Knowledge exchange and university-business collaboration both rise slightly – a welcome sign for UK innovation ambitions

New data from the Higher Education Business and Community Interaction (HE-BCI) survey reveals positive trends in university-business collaboration and the broader knowledge exchange environment.

Headline findings from the 2023–24 data:

• Knowledge exchange income – which encompasses a variety of collaborative activities between universities, business, and other non-commercial organisations – totaled £5.9 billion, an inflation-adjusted increase of 0.4%. This increase is especially welcome, as it follows a 6% real-terms decline in 2022-23.
• University-business collaboration – a narrower metric, which focuses on consulting, contracting, and facilities services for commercial businesses – similarly grew modestly by 0.2% in real-terms. The number of university–business interactions increased by 6% to 81,499.
• 1,672 spin-out companies survived at least three years, a 7% increase from the previous year. 160 spinouts were also newly registered, a 4% decline from last year.

The HE-BCI dataset provides an annual snapshot of how UK universities engage with businesses of all sizes. This year’s rise is encouraging, and it underscores the importance of continued investment to sustain and scale collaboration.

“University–business collaboration remains one of the most powerful tools for turning innovative ideas into real-world solutions and driving economic growth,” said Rosalind Gill, Head of Policy and Engagement at the National Centre for Universities and Business (NCUB).

“While the increase we’ve seen this year may be modest, it sends a strong signal: universities are committed to knowledge exchange and to delivering real impact for businesses and communities, even in the face of mounting financial pressures.

What’s especially encouraging is the significant rise in income from collaborative and contract research. This growth is critical—it represents a clear opportunity to boost the UK’s private sector R&D, which is essential for long-term progress. At the same time, we are concerned by a sharp decline in university income to support local regeneration, driven by the loss of key funding streams like the European Structural and Investment Funds.

So, while the overall picture shows positive momentum, there are pressing challenges we must confront. If the UK is serious about achieving transformative growth through collaboration, we need to take bolder steps—and that starts with ensuring our universities have the financial stability they need to lead the way.”