Public funding in university-business collaboration “critical”

Analysis from Research England has highlighted the vital role of the Higher Education Innovation Fund (HEIF) in fostering knowledge exchange (KE) between universities and businesses in England.

The findings showcase HEIF’s impact in supporting early-stage innovation, upskilling SMEs, and shaping policy, with case studies and data revealing its role in attracting investment, bridging skills gaps, and improving access to research tools. In 2022/23, HEIF invested £280m and leveraged £7.4 in private funding for every £1 of public investment.

Research England has also evaluated the Connecting Capability Fund (CCF), which supports collaboration between universities to enhance KE and research commercialisation. The reports show that CCF-funded projects have delivered significant impact, including:

• £855m in leveraged funding, including £315m for Access to Finance funds.

• 12,969 individuals trained in enterprise skills.

• 1,845 collaborative R&D projects, resulting in 338 new products and services.

• 214 new spin-outs created.

• £315.2m raised to support spin-out growth.

• Alignment with government priorities on R&D, skills, and productivity.

Joe Marshall, CEO of the National Centre for Universities and Business, commented: “This analysis highlights the significant positive impact of public funding in driving both economic and societal benefits through university-business collaboration. With a relatively modest public investment, these initiatives unlock a wealth of tangible outcomes that fuel economic activity across the UK, while addressing some of the nation’s most pressing challenges.

“HEIF funding has played a crucial role in unlocking collaboration between universities and private, public, and third-sector organisations by building core knowledge exchange capacity in English universities. CCF has also supported research commercialisation efforts and the development of local commercialisation ecosystems.”

Commenting on the future, Marshall added: “With uncertainty surrounding the future of place-oriented funding, specifically the UK Shared Prosperity Fund, arguably growing investment in initiatives like HEIF and CCF will be key to achieving the UK’s growth ambitions nationwide. The Chancellor has expressed an intention to “get more investment into every nation and region of Britain,” and these funds have demonstrated their capability in achieving this goal. With the upcoming spending review, this presents an opportunity for the government to place regional growth initiatives on a secure financial footing.”