)
International, interdisciplinary research using spatial techniques to investigate cultural and economic development.
School of African & Asian Studies Centre for South Asian Studies; Centre for Contemporary China Institute; SOAS Language Centre; SOAS Interface Interdisciplinary approach to understanding the context and dynamics of the target markets
Language and cultural programmes for business to develop skills in Chinese and South Asian languages
London Business School Aditya V Birla Centre

Innovation Centre

Digital Transformations
Mutually beneficial academic exchange between Indian business and the global business community
Macro and micro knowledge of the digital technology industry and access to businesses
Social and economic impact of information and communication technology at macro and micro levels
Centre for Creative Business Driving innovative new forms of creative business; assisting existing creative businesses to grow significantly. Management development programmes
- Potential internationalisation action.
Database of 5,000 creative businesses
Track record of delivering high profile events

Through the combination of its complementary skills and knowledge the partnership will provide:
Guidance on the data collection methodologies and interpretation methods for the Observatory (KCL)
Insights into the cultural, political, and economic dynamics of the target countries and our Creative Business Centres within them (KCL/ SOAS)
Expertise in the delivery of specific aspects of activity such as languages/learning advice, business strategy, investment appraisal and risk appraisal (KCL/ SOAS)
Access to the best possible core data on UK creative businesses and routes for the project to communicate with them. (CCB)
First rate executive education specifically relevant to the creative industries in the UK and the target markets (LBS/ UAL)
Collection of and access to existing published and unpublished reports, and mapping exercises (UAL/ LBS/ CCB)

Each of the partners brings to the project considerable experience in the management and successful delivery of major publicly funded projects such as UAL’s £5m CETL and Screen Academy projects, King’s London Centre for Arts and Cultural Enterprise and LBS Centre for Scientific Enterprise Ltd.

(B iii) Project Management Arrangements

The University of the Arts London as the Lead Partner will be the accountable body. A Project Director will be appointed to manage the overall project and will travel to the five Creative Business Centres to ensure that the deliverables are achieved.  The job descriptions and person specifications for both the Project and Observatory Director posts will reflect the need for these staff to have demonstrable experience in an international context. A Management Board will direct the strategic management of the project. A leading representative of the Creative Industries will chair the Board. It will have membership from each of the partners, employers and the project team. Invited Observers e.g. Mayor of London’s Office, UK Trade and Industry, OST, and liaison with advisory bodies in the priority sub sectors will further ensure full employer engagement.

Part C Detailed Business Plan

(C i) Activities 2006-08 and beyond

This innovative and necessary project has three inter-related components: the Project Management Centre, the Creative Industries Observatory and five Creative Business Centres in China and India.

This is not intended to be a short-term project. The initial project lifespan funded by HEIF 3 will be extended into future years with income generated through the provision of KT activities and services both in London/UK but primarily in the target markets in China and India. To lay an effective foundation for this project it is anticipated that a pre-project preparation, consultation and staff recruitment period will be required. We therefore suggest that the official project start date/public launch might reasonably be deferred to late 2006 as the project is phased in.

Working with the enthusiastic support of key local agencies including Creative London and London First the project will establish the Creative Industry Observatory in London and five international business hubs (Creative Business Centres) located in China and India (a timeline for the project appears below in Section C vi). The project will work with Business Links for London, London Chamber of Commerce and other creative industry business networks in London and the UK, to reach the largest possible number of creative businesses. The project also has the direct support of numerous delivery partner companies including large corporates such as Deloitte that are already well established and active in China and India. Through close liaison it will complement and enhance the work of UKTI (noting the particular emphasis that UKTI is now expected to apply to developing trade activity with China and India), British Council, Creative London, the proposed National Centre for Design and Creativity (Cox Report recommendation) and the Mayor’s Office/Think London operation in Beijing. The operation of these elements of the project will be coordinated through the Project Management Centre at the University of the Arts London.

