Loans & Finances Today

The Lambert Review Of Business-University Collaboration, published in December 2003 looked at the relationship between industry and academia in scientific research and commercialisation of that research. It broadly supports the Government’s approach to ‘third stream funding’ which promotes knowledge transfer. The amount of money spent by UK companies on research and  development (R & D) is low compared with other industrialised nations: about $410 per person compared with $700 per person in France and $1300 in the USA.

There are barriers to commercialising university IP, including lack of clarity on ownership in research collaboration and in the variable quality of university technology transfer offices. Universities perform well by international standards in science and technology. There has been a marked change of culture, with many universities casting off their ivory tower image and playing a much more active role in their regional and national economy. But, there had been too much emphasis on spinouts over the last decade compared with licensing fend other forms of commercialisation).

In simple terms, your portfolio should reflect your personality as a saver, investor, and speculator. Pure savers will want all their money in savings instruments, pure investors will want it all in investments, and pure speculators will want it all in speculations. Most of you, however, will want to have some money in two or all three types of investments. The only way to determine amounts is to watch how different ratios affect your emotions.

For example, retirees are sometimes advised to have five years of living expenses in savings instruments. They can then place the rest of their money in investments and speculations. However, many retirees are unhappy with the low returns from savings instruments. Being more investors than savers, they will cut down to one year or even a few months of savings instruments and put the rest in investments. This will increase both their returns and happiness.

Other retirees will not want anything in investments. They will only be comfortable with everything in savings. While they may start retirement with five years of savings, eventually they will have twice their life expectancy in savings.