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Universities’ influence on economy grows

23 July 2008

The Higher Education – Business and Community Interaction (HE-BCI) survey, published today, reveals that UK higher education institutions (HEIs) received £2.64 billion from business and community interaction in 2006-07. This is a 17 per cent rise from the last survey (for 2005-06).

The HE-BCI survey report is published jointly by the Department for Innovation, Universities and Skills (DIUS) and the Higher Education Funding Council for England (HEFCE). It was produced by HEFCE on behalf of DIUS, the four UK funding bodies and other HE stakeholders.

The HE-BCI survey covers a range of activities, from the commercialisation of new knowledge, through the delivery of professional training, consultancy and services, to activities intended to have direct social benefits.

HEIs have a broad spectrum of interactions.

160 UK HEIs responded to the Survey

Universities and colleges increasingly play an important part in keeping the UK connected to the global economy and attracting investment and talent to the country. Through interacting with business and the community they help turn knowledge into new companies, products and services. They also deliver professional training to improve skills, provide consultancy to solve problems and undertake projects to tackle social challenges.

Collaborative research is a crucial vehicle for universities to work with leading-edge innovators around the world.

In 2006-7 UK HEIs’ income in this area was nearly £670 million, 12 per cent more than the previous year. Income from consultancy and training also rose significantly.


Higher education also develops its own entrepreneurs and produces successful high-tech companies. In 2006-07, 226 ‘spin-off’ companies were formed out of university intellectual property and there were over 700 past ‘spin-offs’ still in operation after at least three years. This is an increase of ten per cent. Graduates started 1,508 businesses in 2006-07 and academic staff created 62 business start-ups.

A ‘spin-off’ is an enterprise that has one or more of the following attributes:

 an HEI or HEI employee(s) possesses equity stakes
 it has been created by an HEI
 it has been set up by HEI employees to enable the commercial exploitation of knowledge arising from academic research

Much of HE’s support in addressing social problems is through research with £446 million of contract research undertaken with the public and third sectors, out of a total of £783 million. (Total contract income into UK HE grew by 20 per cent between 2005-06 and 2006-07.)
For further information contact:

HEFCE, Philip Walker, tel 0117 931 7363, e-mail

DIUS, Matt Barker, tel 020 3300 8126, e-mail


% change since 2005-06

Contract research income:£783 million +20.3%

Contract research income from commercial business: £337 mn; + 12.3%

Consultancy income from commercial business: £126 million; +8.6%

Number of licences and options executed: 3,286 + 21.4%

Gross income from intellectual property: £ 58 million; 0%

Number of spin-offs: 226; + 20.9%

HEIs providing short bespoke courses on companies’ premises 83%; -1%

Full-time equivalent staff dedicated to engaging with commercial partners: 3,834 + 10.8%

HEI's with an enquiry point for small and medium-sized enterprises (% of UK HEIs) 92%; +1%

For more information: see http://www.hefce.ac.uk/news/hefce/2008/hebci.asp and full report at
http://www.hefce.ac.uk/pubs/hefce/2008/08_22/

ref: www.unico.org.uk