Jobs and investment boosted in every region of UK by new businesses linked to Russell Group universities

20 December 2022

New analysis shows that in a single year more than 56,000 jobs and almost £6bn of investment were generated by spin-out companies and start-ups linked to just 24 of the UK’s leading universities.

With Government prioritising growth and investment across the country, the figures from the Russell Group show that research-intensive universities are leading the way in creating high-value jobs and turn innovative ideas into real-world impacts or products.

In 2020/21, the 4,304 companies linked to the Russell Group of universities continued to grow – increasing the number of full-time employees by 60 per cent, doubling external investment to almost £6bn and generating a collective turnover of more than £10.1bn.

These new figures highlight just one of the ways universities have a positive impact on communities in all parts of the UK. Further analysis (see Annex A) released by Russell Group members shows exactly how much local towns and cities benefit financially from activities such as world-class research and productivity boosts for business, education that leads to high-level skills for UK students and the economic activity of international students.

Commenting, Dr Tim Bradshaw, Chief Executive of the Russell Group, said:

“This analysis shows the breadth and scale of economic and social impact made by Russell Group universities in their regions and across the UK – from world-leading research that generates breakthroughs and boosts productivity, to high-quality education that transforms lives and generates the skills that drive our economy.

“Innovation clusters growing around our universities across the UK are helping to revitalise regional economies, drawing on their talent and the UK’s excellence in research – from advanced semiconductors in Cardiff to new digital technologies for the creative industries in York. Targeted support would enable these established and emerging clusters to scale up and deliver much greater benefits for their local areas and beyond.”

The Russell Group has welcomed the announcement that the Government’s planned investment zones will now focus around universities to maximise their impact, building on the three lnnovation Accelerators announced earlier this year in Glasgow, Greater Manchester and the West Midlands.

The latest HE-BCI data from HESA shows that more than two thirds of active university-linked spinout firms have been developed by Russell Group universities, representing over 85% of the total external investment and turnover across the sector.

Overall, companies linked to seven Russell Group Universities attracted over £100m+ investment, including Cambridge (£1.98bn), Oxford (£1.18bn), UCL (£830m), Bristol (£630m), Imperial (313m), Nottingham (£161m), Southampton (£156m) and Queens University Belfast (£126m).

Notes

The latest HESA HEB-CI data set (HE Business and Community Interaction), shows the jobs created by, turnover, investment and total number of spin-offs and start ups linked to Russell Group universities in 2020/21.

Companies included in the Russell Group analysis comprise:

• Formal spin-offs not HEP owned (companies based on IP originating from with the university, where the university continues to have some ownership)
• Spin-offs with some HEP ownership (companies set up to exploit IUP that has originated from within the HE provider, but where the HE has released ownership – e.g. through sale of shares or the IP itself)
• Graduate start ups (this only includes those where formal  business/enterprise support has been provided by the university)

Annex A: Economic and social impact of Russell Group universities

In addition to the economic activity generated by university spinout companies and the variety of associated knowledge exchange activities, recent analysis demonstrates the breadth of positive economic and social impact Russell Group universities have across the UK, generating billions of pounds through world-class research and associated spillovers in productivity for UK business, teaching and learning activities resulting from the enhanced skills, productivity and earnings of UK students, educational exports through the spending of international students, and the impact generated by the operating and capital expenditure of universities.

• Independent analysis by London Economics published in December 2022 found that the total economic impact on the UK economy associated with Queen’s University Belfast’s activities in 2020-21 was approximately £3.041 billion. Compared to its total operational costs of approximately £373 million in 2020-21, this corresponds to a benefit to cost ratio of 8.2:1.
• An independent report undertaken by BiGGAR Economics in Dec 2022 found that in 2020-21 the Durham University generated £1.9 billion Gross Value Added (GVA) for the UK and supported 17,320 jobs over the year, including £668 million GVA and 10,790 jobs in the North East of England, of which £489 million GVA and 8,170 jobs were in County Durham itself. For every £1 the University received in income, it generated £4.80 of economic impact in the UK.
• New independent analysis in November 2022 by London Economics found the University of Southampton contributes £4.14 billion to the UK economy every year. For every pound spent by the University, £7.40 was generated in economic benefit. Approximately £1.6 billion of this economic impact occurs in the South East – with a very significant proportion of this occurring within Southampton itself.
• The total economic impact on the UK economy associated with Cardiff University’s activities in 2020-21 was estimated at approximately £3.678 billion, according to independent analysis by London Economics in Oct 2022. Compared to total operational costs of approximately £573 million in 2020-21, this corresponds to a benefit to cost ratio of 6.4:1.
• UCL’s annual impact of £9.9bn across the UK economy is comparable to the trade boost delivered by the London 2012 Olympics, finds a new independent report into the university’s economic and social impact by London Economics in June 2022. UCL supports 19,000 full-time jobs across the UK (of which 7,400 were outside London) and invests £3bn through its supply chain.

Annex B: Spin-off and start ups linked to Russell Group universities 2020-21

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