(C ii) Project Management Centre

The Project Management Centre will provide the financial and administrative management for the project. The Project Director will coordinate and manage the work of the Business Development Managers (BDMs) in the UK and at the Creative Business Centres in China and India and will liaise closely with the Director of the Creative Industries Observatory. UK based BDMs will work with creative industry networks, companies and agencies. Partner based BDMs will also be tasked with the internal ‘selling’ of the project in order to ensure that partners benefit fully from the project and contribute to the project in terms of the international knowledge transfer opportunities through the Centres and the provision of specialist consultancy services through the Creative Industry Observatory.

(C iii) The Creative Industry Observatory

Based at UAL’s: London College of Communication, the Creative Industry Observatory will be developed as an authoritative information, observation and dissemination resource. Staffed by specialist information managers, analysts and researchers the Observatory will:

Collect and provide datasets on e.g. London and UK Creative Industries activity; creative businesses in UK China and India and new creative business opportunities.
Commission research to plug gaps in baseline creative industries subsectoral analysis/market analysis and regulatory frameworks
Produce publications/journal/information updates
Organise and present conferences/seminars/workshops
Carry out brokerage/introductions between creative industry companies through its events programme

Additionally the Observatory will also accept commissions from agencies e.g. DCMS and DTI, to research, provide and maintain urgently needed fresh creative industries data e.g. provide a London and national creative industries subsectoral primary baseline data analysis/ tracking exercise. It is expected that this will aid project sustainability.

(C iv) The International Creative Business Centres

The project will develop Creative Business Centres in:

China: · Beijing · Hong Kong · Shanghai India: · Mumbai · New Delhi

The five Centres will not be “cold starts”, but will be cost effective arrangements that build on existing agency, university and corporate partnerships and networks e.g. with the Beijing Design Centre and Tsinghua University. This will enable an immediate project presence in the target markets, supported locally through links with our partner Universities in China and India, which will be ready to take advantage of known business prospects. Activity at Centres in each location will be quickly ramped up through these proven operational relationships.

Each of the Creative Business Centres will have a physical presence, staffed by dedicated business development specialists and co-located in prime positions typically within delivery partner organisations. Business development staff at the Centres will proactively seek, generate and orchestrate new business opportunity, broker relationships between Chinese, Indian and UK companies and provide technical, cultural and ‘trouble shooting’ support. The Centres will provide a locus for further developing influential networks in the target markets, for market research and data gathering, for channelling market intelligence back to the UK. All Centres will be equipped with appropriate technology to enable fast reliable continuous contact including video conferencing between staff at each Centre, the Creative Industries Observatory and the project management centre. Where local partnerships are unable to provide suitable venues, appropriate commercial premises will be hired for the staging of events. The volume of KT and business activity driven by each Centre will be monitored and should any of these be performing at a lower level than expected, a virtual Centre established in agency premises may replace the physical presence.

(C v) Key outcomes and deliverables of the project will be:

The establishment of the Creative Industry Observatory and its subsequent operation as an exemplar of sector focused KT excellence; as a source of specialist expert knowledge, leading to new joint ventures and commercial agreements between London/UK companies and those in China and India . It will provide valuable contextualised intelligence to and from the Creative Business Centre, UKTI and other agencies, to UK businesses via on-line and other media/events
The establishment of 5 International Creative Business Centre networks to support knowledge transfer activity in stated areas
Estimated £2.0m p.a. revenue potential from international knowledge transfer activities by July 2008
12-15 international business development staff appointed across the network
5 databases of international contacts
15 regionally focused (i.e. 3 per Centre) marketing and promotional events per year
1500 creative industries businesses briefed through 6 - 10 London based strategic business opportunity seminars during the project
The Creative Capital – World City website
Regular specialist on-line e-briefings on India/China opportunities
On-line multi media/interactive specialist support for new business development
100 international business-to-business introductions brokered
10 international business opportunity focused ‘grow your creative business’ events for London based creative industry companies and 10 similar events delivered locally for Indian and Chinese creative companies which will showcase London/UK creativity
‘International Knowledge Transfer Partnerships’ and ‘mini-KTPs’ (will be developed based on experience of graduate placement in international locations) that will be sponsored by Indian and Chinese companies

(C vi) Independent Evaluation Arrangements

Evaluation will be a constant theme/presence throughout the project. The individual contributions of each partner will be subject to several levels of quality control and evaluation, the first line of which will be the existing quality control procedures of each partner. The project management team will internally evaluate each significant project event and interaction in line with customer care best practice – reporting biannually to the Board. Impact assessments will be made of all operational aspects of the project.

