Select Committee on Science and Technology Eighth Report


2  The current situation

Why do we need STEM graduates?

8. In 2004, the Government placed science at the heart of its political and economic agendas with the publication of its Science and Innovation Investment Framework 2004-2014 and the announcement of significant increases in funding for UK science.[6] The Investment Framework is one of a series of recent Government publications that explicitly link the health of the UK's Science and Engineering Base (SEB) with the maintenance of a vibrant economy. In the introduction to the Innovation Report, published by the Department of Trade and Industry (DTI) in December 2003, Lord Sainsbury, the Minister for Science and Innovation, stated that "our vision is that we should be a key hub in the global knowledge economy. This means that the UK should be a country famed not only for its outstanding record of discovery but also for innovation, a country that invests heavily in business R&D [research and development] and education and skills, and exports high-tech goods and services to the world".[7]

9. Universities, and the students that they educate, are central to the Government's vision. The Investment Framework establishes a link between the volume of STEM graduates and the health of the economy, stating that "to support the UK's ambition to move to a higher level of [R&D] intensity, it is crucial to ensure that the UK has the right stock and flow of skilled scientists, technologists, engineers and mathematicians, as well as technicians and other R&D support staff, generated from the UK and attracted from abroad".[8] STEM graduates are needed for:

a)  Research and Development. The Innovation Report explains that, "for the economy as a whole innovation is the key to higher productivity and greater prosperity for all".[9] The seventh annual statistical digest published jointly by the Engineering Council (UK) and the Engineering and Technology Board (etb) in July 2004 states that "in order for the UK to compete in products and services requiring technical innovation, it is crucial that we continue to produce high quality engineers and scientists in sufficient quantity to supply the needs of industry".[10] A strong national R&D base plays an important role in attracting businesses and investment from abroad.

b)  Academic research. The Lambert Review of Business-University Collaboration states that "research-intensive universities play a central role in the most dynamic economic regions of the UK, and it is rare to find a business cluster which is not associated in some way with one or more local universities".[11] Not only does research in the higher education sector help to drive the economy through links to business, it also helps to improve quality of life, for example through medical and social research; it enhances the national knowledge base; and it equips researchers with valuable transferable skills. Furthermore, if the UK produces a high number of researchers, it is able to send a proportion of them abroad to tap into global research networks, bringing their knowledge and skills back with them when they return, and building the international reputation of the UK.

c)  Teaching. Good teaching in STEM disciplines, at school, college and university level, creates and inspires new generations of scientists. Less tangibly, it raises the level of scientific literacy in the population as a whole, helping to inform the public response to, and influence the likely take-up rate of, emerging technologies such as genetic modification and nanotechnology. The Investment Framework states that "it is important that we enthuse and inspire young people and enable them to become informed citizens or scientists of the future, willing and able to engage with science".[12]

d)  Policy formation and implementation. Science is used across Government departments to inform and underpin new policies, or as part of the policies themselves. Our Report on The Use of Science in UK International Development Policy demonstrated that good use of science can be crucial to effective policy delivery.[13]

e)  Infrastructure. The School of Civil Engineering and the Environment at the University of Southampton, for example, states that its researchers are working on topics such as "transportation, infrastructure, sustainable urban environments, waste and resource management, coastal and marine engineering and sustainable energy".[14] STEM graduates also have an increasing role to play in ensuring the sustainability and environmental suitability of new technologies.

f)  Transferable skills. Graduates with science, engineering, technology and numerical skills are prized in a wide variety of organisations and sectors. For example, financial services, property and business services are the sectors where the amount of GDP generated by the science, engineering and technology community is estimated to be the highest.[15] The inquiry by Professor Adrian Smith into mathematics education post-14, Making Mathematics Count, demonstrated the versatility of mathematics and numerical skills, and the importance of their contribution to the economy across all sectors.[16]

10. The need for STEM graduates can also be expressed in negative terms. A 2002 study by the National Institute of Economic and Social Research showed that "where the UK loses out in terms of skills levels of engineers (and scientists) and in the associated innovative activity, then a loss of competitiveness occurs in terms of a loss of domestic market share, loss of international trade share and in lower productivity levels".[17] If the UK does not get its supply of STEM skills right, the damage to the economy could be substantial. STEM graduates help to maintain the healthy operation of society at all levels—by driving the economy; by generating knowledge and innovating; by raising the scientific literacy of the population as a whole; by informing Government policy; and by aiding participation in international research networks.

