University-business collaboration up 62%, but UK must go further

A new report from the National Centre for Universities and Business (NCUB) reveals a 62% increase in income from university-business collaboration over the past two decades—demonstrating the growing strength of the UK’s innovation ecosystem and the central role of universities in supporting business growth. 

Based on two decades of Higher Education – Business and Community Interaction (HE-BCI) data, Unlocking Innovation charts the rise in collaboration income from £900 million in 2004 to £1.5 billion in 2023. The findings show that universities are playing an increasingly vital role in driving innovation, but that more can still be done to capitalise on this momentum. 

Rosalind Gill, head of policy and engagement at NCUB, said: “This report highlights just how far we’ve come: collaboration between universities and businesses has increased by an impressive 62% over the past two decades. Universities are playing an increasingly vital role at the heart of innovation, driving productivity, and contributing significantly to the UK’s economic growth. Yet despite this progress, we’ve only begun to tap into the full potential of these partnerships. A handful of institutions are currently responsible for a disproportionate share of the growth, and the system as a whole remains susceptible to external shocks and instability. 

“To unlock the next level of progress, we must ensure that all parts of the UK’s research and innovation ecosystem are empowered to collaborate, grow, and maximise their impact. That means creating the right conditions—reducing financial pressure on universities, implementing reforms that attract and unlock private sector R&D investment, and broadening access to resources and support across the sector. 

“If we want to see more collaboration—and fully realise the economic and societal benefits it can deliver—the UK must foster an environment where universities and businesses can work together with confidence and continuity. This calls for a long-term strategy that prioritises R&D investment, reduces regulatory barriers, and makes innovation-led growth a national priority.” 

The report also finds that: 

• The top 20% of universities now generate nearly 80% of total collaboration income. 

• Growth has been driven primarily by contract services and intellectual property, together accounting for 86% of the overall increase. 

• Collaboration income tends to dip during economic downturns, such as the 2008 financial crisis and the Covid-19 pandemic—highlighting the need for long-term stability and support.