Separate to these measures there will be external evaluation at initiation, during and on completion of the project. This will be carried out by independent external specialist evaluation consultants who will be appointed to the project following a selection process. A budget element has been earmarked for this, and potential sources, e.g. University of Glasgow Cultural Policy Group and Innovation Partners Ltd, have already been approached.

(C vii) Dissemination of Project Results

A comprehensive dissemination strategy will be agreed with the Management Board. The principle means of dissemination – not only of results but of process and progress – is intended to be the project website and links to the websites of partners including London First and Creative London. It is also intended that the project will also be featured in creative industries publications and those of the Mayor’s Office and LDA. The Observatory will launch the Creative Industries Journal as the authoritative refereed commentary on the creative industries in the UK, which will also disseminate data/findings from the project. The importance of disseminating information about the project and its impact, to business organisations, trade and professional associations; the HE Sector; UK government agencies; knowledge transfer networks other relevant CKEs in London and the UK and most importantly of similar bodies in China and India is recognised. There will be publications emanating from the project as well as targeted seminars and events targeted both at specific creative sub-sectors, broader business and the broad Creative Industries. Reference will be made to HEIF/HEFCE and DTI-OST throughout the dissemination process.
(C viii) Exit Strategy and Sustainability

This is an ambitiuous venture, with sustainability as an achievable objective. It is envisaged that significant income will be generated from the proposed activities, but this may not be fully in place within two years.

The initial project lifespan funded by HEIF 3 will be extended into future years with income generated through the provision of high quality knowledge transfer activities and services both in London/UK but primarily in the target markets. The first two years will feature an awareness raising campaign as the partnership builds the Creative Business Centre brand recognition at the initial locations. It will also further business partnerships and investment through which the brand and thus the centres concept can be extended to more geographical areas. The project will build a new self-sustaining business model, which will continue to grow in line with the anticipated growth of the Chinese and Indian markets for the creative industries.

It is expected that there will be significant opportunities for co-investment with Chinese and Indian partners, which will defray a large part of the direct operational costs to the partners in future years. The business model also anticipates the possibility of co-developing the Centres as collaborative businesses drawing in more UK creative companies, as the market for creativity in China and India extends to many other cities. This will give the partnership a much wider engagement with the Chinese and Indian marketplace, greatly increasing the potential returns to London/ UK creative businesses, to associated Chinese and Indian companies, and to the HEI partners as the demand for their knowledge transfer services grows. Revenue (in part potentially royalty payments) from this will feed back to the project to support the continued marketing and management of the business. The CIO will also actively seek to generate income through commissions and events. If insufficient progress towards some areas of self-sufficiency has been made two years from the start date, the project could be scaled back (e.g. some of the Creative Business Centres could become virtual centres to a level that can be sustained by the income generated from them) without loss of its overall thrust.

HEFCE/OST are being asked to provide essential start up funds to enable infrastructure development, cover expected start up costs and provide a stable platform for the first two years on which a sustainable operation can be built. Our belief in our ability to achieve sustainability is supported by the way in which the partners have over recent years been developing successful overseas recruitment and consultancy businesses in the target regions.

(C ix) Key Risk Factors

A strong partnership has been put together that has good experience of working successfully overseas. The potential pitfalls and challenges are largely known and many have been encountered and effectively dealt with in the past. However, this does not mean that the partnership is complacent about risk. As part of the business plan, a fuller assessment and treatment of risk will be undertaken with King’s College London’s Risk Strategy Group. A risk management strategy will subsequently be devised. Some indicative risks have been set out below.

