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A near two-thirds increase in income from university-business collaborations over the past two decades has been driven by a small group of top institutions, with many others seeing work in this area ¡°stagnate¡±, according to a new report.

Analysis of data from the Higher Education ¨C Business and Community Interaction survey shows income increased from ?900 million in 2004 to ?1.5 billion in 2023, a 62 per cent rise.

While the report from the National Centre for Universities and Business (NCUB) welcomes this overall increase, it says the success has been ¡°uneven¡±.

The top 20 per cent of universities now generate nearly 80 per cent of total collaboration income, it highlights.

And although universities that began the period with the lowest levels of collaboration saw the largest growth rates, those with pre-existing moderate levels of collaboration ¡°largely stagnated¡± or declined.

Of these universities ¨C dubbed ¡°mid-capacity providers¡±, 45 per cent increased their income from collaboration but only 21 per cent saw significant growth and 29 per cent experienced significant declines.

Furthermore, collaboration income overall fell by 5 per cent in 2023 which the report says ¡°may be an early indication of trouble ahead¡±, adding that policy must ¡°work diligently¡± to avoid a situation where universities under financial pressure have to reduce their capacity to invest in collaboration.

¡°Without strategic attention, the gains made over the last two decades risk being undone, hindering innovation and long-term economic growth.¡±

Many of the gains in collaboration were driven by increased income from contract research and IP activity, the report further highlights.

Collaboration income has been shown to dip during economic downturns, such as the 2008 financial crisis and the Covid-19 pandemic.

The report says the results show the importance of sustained research funding, which will be ¡°critical to growth in collaboration income over the next five years¡±.

Rosalind Gill, head of policy and engagement at NCUB, said the analysis showed ¡°just how far we¡¯ve come¡±, calling the 62 per cent rise in income ¡°impressive¡±.

¡°Yet despite this progress, we¡¯ve only begun to tap into the full potential of these partnerships,¡± she added.

¡°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¡± the UK¡¯s research and innovation system needs the ¡°right conditions¡±, Gill added, including a reduction of the financial pressure on universities, unlocking more private sector investment and broadening access to resources and support.

¡°If we want to see more collaboration ¨C and fully realise the economic and societal benefits it can deliver ¨C the UK must foster an environment where universities and businesses can work together with confidence and continuity,¡± Gill said.

¡°This calls for a long-term strategy that prioritises R&D investment, reduces regulatory barriers, and makes innovation-led growth a national priority.¡±

tom.williams@timeshighereducation.com