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

Key Findings:

• Knowledge exchange income – which encompasses a variety of collaborative activities between universities, business, and other non-commercial organisations – totalled £5.9 billion, a 3.9% decrease from last year in inflation-adjusted terms.
  

• In the past two years, knowledge exchange income has declined by 8% in real terms.
  

• University-business collaboration – a narrower metric, which focuses on consulting, contracting, and facilities services for commercial businesses – similarly fell by 4.1% in real-terms.
  

• At the same time, the number of university–business interactions increased by 6% to 81,499.
  

• 1,672 spin-out companies had survived at least three years, a 7% increase from the previous year. 160 spinouts were also newly registered, a 4% decline from last year.

“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).

“The continued decline in collaboration and knowledge exchange sends a strong signal: universities are struggling to maintain high levels of innovation in the face of mounting financial pressures."

"There are some encouraging trends. Modest increases to collaborative and contract research represent 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."

"The overall picture shows us that 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.”