Boost for business through British HE

26 juli 2012 - Last year, universities contributed £3.3 billion (€ 4.2 billion) to the British economy in business services, a recent analysis indicates. Universities and Science Minister, David Willets, emphasizes the role of HE in fostering knowledge exchange and a “more entrepreneurial society”.

The Higher Education Funding Council for England (HEFCE) estimates that last year universities contributed £3.3 billion (€ 4.2 billion) to the British economy through "commercialisation of new knowledge, delivery of professional training, consultancy and services". This represents an increase by 7% over 2009-2010.

In its most recent report, HEFCE argues that universities have significantly boosted knowledge exchange in the UK. David Willets, Universities and Science Minister, comments on these findings and emphasizes the "important role [of higher education] in creating a more entrepreneurial society".

Press statement

Universities in the UK contributed £3.3 billion to the economy in 2010-11 through services to business, including commercialisation of new knowledge, delivery of professional training, consultancy and services.

These comprise part of a much wider economic impact.

Analysis by HEFCE of the eleventh annual Higher Education - Business and Community Interaction survey shows that the total value of the services which UK universities provide to the economy and society increased by 7 per cent in 2010-11, from £3.1 billion in 2009-10 to £3.3 billion.

Despite wider economic uncertainty, spending on university services by large business increased by 7 per cent, from £587 million in 2009-10 to £629 million in 2010-11. Universities are stimulating economic growth and contributing to public services and society.

The report, published today, finds encouraging signs of the rising value of UK knowledge exchange . This is illustrated by increases in income to universities from facilities and equipment - such as wind tunnels or digital media suites - where income grew by 12 per cent over the previous year, to £129 million in 2010-11.

1,262 spin-off companies

• In 2010-11 268 new businesses were set up based on the world-class research carried out by UK universities, bringing the total number of active spin-off companies to 1,262. These companies employed around 18,000 people and turned over nearly £2.1 billion during the year.
• UK universities formed one new company per £24 million of research funding during 2010-11. This far exceeds the record of US universities (one new company per £56 million).
• Graduates established over 2,800 new enterprises to capitalise on the knowledge and experience gained while studying. Universities support these enterprises by embedding enterprise in degree courses, and also by providing advice and facilities for graduates to set up and grow their businesses, and by putting them in touch with investors looking for opportunities.
• The direct application of knowledge to solving problems in the public and private sectors also grew, with collaborative research increasing by 16 per cent and contact research by 7 per cent.

David Willetts Minister for Universities and Science said:

"Universities and industry working together are making a substantial contribution to the UK's economic growth. The latest analysis shows that external income to the higher education sector from business and other users has continued to increase, despite the challenging economic environment, to over £3.3 billion."

"Today's increase in the number of new start-up companies by staff and recent graduates of higher education institutions also highlights the important role that universities have in creating a more entrepreneurial society."