University-led National Innovation Centre for Data contributes millions of pounds to UK economy
New economic research from Ortus Economic Research, commissioned by Newcastle University, has found that Newcastle-based National Innovation Centre for Data has contributed £141m to the UK economy, directly creating 570 jobs – with its economic impact projected to add a further £1.2bn by 2036.
The National Innovation Centre for Data (NICD) was established nine years ago to help businesses of all sizes make more effective use of their data through expertise in data science and AI. Based at The Catalyst in Newcastle’s Helix innovation district, NICD draws on expertise from Newcastle University to help businesses and organisations build their data and AI capabilities through practical support, collaborative projects, training, technical seminars and awareness-raising events.
Since its inception, NICD has delivered more than 180 projects with SMEs, large businesses and public sector organisations including Sage, NHS England, Procter & Gamble and Newcastle Building Society.
NICD has made a significant contribution to the UK economy, helping businesses across the North East and beyond to improve productivity, develop business-critical solutions and build their workforces, while helping to attract investment and wider economic activity across the UK.
Economic research from Ortus Economic Research found that between 2018 and 2026, NICD generated £141m in cumulative net additional GVA for the UK economy. When NICD’s important role in attracting inward investment is taken into account, over the coming decade to 2036, NICD’s economic impact is projected to total £1.2bn, of which £1.1bn is expected to occur in the North East.
The report also shows that NICD, which was initially created with £30m of funding from the UK government and Newcastle University, has delivered exceptional value for money. Modelling suggests that it has generated £27.20 of net additional GVA for every £1 of direct public funding – around four times the UK Research and Innovation (UKRI) average.
Professor Paul Watson, director of the National Innovation Centre for Data said: “This new economic analysis highlights the significant positive contribution that the National Innovation Centre for Data has made to both the North East and the wider UK through developing workforce skills, creating jobs and attracting inwards investment. Since its formation, NICD has enabled businesses and public organisations – from multinational companies and start-ups to local authorities and charities – to innovate, improve productivity and build their data science capabilities.
Our collaborative model is designed to leave organisations with the skills and capacity to continue developing and applying AI and data science long after a project has ended. As NICD’s reach and reputation continues to grow, we want to build on this impact and help even more organisations realise the value of their data.”
Boosting the economy in the North East
The presence and activities of NICD in Newcastle has had substantial benefits for the region itself. Ortus calculated that its collaborative projects have created £116m of net additional GVA in the North East. Its impact extends beyond the organisations it supports directly – NICD has strengthened the North East’s data and AI ecosystem and helped make the region more attractive to inward investors, with companies choosing to locate there partly to access the expertise, skills and partnerships built by NICD. Ortus estimates that NICD’s work has directly created 467 new jobs in the region through collaborative projects with local firms, and has played a key role in attracting a further 1,584 new jobs through inward investment in digital and data-science related sectors across the North East.
Driving forward academic growth
The report details how NICD has also attracted over £102m of public research funding to the University, through its support and inclusion in funding bids, enabling the University to stay at the forefront of data science and AI.
Professor Chris Day, vice-chancellor and president of Newcastle University commented: “Newcastle University is proud to be the home of the UK’s National Innovation Centre for Data. Its work reflects the University’s commitment to ensuring that world-class research and expertise are translated into practical solutions that respond to the technological demands of the modern world, The success of NICD demonstrates the important role universities can play in turning academic expertise into real-world outcomes.”
By combining research, skills transfer and long-term partnership, NICD is helping organisations improve productivity while strengthening the conditions for investment and high-value job creation. With its impact projected to grow over the next ten years, NICD provides a model for how universities can use their specialist strengths to support regional and national economic growth.