A new report by London Economics, assessing the economic impact of the 24 Russell Group universities, found that for every £1 of public funds invested in research at these institutions, more than £8.50 was generated for the UK economy – as a result, the impact of their research and commercialisation activities equated to £37.6billion in 2021/2022.  

Analysis showed that the research and commercialisation activities of the 24 universities, such as the creation of new spin-out companies, wider knowledge exchange and Intellectual Property licensing across all four nations helped to support more than a quarter of a million (254,000) jobs, twice as many as in the chemical and pharmaceutical manufacturing industries combined.

The report shows how the universities contributed to economies in every single region and nation of the country, delivering research and innovation in sectors ranging from medicine to sustainable energy and the creative industries. This is in addition to the economic impact generated by wider productivity spill overs, teaching and education-related activities, and the fees and spending from international students.

Now, the Russell Group is urging the government to maximise the economic potential of the UK’s research-intensive universities by ensuring at least 3% of GDP is invested into R&D by 2030.  

The Group, which represents 24 leading research-intensive universities, notes that such a commitment by current and future governments would not only bring the UK in line with other top research nations but also deliver further benefits to the UK economy in years to come.

In a letter to the Chancellor ahead of the Spring Budget, the Group asked the government to use the Budget to deliver on its existing commitment to invest £20bn in R&D by 2024/25.  

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.

 

“Now is the time to build on this success with robust funding to future-proof the skills and talent pipeline that is so vital to the growth of our economy – and to ensure that the research and innovation that originates within universities will continue to make a tangible, positive impact on people’s lives”.

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.

 

“With every £1 of public money invested generating £8.50, there is a real opportunity for the Government to further leverage the knowledge economy for growth.”