Indicative Risk Rating Action
Unable to recruit appropriate staff or Low/ Medium Phase these international activities slightly
premises in China/India slower than in timeline
Partners unable to agree on share/ Low/ Medium Board to develop formal partnership agreements
distribution of income/benefit
Lack of KT business opportunities in Low/ Medium Vigorous campaign in target markets
China and India with UKTI and delivery partners in target markets
Income does not grow sufficiently Medium Scale back Hub/CIO activity to sustainable level
to fund Year 3 operation recast some centres as virtual centres
Seek co-investment/ merger with local partners
Too many CI sub sectors too early. Medium Focus on key selected areas initially
Slow bureaucracy in both countries Medium/ High Local partners well used to this will advise/ guide
Financial export restrictions/guarantees Medium Chinese income held in China and used to offset partner
(mainly China) costs on other (e.g. recruitment) operations.
Absence of experience of international High Careful screening/selection of business partners,
business standards use of strong contracts, particularly IPR
but recognise that even so, risk remains

The project represents a novel HEIF/business model but the experience of the partners in developing international operations and in delivering on HEIF/ third stream developments and other major collaborative projects reduces the risk associated with it
(C x) Finances

John Robertson left an annotation ()

In their own words: this from

Lessons learnt.
These are the lessons learnt so far from delivering our HEIF 3 project - to find a full copy of our winning bid please click download on this page.

1. The first lesson is that everything takes much longer than you might expect it to. Everything is being done at a distance, in different time zones. In the case of China particularly, time needed to be spent to understand the business culture and the systems of business development before the programme could really begin to engage with Chinese business. There is also a very real need to overcome a significant language barrier. All of this was more or less foreseen, but the practical impact of it on our ability to mount the programme only became apparent once the programme got underway.

2. Having an in-country presence of senior UK managers is highly desirable, yet this is not practicable. Although we have fairly frequent visits to China and India to compensate, we remain to a very large extent reliant upon those that we have recruited. Good local knowledge and contacts are highly valued, but this by itself is not enough. Good experience of and ability in business development is also extremely important. Recruiting the right people is crucial as is regular management contact with and support for them through a mix of technology based and face-to-face communication.

3. Recruiting the right people has been problematical and more expensive than had been expected. Not surprisingly, compensation has had to be adjusted to reflect market conditions in each locality. Because recruitment to the programme is taking place during a period of private sector expansion, the market in each locality has been found to be particularly tight with respect to finding well-qualified individuals with good language skills. This has led to higher costs and delayed recruitment.

4. Reliance has had to be placed on outsourced services and agents to provide the kind of ‘back office’ administration and support that we take for granted in our own HEI. This is largely because our own in-house services do not necessarily have the experience or expertise to provide much needed guidance and support to a programme that operates across international boundaries and under different legislative regimes. Initial assumptions concerning the extent to which existing relationships with our network of recruitment agents could be leveraged to provide such services have not been borne out in practice. This has all placed additional strain on the Programme Management Team, which it is fair to say has done tremendously well to cope with a severe learning curve.

5. The development of a fully functioning internal and external partnership also requires a lot of time and effort even if, as in our case, those partners are largely known to you and have experience of working together on different projects. Large-scale projects bring their own tensions and partners bring their own expectations and agendas. We have learned that there is a clear need for good communication (which we have not always managed as well as we might wish), for clear understanding of the mutual purpose and objectives of the project (not always acknowledged within a partnership) and that while consensual agreement is always sought, resolute leadership is a quality that should not be underestimated.

6. Having the support and advice of very experienced and accomplished Creative Industries business people on the Programme Advisory Board has been extremely beneficial in moving towards the achievement of a balanced approach to the commercial and academic aspects of international knowledge transfer as well as assisting with strategising and implementing the programme.

Summery by transcriber:

Nobody who can get a better job would want to work in a quango supporting Chinese autocracy at the expense of people who pay for the quango. It's a nonsense. Nobody applies.

Nobody knows what this project is for and those who apply by accident and perhaps really think that China trade on fiddled exchange rates by both sides is good for taxpayers in the UK, get the job. Well done. They also find a mixture of briefs and interventions which keeps them in London and prevents them doing the job they hoped to do.

Frankly it's a plaything of courtiers; job creation by Marie Antoinette

John Robertson left an annotation ()

related: London Fashion week @ £4.2m over 3 years no longer even pretends to have figures about job creation: