Written evidence submitted by the N8 Research Partnership (IGR0034)
Executive Summary: Innovation, Growth, and the Regions
The N8 Research Partnership (N8), a strategic alliance of the eight most research-intensive universities in the North of England, plays a pivotal role in driving regional innovation and economic growth. With a combined research income of £1.4 billion in 2021-22 and an estimated annual economic impact of £10.3 billion, N8 institutions demonstrate how collaborative research ecosystems can transform regions, fostering productivity, job creation, and investment.
Innovation is the cornerstone of regional growth, and the N8 Research Partnership exemplifies how research-intensive universities can act as catalysts for transformation. Through long-term funding, strategic investment in infrastructure, and enhanced collaboration, the North of England has the potential to lead the UK in building a resilient, innovation-driven economy. N8 remains committed to this vision, supporting the alignment of regional ambitions with national goals to create a prosperous and equitable future.
This submission focuses on the intersection of innovation, growth, and regional development, emphasising key challenges, opportunities, and strategic priorities.
The Role of Innovation in Regional Growth
Research-intensive universities act as engines of innovation, creating ecosystems that align academic research with regional economic strategies. Through partnerships with Mayoral Combined Authorities (MCAs), businesses, and local government, N8 fosters place-based innovation and supports the development of emerging technologies. Examples of key elements in such ecosystems include but are not limited to the following:
- Innovation Hubs and Clusters: Facilities such as Sci-Tech Daresbury and the Materials Innovation Factory exemplify how universities drive regional innovation by translating research into market-ready solutions. These hubs support SMEs, enhance supply chain resilience, and create high-value jobs.
- Collaborative Innovation: Initiatives like the Leeds Innovation Arc and the Northern Accelerator demonstrate the transformative potential of collaborative innovation. For example, the Leeds Innovation Arc is projected to generate 4,000 new jobs and £13 billion in economic value, while the Northern Accelerator has supported 47 spinouts, significantly contributing to the North East’s economy.
Challenges Facing Regional Innovation
Despite its potential, regional innovation faces systemic barriers that hinder growth and productivity:
- Short-Term Funding Models: Public funding for regional initiatives often lacks longevity, limiting the ability to achieve systemic transformation. Competitive processes fragment resources, while the post-Brexit replacement of European Structural Investment Funding (ESIF) with the UK Shared Prosperity Fund (UKSPF) has failed to adequately support innovation and SME engagement.
- Infrastructure Gaps: The North lags behind the South East in access to translational research facilities, transport, and digital connectivity, which impedes the ability of regions to attract investment and retain talent.
- Skills Shortages: Aligning education and skills pipelines with regional industrial strategies is essential to support emerging sectors and adapt to technological change.
- Barriers to Scale-Up Finance: Innovative businesses often struggle to transition from early-stage funding to securing the venture capital needed for scaling up. This limits the growth potential of high-value industries in the North.
Unlocking Regional Potential
We identify several strategic priorities to overcome these barriers and unlock the full potential of regional innovation:
- Integrated Funding Ecosystems: Aligning regional innovation funding with local growth and skills strategies can create cohesive, place-based solutions. Long-term, joined-up investment is essential to drive systemic change and support the development of regional innovation ecosystems.
- Investment in Translational Infrastructure in the Regions: Expanding facilities like AMRC's Factory 2050 and Sci-Tech Daresbury will accelerate the commercialisation of research, driving growth in high-tech sectors. Enhanced access to such facilities is critical for fostering innovation and creating investable propositions.
- Strengthening Collaboration: Initiatives like Innovate UK and Knowledge Transfer Partnerships should be expanded to support university-business engagement. Removing administrative barriers and improving intellectual property frameworks can further enhance these collaborations.
- Building Skills Pipelines: Universities, further education institutions, and employers must collaborate to develop integrated education pathways, from apprenticeships to advanced research training. This approach will ensure the workforce is equipped to meet the demands of emerging technologies and high-growth industries.
Regional Innovation as a National Priority
The success of regional innovation is critical to achieving the UK’s broader economic goals. Investment in northern regions not only drives local growth but also contributes to national productivity and competitiveness. With tailored strategies, the North can serve as a model for regional transformation, demonstrating how innovation ecosystems create equitable economic opportunities.
N8 underscores the importance of fostering cross-regional collaboration to avoid wasteful competition and ensure that resources are used strategically. By working closely with Mayoral Combined Authorities, local governments, and private sector partners, N8 is uniquely positioned to lead this effort, leveraging its research excellence to deliver tangible impacts.
Written Evidence Submitted to the Science, Innovation and Technology Select Committee Inquiry: Innovation, Growth, and the Regions, on behalf of the N8 Research Partnership.
1.1. The N8 Research Partnership (N8) is the strategic alliance of the eight most research-intensive universities in the North of England; Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield and York. Eight of the world’s top 200 universities, within a 62-mile radius, forming a ‘Golden Octagon’ in the North of England, acting as engines of economic growth and creating highly skilled jobs where these are most urgently needed.
1.2. Since 2006, we have been an exceptionally effective cluster of research, innovation and training excellence, delivering benefits to the economy and communities in the North of England and beyond. With our combined strengths and track record of collective action, we are uniquely placed to help the Government deliver its missions, to unlock investment and grow the innovation economy in the North of England.
1.3. N8 institutions had a combined research income in 2021-22 of around £1.4 billion. The most significant source of this income was from UK Research and Innovation (UKRI), primarily through Quality-Related (QR) funding and through Research Council grants.
1.4. Overall, the total economic impact on the UK economy associated with N8 institutions' research and knowledge exchange activities alone in 2021-22 has been estimated to be approximately £10.3 billion. This compares to the total economic impact of the whole of football’s premier league in 2021-22 of £8.1bn.
1.5. It is well established that research and innovation spur economic growth, unlock investment and create jobs. The ‘Golden Octagon’ of the N8 Research Partnership can make a major contribution to powering productivity growth and improving health and quality of life in the region and across the wider UK.
1.6. The UK’s mission to drive economic growth through research and innovation presents a transformative opportunity for regional development. Research-intensive universities, particularly those in the North of England, are at the heart of this endeavour. The N8 is uniquely positioned to lead a cross-regional approach, working closely with Mayoral Combined Authorities (MCAs) that collectively cover 90% of the North’s population. With directly elected mayors collaborating intensively across the North, there is an unprecedented opportunity to positively impact millions of people.
1.7. Universities are actively partnering with MCAs, local government and further education colleges to drive targeted place-based innovation, develop robust skills pipelines, and align research and innovation outputs with national and regional economic growth strategies. By convening and leading collaborative, cross-region initiatives, research-intensive universities are not only accelerating productivity, job creation, business growth, and inward investment but also helping to generate more investable propositions for industry. Government investment, integrated regional ecosystems, and robust policy frameworks can amplify the collective impact of research and innovation, delivering growth and productivity across the UK while attracting significant international investment.
1.8. We recognise that the inquiry will attract significant interest, and the Committee is likely to receive a large volume of testimony and evidence. N8’s submission presents some perspectives from the North of England on questions posed by the Committee. We have written in summary terms to assist the Committee and would be delighted to engage further with the Committee as the work of the inquiry progresses or to provide further evidence, data or information in support of this submission.
2.1. Government policies have demonstrated varying levels of success in fostering regional innovation ecosystems. Targeted initiatives like the UKRI Strength in Places Fund have supported cluster-based development, encouraging collaborations between universities, businesses, and local governments.
2.2. The Innovating Together - Universities in the North East (In-TUNE) partnership is a £4.75m, 2 year, collaborative commercialisation and innovation programme between Newcastle,Northumbria, Durham, Sunderland, Teesside and York Universities, funded through North of Tyne Combined Authority by UKSPF.
2.3. It encompasses and extends two programmes: Northern Accelerator, which supports commercialisation of research through providing early stage support to university spin outs, including leadership and business planning. Northern Accelerator has transformed the commercialisation of research in the North East, making a significant contribution to the region’s economy. To date 47 spinout businesses have been created through the programme’s robust support model, with many now based in innovation clusters at Newcastle’s Helix and County Durham’s North East Technology Park (NETPark). An external evaluation forecasts that Northern Accelerator will have added an additional £140m GVA the North East economy by 2030.
2.4. Arrow provides innovation support to SMEs by connecting them to university expertise and providing targeted advice and guidance. By the end of the programme Arrow is anticipated to support regional SMEs to create 143 new jobs, develop 53 new products or services, increase private investment by £2.6m and increase turnover by £16.9m.
2.5. Unfortunately, the programme is only resourced through the UK Shared Prosperity Fund (UKSPF) until March 2025, illustrating the challenge of short-term public funding.
2.6. The Devolution White Paper and the growing maturity of regional ecosystems present a unique opportunity to accelerate collaborative models that harness the strengths of mayors, businesses, universities, and the third sector. These partnerships are already driving new systems of funding and engagement, paving the way for transformative regional innovation and economic growth. However, realizing the full potential of these opportunities requires addressing several key challenges:
2.7. -Strengthening Long-Term Funding: Public funding and interventions often remain short-term, limiting the ability to achieve systemic, structural regional transformation. Fragmentation caused by competitive bidding processes also leads to scattered impacts. Unlocking sustained, joined-up investment is critical to catalysing long-term, strategic change.
2.8. -Addressing Post-Brexit Impacts: The availability of incentives in the system to encourage university-SME support has declined since the withdrawal of European Structural Investment Funding (ESIF). ESIF’s replacement, the UK Shared Prosperity Fund (UKSPF), mirrored ESIF’s priority of channelling funding into underinvested regions of the UK. However, the mechanisms of the fund meant that funding was not ring fenced for innovation or SME support, and therefore USKPF failed to increase university-SME engagement. This has created gaps in regional innovation ecosystems. Aligning new funding streams with regional priorities can re-invigorate and enhance these systems.
2.9. For example, Lancaster University was engaged with around £90m of ESIF projects, covering strategically important sectors including secure digital/data economy, SME productivity, net zero, healthcare challenges, leadership & management, and advanced manufacturing. The projects assisted >3,000 SMEs, creating >500 jobs, with almost 200 SMEs supported to introduce new products to market, >600 SMEs supported to bring new products to the firm and >21,000 Tonnes of greenhouse gases saved.
2.10. -Re-balancing Regional Research and Skills Capacity: Uneven regional support, including insufficient spatial distribution of research capacity and funding, continues to reinforce economic imbalances. Redressing this distribution is an opportunity to drive more equitable growth and unlock untapped regional potential. Innovation emerging from this investment will require an effective skills strategy across schools, further and higher education and to develop new forms of provision to match the workforce to the opportunity, and keep up with the pace of change.
2.11. -Scaling Innovation Translation: Ensuring an effective ecosystem to support the innovation pipeline requires funding but also, critically, expanded resources for translational innovation facilities to accelerate the transition from research to impactful, market-ready solutions.
2.12. Examples of translational innovation facilities in the North of England include, but are not limited to Sci-Tech Daresbury in the North West, and FerretWorks in South Yorkshire.
2.13. The Sci Tech Daresbury campus has undergone a remarkable transformation over the past two decades, from a government-run research facility to a dynamic hub for science, technology, and business innovation. It has achieved this success through its focus on creating a collaborative ecosystem, state-of-the-art infrastructure, and tailored business support. Its transformation reflects an emphasis on fostering innovation, commercialising research, and linking academia with industry. It directly supports approximately 150 technology-focused businesses, employs around 900 FTE across the campus, and indirectly supports approximately 1,000 jobs across the UK. The impact of the collaborative culture at Sci-Tech Daresbury resulted in an underlying sales growth of 33% for campus companies in 2022, and an average sales growth of 24% over the four years to 2022.[1]
2.14. The FerretWorks programme assists prospective start-ups to mature their technology and accelerate their route to full commercialisation by incubating high risk/high reward ideas away from the typical business Key Performance Indicators (KPIS) and constraints, providing commercialisation know-how and creating space and time to explore the commercial potential of an idea. It has Investment Zone funding.
2.15. Proximal access to facilities like Sci-Tech Daresbury is vital for the research and innovation ecosystem in the North of England, both for academic and business partners. There is a higher concentration of such facilities in London and the Greater South East, which gives that part of the country a significant advantage. It attracts both businesses and a highly skilled workforce because of the density of opportunities and the ease of access.
2.16. More generally, more investment in industrial scale translational innovation facilities like AMRC's Factory 2050 or the Translational Energy Research Facility (funded by European Structural Investment Funding) will enable innovators and researchers to work across university, catapult and industry boundaries.
