Leading research-intensive universities, including Leeds, contribute almost £38 billion to the UK economy, analysis has revealed.
For every £1 of public funds invested in research at the 24 Russell Group universities, more than £8.50 was generated for the UK economy, the report by London Economics found.
The creation of new spin-out companies, wider knowledge exchange and Intellectual Property licensing meant that in 2021/22, the institutions made an impact of £37.6 billion.
Collaborative research, innovative spin-out companies and knowledge exchange activity has a huge influence on driving the economy forward.
Professor Nick Plant, Deputy Vice-Chancellor: Research and Innovation, University of Leeds, said: “It’s fantastic to see this analysis confirming what we passionately believe: that our collaborative research, innovative spin-out companies and knowledge exchange activity has a huge influence on driving the economy forward and benefits the businesses, social enterprises and organisations we work with by generating regional impact, creating new jobs and developing disruptive solutions to global challenges.
“Slingshot Simulations is a fantastic illustration of this – founded as a spinout from the University of Leeds it has gone from strength to strength, increasing its workforce, attracting huge investment, and delivering new approaches to prioritise policy interventions that are supporting the journey to Net Zero. It’s an excellent example of the impactful contribution we make to the economy and society through commercialisation of intellectual property generated by our transformative research.”
Since joining Nexus, the University of Leeds’ innovation community, with a team of three people, Slingshot has attracted investment worth over £5 million, including funding from Northern Gritstone - and its headcount has also substantially increased.
Job creation
With more than 1,200 spin-out companies throughout the UK thanks to research and support from Russell Group universities, institutions support more than a quarter of a million (254,000) jobs, twice as many as in the chemical and pharmaceutical manufacturing industries combined.
In the Yorkshire / Humber region, the impact of universities’ research and commercialisation included more than 22,000 jobs, with a total economic impact of almost £2.2 billion.
Dr Tim Bradshaw, Chief Executive of the Russell Group, said: “These findings demonstrate the immense value our universities add in every single corner of the UK. The data clearly shows that investing in R&D and innovation at Russell Group universities reaps huge benefits for local economies and communities, with hundreds of thousands of jobs created and new enterprise supported, thanks to high quality research across a range of disciplines.
“Russell Group breakthroughs are helping accelerate efforts to reach Net Zero responsibly, transforming the way UK companies do business and providing the NHS with new ways to save lives and cut waiting lists. Good choices and sustained investment from government has been crucial to this success.”
Professor Chris Day, Chair of the Russell Group and Vice-Chancellor and President of Newcastle University said: “This report reveals how Russell Group university research and commercialisation activities generated nearly £38 billion for the UK economy in 2021/22, supporting more than a quarter of a million jobs. This is in addition to the impact of our teaching and learning activities.
“Continuing to produce world-leading research and innovation in sectors ranging from medicine to sustainable energy and the creative industries is imperative to the long-term development of future generations and the growth of our economy."
Further information
For more information please contact Corporate Communications Officer Becky Pascoe.
Image credit: Slingshot Simulations