How HEIF and CCF Drive Economic Growth and Skills Development

A new analysis from Research England underscores the indispensable role of public funding in fostering collaboration between universities and businesses in England. The Higher Education Innovation Fund (HEIF) and the Connecting Capability Fund (CCF) have demonstrated significant success in bridging the gap between academia and industry, driving innovation, and bolstering the UK economy.

HEIF: A Catalyst for Innovation and Investment

The analysis highlights HEIF’s impact in supporting early-stage innovation, upskilling small and medium enterprises (SMEs), and influencing policy development. In 2022/23 alone, HEIF invested £280 million, leveraging an impressive £7.4 in private investment for every £1 of public funding. This remarkable return underscores HEIF’s role in attracting investment, bridging critical skills gaps, and expanding access to cutting-edge research tools.

Public funding through HEIF has facilitated university partnerships with private, public, and third-sector organisations, enhancing knowledge exchange capacity. The fund has enabled businesses to tap into academic expertise, accelerating commercialisation efforts and fostering sustainable economic growth across the UK.

CCF: Advancing Commercialisation and Regional Growth

The Connecting Capability Fund (CCF) complements HEIF by supporting cross-university collaboration to enhance knowledge exchange and research commercialisation. The analysis reveals significant outcomes from CCF-funded projects, including:

• £855 million in leveraged funding, including £315 million for Access to Finance funds.
• 12,969 individuals trained in enterprise skills.
• 1,845 collaborative R&D projects, leading to 338 new products and services.
• 214 new spin-out companies created.
• £315.2 million raised to support spin-out growth.
• Strong alignment with government priorities on R&D, skills, and productivity.

CCF’s ability to stimulate spin-out formation and secure substantial investment demonstrates the fund’s importance in translating research into viable commercial ventures. By fostering local commercialisation ecosystems, CCF strengthens the UK’s position as a global leader in research-driven enterprise.

Industry Perspective: A Call for Sustained Investment

Dr. Joe Marshall, CEO of the National Centre for Universities and Business (NCUB), highlighted the substantial benefits of HEIF and CCF in driving both economic and societal progress:

“This analysis highlights the significant positive impact of public funding in driving both economic and societal benefits through university-business collaboration. With a relatively modest public investment, these initiatives unlock a wealth of tangible outcomes that fuel economic activity across the UK, while addressing some of the nation’s most pressing challenges.

HEIF funding has played a crucial role in unlocking collaboration between universities and private, public, and third-sector organisations by building core knowledge exchange capacity in English universities. CCF has also supported research commercialisation efforts and the development of local commercialisation ecosystems.”

Dr. Marshall also stressed the importance of continued investment, particularly in the face of uncertainty surrounding place-oriented funding, such as the UK Shared Prosperity Fund.

“With uncertainty surrounding the future of place-oriented funding, specifically the UK Shared Prosperity Fund, arguably growing investment in initiatives like HEIF and CCF will be key to achieving the UK’s growth ambitions nationwide. The Chancellor has expressed an intention to ‘get more investment into every nation and region of Britain,’ and these funds have demonstrated their capability in achieving this goal. With the upcoming spending review, this presents an opportunity for the government to place regional growth initiatives on a secure financial footing.”

A Pivotal Moment for Public Funding

As the UK navigates its economic recovery and global competitiveness in research and innovation, HEIF and CCF stand as proven mechanisms for driving enterprise-led growth. The figures underscore their pivotal role in leveraging private capital, fostering entrepreneurship, and enhancing the UK’s innovation landscape.

With a government spending review on the horizon, policymakers face a critical decision: whether to sustain and expand these funding streams or risk undermining the progress made in university-business collaboration. As the data suggests, continued public investment in HEIF and CCF is not merely beneficial—it is essential to securing the UK’s position as a leader in research-driven economic development.