2.17. Improving Scale-Up Finance: Businesses face significant challenges in moving beyond proof of concept early stage funding to accessing venture capital at the £30m scale-up stage. Strengthening access to this critical investment point will help unlock sustained business growth at scale and regional competitiveness. West Yorkshire is amongst the lowest performing Combined Authority regions in terms of both the debt and equity finance its SMEs receive, and this gap has widened since 2013.
2.18. By proactively addressing these challenges, we can transform them into pathways for progress, aligning regional ambition with national economic goals to deliver tangible, lasting outcomes.
2.19. Within the context of the recently published English Devolution White Paper[2], (Established) Mayoral Strategic Authorities will have more influence on the development of regional innovation ecosystems. This aligns with the outcomes of the Science and Technology Framework[3], one of which is ‘accelerated translation, commercialisation and knowledge exchange through targeted support for local innovation clusters’.
2.20. This presents a significant opportunity to align regional innovation funding with local growth and skills improvement plans, creating a foundation for regions to develop and implement place-based innovation strategies tailored to the needs of business clusters.
2.21. It also offers the opportunity to support cooperation between places, rather than wasteful and time-consuming competition. This is important because industrial clusters do not align neatly with administrative boundaries.
2.22. The N8 universities are uniquely positioned to contribute to this agenda, leveraging their research excellence, graduate outputs, and partnerships to drive regional skills strategies. By collaborating with further education and other higher education institutions in the north, the N8 can help foster integrated skills ecosystems that support mayoral skills agendas. These strategies can empower regions, not only to address immediate workforce needs but also to build the talent pipelines necessary for future growth, ensuring alignment with the broader goals of local economies and innovation ecosystems.
2.23. BioYorkshire aims to transform Yorkshire into the UK hub for green innovation and enterprise, generating over 4,000 jobs and supporting more than 800 bioeconomy start-ups and spin outs by 2030. A joint regional initiative between FERA, the University of York and Askham Bryan College, this ambitious partnership drives innovation in fields such as sustainable crop production and engineering biology, increasing our understanding of the UK food system and helping policymakers design interventions to boost resilience to future shocks. As part of the initiative, researchers have partnered with Yorkshire farmers, agricultural industries and food businesses to tackle food insecurity in the UK, a challenge which impacts on health, educational attainment and social wellbeing.
2.24. In West Yorkshire, for example, successful partnerships include Nexus (University of Leeds innovation hub) and Space Hub Yorkshire. These are both evidence of the potential for partnerships between academic, businesses, civic actors and government to drive regional growth and build ecosystems for emerging technologies.
2.25. Furthermore, Mayoral Strategic Authorities will be able to take new innovative approaches to supporting place-based sectoral strengths through new models of collaboration. The current models of investment zones and innovation accelerators are ideal for major urban conurbations, yet innovation and economic growth are urgently required in smaller cities, towns, rural and coastal areas.
2.26. Successful clusters require full, end-to-end research and innovation capabilities and access to cutting-edge research and advanced skills. A recent report by the Learning and Work Institute[4] states that ‘London and other prosperous areas are on track to continue to keep pace with the world’s best. But other parts of the UK risk falling further behind with significant implications for growth, prosperity and opportunity. Differences at higher education level are particularly stark: 71% of London residents would be qualified to this level by 2035, compared to 58% of people in the rest of the UK, a gap equivalent to 4.1 million people.’
2.27. Two key projects, ready to launch from Liverpool, demonstrate this end-to end capability requirement: one focuses on laboratory automation using physically embodied AI, and the other accelerates the discovery of new materials via AI and digital tools for Net-Zero applications. These projects aim to influence high-growth sectors while enhancing supply chain security. They leverage digital tools to support expert-driven solutions, distinguishing them from standard AI approaches, and capitalise on the unique capabilities and partnerships within the Materials Innovation Factory.
2.28. The Materials Innovation Factory at the University of Liverpool is underpinned by extensive industrial partnerships across various sectors, such as laboratory automation, high-tech coatings for net-zero buildings, solar energy, green hydrogen, and sustainable materials for home care, personal care, and batteries. This initiative is driven by sustained knowledge leadership at Liverpool, which has facilitated the development of partnerships through low TRL research and the adoption of emerging technologies.