11. Whilst the need for STEM graduates is self-evident, its extent ("the right stock and flow" described in the Investment Framework) is difficult to quantify. Sir Howard Newby, Chief Executive of HEFCE, told us that "I do not think there is a one-to-one relationship between the volume of science graduates and the performance of the economy, but there certainly is a relationship".[18] This lack of clarity is partly due to the relative intangibility of the benefits of a scientifically-literate population. It also derives from uncertainty on questions of self-sufficiency: does the UK itself need to produce enough STEM graduates to meet all of its economic needs, or is it acceptable, or desirable, for it to recruit some of its scientific, engineering and technical workforce from abroad? Whilst there is clearly a minimum level of domestic graduates required to maintain the capacity of the SEB in the long term, these are not questions for which there are straightforward answers, as will be seen in Chapter 3 of this Report.

Departmental closures

12. The announcement made by Exeter University of its decision to close its chemistry department, and the subsequent campaign—by students, staff and parents—to keep it open, focussed public attention on the financial difficulties experienced by some university STEM departments. Boxes 1 and 2, below, use the closure of the chemistry department at Exeter University as a case study. The evidence we have collected suggests that the problems experienced by university STEM departments are at their worst in the physical and chemical sciences, engineering and mathematics. In general, biological sciences departments have tended to experience fewer difficulties, possibly because of a combination of higher student numbers and lower teaching and research costs. However, as Professor Tom Blundell of the Biosciences Federation told us, the situation is "very uneven in biology […] within the biological sciences, we have less biochemists and more psychologists and brain scientists. The total numbers hide the real problems".[19]

Box 1: Closure of chemistry at Exeter: Timetable of events



Imagining the Future


In November 2004 the Vice Chancellor of Exeter University, Professor Steve Smith, produced a document entitled Imagining the Future, in which he set out the financial challenges faced by the university. In it he said that "our growth needs to be selective. We are currently spreading our jam too thinly and cannot sustain or achieve international excellence over the 37 subjects we submitted to the 2001 RAE". He proposed that, other than at the interfaces with physics and biology, chemistry should be phased out as a separate discipline at Exeter.[20] Cuts were also planned for Italian and music.



Heads of Schools


The Heads of Schools most affected by the proposed changes met individually with the Vice Chancellor between 5-9 November 2004.



Meeting of Senior Management Group


The news was broken to all Heads of School and the Guild of Students at a meeting of the Senior Management Group (SMG) on 18 November 2004. SMG was asked to keep the information confidential until other groups had been told.



Media disclosure


The Royal Society of Chemistry issued a press release on 19 November 2004, ahead of the university's own announcement, planned for 22 November. The story broke in the press.



Student updates


Students were updated on developments by letters sent on 25 November and 10 December 2004, and on 11 January, 17 January and 3 February 2005. Student visits to the chemistry departments at Bath and Bristol were organised for 11 February 2005, and students were offered one-to-one meetings with the Vice Chancellor on 14 February 2005.



Informal Committee meeting with Professor Steve Smith


On 14 December 2004, the Committee held an informal meeting with the Vice Chancellor of Exeter University to discuss the reasons underlying the closure of the chemistry department.



Oral evidence sessions


A first-year chemistry student from Exeter University, Danielle Miles, gave oral evidence to the Committee on Monday 7 February 2005. The Vice Chancellor, Professor Steve Smith, gave oral evidence to the Committee on Wednesday 9 March 2005. Each appeared as part of a panel of witnesses.



Box 2: Reasons underlying the closure of the chemistry department at Exeter


At Exeter, science subjects were being heavily cross-subsidised from other subjects. The following departments were operating at a loss:



- Chemistry:    £0.8 million


- Biology:    £0.8 million

- Engineering:    £1 million

- Geography:    £0.3 million


In an informal meeting with the Committee, Professor Smith provided data showing the changes in income to departments at Exeter University as a result of the Research Assessment Exercise (RAE) 2001 (see box 3, in chapter 5).



Exeter University did not have sufficient funds to support all its departments that had received a grade 4 in the RAE in 2001. It had to close one of them. Biology and engineering were perceived to be of greater strategic importance to the university than chemistry, although the engineering department did see substantial cuts.[21]



Campaigners to save the chemistry department at Exeter have reacted angrily to claims that the department had to close partly because of difficulties with student recruitment. The Royal Society of Chemistry, for example, states that demand for chemistry was "buoyant".[22]



The chemistry department at Exeter had met its target numbers and was not in clearing. However, it's student quota had been reduced by 21% from 2000. Furthermore, although chemistry and biology at Exeter incurred similar staff costs for teaching, chemistry only had 201 students, whilst biology had 380. In oral evidence, Professor Smith told us that the quota for chemistry students had gone down because the university was finding it difficult to recruit sufficiently well qualified students.[23]


13. The pace at which university STEM departments are closing has accelerated since 2001. As well as the chemistry department at Exeter, there have been high profile closures of chemistry departments at Kings College London, Queen Mary London and Swansea University; of physics departments at the University of Newcastle and Keele University; of mathematics at the University of Hull; and of civil engineering at Aston University. The Institute of Physics states that, since 2001, 30% of university physics departments have either merged or closed. There are currently 36 physics departments in England and 48 in the UK.[24] The Institution of Civil Engineers states that, between 1996 and 2001, the number of civil engineering departments submitting to the Research Assessment Exercise decreased from 40 to 29, a 37% decline.[25] For chemistry, Professor Michael Sterling, Vice Chancellor of Birmingham University and Chairman of the Russell Group of universities, told us that "as I understand it there are more than 40 chemistry departments nationally so that is quite a long way from a crisis".[26] However, there have already been several closures in this subject and, as is outlined below, many more are expected.

