How university research and innovation is primed to drive local growth

This week, the government announced an £86 billion boost to research and development funding as part of the Spending Review 2025. It’s a positive recognition of the importance of university research and innovation to national and local growth.

While we’ll be considering the funding package details when they emerge, the new Local Innovation Partnership Fund included in the package provides a welcome uplift to the many local collaborations that bring genuine impact and opportunity to local communities. 

University research provides the foundation for invention, innovation and productivity.

University innovation teams, supported by critical Higher Education Innovation Funding (HEIF) in England and equivalents in nations across the UK, work hand-in-hand with businesses and local partners to translate research into meaningful impacts for businesses and communities.  

While the Local Innovation Partnership Fund is only one part of the much bigger package of funding, it will help local partnerships up and down the country to make an even bigger impact on people’s lives. 

Universities are already working closely with elected mayors to ensure that their research and innovation meets the needs of local businesses and communities.

Greater Manchester: Civic University Agreement

In Greater Manchester, local leaders and universities have published a Civic University Agreement, which commits partners to:

• reducing inequality
• meeting the skills needs of local employers
• ensuring research and development supports key sectors such as digital technology and cyber security
• developing the UK’s first city-region wide innovation agency, Innovation Greater Manchester. 

North East Combined Authority: local growth plan

The North East Combined Authority has published an interim local growth plan, which includes: 

• investment in a new North East Investment Fund to help boost university spin-outs
• working with universities on key clusters such as space, technology, data and defence
• meeting critical skills needs.

West Yorkshire Combined Authority: local growth plan

The West Yorkshire Combined Authority has published its local growth plan, which includes: 

• capitalising on graduate skills to boost key sectors such as tech, health tech, textiles, space, and food and drink
• a Mayor’s Graduate Scheme linking talented students to small and medium sized-businesses
• collaboration on business innovation
• innovation investment support.

It’s not only in Mayoral Combined Authorities (soon to become Mayoral Strategic Authorities) that universities are working with local leaders across the UK to help drive local growth and opportunity:

Falmouth University: Workforce and Skills Board and Cornwall Angels Network

Falmouth University is: 

• working with local leaders through the Workforce and Skills Board to deliver the skills local businesses need
• helping to drive more start-ups by hosting the Cornwall Angels Network and working with the British Business Bank

Universities in Leicester: local Innovation Board

In Leicester, universities are working with local authorities and businesses through a local Innovation Board to co-ordinate and drive support for key sectors, such as: 

• space (with Space Park Leicester being home to the National Space Centre)
• automotive
• digital and creative
• textiles and fashion
• advanced manufacturing.

Universities in Lancashire: Lancashire Growth Plan

The universities in Lancashire have collaborated with local leaders to develop the Lancashire Growth Plan, which supports:

• a Lancaster Innovation Campus
• a Pan Lancashire Innovation Collaboration Programme
• the Lancashire Graduate offer to retain graduates in the region.

These examples show that universities across the UK are playing their role in supporting local growth by co-creating solutions with local partners, businesses and communities. There are many more examples. 

We’re keen to make sure that the new Local Innovation Partnership Fund harnesses university potential to support growth in both Mayoral Combined Authorities and in the rest of the UK.

The combination of funds dedicated to Mayoral Combined Authorities and a fund available across the UK is a combination that will help deliver this and complement the forthcoming Industrial Strategy and Sector Plans. 

Our Civic and Local Growth Network

Given the important role universities play in their local economies and communities, we’ve established a new Civic and Local Growth Network to share ideas and good practice, enhance and promote stronger local engagement, and connect national and local policymaking. 

The network is open to all Universities UK members. Professor Chris Day CBE DL, Vice-Chancellor and President of Newcastle University and a leading advocate of local and regional engagement, has agreed to chair the network steering group.

We look forward to working with the Department for Science, Innovation and Technology (DSIT) and local leaders to help universities deliver a successful programme.