2.29. Funding of discovery research and advanced skills require national strategic oversight. For example, PhD training is unlikely to feature strongly in individual local growth plans and/or skills improvement plans and is nonetheless essential-not only for discovery research but also knowledge exchange, spin-out/commercialisation of research, and adoption and diffusion of innovation within and between sectors.
3.1. Recent approaches to Cluster mapping by DSIT[5] and Centre for Cities[6] demonstrate the challenges in making definitive statements about the strength of clusters in places, and for their potential for growth. The credibility of such Cluster mapping as a tool for evidenced-based policymaking has not yet been demonstrated, and the input of places with, for example, local growth plans will be important.
3.2. In addition, conventional data sources lack the flexibility to capture emergent sectors, requiring qualitative insights to understand new skills needs and investment opportunities. Analysis of existing data is often limited by backward-looking or current terms, making it difficult to capture the nuances of emerging technologies. New analysis techniques are essential to view data through a challenge-led or sector-focused lens.
3.3. Industrial strategy often overlooks the power of intangible assets, especially human capital. A cluster’s strength lies in its people—the collaborators, innovators, and value creators. Universities have a key role to play as convenors and anchor institutions. The pride, identity, trust and shared purpose within the cluster help drive its success and enable knowledge flows.
3.4. Universities act as hubs for innovation and research, and therefore research at leading UK universities often signals the rise of transformative technologies, providing insights into new sectors 10–20 years before they impact productivity (e.g. quantum technologies, climate technologies, healthcare technologies, artificial intelligence)
3.5. Lancaster University’s 2024 independent economic review showed that through activities in 2021/22,the total impact of activities supported >8,000 jobs across the UK with >6,000 in the North West with a £633m economic impact in the North West.
3.6. The University of Manchester hosts significant innovation assets which have a significant emphasis on R&D and knowledge diffusion in support of our regional economy. These include the Graphene Engineering Innovation Centre and the Turing Innovation Catalyst. The recent announcement of Unit M, with a mandate to own and drive the University’s regional innovation strategy, as well as coordinate existing, and deliver new, regionally focused innovation activities will maximise the University’s impact on the region’s economy and society.
3.7. A report by Cambridge Econometrics for Transport of the North (TfN)[7] showed that successful clusters are anchored through the following key assets, which may provide metrics for local and national policymaking:
● Public investment and/or internationally significant companies;
● Well-developed knowledge infrastructure around established Higher Education Institutions and public laboratories, that provide skills and world-leading research;
● Robust talent pools.
Would unlocking investment at scale for innovative science and technology companies support regional growth, and how could this be done?
3.8. The UK’s regions have untapped potential to drive growth through innovation, but persistent barriers like infrastructure gaps, skills shortages and limited access to finance are holding them back. Infrastructure deficits include, but are not limited to: transport, digital connectivity, space, translational research infrastructure and planning processes.
3.9. Investment at scale drives regional growth. For example, the Leeds Innovation Arc[8] and West Yorkshire Investment Zone is set to create 4,000 new jobs and bring an estimated £13bn economic boost to the region.
3.10. Unlocking scale-up investment for innovative science and technology companies would support regional and national growth.
3.11. The plans of this Government and the previous one, to unlock pension assets for investment in UK science and technology companies is very welcome in this regard.
Should there be region-specific innovation and growth policies, and what should local government’s role be in this?
3.12. Regions need to be able to leverage their unique economic strengths, without becoming siloed, or ossified, by sector. Incentives need to be aligned with the needs and strengths of places, and tailored solutions will be more effective than a one-size-fits-all approach. National Government has a key role to play in setting out strategic directions and bringing places together to maximise their combined strengths and ensuring opportunities for all across the country.
3.13. Often places lack the integrated infrastructure, workforce alignment and collaborative ecosystems necessary to drive growth. (Established) Mayoral Strategic Authorities have a role in taking a holistic view of the needs of their place and working across siloed government departments to create the systemic and structural change needed. They also have the scale to take a strategic view across local government boundaries. Businesses need to have greater engagement with these conversations and take a proactive role in policy development in places in order to ensure that local growth and skills policies are fit for purpose and make best use of limited resources.
