University–business collaboration stalls, stress-testing UK innovation

Brand new data from the Higher Education Business and Community Interaction (HE-BCI) survey shows that growth in university–business collaboration has stalled, reversing last year’s recovery and raising fresh concerns about the long-term resilience of the UK’s innovation.

Headline findings from the 2024–25 data:

Knowledge exchange income – covering the full range of collaboration between universities, businesses and communities – reached £6.1 billion – broadly flat in real terms and representing a 1.4% decline following last year’s modest growth.

University–business collaboration income – a narrower metric, which focuses on consulting, contracting, and facilities services for commercial businesses—fell by 3.7% in real terms. The number of interactions also remained largely unchanged at 81,094, a slight decline of 0.5%.

Spinout performance remained a bright spot, with the number of companies remaining active for at least three years reaching 1,776, a 5.3% increase year on year. 141 spinouts were funded.

Commenting on the findings, Dr Joe Marshall, Chief Executive of the National Centre for Universities and Business (NCUB), said: “Today’s data should serve as a wake-up call. The fragile recovery we saw last year has not been sustained. This slowdown cannot be separated from the financial pressures facing universities — when institutions are forced to cut the people and programmes that underpin collaboration, partnerships inevitably suffer. The UK cannot afford for this to become the new norm.

Dr. Marshall concluded: “Despite these declines, university-business collaboration remains ones of the UK’s core competitive strengths. The continued growth in successful spinouts demonstrates the global impact of UK research and entrepreneurship. But strategy without investment is not delivery. Stabilising university finances is not a sectoral concern –it is fundamental to national competitiveness. Without action, we risk undermining years of progress in building effective partnerships between universities and business, and with it, the UK’s position as a leading innovation economy.”

Notes to editors

Data is sourced from the Higher Education Business and Community Interaction (HE-BCI) survey, published by HESA, and covers the 2024–25 academic year (August 2024 – July 2025). The full dataset is available at: https://www.hesa.ac.uk/data-and-analysis/business-community

The National Centre for Universities and Business (NCUB) is the leading independent authority on university–business collaboration in the UK. NCUB works across research and innovation, people, skills and talent, and stronger places to help universities and businesses collaborate for national prosperity.