A new blueprint for universities and government to work together aims to unleash the levelling-up potential of the UK’s world-renowned higher education sector to help attract international investment across the country. It was launched today by the National Centre for Universities and Business (NCUB) and Universities UK International (UUKi).

The report comes as the Government announced nearly £0.5m of funding for the Midlands Pilot, developed by a coalition of 17 universities and partners including the Midlands Engine Partnership. It is led by Midlands Innovation with the support of Midlands Enterprise Universities and hosted by the University of Nottingham. The Pilot is helping identify and develop R&D investment propositions involving universities from across the region.

Drawing on extensive analysis and research from its authors and a pilot underway in the Midlands, the report points to a significant opportunity to provide a long-term boost for local economies by attracting more Foreign Direct Investment (FDI) into the innovation clusters that surround university campuses across the UK. It suggests a number of practical measures that would better leverage universities’ global connections to directly support their local areas by attracting investment to boost economic development and job creation.

It proposes a national programme and policy framework to deliver more ambitious, joined-up thinking between universities, local growth partners and Government around securing FDI into R&D; including learning from international best-practice from around the world.

While the report finds evidence that universities already play an important role in attracting Foreign Direct Investment (FDI) to the UK, it identifies a clear opportunity for this role to be expanded and improved making a number of recommendations for government, universities and local economic growth organisations. These include:

• Government should target the world’s top 200 R&D investors, taking advantage of its new Whitehall Departments to launch a refreshed and more ambitious approach to securing FDI into science and technology
• Government should incorporate FDI into R&D into its ambitious new plans to forge bilateral international research and innovation bridges with partner nations.
• Universities, government and local partners should work together to showcase the investment potential of the innovation clusters that surround campuses across the UK
• Universities should work together and ‘hunt in packs’ in order to attract more significant inward investment into regional economies
• A more systematic approach should be taken to introduce universities to firms who may potentially or have recently invested in a local area

On levelling up, the report finds that universities have a unique role to play: not only to provide the foundation for the research ecosystem that attracts investment, but also offer a pipeline of skilled graduates for industry collaboration and spin-outs. The recommendations could help level-up local economies beyond London and the South East, by supporting the expansion of innovation clusters with universities at their heart.

George Freeman MP, Minister for Science, Research and Innovation, said: “The Government is determined to harness the full potential of our nation’s outstanding universities to bring greater investment, growth and prosperity to communities right across the UK. Attracting private investment into our clusters of innovation is central to our ambition to be the most innovative economy in the world and a science and technology superpower. We want to support our universities to continue conducting world-class science and achieving global impact for global good, all in an increasingly competitive international landscape. I welcome this report and hope it will be a catalyst for action on this ambition, as we work together to build a brighter future for our country.”

Nick Hillman, Director of HEPI said: “I have seen close up the enormous benefits that foreign direct investment brings to the UK as a governor of the University of Manchester, as a former special adviser to the Minister for Science and as someone who currently lives in the Oxford-Cambridge Arc. It creates highly skilled jobs, promotes innovation and improves local people’s quality of life. If the UK is to deliver substantial further economic growth while also levelling up, we must now get even better at welcoming new investment from overseas. This report shows clearly how the UK can build an unrivalled offer and I know our excellent university system stands ready to be at the heart of it.”

Dr Helen Turner, Director of Midlands Innovation, said: “This report builds on the trail-blazing universities as drivers of trade and investment pilot led by universities and our partners in the Midlands and supported by Government. It highlights the invaluable role universities already play in attracting high-quality inward investment outside of London and the South East to grow the clusters of innovation that will ultimately help level-up those regional economies.

We particularly welcome the recommendation that universities should work collaboratively to ‘hunt in packs’ by scaling-up their strengths, ambitions and offer to investors. Midlands Innovation is proud to develop and host the Pilot and will continue to share emergent findings from the programme with universities and policymakers from across the UK.”

Jamie Arrowsmith, Director of Universities UK International, said: “This report outlines the major role that international business investment in university R&D has to play in driving growth and prosperity – both domestically and further afield. This investment benefits local communities, creates jobs, and amplifies the global reach of UK research. Our members are increasingly leveraging their role as global actors to build new and strengthen existing links with international businesses, but this report makes it equally clear that there is more to be done. UUKi looks forward to helping take forward the recommendations in the report, to help maximise the potential of our universities to act as beacons for global investment.”