3.14. (Established) Mayoral Strategic Authorities also need to take ownership of identifying brown field assets close to research intensive universities that have the potential to form the basis of cluster growth and/or development, and to put in place holistic policy support and streamlined, simplified processes which speed up decision-making for potential investors. Partnerships between local and regional government and private investment are crucial. For example, the development of Sister[9], the £1.7bn innovation district and neighbourhood in Manchester has relied heavily on the partnership between the Greater Manchester Combined Authority and the developer, Bruntwood.
3.15. By investing in integrated funding ecosystems, tailored cluster support and strategic infrastructure we can unlock the full potential of regional innovation. This isn’t about fixing what’s broken – it’s about creating a future where every region contributes to national prosperity, with universities and (Established) Mayoral Strategic Authorities together leading the way in bringing stakeholders together and making sites and sectors investment-ready.
4.1. The important role of innovation diffusion in driving productivity growth is increasingly recognised. Skills at all levels are an important part of knowledge circulation- employees need to be able to understand how an innovation can help their business to spot the opportunities for updating and/or transforming the way they work to drive growth.
4.2. The establishment of Skills England provides an opportunity for thinking about next generation skills delivery and lifelong learning. The engagement of (Established) Mayoral Strategic Authorities with Skills England will help to ensure that policy is able to be tailored to cluster needs. The role of universities and Further Education Colleges in delivering new and joined-up training pathways, linked to cutting edge innovation and knowledge will be an important part in ensuring skills delivery keeps up with the pace of change in the 21st century. For example, the Advanced Manufacturing Research Centre (AMRC) Training Centre at the University of Sheffield offers a pathway from apprenticeships to degree apprenticeships to PhDs.
4.3. An example of a regional approach to alignment of education, skills and employment opportunities in a key sector is the proposed OREC-led Energy Central programme which involves 2 universities including Durham University in a co-ordinated escalator supporting immediate and longer term skills needs for offshore wind. This work would include extended use of apprenticeship levy, targeted place-based careers support and education and incentives for employer engagement
4.4. Spillovers between sectors and/or clusters are important, particularly in big city economies.
5.1. Catapults have demonstrated potential in supporting technology diffusion by bridging the gap between academia, industry, and government. They enable businesses to access cutting-edge technologies and expertise that might otherwise be out of reach, thereby fostering innovation and competitiveness.
5.2. The Science and Technology Framework, developed by Lord Vallance in his previous role as the Chief Scientific Advisor to the UK Government, sets an aspiration that there will be ‘access to a wide variety of research and innovation infrastructure across all regions of the UK including Public Sector Research Establishments, Catapults, demonstrator facilities for process/product testing and ‘living labs’ which establish public-private-user needs and partnerships to support applied R&D.’[10]
5.3. By providing facilities, knowledge exchange, and prototyping capabilities, Catapults and other forms of infrastructure can accelerate the adoption of advanced technologies across sectors such as advanced manufacturing, energy, and digital. Catapults with a regional presence, such as the High-Value Manufacturing Catapult, and the Centre for Process Industries (CPI) have contributed significantly to local economic development by creating jobs, enhancing skills, and supporting SMEs. For example, the AMRC, part of the High-Value Manufacturing Catapult, AMRC has brought £350m investment to the region, 2,500 jobs and trained 2000 apprentices.
6.1. Coordination between universities and businesses has improved significantly but remains uneven. Key observations include:
6.2. Spin-outs: The UK boasts world-class examples of spin-out companies translating research into commercial success (e.g., quantum technologies and engineering biology). However, there are significant challenges in securing Venture Capital funding to scale up beyond early-stage investment, particularly in regions outside the Golden Triangle.
6.3. Collaborative R&D Projects: Initiatives such as Innovate UK grants and Knowledge Transfer Partnerships (KTPs) have fostered strong university-business collaboration, often catalysed by Catapults. However, disparities in participation rates across regions point towards challenges faced by businesses in parts of the country in accessing these funding mechanisms.
6.4. Barriers: Administrative burdens, misaligned incentives, and differing timelines between academia and industry can hinder collaboration. Greater support for brokerage functions, industry sabbaticals for academics, and streamlined Intellectual Property frameworks could enhance outcomes.
