The University of Cambridge’s economic impact is nearly four times that of the English Premier League, according to a new analysis highlighting the role higher education institutions play in accelerating innovation.
Consultancy London Economics has calculated the impact of one of the UK’s most prestigious universities to be around £30 billion a year, supporting 86,000 jobs. For every £1 Cambridge spent on her, £11.70 of economic value was created.
The findings come as the government looks to the higher education sector to boost economic growth by boosting research and development.Prime Minister Jeremy Hunt announced Last week’s budget’s 12 low-tax investment zones focus on universities and research institutes in the ‘priority’ sectors of digital and technology, life sciences, advanced manufacturing, green and creative industries.
“This shows the potential of the university to act as an anchor institution,” said Diarmuid O’Brien, Chief Executive Officer of Cambridge Enterprises. Cambridge Enterprise is part of the University responsible for helping turn research into business opportunity. “Setting aggressive and strategic priorities can disproportionately benefit the local economy,” he added.
O’Brien said the universities that commissioned the report ensure that founders and departments can profit economically from spinouts, supported by business expertise, infrastructure and access to early-stage or scale-up capital. said it is.
A study found that more than £23 billion of economic impact came through the commercialization of university research, particularly through the companies ‘spin-outs’ of it.
In contrast, the Premier League, considered one of Britain’s top cultural exports, added £7.6 billion worth to the economy in 2019-20, says professional services firm EY.
Notable Cambridge University spinouts include Nyobolt, a fast-charging battery solution, and Abcam, a leading supplier of protein research tools.
Ahmed Goga, Director of Prosperity Regions at CBI, said the investment zone plan will strengthen other university clusters to rival the “exceptional” university clusters built around both Cambridge and Oxford universities. I said it should help you do that.
Each zone will receive £80m of ‘flexible’ support from the government over five years, split between tax incentives and investment in skills, infrastructure etc. to attract businesses.
Goga said universities need to work with partners to drive a cultural shift towards more entrepreneurship in these areas. “It is imperative that the business is actively involved in design and development,” he said.
Tim Bradshaw, chief executive of the Russell Group, a research-intensive university, said the zone will help UK research institutions drive growth. “Targeted support from new investment zones will help these established emerging clusters scale up and deliver greater returns in nearby towns and cities and beyond.”
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