14. It seems unlikely that the recent flurry of departmental closures will end soon. The Association of University Teachers states that currently "there are approximately 35 to 40 chemistry departments. However, the best case scenario put forward by the [Royal Society of Chemistry] is that 20 will survive and at worst only 6 (Durham, Cambridge, Imperial, UCL, Bristol and Oxford) will remain in 2014".[27] The Royal Society of Chemistry (RSC) has found that chemistry departments tend to operate at a loss. Dr Simon Campbell, President of RSC, told us that "we have surveyed eight chemistry departments across the country and all of them are running at a loss. The loss range is between 20 and 60 per cent of their budget. In every case, research is subsidising teaching".[28] Departments operating at a deficit are likely to be considered for mergers and cuts by universities needing to reduce their costs, leaving expensive STEM departments vulnerable. As will be shown in chapter 3 of this Report, the downward trend in the number of STEM departments is not reflected in the number of employment opportunities available to STEM graduates, particularly those from physics, chemistry, mathematics and engineering backgrounds. There will come a point beyond which the number of remaining university STEM departments will be unable to meet employer demand. This alone is a powerful argument for halting or reversing the current trend of departmental closures.

15. Whilst it may be exaggerating to say that university STEM departments are in crisis, it is clear that their numbers are experiencing a sharp decline. Since the financial situation faced by these departments is unlikely to change in the short term, it is reasonable to assume that there will be further closures. If this process continues unchecked, there is a very real possibility that the system will no longer be able to provide sufficient numbers of STEM graduates to meet the needs of the UK economy. Unless the Government takes action now, it will have a crisis on its hands in the foreseeable future.

CONSEQUENCES OF CLOSURES

16. Departmental closures set in motion a vicious cycle of events. As the number of departments teaching a particular subject decreases, so does the number of teachers of that subject produced by the university system. The lack of teachers and the negative impression created about the subject by departmental closures in turn cause a decline in demand from schoolchildren for university courses in the subject. As student demand declines, more departments struggle to survive financially, and more are forced to close (see chapter 4). The same negative trends can be seen at a regional level. Departmental closures in core STEM subjects make a region less attractive to business, thereby reducing the level of knowledge transfer and commercialisation activities that can take place there. One of the main concerns about the closure of STEM departments is that capacity in some subjects will drop so low that it will be impossible to accommodate any future, much needed, increases in student demand. The cost of re-equipping and re-staffing a previously closed STEM department is prohibitive. Thus, the RSC told us that "a chemistry department that is closed and staff dispersed is unlikely to be reopened: the capacity is lost for ever".[29] Given the Government's goal of increasing the number of students taking STEM courses, it is essential that sufficient capacity is maintained in the system to meet a possible future growth in student demand.

17. We received evidence that suggested that claims about the irreversibility of departmental closures might be exaggerated. The panel of Vice Chancellors we saw on 9 March told us that, when a department closed, capacity tended to be transferred elsewhere rather than lost altogether. Thus, Professor Sterling said that "there is a misconception that chemistry only exists within a chemistry department. […] What tends to happen is that if there is a decline in interest in one subject area you might dissolve the departmental boundary, but those chemists end up in other areas and that process can be reversed".[30] This is increasingly true as the boundaries between disciplines become more blurred. At Exeter, for example, many of the current chemistry staff will be absorbed into the university's growing biosciences department, where they will carry out work at the interface between the two disciplinary areas. Professor Alasdair Smith, Vice Chancellor of the University of Sussex, described a different way of retaining capacity: "we have coped with the effect of declining student numbers by reducing the size of mathematics, […] physics, chemistry and engineering, and if there were a turnaround nationally then we would have very substantial capacity for expanding those departments back up".[31] Whilst these examples show that there is limited potential within the system to increase capacity in some subjects again should the need arise, we remain concerned about the disappearance of university departments in some core STEM subjects, whether or not their capacity has been absorbed by departments in other disciplines. The Association of the British Pharmaceutical Industry (ABPI), for example, told us that there were very few degrees, even those in core STEM subjects, that were an appropriate substitute for chemistry: "of particular concern is the supply of chemists […] Although numbers following biological degrees have held up well, the relevance of the training has not".[32] A biology degree, however rigorous, will not equip a student with the same set of skills as a chemistry degree. By failing to provide specific chemistry training for students, universities may be limiting their employment options. When a department in a particular subject is closed, arrangements need to be made to ensure that students can continue to study that subject in its pure form.