6.5. Regional ecosystems, like those facilitated by N8 Research Partnership in the North of England, provide a blueprint for effective coordination by leveraging strengths across institutions to address societal and industrial challenges.
7.1. The R&D budget provides value for money when investments are strategically targeted, but current systems face challenges in delivering on the government’s growth and opportunity for all objectives.
7.2. There is a need to identify a basket of outcome-focused metrics that balance short-term outputs with long-term societal and economic impacts. All metrics come with some trade-offs; for example: patents alone do not demonstrate economic growth; the real impact comes from exploitation and commercialisation. Many high-impact sectors (e.g., knowledge-based industries) generate non-patentable innovations.
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7.3. UKRI plays a crucial role in funding excellent discovery and applied research, the precursor to transformative innovation (e.g. Quantum Technologies, Advanced Materials, Engineering Biology). It has strengths in identifying emerging research trends and facilitating international research collaboration, but struggles with uneven regional funding distribution, which reinforces economic inequalities. The North of England, for example, receives significantly less health research funding per capita compared to the Greater South East. In 2022, the North received £405 million of health research funding, compared to the £1.69 billion awarded to London, Oxford and Cambridge. This equates to significant discrepancies in funding per person with the Greater South East receiving over two and a half times more per person than in the North – £68.58 compared to £25.72, respectively[11]. It is important to note that this differential is primarily the consequence of infrastructure investment in London and the Greater South East, e.g. the Crick Institute, and points to the need for similar scale investment in the north of England.
7.4. While UKRI’s open calls and thematic programmes deliver broad benefits, they are often underfunded for systemic regional transformation. Multidisciplinary funding initiatives have become constrained in recent years, with limited duration, small budgets, and insufficient evaluation, which undermines their impact. Universities, under financial pressure, cannot always sustain these initiatives. Lack of systematic evaluation leads to missed opportunities to learn from and scale successful initiatives and interventions.
7.5. There are successful models for innovation and economic growth focused initiatives within UKRI. These include, but are not limited to: the Biomedical Catalyst (Medical Research Council and Innovate UK), Prosperity Partnerships (Engineering and Physical Sciences Research Council), Higher Education Innovation Funding (Research England). It should be noted that many of these successful schemes pre-date the formation of UKRI and that in part their success is due to their longevity- researchers and businesses are able to work towards and plan for applications to these funds, creating genuine partnerships that sustain beyond individual grants and underpin long term growth.
7.6. ARIA offers a complementary, high-risk, high-reward funding model but it is far too early to say how the funding leads to innovation and growth. Its success currently relies heavily on universities, and additional safeguards are needed before increasing its budget during financial constraints.
7.7. An example of the importance of taking a long-term perspective on the link between innovation and economic growth can be seen from the National Biofilms Innovation Centre (NBIC) at the University of Liverpool, recognised as a national asset in BBSRC’s Strategic Delivery Plan 2022-2025. NBIC’s impact includes >300 industry partners, 125 industry/academic projects, 11 spin-outs, and a GVA of £250M. Initial seed corn investment from the N8 Industry Innovation Forum in 2014[12], with capability and capacity from multiple stakeholders in the interim, has created this critical mass of collaboration and expertise, an engine of growth.
16 January 2025
[1] https://www.ukspa.org.uk/collaboration-leads-to-sales-growth-and-key-breakthroughs-for-sci-tech-daresbury-companies accessed 09-01-2025
[2] English Devolution White Paper
[3] The UK Science and Technology Framework - GOV.UK accessed 08-01-2025
[4] Worlds apart: Skills and learning inequalities in the UK accessed 07-01-2025
[5] The Innovation Clusters Map from the Department for Science, Innovation and Technology - DSIT
[6] See, for example: Innovation hotspots: Clustering the New Economy | Centre for Cities
[7] Research and Innovation in the North of England, accessed 18-11-2024
[8] https://pdf.euro.savills.co.uk/uk/residential---other/leeds---creating-and-delivering-innovation.pdf accessed 08-01-2025
[9] £1.7bn innovation district and neighbourhood in Manchester opens its doors and reveals new name, Sister
[10] The UK Science and Technology Framework - GOV.UK- accessed 08-01-2025
[11] North-South health research funding gap exposed - The NHSA accessed 06-01-2025