Universities and business combine to boost economy

Government investment in higher education institutions' (HEIs) knowledge transfer activities is helping boost the UK economy, according to figures published today.

The Higher Education - Business and Community Interaction Survey 2002-03 showed that there has been a step-change in the way UK universities and HE colleges transfer knowledge in engaging with business, the public sector and the wider community, with significant increases in consultancy income and expenditure by companies on research.

The level and quality of interaction between universities and business have generally increased, with 89% of HEIs now offering a single enquiry point for business and 79% helping SMEs identify what resource they need.

Turning ideas into business is also on the increase with the number of patents granted to HEIs up substantially and new applications up by 26%.

The report also found that there was an increase in the level of employment created as a direct result of university spin-out companies.

Welcoming the report, Science Minister Lord Sainsbury said: "Universities and business are working together better than ever before, boosting both local economies and the UK economy.

"The pioneering work of British scientists is directly contributing to business success, creating wealth and jobs. This fourth year on year increase in knowledge transfer shows that the Government is delivering on its vision to see more products invented, developed and made in Britain."

The survey found that income generated by consultancy had increased by 38% to £168 million and that regeneration funding to HEIs had increased by around 15%.

According to the report, UK universities created one spin-off firm per £17 million spent on of research expenditure, this was much higher than the £60 million per firm found in the US. Commercial and non-commercial organisations spent nearly £130 million on education and continuing professional development supplied by the HE sector.

Commenting on the report, Higher Education Minister, Kim Howells, said universities had a "key role to play in stimulating local enterprise and regenerating regions through their innovative work".

Mr Howells said Government was committed to helping the higher education sector to build long-lasting, effective links with business via the Higher Education Innovation Fund.

(SP/MB)