18. Although the debate about departmental closures has tended to focus on individual cases, the main concern is for the outlook for overall provision of STEM subjects at a national and regional level. Thus Dr Campbell of RSC told us that "the worry that we have at the moment is that the closures we are seeing are cost driven and random. There is no sense of a national strategy and there is no sense of regional needs".[33] One method that has been used to mitigate against the loss of capacity in individual STEM departments is for departmental closures to be regulated at a regional level. Whilst the closure of the chemistry department at Exeter has attracted an extremely adverse press coverage, the regional mechanism appears to have worked well in its case. Nick Buckland, Vice Chair of the South West of England Regional Development Agency, told us that, despite the closure, "we work with the universities in the region, so, as I said earlier, we have the same level of provision of chemistry within the region and they have pushed into their strengths, and are at roughly the same level of capacity".[34] The Vice Chancellor of Exeter University agreed, telling us that the steps taken within the region "actually increase[d] the number of funded places for chemistry in the south-west".[35] The regional dimension to the debate surrounding departmental closures is explored in detail in chapter 7 of this Report.

19. Further closures of university STEM departments would be a source of serious concern to us. However, the closure of an individual department need not entail a permanent loss of capacity in that subject, providing that suitable alternative arrangements for current students and long term planning for potential future increases in student demand is in place at a regional and national level. Chapter 6 sets out a blueprint for the form that this strategic planning should take.

20. The headline-grabbing individual instances of departmental closures are only a symptom of a much broader and more intractable problem. Student demand for STEM subjects, both at school and at university, has been in steady decline for the past ten years. If not addressed, this lack of demand, compounded by problems with university funding mechanisms, will continue to call into question the viability of university STEM departments (student demand and university funding will be discussed in detail in chapters 4 and 5 of this Report). Universities UK told us that "if progress is not made based on robust and relevant experience that helps identify the true nature of the problems and informs longer term sustainable solutions we could ultimately end up with short term micro management of the research base in a response to current 'hot spots' which, aside from its own unintended consequences, would distort institutional strategies and priorities".[36] There is little point in patching up the system in the short term if measures are not taken to address the underlying reasons for the difficulties faced by university STEM departments. It is essential that any measures taken to prevent further loss of capacity in the system are underpinned by a strategic approach.


6   HM Treasury, Department of Trade and Industry and Department for Education and Skills, Science and Innovation Investment Framework 2004-2014, July 2004 Back

7   Department of Trade and Industry, Innovation Report: Competing in the global economy: the innovation challenge, December 2003, p 5 Back

8   HM Treasury, Department of Trade and Industry and Department for Education and Skills, Science and Innovation Investment Framework 2004-2014, July 2004, p 81 Back

9   Department of Trade and Industry, Innovation Report: Competing in the global economy: the innovation challenge, December 2003, p 9 Back

10   The Engineering Council (UK) and the Engineering and Technology Board (etb), Digest of Engineering Statistics 2003-04, July 2004, p 27 Back

11   HM Treasury, The Lambert Review of Business-University Collaboration, December 2003, p 9 Back

12   HM Treasury, Department of Trade and Industry and Department for Education and Skills, Science and Innovation Investment Framework 2004-2014, July 2004, p 85 Back

13   Thirteenth Report from the Science and Technology Committee, Session 2003-04, The Use of Science in UK International Development Policy (HC 133) Back

14   Ev 144 Back

15   The Engineering and Technology Board (etb), The Frontiers of Innovation: Wealth Creation from Science, Engineering and Technology in the UK, April 2004, p 14 Back

16   Department for Education and Skills, Making Mathematics Count, The Report of Professor Adrian Smith's Inquiry into Post-14 Mathematics Education, February 2004 Back

17   G. Mason and K,. Wagner, National Institute of Economic and Social Research, "Skills, Performance and New Technologies in the British and German Automotive Component Industries", July 2002. See the Engineering Council (UK) and the Engineering and Technology Board (etb), Digest of Engineering Statistics 2003-04, July 2004, p 50 Back

18   Q 190 Back

19   Q 328 Back

20   Professor Steve Smith, Vice Chancellor of Exeter University, Imagining the Future, November 2004 Back

21   Q 423 Back

22   Ev 183  Back

23   Q 419 Back

24   Ev 131 Back

25   Ev 227 Back

26   Q 426 Back

27   Ev 282 Back

28   Q 320 Back

29   Ev 186 Back

30   Q 424 Back

31   Q 425 Back

32   Ev 170 Back

33   Q 318 Back

34   Q 304 Back

35   Q 403 Back

36   Ev 261 Back


 
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