There has been a noticeable stagnation in the partnerships between businesses and universities, leading the science minister, Lord (Patrick) Vallance, to pledge to “drive progress” during his tenure.

A recent report by the National Centre for Universities and Business (NCUB) indicates that after years of growth in research and innovation collaborations spurred by government policies and European support, the level of engagement has “stalled” since 2019, with a 5 percent drop recorded in 2023.

Significant reductions in collaborations have been observed, particularly among large corporations, with a reported 8.8 percent decrease in interactions this year, bringing the total to 24,420. Meanwhile, small and medium-sized enterprises (SMEs) have cut back on such efforts by 3.5 percent, totaling 52,199 collaborations.

Financial challenges and the loss of European funding for supportive initiatives have led universities to prioritize fewer, higher-value projects in response to these pressures.

Rosalind Gill, head of policy and engagement at NCUB, noted that this trend has persisted into 2024, suggesting the condition might worsen as the financial circumstances of many universities deteriorate and businesses concentrate on immediate concerns rather than long-term projects.

Gill elaborated, “In the past, [business engagements with universities] saw significant growth, as there was a clear governmental intent to promote collaboration across various domains.”

She also expressed concern about the flatlining trend that has emerged, particularly post-pandemic, stating it poses a threat to the country’s research innovation capabilities.

The discontinuation of European funding for collaborative activities and the closure of short-term UK funding initiatives like the Shared Prosperity Fund are contributing factors to this downturn. Gill emphasized the vital role public funding plays in enhancing collaborative efforts, especially with SMEs: “There is a notable gap, and universities are striving to address it, but resources are limited.”

In light of the findings, Lord Vallance, who served as the government’s chief scientific adviser during the pandemic before assuming his ministerial role in July, emphasized the importance of university-business partnerships in fostering economic growth.

He stated, “Collaborations with businesses are essential for developing and incorporating cutting-edge science and new technologies within the UK economy. This report urges policymakers, academia, and businesses to reinforce their collaborations to stimulate progress. As the minister for science, research, and innovation, I am dedicated to collaborating with the sector to facilitate this.”

The NCUB study highlighted various trends, including a reduction in licensing fees that universities earn from large corporations utilizing their technology. Additionally, the number of patents resulting from collaborations between universities and businesses has decreased by 20.5 percent compared to pre-pandemic figures.

On a positive note, the number of tech startups spun out from universities that remained operational three years after their inception rose by 19.4 percent, reaching 1,571 in 2023.

The report also indicated that some universities have “strategically opted to forge stronger ties with medium and large enterprises instead of expanding partnerships with SMEs” to enhance their income from fees.

Business fees amounted to £790 million in 2023, accounting for approximately 11 percent of the total income universities receive from their research endeavors.

Amidst these shifts, business schools have raised concerns that, as universities face escalating costs and dwindling student fee revenues, they may not secure the necessary investment to thrive.